Jump Into July: Embrace the Budget

In my last post, I talked about diving back into the Love My Body Project, but I've got several grandiose plans for July besides caring for (and loving) my body. I also desperately need to care for and love my bank account!

I thought quarantine life would do wonders for my budget. I'm getting, like, 3 weeks to the gallon in gas, I'm not eating out for lunch, and I'm not buying new work clothes. I figured I'd be swimming in spare cash.

I forgot about Amazon.

I didn't realize how many home improvement projects I'd suddenly be compelled to undertake.

And I certainly didn't factor in just how much food my kids would consume by being home 24/7.

I recently moved into a new home, and the move alone comes with costs. Neil also recently moved into a new place. Making two houses a home(s) can be costly. We've spent more than we really should have on decorating our new homes and making them perfect for our needs. I'll confess that I've used the fake money (credit card) more often than I should've, telling myself that Future Lori can deal with it.

Hello, I am Future Lori. And I'm dealing with it.

So part of my Jump Into July self-improvement plan is to Embrace the Budget. Of course it needed a title. I thought of several catchy project names - Balance the Bank, Curb the Cashflow, Manage My Money - but "Embrace the Budget" fit the best for what I'm trying to do. Rather than fight against the total of income vs expenses, I want to embrace what I have. I want to live within my means and learn to be happy with spending less and shopping more carefully.

Oddly enough, our topic of conversation in this morning's Women of Rotary Coffee Chat was smart shopping strategies, and they shared this quote:

Buy less, choose well, make it last. - Vivienne Westwood

This is my goal. I have SO MUCH. I couldn't even fit all my clothes in my new closet; I sent all my winter clothes to Neil's house to keep in his closet for me. I have more books than I could ever read (and so many of them I haven't yet read, but they are on my forever-long reading list). I have all the things I need. There's likely very little on Amazon that I can't live without. The problem I have is that I'm a total SHOPAHOLIC.

I love to shop. LOVE IT.

Grocery shopping, clothes shopping, home improvement shopping, gift shopping, card shopping - hell, put me inside a tractor supply store, and I'll find all kinds of things I didn't know I needed. ("A chicken coop!! Let's buy a chicken coop and raise chickens!!")

It's an addiction, and it's not a healthy one. I truly do use retail as a therapy. If I feel down, I shop. I don't have to even be shopping for myself. I love shopping for other people too. I'll see some random object in a random shop and think, "Oh man, that would be perfect for Sally, that woman I met three weeks ago at the tractor supply store, and what a great way to keep in touch with her!" Giving gifts is one of my love languages, which is generous and all, but not exactly inexpensive.

I'm fairly good at budgeting. I've kept a personal budget for almost a decade, so my bills always get paid. I put money into savings every paycheck. I contribute to my 401k. On paper, Dave Ramsey would be proud. It's all the other things that I'm bad about. I have no impulse control when it comes to shopping. I have no concept of delayed gratification when it comes to things. I used to be good at keeping track of my grocery spending, but I've gotten lazy. I love comfort food and I love comfort things. So I buy them.

That's gotta staaahhp. 

So, my Embrace the Budget goal for July is to not just stick to my budget, but be kind to my budget. I am lucky and blessed that I make enough money to cover my bills and groceries and still have some to spare. Having some leftover to spare doesn't have to mean leftover to spend. I'm tracking all my purchases in a notebook and totaling them all up by category. Anything that doesn't fall within an already budgeted category shouldn't get purchased. I've given myself a set budget for those extras, like getting takeout or buying my son's birthday presents, so it's not like I'm going to force myself to have no fun. I just won't be allowed to buy every book that gets reviewed on Fresh Air or a new dress every time I have a new event to attend. (I'm not attending events right now anyway! Coronavirus!)

It takes a month to form a habit. (Actually, I have no idea how many days it takes to make a habit.) If I can curb my cashflow, manage my money, and embrace my budget for the month of July, maybe I can do it in August too. And maybe I can do it again in September. I think it's possible! But it starts with baby steps, just like my health plan. A book was mentioned in the Rotary meeting this morning that I immediately looked up on Amazon. But I didn't buy it. I wanted to. I really wanted to. But I didn't. Because I have so many books to read already. I can live without it.

Just as I need to learn to love my body, I need to learn to embrace my budget. So bring it on, July! I can take it.

September Shopping Challenge: Essential Prep

So for those of you who are joining me in the September Shopping Challenge for the first time, here are a few tips for getting started.

The key to success in this challenge is prep prep prep. It's essential that you plan ahead, budget and keep track of your spending.

