Preparing a budget that really works
I’ve been on and off budgets all my adult life. It has made me feel like I’m on a money diet at times. I’ve cut out the extras, eaten at home, and made coffee at home instead of hitting the coffee shop every day. I do well for a while, but then life happens and I go back to my ways, at least partially, and then I feel bad because I don’t think I have willpower.
Well, I realized the secret. And it’s not hard. Really. You have to create a budget that truly represents how you spend money and your habits, even the bad stuff.
A Real Budget Example
My husband smokes at least a pack of cigarettes a day. I know what you are saying, “Wow! That’s a lot.” Been there, done that. I can’t make him quit. But what I can do is budget for it. He is going to spend the money no matter what I say. That’s a fact. Why would I not budget for cigarettes when the money is going to be spent? The average price of a box of cigarettes is $5.00. So if he smokes a pack a day, it costs us at least $150 a month. That is a significant amount of money that can throw a budget out of whack.
Another example is gambling. We don’t gamble, but living in Las Vegas we have friends who do for recreational enjoyment. They do it to have fun and enjoy it. I’m not judging their level of gambling or if they should be doing it or not. But the bottom line is that they are spending the money on a consistent basis. Keep in mind these people are not the type of gamblers who blow their whole paycheck. It is for entertainment and part of their daily lives. So, if they are going to put $20 into the video poker machine when they go to lunch or dinner, they need to add it to their budget. Let’s say they do this three times a week. That’s $240 a month. If they are going to do it, why wouldn’t they budget for it?
The Budgeting Tips Takeaway
We tend to use a budget as a guide to how we feel we should live our lives rather than how we are really living. It can be a wake up call when you see and track what you are spending on bad habits and can be a motivator to make a change. But you have to be real with yourself when creating a budget or it won’t work. It is that simple. Start 2012 with a realistic budget and increase the odds on your success. That’s a bet I’d make.
Keeping Financial Records is a Money Saver?
Who knew that keeping financial records like bank receipts could be a real money saver? Wondering why keeping financial records is a money saver? Read on to find out!
I collect so much paper throughout the day – receipts for meals, gas, groceries, purchases I may have to take back if they don’t work out, and bank deposits. I normally keep them in my wallet for too long and eventually sort through them when my wallet is hard to close. Doesn’t sound real organized but, boy, was I happy last week that I’m a borderline receipt hoarder!
The Domino Effect
My bank made a mistake. It posted a deposit a day later than I had actually made it. This caused a domino effect of checks bouncing and fees hitting my account that caused me to take a gasp and let a few expletives pass my lips when I checked my account online the next day. Good thing my five-year-old was still asleep…
How Can I Fix This?
I called the bank and was instructed to go to the branch where I made the deposit. I was there when it opened and had dug out my deposit receipt from the depths of my wallet, so I was prepared. This piece of paper that is tossed by many into the trash can sitting next to the ATM or at the door of the bank saved me $140 in fees. It was my proof! It took 20 minutes for them to sort out the mistake, fix the fees and come up with a solution for the returned checks. And it was all thanks to this crumpled up piece of paper.
The Money Saver Takeaway
I’ve always wondered if it was worth saving the deposit receipts. There is no doubt in my mind now! That receipt was a big (and quick) money saver.
What About Other Documents?
Wondering
how long to keep financial records such as bank statements, tax returns, insurance policies and other documents? This comprehensive and easy-to-read table from Consumer Reports tells you
how long to keep documents.
Who doesn’t love a good plate of lasagna? Layers and layers of sinful cheese melted in between layers of pasta and meat sauce. Yummy! But going out to your local Italian restaurant can get pricy. For someone who isn’t a Rachael Ray and is saving money wherever I can, I decided to make my own because I can cook Italian.
Was Cooking at Home Really a Money Saver?
After making my lasagna at home last week, I decided to really see what it cost because my grocery bill was slightly higher than usual. I added up how much the noodles, ground beef, sauce (yes – I’m a jar user), ricotta, parmesan, mozzarella and a few eggs cost me. We also had some veggies on the side, so I added that to my total. The tally kept going up and up, and to my amazement it cost almost $20. That seemed like a lot for a dinner meal when I’d been averaging $3-4 a plate for dinner.
How Did It Compare?
Then I remembered it was a pan of lasagna, not just three plates. If I was going to call this a money saver, I had to compare apples to apples, so to speak! The average price of a plate of lasagna at a restaurant chain is $14.50. It’s usually a huge portion and could feed two people, so let’s do a comparison:
At-home lasagna (+veggies):
- Cost: $20
- Yield: 8 healthy-sized portions
- Average cost per plate: $2.50!
