Annual Expenses and Ideas on Budgeting for them

Ah the budget. It all comes back to it, in the end. We're still tweaking ours, as new expenses arise and old expenses increase, or, less often, decrease. But all-in-all, we're making improvements.

B's mom inspired us to make one such improvement in taking our annual budgeting to the next step. Instead of having to pull money from our emergency fund for those once-a-year expenses we always forget about, we're going to have that money built into our monthly budget and set aside in a separate account waiting oh, so patiently to be used. Now, in addition to our checking account, income account, tax account, and emergency fund account, we're going to set up an "annual expenses" account.

This means that I'm going to sit down and come up with a list of annual expenses and the amount associated with each expense, add all of those expenses together, then divide the total number by 12, so we essentially create another "monthly payment" that goes into the annual expense account. So when we need $40 to take Pippin to the vet, it's already sitting in the account.

Here's a list of the annual expenses I've come up with for our home:

- Gas and Power Bill spikes. We noticed a $20 jump in our gas bill for January because of an unexpected polar vortex. I anticipate that we'll see that same spike in the summer months on the power bill. Estimating a similar spike 4 months a year = $80
- Tax Preparation. My parents use Turbotax, which may be more feasible and much less expensive for us next year, but with so many job jumps, combining our households, interest on loan payments, etc., we've opted to visit an actual agent this year = $200
- Visits to the Vet. Plus potential prescriptions or shots. = $38.95 for 1 annual visit (plus tax), plus $150
- Annual doctor's appointments. Co-pays, prescriptions, glasses/contacts, all predictable  medical expenses.
- New clothes/shoes. We don't buy new clothes much, especially when B's work uniforms are all supplied by his employer. I always ask for gift cards for Christmas and holidays so I use that as my annual clothes and shoes budget. But, at some point, we'll need to replace B's work boots = $120 + tax/shipping
- Vacations/getaways. These are so important, but if we don't budget for them, they're not going to happen. I'm not sure if we'll have time to get around to 3 getaways, but for this year, I'd like to budget two weekend getaways at $100 and one anniversary getaway at $300 = $500
- Car repair and maintenance. This category is a bit trickier. A lot can go wrong with your car. We're going to stick to maintenance we know we'll have come up over the course of the year. That includes 4 oil changes per year per car (about $240), plus enough to replace one full set of tires (about $400) = $640.
- Renewing licenses. Okay, so having to renew your driver's license doesn't come up every year, but you have to update it if you move, and pay again so $20 each = $40
- Replace cell phones. I don't upgrade that often... What are phones going for these days? $300?  I think I'll budget $200, for both of us and hope for the best.... = $200
- Gifts. Birthdays, anniversaries, Christmas/Hanukkah, etc. It's very difficult to plan for this far in advanced when you don't know what anyone will want for Christmas in December and it's MARCH now. But we'll plan a certain amount per gift per person and occasion, so call it $300.

Yeah sure, I wanted to include 2 visits to the vet, just in case, or a trip to the emergency room, that way the money is already there if we need it. But I had to remind myself that I haven't been to the emergency room since I was 7 (knock on wood).  If a situation does arise, THAT is what the emergency fund is for, for unplanned visits that we don't have to budget for. So we'll plan for that 1 annual visit for the cat, since we know we'll need to take him. But that second what-if-something-happens visit? We'll Emergency Fund that, IF it happens. And we can always supplement these figures with blow budget, gift card budget, and unused grocery/gas budget.

A New Grocery Habit

It's been such a long time since I've posted. Between crazy weather, extra evening plans, and more kinds of sickness than I'd like to share, my time for blogging has been pushed aside!


So groceries. The majority of my contributions to keeping our budget on target is mostly in terms of grocery planning. We had been budgeting $300 per month, but I felt confident that once we were a little more established that I could whittle it down. So starting in November, it became my goal to get it down to $250. That number includes all food, of course, but also paper products, personal hygiene, cleaning supplies, kitty care, etc. We've been striving to meet that number, but had been still going over by about $20 each month.

Well,  my total for February 2014 amounted to $249.50!  So I'm definitely getting more comfortable with the lower budget.  But it took a lot more work than I'm use to putting into it. Usually my process is just to buy the things we need and the things that are on sale at the cheapest price possible with as many coupons as I can find.

I found this month that in order to keep it under $250,  I had to REALLY pre-plan based on sale prices and coupons on my final shopping trip of the month. So I made my list in the form of a table including the price per item found in the ad, minus the amount I could find in coupons, and with the total plus tax. It was very intense.  I also was going to 3 different stores, so I had to set a strict budget for each store: $15 for meat and produce to last the week at the farmer's market, $6.50 for 2 gallons of milk at Kroger, and the rest of the budget (about $26) for sale items and items we desperately needed at Publix.

Of course things changed once I got to Publix, so yeah, I walked around the market with my phone out doing calculations. I ended up spending just a little more than I anticipated because one of the items I bought was mispriced in my ad.  But luckily I was able to make up for it because I'd over-estimated for the farmer's market. And by the time I got to Kroger, the milk was on sale for a better price than I'd anticipated and I was even able to get some ice cream for B.

