$21 challenge

I am currently preparing to do the $21 challenge at Simple Savings ( see my link at the right hand side).

 The reason that I am preparing this is that I have to really think about how I will tackle it.

The idea is to be able to feed your family for a week for $21. You don't have to do this all the time, but doing it from time to time means that once a month or so you have a considerable chunk of your budget not spent.

You are allowed to use things from the pantry that you already have, so the $21 doesn't have to buy every little ingredient.

Is anyone keen to have a go or at least swap some recipe ideas ? There are two adults and two children aged 6 and 9 in my family.

STOP THINK DO - Part Three

Develop a Plan and Organise a System For Paying Your Bills

If you have bills arriving in the mail that you didn't know were coming or you suddenly can't afford to pay for something else because you have to pay this bill, you are allowing your bills to control YOU, instead of you controlling them.

To prevent this, you must have a plan and you must work your plan into a system.
Firstly, list your big expenses throughout the year. These may include electricity, water, school fees, registrations, insurances etc. If you are unsure when these bills fall, then mark them on a summary sheet which is divided into 12 boxes, one for each month, as they come in through the year. Knowing what is on your horizon will enable you to plan for the larger expenses rather than dreading them when the bill arrives in the mail.

To control the bills I have a system whereby I tally up every bill that I expect to come in throughout the year.

 I look back through old calendars and bank statements to get an accurate list. I then add the total of all the bills for the year. After I get up off the floor and recover from the shock I divide this amount by 52 or 26 if you work on a fortnightly budget and then know that this is the amount that I have to put aside.

My version of "put aside" is to transfer it into an account that is only for bills. I don't touch this money, except for bills. Depending on how much control you need over your finances, you may choose to have a plastic bag for each bill, whereby you put $20 a week into the electricity bill bag etc. Some people choose to do a bpay electronic transfer to each company so by the time the bill comes in, the amount is in credit or close to zero.

The choice is yours.

The only rule is that it has to be "a system" that is, something that is not too complicated and works for you. If you are the type of person that simply can't have cash on hand because you are impulsive then don't choose the method where you hang onto the cash. You would be better of paying each company a small amount each fortnight.

When a bill comes in I write the due date on the calendar and the amount. I then have an "unpaid bills" clip that stand on my desk. One of my jobs on Mondays is to look at my budget and pay any bills. I pay the ones that are due in the upcoming week. I also write a list of bills that I have paid so I can see at a glance how much variance in, for example, mobile bills over the past few months.

As you know from my previous posts we work on a cash only basis for our day to day expenses and for our savings. See my previous post for how I actually do this.
http://avisionsplendid.blogspot.com/2007/07/working-with-cash-budget.html

To take away financial stress you have to be in control. Otherwise your money management is like a giant wave that keeps knocking you down every time you try to stand up. Removing financial stress will allow you to concentrate on more important things, like building quality family relationships and having a more peaceful, simplified family life.

Let me know how you are going via email or comments. If you have any helpful hints on how you reduce financial stress in your family, please let us all know.

TV Free

As I have said before we don't watch commercial TV at all. Never. We are ABC watchers and occasionally we will watch SBS if there is something special on.

Since last Friday we have switched the TV off once the kids have watched the ABC kids shows after school. I don't mind them watching these, especially the science show and BTN ( Behind the News). Our 9 year old loves this.

When you switch off the TV your shoulders drop and you breath a sigh of relief - try it and see. Then the calmness sets in. The Tranquility. Ahhhh Serenity !

When you have the TV off the time goes really slowly, maybe because it's not broken down into half hour segments. We read, the kids colour in and build lego, and surprise surprise ....we talk !

Try it. You may just like the serenity. I am up to night number seven - I think I am hooked on the peace and the early nights. I will watch it again, most likely, but as a treat and planned relaxation and enjoyment, not as a mindless exercise. I like having the extra time too much

Feeling Personally Organised

Do you ever feel that you can’t keep up with life and that it just happens while you run to keep up with the pace.

The idea is to take control so that you become proactive instead of reactive. This means that you will be prepared for events beforehand rather than reacting to them when they become urgent or important.