Restaurant lasagna:
- Cost: $14.50
- Yield: 2 healthy-sized portions
- Average cost per plate: $7.25
- (And no veggies!)
A Bargain After All…
You could argue that you are paying for the ambience, staff and experience when you go to a restaurant, and I would agree. Eating out is nice. But if you are on a budget and saving money, which 95% of the population should be doing, then you make terrific lasagna at home instead of ordering it at a restaurant.
Then when you do go out to eat, you order something that you know you wouldn’t cook at home, like the shrimp and grits I had at a French bistro two weeks ago. Forget about it! I know my limitations, so I’m saving money on Italian because I have to pay for French.
…And we all know lasagna is better the second day anyway!
The Money Saver Tip Takeaway
I learned not to assume that I know the cost of something when I’m trying to make a comparison. When I checked the real costs for my homemade lasagna, it turned out I was saving a lot more than I thought!
Let’s talk about the recession. Officially, it’s over, but we all know many businesses are still struggling. As a member of a local BNI Chapter, it has been shared with us that the founder, Ivan Misner, took a personal stance against the recession by declaring he was not going to participate in it. He even had buttons made that read “I refuse to participate in the recession.” Now, that may sound bold, or you may think, “He’s not living my reality right now,” but let’s really think about this.
There is opportunity everywhere. Even in times like these. Just stop for a moment and allow yourself to see it. Who is busy right now? Bankruptcy attorneys, loan modification experts, CPAs, realtors who have adapted to the new market reality, alternative energy industries…just to name a few. How can you parlay your company with these or other industries that are thriving? What can you offer that provides value and convenience to booming businesses?
Don’t let the media determine your mindset. Decide today that you want to grow your business. Decide that you aren’t going to let the economy take you down. If your company needs to “zig” when you have always “zagged,” make the change. Do what you need to do to keep your doors open, your employees employed and your company thriving. It is realistic to make this happen. Just think outside the box. Brainstorm with employees, friends or family. Hire a business coach if you can afford it. It might be that you can’t afford not to hire one because of what a good coach can do for you (personal experience talking here).
You can face the current economy, make adjustments and survive and/or thrive. Or become a statistic. It’s your decision. I vote for punching the recession right between the eyes and knocking it on its keister.
I’m on a grocery budget just like many other people. When I created my budget, I budgeted enough for my family to eat well, but not filet mignon every night. I have three steps that I always do when it comes to going to the grocery store. I recently added two more that saved me $15 a week.
Here are my first three tips for how to stay on budget for your grocery shopping:
- Make a list first. I know this is nothing new, but it amazes me how much more I spend if I don’t go with my list. Compile the list during the week so it isn’t a big chore to do when it’s time to go to the store. You also will avoid forgetting something which will cause another trip to the store.
- Keep track of how much you are buying. This allows you to know when you are approaching your budgeted amount and gives you an opportunity to rethink any purchases that are putting you over the budget. Most phones have a calculator, so use your phone!
- Keep your list items separate in the cart from your “want” items. Most people pick up things throughout the store that aren’t on the list. When you are over budget, it’s really easy to see what needs to go back if you’ve kept them separated.
Here are two more tips that could help you save up to $15 a week:
- Coupons. I’m not talking about extreme couponing. Just take 15 minutes before you go to the store to look over the current ads. On your grocery list make a notation beside any item for which you have any store’s coupon or ad. This will help when you are checking out so you won’t miss any savings.
- Remember, some stores do price matching. I don’t go from store to store to store to get the deals. I simply refer to my list when I check out, present the coupons and ads that apply, and the store honors any other store’s coupon or matches the advertised price.
With the $60 savings, my family may just get filet mignon tonight!
Do you panic when your car makes that weird sound? We all need an auto repair shop we can trust. Today’s guest blogger, Dave Beason of The Muffler Shop in Henderson, Nevada has some great advice for finding a repair shop to meet your needs.
Picking a Repair Shop
The number one question I am always asked is how do you find a reputable and trustworthy mechanic. If you know a little about cars, that will help, but mostly there are some common sense things that will help you when trying to establish a relationship with a new shop. I suggest you search out and locate a shop you think will work for you and your vehicles long before they break down. Never pick a repair shop from the back of a tow truck. You will have very few options at that point and you may feel like you are being taken advantage of if the trust is not there.
The Facility and First Impressions
When you are looking for a new repair facility, don’t be afraid to get out of your car. If the shop doesn’t welcome you in as a visitor or doesn’t want to show you around, then you probably won’t feel comfortable there when your vehicle needs work performed. There are some common sense things you are looking for and you are also looking at how the shop represents itself.
- Is the outside clean and neat?