I believe I'm going to have to be this particular and specific on the last shopping trip of each month to stay faithful to the budget. Stay tuned for more info on if this proves to be more tedious than my patience allows for!

Kitty Update: Month 3 with Pippin

I would say our little fur baby has now fully adjusted to life in our home.  He's on a good schedule (minus the part where he wakes us up at 6 am on weekends for his breakfast), and has finally stopped attacking me every 5 minutes. He also has gotten a lot more snuggle-y. With me, anyway. He's always been a big fan of B and his fuzzy robe.

So far, Pippin hasn't managed to destroy any of our furniture or any of his toys (though some of his mice are missing noses). I haven't had to buy any more food since my last update on Pippin, and I believe I've only bought one container of litter. So month 3 = $6 total for keeping kitty.

We've also discovered yet another [cheap] toy Pippin seems to love: paper towel rolls.  They're about his length and thin enough for him to wrap his paws around.  He likes to attack and kick the living cardboard out of them!

Also, this picture:

Pippin sat like this in our bookshelf for a good long time. I laughed very hard.

Savvy Shopping Secrets

So one of my very best friends has moved into an apartment by herself. And I'm so excited for her!

But she told me it's going to be a little tight until she can find a roommate. So I thought I'd share a few shopping secrets I've learned to help her save more while still working on making her place more homey!


1. Bed Bath & Beyond accepts expired coupons.
     - They also accept coupons on your phone, and have a number you can text while you're in the store for them to send you a coupon nearly immediately if you haven't signed up for it before.
     - And they will accept one 20% off a single item coupon per item in your transaction.
     - Simple math: If the item you're buying is between $15 and $20, a $5 off your purchase coupon is more valuable. If the item is less than $15, the $5 off coupons are not valid, and if it's more than $20, the 20% off coupons are more valuable.
     - Side note: Buy Buy Baby is owned by the same company as BB&B. Buy Buy Baby will accept BB&B coupons (but not the other way around), and only if they're current.

2. Joann Fabric has a 10% discount club for students.
    - Show your Student ID to a manager for a club card that gives you 10% off your entire purchase every time, even combined with coupons.

3. Starbucks has a gold member rewards program.
     - Simply register any gift card and purchase 5 drinks on it and you immediately become a green level member that gives you a free drink on your birthday and free refills on tea and drip coffee while in-store.
     - Once you've purchased 30 drinks in a year, you become a gold member, with the same benefits as a green level, plus you earn a free drink every 12 purchases you make.
     - They're doing a current special where if you register a new card by February 7, they'll give you a free drink!  (Also, see details of green and gold benefits if you scroll down on that page).
     - Also, don't forget about Starbuck's pick of the week! They have a song, app, or book that you can download for free while in any store, or grab a card from the counter with a redemption code on it!

4. The Dollar Tree accepts manufacturer coupons
     - Granted, many things they carry are not name brand. But somethings are, so check!

5. Retailmenot 
     - Retailmenot.com is a website that lists printable coupons and online coupon codes for restaurants and department stores, as well as lists expiration dates and success rates people have had using the particular coupons.
     - This site also has a free mobile app, so even if you're making an unplanned purchase, you might be able to find a good coupon on your phone!  

6. Groupon has a whole section devoted to GOODS
      - Not only can you find deals on activities and getaways on Groupon.com, they also have a whole section devoted to deals on everything from jewelry to coffee to sheets!

There's Snow in the South!

Okay, okay, so it's snowing.  For some, this is the end of the world. For me, it's working from home for a few hours today and probably a few more tomorrow.

But, if your job can't travel to your home like mine can, I'm sure you're thankful for the extra time to relax if you got sent home as well.

Things I like in the snow:
- fuzzy socks
- hot tea
- heavy beef and rice meals
- big blankets
- BOOKS

Speaking of books, I've got some snowy day recommendations on getting your read on for free.

In this day and age, there is no reason for you to pay for books. For a particular book, maybe it's worth it to invest, but for general cold day reading, there are plenty of resources for FREE books.  Also note that even if you don't have an e-reader, you can still read e-books on your smartphone OR on any computer.

1.  The library.  YES, they still exist. Every county has one. And you can get a library card with any proof of current residency.   Two really important things to remember about libraries - Firstly, you can not only borrow physical books from your local library, but also movies and TV shows on DVD.   Secondly, most libraries now offer digital borrowing; log into the library website using your library card number and sign up for the books you want to borrow. Usually, the ones you want are already checked out so you have to put your name on a waiting list.

2. BookBub. BookBub is a fantastic website that sends out a daily email of e-book deals. Some are on a super sale, but many are FREE. Plus, you can customize the types of genres you want to receive (Mystery, How-To, Religious and Inspirational, Fantasy, etc), as well as pick from the suppliers offering deals (Amazon, iTunes, nook, etc). Another resource for free e-books is BookShout, but this site requires you to use their particular app for reading on e-readers, tablets, and smartphones which does not work on many devices. But, if it works on yours or if you're willing to read on a computer, all the better!