When it comes to meals, menu planning is a must. We have in our kitchen four planning boards - meals, kids' schedules, parents' schedules ... and a fourth that has yet to find a real use but was needed to make the space look right. Chore schedules would probably make sense, if I'd just get around to it. This month, though, I've made the fourth board a shopping challenge record board.

Menu planning is essential. #septembershoppingchallenge

A photo posted by Lori McFarlane (@lorimcfarlane) on Aug 28, 2016 at 6:34pm PDT

Usually I only plan meals for the two weeks of the pay period, but this month I went ahead and planned for all month. I included eat-out days, so they could be budgeted as well.  Using my scheduling board, I made sure that the meals I planned corresponded with our schedules. For instance, Lolly has soccer practice two days a week; those days, the dinners I've planned are quick and simple, so she can eat and be back out the door in time for practice.  I have book club on the 3rd, so I planned out an extra dish to bring along to that. Don't forget to plan for Labor Day weekend too - will you be going out? Barbecuing? Menu planning around your schedules is important.

Menu planning is essential. #septembershoppingchallenge

A photo posted by Lori McFarlane (@lorimcfarlane) on Aug 28, 2016 at 6:35pm PDT

Then you need to plan your grocery list around your menu. I made my shopping list in the kitchen, going through each day and writing down what was on the menu and what ingredients I'd need for each thing. I also made sure I checked the fridge and the pantry in case I already had some of the ingredients or in case I thought I had some but didn't.  I also checked my household lists for "other" items I needed to buy.

Grocery lists are a must. #septembershoppingchallenge

A photo posted by Lori McFarlane (@lorimcfarlane) on Aug 28, 2016 at 6:36pm PDT

Finally, it's useful, if you have the time, to make sure everything on your list will fit into your grocery budget. For our family of five, our budget is $300 a fortnight for groceries. I know from experience that my grocery list is almost always going to fit into that budget, so I no longer write down the numbers, but I still write down the actual costs as I'm shopping so I can tally up before check-out, and if I've overspent, I can put some things back.  For those of you new to budgeting though, I recommend playing your own version of the supermarket game, if you have the time. I did all of this on Saturday while the kids played on their iPads and computers, so I could have enough time to really plan all this out. However, I know we don't all have tons of spare time to be super meticulous. If you have the time, though, the supermarket game is a great way to keep yourself from overspending or buying extra items while at the store.  Follow the link to read in detail, but a quick summary of the game is this:

1. Next to each item on the list, write down what you suspect each item will cost. (I round up to the nearest $0.50 or $1.)

2. Total it up so you know what you think you will end up spending. (If that total is over your budget limit, go back through and see what you can cut out.)

3. While at the store, write down how much the item actually cost. You can even grade yourself on how well you guessed by giving yourself a point for each item you either got exactly right and two points for each you spent less on. Take away a point for each item you spent more than your estimate. Take away another point for each item you buy that wasn't on your list. Give yourself no points but do not take away if that unplanned for item was a true necessity. (We all forget sometimes that we need butter or have run out of baking soda.)  Each item on your list started out as a single point, so at the end of the game, how close to your original list did you get, point-wise?

(I also write down each extra item I buy with its cost, so I can keep track of what I'm buying and where the extra expenses came from.)

4. When you check out, if you stayed under your budget, you win! If you went over, you didn't "lose" you just know how to estimate better next time. Tally up your points too and see how well you did. Did you estimate everything well? Did you underspend more often than you overspent?

Stick to your list and keep track of actual on-site costs. #septembershoppingchallenge

A photo posted by Lori McFarlane (@lorimcfarlane) on Aug 28, 2016 at 6:37pm PDT

This is how I keep myself on budget with meals and groceries. This month, I'm also keeping a record of what I've spent in groceries and in my personal spending allowance. Seeing it in black and white (rather than in a bank account) somehow makes the money seem more real to me. I know using a checkbook transaction log is good, and I should really start doing that again, but I tend to use that only for  my checks. If you are already using a log, that is great! If you aren't logging anything at all, I'd suggest you find an easy way to do it. My log is just a sticky pad I keep in my car with a pen. As soon as I get in the car, I record what's on the receipt (or a rounded-up estimate if I've already managed to lose the receipt.) Whatever works for you. But I highly recommend logging your spending somewhere, somehow.

Keep a log of you're spending, even if it's just an informal tally. #septembershoppingchallenge

A photo posted by Lori McFarlane (@lorimcfarlane) on Aug 28, 2016 at 6:38pm PDT

Get planning, folks! September starts Thursday!