- Is the paint and signage well kept?
- Are the posters or banners faded and out of date?
- As you look in the service bays, are they well kept? Are the floors clean, or are there old parts and debris lying around everywhere?
- Ladies, check out the customer restroom. Is it clean enough to use?
- When you go inside the waiting area, how clean is it?
- Do they have a comfortable waiting area with current magazines, or is it somewhere the mechanics hang out when not working on cars?
These are just a few items you should look at to get a sense of the shop‘s values and how they would treat you and your vehicles. If a business doesn’t care enough about you to keep the bathrooms clean, it’s probably not going to spend much time and energy taking care of your vehicle. I’m not going to tell you only good shops keep them spotless, but there is a difference between keeping it as clean as possible and just not caring.
This May Help: Visit a facility and have something simple done, oil change, light bulb or windshield wipers replaced and see how you are treated. If you like the service the first time, bring your vehicle back for a larger repair on your next visit.
The Employees, Are They What You Are Looking For?
Now that you are inside, did you feel welcome? Did the service writer greet you promptly or were you ignored for a phone call or a mechanic talking to him about another person’s vehicle? If it is personal attention you are seeking, the service writer is that person. He not only will listen to all your concerns when dropping off your car, but a good service writer will relate all those concerns to the technician who will be working on your vehicle. He will also follow up and make sure all your concerns were addressed when the vehicle is returned to you.
One of the things you want to check while in the office is certifications. Is the shop certified? Are the technicians certified? Some shops are very proud of these certifications and they are plastered all over the walls in the waiting area. Take a look and see if they are current. If not, ask why. If they are not posted on the walls, ask the service writer to see them. Most shops are very happy to provide them for you. Certifications for the shop and technicians are part of a continuing education that a good shop will keep current. The automotive industry is changing daily, and if certifications are not kept current then the shop and its employees are falling behind on their knowledge to repair and maintain your vehicle. One set of certificates that carries a lot of weight in the industry is ASE and ASE Blue Seal. The National Institute for Automotive Service Excellence (ASE) program is very well run and requires the shops and technicians to take a test (every year) to receive these certifications. If the shop has all their current ASE certificates (certificates, not just patches on the uniforms) you are probably in a facility that puts in that extra effort. It also shows they care about themselves, their careers and most of all, your automotive needs.
Remember, You Have Options
You are the person in control of your keys. If you don’t feel good about the shop you are standing in, ask for your keys back and leave. Even if you have been towed to this particular facility, ask to have a tow company pick it up and pay for the tow to another shop that you are comfortable with. It may be an inconvenience, but you will be money ahead and feel better about the repairs when done. There are a lot of great shops out there, large or small, corporate or family owned. It is your job to locate the one that fits your personality, location and vehicle needs. Trust your instincts and remember to find the location of your choice before you need major auto repairs.
Here are some websites that will help you with your search.
- Automotive Service Association — Look for a certified shop in your area.
- AAA has a lot of good advice for consumers and a certified AAA facility has to adhere to some higher standards to be an affiliate.
Repair Pal is a great place to check pricing, it will show you the average in your area between dealerships and independently owned shops.- The Car Care Council is an independent council with some very good information for the consumer on vehicle maintenance.
Dave Beason has been in business 30 years at The Muffler Shop, a full-service auto repair facility, located at 38 Navy Street in Henderson. You can contact the shop at 702-564-6655 or visit their website at www.TheMufflerShop.com.
Give Me All Your Money!
NBA financial greed: it’s on both sides, but who is really paying for it?
I keep watching the back and forth between the NBA players and owners. The players think they should get a bigger piece of the pie, because without them there would be no league. They also make the owners lots of money. The owners feel they should have the lion’s share because, well, they are the owners. They put up the money, personal guarantees, etc. to buy and fund the teams. They have the biggest financial burden, hence they should get more. This is the NBA’s idea of money problems?
The Math of Greed
I think that they all are being incredibly greedy. The thought that making multimillions a year …A YEAR… is just not enough boggles my little brain. I understand that the players have a limited time to make money. The average basketball career is 15 years, while a majority of us work for 40 years. With that said, the average basketball salary is $5.8 million a year. Hmmm… the math is simple. The players who play for 15 years can earn up to $87 million in their careers. Isn’t it enough? I haven’t even touched what the owners make.
Okay, I’m getting off my soapbox. My point is this. We — the fans with real money problems — pay the owners and players. We buy the tickets, paraphernalia and refreshments at games. If we don’t go to a game, we watch it on TV, which contributes to viewership that lends to advertising rates for commercials for which the players get paid for endorsements.