The tools you will need to feel personally organized are:

1. A diary
2. A calendar
3. Menu Planner
4. Shopping List
5. Budget Book

The calendar needs to go on the wall at home and the diary needs to be big enough to write in yet small enough to carry around.

In order to get ahead you need to set up your diary. Remember, you start where you are. Don’t think you can only start doing this at the beginning of the year.

Firstly, birthdays. Fill out a list of all the birthdays for the year. Then go through and mark them in your calendar. When you go to mark them in your calendar/diary you will need to firstly mark the date and then secondly put a note in the week before that says “send off card” or “ buy present” or whatever you do for that person. It may just be that you send a special email on the day.

Mark in any other dates. I, for example, mark in all the school holidays and try and plan when I will take leave throughout the year.

Now whenever you receive notification of any events you need to not only put them in the diary but put a reminder a week or two out from the event depending on what sort of preparation is needed for.

I have discussed the concepts of menu planning, budgeting and shopping before on the website and you can scroll down to the category searches if you need further information.

The idea is to be dealing with things before they become urgent. The more ' ahead' you are the less stressed you are.

What can you do today to be prepared for something that is on you horizon ? If you deal with things on the horizon they are the size of ants. If you leave them until they get closer and closer those ants become elephants and you will be trampled.

Please let me know different ways that you do things in advance. It could be as simple as making lunches the night before, buying Christmas presents in January or once a month cooking, I would love to hear from you.Please also let me know if you require more detail. Would you like to see the charts and forms I use in my home management binder or mu budget books/ menu planner etc. Do you need a copy ? Please email me. My address is in my profile.

Wash on Mondays, Iron on Tuesdays

Well, maybe not that programmed, but Monday is my stay at home day so I always have "Monday Jobs".

These usually include:

Paying Bills
Doing the Budget
Menu Planning
Calendar Updating
Cooking
Organising my clothes for the rest of the week
organising sports clothes for the children

Rhythm and routine are important parts of life.

If you can spread your tasks over the week you won't have one day where there is an impossible number of tasks to be done.

Doing things little by little brings peace to your day.

Stock Up

Today I went to ALDI ( about a 40 minute drive from home) and did my stock up with a friend of mine who is also looking at saving money through smart buying.

Sometimes it is good to pair up because you can go halves in larger quantities so that you get the bulk discount without the storage problems, or having the product go off before you use it all.

So far we have shared rice and peeled garlic cloves ( we got a big bag when we were at the Sydney markets together). Soon we plan on sharing potatoes and a large quantity of meat.

It's nice to have like minded friends. I had to laugh tonight because I got a text message from her which said " cat food a hit", meaning that her previously fussy cat had taken to the cheaper ALDI cat food. It's great having someone who enjoys extreme shopping as much as I do !

Extreme Shopping

You've heard of extreme sports, well I am into Extreme Shopping. Now don't misunderstand me, I don't spend hours clothes shopping and wandering the malls. In fact I hate that sort of shopping. I am into extreme shopping for things I have to buy - and let me tell you I LOVE it!

It started quite a few years ago when I was expecting number one son. I spent a lot of time obsessing over our budget working out how I could afford to not go back to work once the baby was born. I soon worked out that saving 20 cents here or there could really make a difference and I have been totally obsessed with the concept ever since.

Now I am sure many of you are thinking that you can't be bothered shopping around, or that the extra time involved is not worth it, but take a look at this little equation.

Lemonade: I usually buy two bottles for a week. It comes on sale and I can save $1.25. Multiply this by two and then by 52 weeks for the year and the saving is $130. Not much you reckon ? Do this across your grocery list and you 'make' enough savings to take your family to a resort for 10 days every Christmas. (well that's what I choose to do - you may choose something else like pay your credit card off or use it for birthdays etc )

So.... the question remains. Is it worth the time and hassle ? Only you can answer that question. The actual question is.... how much time are you willing to invest to have a holiday/ pay off credit card etc ? ... one hour..... three hours ......5 hours......

Here's how I do it.

Firstly I went to the supermarket I usually frequent. As I did my normal round I took a calculator and worked out the best buy by using the unit price method. I divide the price grams/ litres etc and multiply by a common unit to get the price into a usable quantity. Clear as Mud ? Let's do an example. In the supermarket you see two bags of sugar.