3. Your Friends. I borrow books from friends all of the time. Obviously, borrowing physical books from friends and family may involve you actually going to their place of residence, which I do not recommend in the snow. HOWEVER, you can lend e-books you purchased from Amazon to anyone else (or them to you) as long as you know their email address, so there's no reason for going into the cold.  Follow these steps from Amazon.com:

"Your Account"  >  "Manage Your Kindle" (under "Digital Content")  >  change the view to "books"  >  Select the drop down menu labeled "Actions" next to the title you want to lend and select "Loan this Title" at the bottom > Type in your friend's email address. They will have a couple of days to accept the loan and then two weeks to read it!

4. Classics.  Many classic novels written in or before the mid 19th century can be found in e-form for free, including works by Jane Austen, Victor Hugo, Alexandre Dumas, Emily and Charlotte Bronte, Oscar Wilde, and Charles Dickens.

Grab a nice cup of tea, read well and stay warm!

Simple Tips to Start Saving

Going from life as it is now to saving a few more bucks a month, or even to saving up to half of your income (my ultimate goal) is rough. It's hard to change your lifestyle, your current habits, and your routines. But if you have a goal of paying off debt, building a savings account, saving for a home, or whatever, small changes are the easiest to implement to get you started.

Here are some simple tips to start toward that goal:

1.  Quit your cable company.   I've harped on about this already. 

2.  Start couponing.  See previous ramblings here.  In addition, I always recommend looking online for coupons (or Groupons) whenever you plan to eat out, go to a movie, or go shopping at department stores.

3.  Shop smarter.  Assuming that you don't have time to coupon, you can still save money at the store.

           - For example, take advantage of sales on items you'll be buying anyway. If you're not picky about cereal, buy the brand on sale instead of what you usually get.  

           - Try the less "luxuried" brands. For example, try swapping out the super expensive brand of shampoo you've been buying for a less expensive brand like Suave.

           - Also, try the store brand, especially for basic items like sugar, flour, bread, chips, pickles, etc. B and I have found that 90% of the time, the store brand is just as good.  

           - Try local farmer's markets for less expensive produce and meat.

4.  Reuse.  

           -  B and I had been buying flats of water for him as a matter of convenience for his line of work. But my parents got him a light water bottle for Christmas, and he's been using that instead of spending $4-5 every couple of weeks on water. 

            - We also never use paper plates, despite our love for convenience, and we wash and reuse plastic flatware. 

            - We only use rechargable batteries for our gaming systems and cameras. They're a bit more up front, but I can't even tabulate how much we must have saved on batteries!

5.  Save Energy. 

            - Try keeping your A/C a few degrees higher when its warm, and your heater a few degrees lower when it's cold. Running these constantly really jacks up your power and gas bills.

            - Unplug chargers and turn things OFF when not in use, like your printer, Keurig, DVD player, etc.

6.  Limit what you spend.  

            - If you eat out three times a week, cut it back to two, or even one! 

            - Buy a coffee every morning on the way to work?  Make it at home and take it in a travel mug.

            - If you're really prone to impulse spending,  set a spending limit for yourself when you do hit the mall and stick to it.

The MOST important part, however, is to remember that the few dollars here and there you've been saving now needs to go toward that debt, savings account, etc.  It's very easy to splurge with the extra money you've saved, especially if you're not in the habit of saving. Resist it!!!

buy.it.freeze.it.save.it.eat.it

One MAJOR way we save money is by stocking our freezer to the max. Seriously, open at your own risk. 

But there are a TON of foods that I buy when they're on a great sale, and have one for now and freeze one for later. Examples:

- Meat - all things beef, chicken, hot dog, sausage, bacon, etc.
- Old wine, which you can cook with later

- Hummus, guacamole, or other dips
  - Shredded cheese (doesn't work so well for slices - they start to crumble after a while)

- Cookie dough

- Butter or margarine

- Fruits and veggies - Strawberries/blackberries/blueberries are all good for making smoothies later. I also like to pre-portion blueberries in cup-sized servings so I can make muffins with them. One of my BFFs would freeze bananas when they get really brown to make banana nut bread later. Veggies you can steam straight from the freezer to accompany any meal.

- Bread, muffins, biscuits, hamburger buns, or rolls.

- Pancakes - when we have leftover pancakes or waffles, I portion them into plastic bags for B to grab quick breakfasts later!

- Cake. My boss brought in a cake one day - it was beautiful (and delicious), but no one at work wanted any. SO I took it home, cut it into slices, wrapped each slice in plastic wrap, and froze them, for just one slice whenever I want one.

- B's mom likes to make big meals and then portion them out into single-serve containers for our freezer. We appreciate it a lot. And we've even started following suit when we have more leftovers than meals left in the week. We find that spaghetti and pasta dishes (and quiches or stews) reheat the best.

Make sure you check the label before freezing things - somethings say "DO NOT FREEZE", like cream cheese and probably anything Pillsbury that comes in a pressurized roll.


Happy Money-Saving!