Monthly Archives: September 2008

The hidden danger of budgeting?

Photo by jonnystiles

When we created our first budget, I felt instantly liberated. I knew our absolute spending limits. As long as we didn’t go over those amounts, I knew we’d have enough to pay for everything. I no longer had to wonder, “Can we afford this?” I knew exactly what we could afford. I also knew exactly how much we could afford to put toward savings and debt.

I view our budget as a challenge. “How low can we go?” That’s my mantra when it comes to discretionary spending for groceries, entertainment, and other shopping. Every penny we go under budget automatically goes toward savings or debt, and watching those balances go up or down is my favorite part of budgeting. It’s what makes me feel so free. I’m constantly trying to lower our budget for discretionary spending so I can increase our savings and debt repayment.

Over the weekend, I had an interesting conversation with my husband about the different ways that we view budgeting. It made me realize that everyone doesn’t view budgets the same way I do. For some people, budgeting can actually work against them.

After creating our menu plan and grocery list, we realized we’d be on the low side of our grocery spending limit. I was happy, as my goal every week is to lower our spending so we can be under budget.

My husband’s first reaction, though, was to start adding things to the grocery list … things that we don’t need. “We can afford it this week,” he said. “We’re under budget.”

Wha …? I had never thought about it, but it made perfect sense once he put it that way.

I see the budget as an absolute limit. Ideally, we’ll spend less than that, but we absolutely can’t spend more. My husband, however, viewed the budget as the number we’re trying to reach. If we go under, it’s a license to spend more. We can afford it, after all. It’s in the budget.

I have to admit, the conversation somewhat blew my mind. We’ve been married since May, but this is only our second month of strict budgeting. I had no idea he viewed it this way.

The conversation illuminated a hidden danger in budgeting. By setting hard figures, are we in danger of reaching them? Can a budget actually lead to overspending? When people like my husband manage budgets, do they overspend without knowing it? Maybe they could spend less, but they’ll never know because they’re constantly reaching to meet their budget goals.

It’s a scary thought. Luckily, my husband and I are working together to amend both of our bad habits when it comes to money. He shares my views on savings and debt repayment. He also feels liberated as our savings account grows and our debt diminishes, and he agrees that the best way to make them grow and diminish faster is to spend even less than we’ve budgeted to spend.

His view on the budget was just if we’re meeting our goals, why change them? The budget is an outline of how much we can afford to spend, so why not spend it? He didn’t see the harm in spending all of our budget as long as we’re meeting our goals for savings and debt.

Though we set our budget together each month and discuss how to manage our money, I handle the day-to-day finances. So his views on budgeting haven’t caused problems in the past two months. But it could have eventually if we never discussed it and explained our differing points of view.

I guess the moral here is something about the importance of communicating about money. Mostly, I just thought it was a fascinating perspective on budgeting, and something I never even considered. I always thought that people got into financial trouble by not budgeting, and never once considered the idea that for some people, the budget can be part of the problem. Huh.

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123InkJets update

Just wanted to give you a quick update on my experience with returning defective printer cartridges to 123InkJets.

Last week, about three weeks after my initial request for a refund, the money showed up in my account. I was relieved since I wasn’t actually expecting the refund.

This isn’t to say it was an easy process. Their customer service is done completely online, which meant several confusing emails back and forth with a different customer service rep assisting me in each email.

I followed all of their instructions and sent an email with all of the required information (my name, address, order number, item numbers, and whether I wanted a refund or replacement). Two days later, I received a reply that said, “Thanks for your request. Now just send us your name, address, order number, item number, and whether you want a refund or replacement.” What?

So I sent the information again by copying the original email and saying, politely, “Um, I already sent that information to you.” I don’t understand how they didn’t see it. The required information was the ONLY text in my email. It was very odd.

Two days later I received a reply from a different person that said, “Thanks for sending the information. Here are the instructions for receiving your replacement cartridges.” They attached a shipping label to the email. Postage would be paid, which is nice. But the name and order number on the shipping label they sent me was incorrect. I also clearly told them I wanted a refund, not a replacement. Twice. Sigh.

I responded again telling them that I didn’t want a replacement, I wanted a refund. I also told them the return address and order number on the shipping label provided were incorrect.

The customer service rep who responded this time actually read through all of the emails before replying. She was very apologetic, and acknowledged that the situation had been handled poorly. She assured me that the return for my order number (the wrong order number) had been changed from a replacement to a refund.

I had to email them again about the incorrect shipping label.

Finally, about two weeks after I sent the original refund request, I received the correct shipping label with my name, address, and order number marked for a return. I boxed up the cartridges and taped the shipping label onto the box.

The process would have been simple if they had gotten my information right the first time. Honestly, the most complicated part was just dealing with 10 different customer service people who clearly had no idea what was going on.

When I sent the cartridges back, I paid 75 cents for a delivery confirmation. I wasn’t taking any chances on not receiving my $60 refund due to a “lost package.”

About 10 days later, the refund was credited to my account.

I’m glad that I received my refund. Honestly, I didn’t think I would. However, I will never buy ink cartridges from 123InkJets again, not only because the cartridges didn’t work, but also because their customer service is horrible. I eventually received my refund, but it was nowhere near as simple as they claim it is on the website.

Maybe I’m being paranoid, but I always get the sense from companies with this kind of return process that they’re trying to wear the customer down. If they can make the return process complicated enough, maybe the customer will give up before they receive the refund.

