Coping With Financial Storms

Some of the most commonly asked questions I get is -  How do you cope ?  How do you plan for the unexpected ?  How do you keep going ?

There are times when I've wondered " why us ". We've never had a comfortable income to live off.  It might seem that we are comfortable but it has taken so much hard work to get where we are. We've seen more financial challenges than most people we know.  Our income gets cut when most people's go up even if it's just in line with CPI. We lived for years and years with no pay rise and the cost of living increasing. And again I've wondered - why us ?

I get through these times firstly by praying. God knows our needs and they are always met, sometimes in the most miraculous of ways.  After praying about our situation, I start planning. There is nothing better than tackling a hard situation as soon as possible by putting pen to paper and finding a way out. Trying to ride out a storm hoping you will cope just doesn't work.  Every time we've had a income cut,  straight away I rework the budget. Of course we don't waste money but we always seem to do without something else. At the moment I'm able to start my Summer stockpile shopping on the $200 a month allocated grocery money. It sounds like a crazy amount but I'm doing it.

Being prepared for the storms of life makes it easier to cope. Having a monthly menu plan reduces stress if I get sick or something else happens. Weekly and fortnightly menu plans don't give a lot of wriggle room. If the monthly menu plan runs out and I don't have time or energy to write another one, we just repeat it. Because it's monthly, there are approximately 25 - 30 different meals on it so we don't repeat meals too often.  Constant repetition leads to boredom and boredom leads to eating out.

Having a healthy stockpile in the pantry, fridge and freezer gives me peace of mind. When I talk about a healthy stockpile, I'm talking about 4 - 6 month's worth ( except milk, fruit and veg ). My veggie garden is always there as a back up. I grow silverbeet and lettuce all year round and it saves us a fortune. If I can't get to the shops, I know I have greens to pick to go with a meal. Those greens are some of the most healthiest things to grow.

We all have unexpected bills arrive. Dental, car and appliance repairs are the most common. A way to get around this is to build an emergency account that covers these items. $5000 should be a minimum to set aside. This might seem like an unachievable goal but it can be done.   Holidays, and  luxuries such as gym memberships,  magazines,  coffees out etc etc should be avoided until the emergency account goal is reached.  If the emergency account is dipped into, it should be topped up as soon as possible.  Having that safety net at all times is so important.  It eliminates the need to use the credit card.

My family doesn't always understand my hard approach to saving, but they support me and certainly appreciate it when they see the fruits of our labour.  Then I remind them of why we saved.  My kitchen is a fine example.  The kitchen took almost two years of hard saving and 20 years of dreaming. Sure, I could have bought a cheap kitchen or taken out a loan. But it wouldn't have lasted the distance and I wouldn't have liked it.

Are you prepared for financial storms ?

How do you cope with the unexpected ?

Running Out Of Groceries Or Grocery Money

Running out of food can be a scary situation to be faced with. What to do ? What to do ? I guess the first question you need to ask yourself is " Have I really run out of food or do I have food but don't know what to cook ? " If you have run out of food just because you didn't buy enough,  then it's time for a new plan of attack. Writing a menu plan for the week might be a good place to start. Then write your shopping list from the menu plan. Don't forget to include breakfasts, lunches and snacks as well as the main meal.    Once you've mastered shopping for a week then you could try fortnightly or monthly shopping.

You might be in the situation where you haven't run out of food but feel like the food you do have isn't going to make great meals. This is the perfect time for experimentation. Grab your cookbooks or use the internet to try something different. There are websites where you can search for recipes with certain ingredients. This could be the making of a new family favourite recipe.

If you have run out of grocery money for whatever reason, you have a few options. Can you make meals out of the food you DO have ? Can you find some extra money from another area of your budget ? I'm not talking about hundreds of dollars. $20 or $30 could last a week or two with a carefully planned shopping list if you have basic ingredients on hand like herbs, spices and a few baking ingredients like flour and sugar

Once again a menu plan will help you through a tough time until money becomes available again. A packet of quick oats will give you a filling breakfast for a week. Two loaves of bread will be enough for lunches. Buying one piece of the cheapest fruit available per person could be a snack. In Winter apples, pears and citrus fruits are very cheap. In Summer it could be stone fruit or grapes.

Dinner doesn't have to be fancy if money is tight. Here are some cheap meal ideas -

* Boiled potato with steamed veggies, seasonings and a little grated cheese on top is very yummy and cheap.
* 300 grams of mince can be bulked out with rice, rolled oats and cheaper vegetables like beans, cabbage or carrots.
* Eggs, baked beans or spaghetti on toast
* Pasta with tomato sauce and cheese
* Pasta with a tin of tomatoes and grated vegetables
* Fried rice without any meat.
* Pancakes

Remember,  water is free ( or almost free ) so drink lots of it.  If you are after a hot drink,  then tea is cheaper than coffee.