The first is 2kg for 2.49 and the second is 3kg for 3.79. Here are the steps

2.49 divide by 2 = 1.245 per kg

3.79 divide by 3 = 1.263 per kg

so the 2kg is the better buy. Don't be fooled though, the answer is not always the biggest quantity and this example doesn't really show a clear saving.

Here's another: Toothpaste 110g for 1.29 or 175g for 1.89

1.29 divide by 110 X 1000 = 11.72 per kg

1.89 divide by 175g x 1000 = 10.80 per kg

I convert the smaller numbers to kilos or litres to make it easier.

It tool me about an extra 40 minutes to do the shopping that day and I recorded the prices in my price book. The next week I shopped at the other supermarket and did the same. Then when I came home I compared it with a docket I had from a trip to ALDI.

I then made a master list of what to buy from which shop. All up I think it would have taken me about 3 hours to do the whole thing over a number of days. Now when it comes to shopping day I don't run around to every shop and waste my time. Because I used the stockpiling principle, that is I buy enough of something when it is on sale to not buy it again until it comes on sale again , that I simply buy what I need depending on which shop I go to.

The extreme shopping starts (oh I crack myself up - this is so sad ! ) when I see catalogues and can do a quick calculation as to whether or not the shampoo is a good buy and how much I will save.

Every time I laugh at myself and think I have REALLY become obsessive compulsive about my grocery shopping I just think of that holiday.

We have been going there for 9 years now. Who'd a thought it ! Most people can't be bothered. But I'm sure if you stood on the street corner and handed out $2000 they'd jump at the opportunity.

Well, people, your opportunity is already under your nose. You just have to ask yourself whether you are willing to invest the time. After all, in this world we either spend money or we spend time.

Are you an extreme shopper ? I'd love to hear your story !

It May Not Look Like Much........

Finished !

This is my dishcloth wish I have to put in the post by Friday. For those of you who have no idea what I am talking about, refer to Down to Earth on the link bar at right. Rhonda had such an interest in her use of home made cotton dishcloths rather than disposable wipes that she put up a swap for anyone that was interested. The idea is that you pair up and make a dishcloth then swap it. Sounds great in theory and I signed up without too much thought. After she posted the due date it suddenly occurred to me that I can't knit !!! Well, actually, I can knit but only whilst chanting " in around through off". I let Rhonda know that I was a little worried but she assured me

that if we wanted something that was perfect we would go and buy it from a store. Tonight I wanted to finish but didn't know how to so I had to Google " knitting- casting off". All I can say is 'Thank you Google, where would I be without you. ' Google sat me down on his lap and gave me a photograph tutorial of how to cast off and DAH DAH ( said with expression) FINISHED ! ( after many hours of chanting) The most hilarious thing is that my swap buddy is Chris from the US who has a website called " crafty angels". This woman is obviously VERY talented and will probably laugh at my effort, but to me, it is beautiful and is the first knitting project I have ever finished.

The 6P Principle

6Ps = Prior Preparation and Planning Prevents Poor Performance.

I have written before about my Grandmother's ' one up' principle, that is, you have a spare of everything in the cupboard and as you finish one off you get another one to replace the spare so that you never run out of anything. 

This week I have made a list to fully prepare my stores cupboard.

I have worked out my usage, for example, I know that at all times I want a container ( 3kg) full of flour as well as 4 1kg bags in the cupboard.
This will take me some time to finish because I will only stock up when the products are on sale. The overall aim is to never pay full price for anything again.
If you watch the sales you will see, for example, that Vegemite may come on sale every 6 weeks and you may know that you go through 3 jars in that time, so I would buy 3 when they are on special.

If you let your items run out or run low, you will have to buy them when you need them rather than when they are on sale.

If you use the store cupboard idea of stockpiling, you will eventually get to the position where you only buy sale items each week.

This will cut your grocery bill dramatically. If anything unforeseen happens you always have your insurance policy.
 We all think that a ' disaster' will not happen to us, but sometimes it is the simplest thing that can cause problems, like blackouts from storms or floods.

 If there is no power, the doors of Coles can't open ! I wonder how many people were caught by the flooding around Newcastle - not caught by flood waters but caught by the shut down of services.

 The moral of the story always comes back to the 6P's.