Average cost of NBA game for a family of four:
Economy parking: $7
Tickets: $48/each = $192 (hope we can see the players)
Food/Drink: $8/each = $32 (nonalcoholic)
Total: $231
[ Hey, if we figured out how to budget for a great steak dinner, then we can figure out how to budget for a family outing to the ball game too! ]
Average capacity of an NBA arena = 18,000. That’s $1,039,500 a game.
I know that not every game is sold out in every arena, but you get the idea. There is serious money being made by the NBA.
Enough already, owners and players! There is plenty to go around since the average Joe is really paying your paychecks.
What does your CPA do for you?
As business owners, we all have a CPA. The person we give our financial statements to and cross our fingers they can do the magic. But what else could your CPA do for you? What else are they capable of doing? Here are three things that can help you:
- Review your books quarterly. Take the time to send your financial statements to your CPA on a quarterly basis. Have him/ her take a quick peek at what your business is doing. If something isn’t right, it can be caught right away rather than at the end of the year.
- Call first. When you are going to make a large purchase, maybe a new piece of equipment, call your CPA first, NOT after you’ve signed the agreement. He/she will know the benefits or drawbacks depending on the type of equipment and the amount of the purchase.
- Gray area. Yup, we said it. The gray area. It’s that area in which the question “Can I expense this?” falls. Don’t decide on your own…pleeaassee. Call your CPA first and give your bookkeeper the direction. Not the other way around. Your bookkeeper is not a CPA and doesn’t know all the tax laws like your CPA does.
The CPA’s we work with appreciate being involved in their clients’ businesses throughout the year. It makes their job easier because they are up-to-date on their clients’ issues. It also decreases the calls they have to make saying, “You owe,” when you had no idea.
Your CPA should want to do these steps for you. If not, consider getting another CPA who is interested in your business.
Oscar Goodman’s Steak House at the Plaza opening soon
As a resident of Nevada, I am thrilled to see Oscar Goodman opening a steak house downtown. Oscar “gets” Vegas and continues his support for Downtown . His tagline is classic: “Beef, Booze and Broads.” That’s Oscar!
Because I do live in Southern Nevada and am oh, so aware of staying on a budget due to cuts we all have to endure, I don’t deprive myself of a great steak dinner, but now budget for it so I can truly enjoy it and not fret afterwards.
How Much to Budget?
So in preparation for my fine-dining steak dinner with my hubby, I am budgeting the following:
- Valet parking – $5-$7. If you can’t afford to tip the valet, then stay home. We are a tip city and be ready to give some of it up!
- Dinner for two – steaks, sides, wine, maybe share an appetizer and dessert – $175-$225
- Wait staff – 20-25% ($44 if you tip 22% on $200) of the tab before sales tax. This is if you are happy with the service. Again, if you don’t have the funds to tip, stay home until you do.
Total: Around $288 tops
How to save money for it?
That’s a pretty penny but easy to budget for. You could save for it in one month by doing these three things:
- Cut your coffee/soda purchases in half. This will probably save you $50.
- Cut your eating out to three times a week. This includes lunches and dinners. This will probably save you $150.
- Cut your personal shopping in half. This will probably save you $100.
The Takeaway
One month, only 30 days of cutting back, and you can treat yourself to a steak dinner, support our former mayor and not put it on a credit card. I’ll be ready when Oscar’s opens. My mouth is already salivating.
Want to learn more about how to budget, while allowing for the occasional splurge? Our Money Management Program helps you save money for a rainy day while paying down your debt and still enjoying a good lifestyle.
Squeezing the Tube
As I was brushing my teeth this morning I found myself squeezing the tube to get that last bit of toothpaste . I smoothed it out, pushed the remaining toothpaste to the top of the tube and bent the tip when I squeezed. I was surprised how much came out and realized I have another three to four days worth of toothpaste when I had been ready to chuck the tube.
What if you applied the same process to your money? Are you squeezing everything you can out of your money?
So, Money is Like Toothpaste?
When was the last time you had your insurance agent evaluate all your policies? Are you over-insured? Do you need all your policies? Most people have seen a decrease in value to their homes. This may result in needing less insurance which would mean a less expensive policy — so you’re saving money.
What about your cell phone? I kept getting dinged $15 for overage on my data plan but had a ton of minutes roll over each month. With one phone call to change my plan, I saved $45 a month. That is almost $600 a year.
How do you plan out errand running? Do you find yourself running all around town, or do you do two or three errands that are near each other? Planning your route will mean going to the pump less often so you spend less on gas.
The Takeaway
It’s amazing how small changes will add up. If you squeeze $20 from five monthly bills, you will have saved $1200 a year. $1200 a year!! Time to see where you can be saving money — painlessly!