Have you ever run out of grocery money or groceries ?  What did you do in this situation ?

Cutting The Budget When There's Nothing Left To Cut - Part 3

Making ends meet can be a challenge when you don't have a lot of money in the first place.  Here are eight ideas that might put some money back into your purse -

*  Mend your clothes instead of buying new ones.   Buttons are easy to sew on and only takes a couple of minutes.  Many tops and cardigans have spare buttons sewn inside the item of clothing.  Torn seams are easy to sew up.  Just turn the clothing inside out and sew a few stitches.  It really is true that a stitch in time saves nine ( and it saves some money too ).

*  Throw out all the junk mail before the family sees it.  Having junk mail lying around the house fuels the urge to spend money.  Of course,  take the time to have a quick look yourself in case there are some grocery or clothing bargains.

*  To avoid all the unnecessary spending give yourself and your spouse a little bit of pocket money each week / fortnight or month.   Up until about four months ago I'd never had pocket money in the 20 years I've been married.  I'd never really needed it as I was just happy to spend money on groceries and household items when needed.  When our family budget had to be slashed late last year, we switched to a cash budget which meant we couldn't afford to put anything on the credit card except petrol ( too hard to carry that money around ).  To avoid denying ourselves completely Darren and I now get $15 a month each to spend any way we choose.  It might not sound like much but it's enough to buy a food treat / cuppa or in my case,  a small craft item.

*  Cancel magazine and newspaper subscriptions.  Many of these are available for free at your local library.  Maybe ask for a subscription as a birthday present instead.

*  Clean and declutter your home.  When your hands are busy you'll forget about the need to spend.  Having your home in order will give you peace and a longing to enjoy time relaxing in your nest.

*  Avoid overpriced restaurant meals. Instead,  invite your friends and family over for a meal where everyone brings a plate.

*  Read a book instead of turning the tv or computer on.  Reading doesn't cost anything and can be quite relaxing.  If you need something new to read,  go to your local library for inspiration.

*  Buy fruit and veggies in season to save lots of money.   Buying in season is when the food is at it's nutritional  best too.

Getting Your Budget In Order For A New Year

Starting the new year with your budget in place can help you achieve so much more.  January is a little quieter in my home so I try to make the most of it and plan for the year ahead.

A great place to start is to review last year's budget.  Here are some questions I ask myself when looking over the family budget -

*  Did we over spend in any areas ?

*  Did we waste money on unnecessary purchases ?

*  Did we buy too much of something ?

*  Can we cut back in some ( or all ) areas of our budget ?

*  Do we need to increase some areas of the budget ?

*  What are our goals for the coming year ?

*  Did we reach our savings goal for the items we wanted / needed ?  If not,  how soon can we save for it ?

Asking these questions gives me a chance to review and adjust the budget where needed.  Budgets should not be set in stone.  They need to be flexable to accomodate the needs of the family ( within reason ).  Take some time over the next couple of weeks to set up your yearly budget..  Remember to include all categories to reflect your spending habits.

When it comes to household bills,  it's always good to increase the amount put aside each week / fortnight / month.  Many utility providers increase their charges in the new year. To keep on top of thses increases,  putting an extra 10% aside is a great place to start.  Maybe this is a great time to set up direct debits for each category.

The new year is the perfect time to review your present / gift giving budget.  Things change through the year.  Friends and family come and go,  extra special occasions come up that require a bigger present.  Maybe you would like to give to certain charities.  Building this into your present budget ensures that you have the money available to bless others.

I write all the occasions to buy for in an exercise book.  One page is for birthdays,  anniversaries,  father's and mother's days etc etc. They are all written in order of the date during the year. The page opposite is for the Christmas presents I need to buy. When I review the present / gift budget,  I look over the presents I gave the previous year. By doing this,  I'm reminded of the presents that were well received and the bargains I found.  It's also a good way to avoid buying the same thing year in year out for the same person.

Just recently I went through all my stored up presents.  Everything was placed in order of giving on the present shelf.  Post- it notes were put on each present with the receiver's name,  occasion and year.  Because I buy a couple of years in advance,  I need to record the date to be given.   Once I've gone through the presents and recorded everything in my exercise book,  I write out a list of items I still need to buy.  This list goes into my handbag,  ready to snap up those fabulous bargains.

A new year could mean a new food budget.  If you were spending too much money on rubbish food,  a new budget could be in order.  Taking the time to review your eating habits could set you up for a healthier year.  Remember,  a budget is not set in stone so if you need to make adjustments,  now is the time to do it.