The 6 P principles is the answer to how can you get ahead and work towards never paying full price for anything ?

Cooking From Scratch

As you have probably noticed, I REALLY enjoy cooking from scratch.

It brings me joy to put the effort in and be rewarded with tastes that far surpass that of the bought alternative. There are health benefits, in that I don't add any 621, 379, 202 or any of the other ingredients I see on packet foods and there are financial benefits, meaning it is so cheap to cook.

Over the weekend I made the following:


- chicken and sweet corn soup


- special garlic bread ( as No 1 son calls it. Th picture is of him helping to make it. )


- chocolate self saucing pudding


-orange cordial

- coriander and cashew dip for a dinner we went to.


and thoroughly enjoyed it.


In keeping with the local food challenge, something we really struggle with, I can say that the only local food was the oranges. Sad, but true.

Working with a Cash Budget

Over the years we have tried many different methods for controlling our spending and working on a budget. By far the most successful method for us is to work in cash. I have worked out what we need each week and I withdraw that amount of money.

The following are our ' cash categories'.

Groceries

Fuel

Entertainment

Christmas

Holidays

Birthdays

Scarlet Ribbon ( clothing shoes etc)

Kids Banking

You can see in the photo that I use resealable plastic bags with the category and the amount written on it. Each week I go to the bank or post office and I have a little card in my wallet that says " 3x $50, 4 x $10 etc and get the exact breakdown. When I come home I give the cash to our young sons and they go through and put the amounts into the bags. Then, when we want to do something like hire a DVD or buy a present etc, we just go to the appropriate bag.

Having the money in cash is great for a couple of reasons. When you have cash in your wallet you are much more careful about spending it. My sons have also learnt the value of money because they control it. We are also empowered by the fact that we have money in advance for needs that may arise.

I call one category 'scarlet ribbon' because of the proverbs 31 woman who has no fear for her household for when the winter snows come her household is clothed in scarlet. It is a very old proverb but one that has always stuck with me.

I have also calculated how much we require for bills. You can do this by looking at what your bills are over a year and dividing the amount by 52 or 26 depending on when you get paid. Then I transfer that amount into an account we use for bill paying.

So.... what do you do when you finally sit down and add it all up and the results are frightening ? When I did this the first time I was totally shocked at our living expenses. Son number one was about 12 months old and I was faced with the prospect of going back to work. I was a school teacher then and was going back to work just two days per week. I hated the thought of it! So, we sat down and worked through everything in a huge amount of detail. I called it my " Plug the holes audit". By this, I meant that I thought the ship ( our house) would sink by the little holes that were in it, not the gaping big holes. So I set about saving money on little things, $2 here, $1 there. I changed phone plans, shopped for cheaper insurance, worked out a price book to track specials and calculate unit pricing, worked a cash budget etc etc. The results were amazing and I gave up teaching at the end of that year.

I often hear people talking about how difficult it is to make ends meet ( while they are watching pay TV and smoking and eating take away food). My answer is to be totally honest with yourself and live within your means. Take control of your money so it doesn't control you. It is such a wonderful feeling to jump in the car and go for a holiday with the freedom of knowing that you have the cash for it all and you won't have to face the credit card bill when the holiday is over.

If you can't be bothered with the hassle of micro-managing it all then you will need to be happy with staying in debt and having no money and having lots of stress. The choice is yours to make, so which path will you choose ?

Menu Planning

Why Menu Plan ?

There are many benefits to planning out your meals before hand.

- It brings peace to your evening and stops the " what's for dinner" drama

- It prevents panicked take away purchases

- It saves time and money - you only purchase what you need and can have meals ready in advance

- You can plan meals thoughtfully if, for example, you have have family members with special dietary needs or are trying to plan healthy balanced meals or to lose some weight.

How to Menu Plan

1. The No-Brainer Method. This is as simple as " if it is Monday it's Spaghetti day" etc.

2. The Rational Roster Method: This is where you may do a two or three week list of meals and just work through the list and then come back to the beginning

3. The Schedule Matched Method: ( My favourite). This is where you look at your schedule for the next week or fortnight and plan your meals around it. So if you know you won't be home until 5.30 on Tuesday you plan a quick meal or if you are not home to really late then you make sure you plan a meal the day before that has leftovers etc.

In order to carry out this method successfully I suggest that you take the time to list about 20 or so meals.If you don't have that many in your repertoire it's time to search for some recipes or ask some friends or family about their favourite recipes.

The next thing is to group the meals. I use three headings a) quick and fresh 2) leftover style and 3) gourmet ( meaning time consuming)

Now you can match your meals to your schedule. I think it is always a good idea to have some meals in the freezer ready to go as well. You never know when you may need a standby meal. Next time you are cooking, just cook some extra and freeze it.

Time Time Time

"I never have time for that......"

We all have the same 24 hours in a day. I read an interesting quote once that said something along the lines of ' never say you don't have enough time. You have exactly the same time every day as Mother Theresa, Gandhi' etc etc ( must try and find the exact quote one day).

The truth is instead of people saying "I don't have enough time" they should say " I choose not to do that" or be totally honest and say " I usually waste my time watching television instead" or " I spend so much time on the telephone/ internet/ reading trash that I don't have the time to do things that may be more important".

So if we all have the same 24 hours - what do YOU choose to put into them. I choose, amongst other things, cooking from scratch because the benefits to my family are tremendous. My children are calmer, my budget is better and I have a sense of tremendous satisfaction from the efforts I put in.

I choose not to watch commercial television. I have never seen an episode of All Saints, ER, CSI, Grey's Anatomy or any other TV show that I hear people talking about. I can remember when Australian Idol was on and there was a picture in the Newspaper of Guy Sebastian and Shannon Noll - ready for the big night and I had no idea who they were! I thought they must have been sports stars of some kind.

I guess it is always a case of Prior Preparation and Planning Prevents Poor Performance ( the six p's). I work four days per week and I work long hours. Weekends are often taken up with activities for my sons, like sports or outings. In the summertime we usually water ski from early morning until sundown. Therefore, as my Grandmother says, " when you have time, you do things for times when you don't have any time". This means that when you make a batch of biscuits you double or triple the amounts and freeze the leftover dough. I always do this on Mondays so if the biscuits run out mid week it is a five minute job to throw some more in the oven. Or you may have a 'cook up' and have some meals ready to go in the freezer to just heat up for times when you are too busy or too late home to cook.

Another important thing is to menu plan the week before, around your schedule. Have more involved meals on nights where you are home earlier in the day and quick meals like stir fries on the busy days. Sit down and make a really good list of all the meals your family likes. If you are stuck, go to the library and look at the food magazines and get some ideas to try. You may be surprised what you find.

The Home Management Binder

Some call it a home journal, or household notebook. I call mine my home management binder.

 It is the master plan for how I run my household. It is important that I balance all the roles that I am given and do my best to keep things running smoothly. Because I am spread so thin between my children, husband, work, friends and other family members I need to 'go to paper' so that my thoughts and ideas are not heavy in my head.

The front cover has a wise quote from proverbs about the Proverbs 31 Woman. It says " She watches over the ways of her household and does not eat the bread of idleness". When I was first married I tried to adopt this as a theme for my life. I must add that I always struggle with this ideal.

The sections in the binder so far are:

1. Family Finances: This is where I keep my budget, bills to pay, savings goals, debt reduction and net worth calculations.

2. Household Routines: I have been a flylady fan since 2000. This is where I detail my morning, afternoon and evening routines and have my overall cleaning and organisation plans. If you don't know what I am talking about visit http://www.flylady.net/

3. Shopping and Meals: This is where I have my grocery list ( I use a standard sheet in the order of the supermarket isles) I also have a list of favourite meals, menu planner (Although I generally use a magnetic fridge version), price book.

4. Travel and Organisation. This is where I keep my going away list, picnic list, camping list, first aid list, emergency preparedness list etc

5. Resources The final section is where I keep printouts of articles, ideas, budget tips, management tips etc. I am always on the lookout for ways to improve my family management and make my household run smoother.

One day I sat and asked my Grandmother detailed questions and took my laptop and typed out what she said. It took many days to complete this process. I will share her wisdom further on this website. It is a topic that is very close to my heart. I think that many families are out of control today because they have forgotten ( or never learnt) age old principles and methods of life management.