If you have a savings goal in mind,  how will you reach that goal ?  Do you need to set up direct debits into an online bank account ?  Working out the weekly,  fortnightly or monthly amount then setting up the direct debit will ensure you reach your goal.  We all want financial success so a little planning goes a long way.

Do you have an emergency account ?  Do you have the money set aside to replace the washing machine,  fridge,  freezer, car tyres,  heating and cooling ?  You know these things don't last forever so saving for them needs to be a continual part of  your budget.  Work out how much it costs to replace the items.   Then work out how much you need to save for them in 1,  2,  5 or 10 years time. 

Do you have a savings plan to replace your car / s ?  Buying a car can be the second biggest expense other than buying a home.    Car savings also needs to be a continual part of the family budget.  That's how Darren and I have been able to buy our cars without ever having a car loan or paying interest.

Now is the time to gather your family around and plan your year.  Plan your goals,  plan where you are heading and plan for financial security.  An hour or two spent in planning could save you months of stressing out about money.

How do you plan for the year ?

Creating Your Own Mini Economy

Do you ever have the feeling that money is leaking out of your home left ,  right and centre ?  Do you feel that your shopping habits are making everyone else rich and your purse a little poorer ?  Do you cringe when large companies post their yearly profit reports ?

If you are answering yes to any of these questions,  I have a solution that will make you feel a little better about your money situation.

Create your own mini economy at home.

Here's how it works.

Buying presents for family and friends all year round can cost a fortune.  If you're like me you have a present / gift  budget.  I always like to beat the present budget and have money left over at the end of the year to buy treats.  Yes I can buy presents on sale and that will save me money.  If I go one step further I can keep most of my present fund within my home instead spending all that money at the shops.

Making presents is a great way to save money and results in a lovely present to give for just a couple of  dollars.  Because I have a well stocked pantry, when I make biscuits for presents,  I just use what I have on hand.  I estimate that  a jar of biscuits costs me $2 for the jar and less than $1 for the biscuits.  Ribbons and gift tags cost zero because I use free supplies to make my own.   The present looks like it's worth much more,  maybe even $10.  I take $10 out of my present / gift budget and put it into my food / grocery budget ( envelope ) to pay for the ingredients.    By doing this,  my food budget has made a profit of $7.

The savings doesn't stop there.  I might have budgeted $15 for a present for a friend.  By only taking $10 out of the present budget to pay the food budget,  I've saved $5 on the present budget.

Here's another example.

I made a couple of tote bags late last year to be given as presents.  The material cost $4 in total for the two bags and I paid for it out of my clothing budget.  That was the envelope I had with me when I was in Spotlight looking around.  Tote bags cost about $10 in the stores if paying retail  Using this valuation,  I took $20 (  $10 for each bag ) out of the present budget and put it into my clothing envelope to reimburse for the material costs.  My clothing envelope has just made a profit of $16. I usually budget $15 for each present so if I chose to give the tote bags on their own,   I've just saved my present budget $5 on each present.   Everyone wins.  I gave one of these tote bags to Darren's sister for her birthday recently and she loves it.  She's already used it too.

Here's one final example to seal the deal -

I love making jam.  I also love eating it because it tastes so much better than anything I can buy.  I also know exactly what's in it.    If I make raspberry jam using our own home grown berries and lemon juice from our own lemons,  the only cost is sugar.  I have a few friends and family members saving jars for me,  so no cost there.  When I make a batch of raspberry jam,  I might use one kilo of sugar ( for example ) which cost less than $1  That batch might yield 10 jars of delicious jam.   If I put a retail price of $3 on each jar ( they are small / medium jars ) then the total retail value is $30,  yet they only cost me $1 to make.  I could be technical and add in the cost of the gas to cook the jam.  I give lots of jars of jam as presents so each time I give one,  I take $3 of of the present budget and  put it into my food budget

You could use this idea for all sorts of presents.  If you take cuttings of plants or grow seedlings from seeds,  they make wonderful presents.  Put a retail value on them and boost your gardening budget as well as saving a little money on presents.

Make some cards and give them in packs of ten wrapped on cellophane with a ribbon.  Put a retail value on it and boost your craft budget.

Make soap,  wrap it in tissue paper or cellophane with a ribbon.  Put a retail value on it and boost your toiletry / make up budget.  Or boost your food budget (wherever you took the money from to buy the ingredients ).

Yes you are still spending money at the shops.  You are still helping businesses but you are not giving all of your hard earned money to make the rich richer.

What gifts do you like to make ?