In the future, I’ll pay a little extra to get my ink cartridges from a reputable dealer. I don’t know if the problem was that my printer doesn’t like refurbished cartridges or if the cartridges they sent me were defective. Either way, it’s worth it to me to pay a little extra for ink cartridges that I know will work.

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Menu Plan & Grocery Round Up: 9/27-10/3

My menu plan and grocery round up are a little late this week. We opted to skip the grocery yesterday for Tony’s birthday.

Our grand total this week was $42 and some change! Looks like we had a phenomenal week, huh? Well, not so fast.

We’re leaving town to visit my sister in Seattle on Friday, so we only needed to buy groceries for 6 days this week.

Based on our $50/week grocery budget, we spend roughly $7 a day for groceries. That means our $42 bill was dead on with our budget. Great, but not as great as going $8 under budget would be. :)

Since we’re preparing for our short vacation, we decided to keep our menu very simple this week. We’re also trying to use up some of our pantry staples.

Here’s our menu plan for the shortened week:

Saturday: Monthly restaurant meal (and Tony’s birthday dinner! :))
Sunday: Herb roasted chicken breasts with green beans and mashed red potatoes (see recipe below)
Monday: Whole wheat penne with garlic herb marinara
Tuesday: Sandwiches/leftovers
Wednesday: Whole wheat spaghetti with pesto
Thursday: Homemade pizza
Friday: Dinner with my sister and my parents in Seattle!

Herb roasted chicken breasts and red potatoes

4 boneless, skinless chicken breasts
2 tsp. dried rosemary
2 tsp. dried thyme
1 tsp. kosher salt
1/2 tsp. ground pepper
1 clove minced garlic
2 tbsp. olive oil

Combine seasonings with olive oil in small bowl. Spread liberally onto chicken breasts. Cut red potatoes into fourths. Coat in olive oil, and season liberally in salt and pepper. Surround chicken breasts with one layer of potatoes in roasting pan. Roast in 375-degree oven for 30 minutes or until chicken is cooked through and juices run clear.

Now head over to OrgJunkie for more menu plans!

We’ve come a long way

Tony and I had a lovely time yesterday celebrating his birthday. We slept in, enjoyed some coffee cake for breakfast (something he loves, but I never let him buy), and then headed out to enjoy the beautiful weather.

He received some cash from his parents to buy himself a gift, so he wanted to browse the bookstore. We ended up at the mall where we browsed Barnes and Noble, Banana Republic, and the closeout sale at Linens n Things, among other stores.

This type of browsing used to be a typical Saturday for us. Except three years ago, we would have ended the day with a car loaded up with shopping bags.

Though we debated whether we should buy something at each and every store we browsed, we didn’t buy anything yesterday. It wasn’t until we were in the car on our way home that we realized that we almost spent money in every store we visited.

I really wanted some framed artwork at Linens n Things on sale for 30% off (final price would have been $30). Tony wanted to buy a collection of short stories at Barnes and Noble for airport reading ($15). I’ve been looking for a deal on some khaki pants. I found a pair of brown plaid dress pants on the clearance rack at Banana Republic. They weren’t really what I was looking for, but everything in the store was 30% off the lowest ticket price ($30. Yeah, that’s with 30% off the clearance price. Why is Banana Republic so expensive?!)

Instead of impulsively purchasing, we discussed each item.

Sure, the artwork was a great deal and we’d been looking for something just like it to hang in the kitchen, but we’d already reached our shopping budget for the month. The final verdict? We’ll head back to Linens n Things in two weeks. If the artwork is still there and we still want it, we’ll work that $30 into our budget.

I told Tony he should buy the book if he wanted it. After all, it was a birthday gift from his parents. Ultimately, he decided he’d rather order the book on Amazon for less and wait a little while for shipping.

As for the pants, I’ve been shopping around for a pair of khakis to wear to work in the cooler months. I have plenty of dress pants from my last job that I rarely wear because my office is casual. I’m looking for a comfortable pair of business casual khakis. While the pants at Banana were really nice and on double sale, I decided against them because they weren’t what I was looking for. They were too dressy. Buying them wouldn’t have satisfied my need for casual khaki pants, so I’m going to continue looking for the right pair at the right price. That was tough, though. I shouldn’t have tried them on.

I also stopped in at Victoria’s Secret where I used a coupon for a free pair of underwear (no purchase necessary)!

In the past I might have gauged the success of a shopping trip based on how much we saved. If we had bought everything we wanted yesterday we would have “saved” $60. The problem with that is you’re not really saving anything if you’re spending money on things you don’t need. Even with the discounts, we would have spent $75 that we didn’t need to spend. Now I judge our success by our ability to avoid spending money on unnecessary items and get a good deal on the necessities.

Oh, and we won’t be going back to the mall any time soon. The temptation to spend is just too great. :)

Celebrating my husband’s birthday today

Today is my wonderful husband, Tony’s, birthday.

First things first, I want to take this opportunity to thank him for his support and willingness to join me in our efforts to live frugally. He’s had to make a lot of sacrifices (including his beloved snack foods). Not only has he been supportive from the beginning, but he’s become proactive. Sometimes he’s the one telling me, “Do we really need this?” We’ve become a great frugal team, and I’m thankful for that. :)

As for my birthday gift for him, I ended up getting him a couple of small items that I know he wants and needs, but hasn’t gotten around to buying. I also ordered him the special edition DVD of his favorite movie. It’s not coming out until next week, but he assured me that it’s what he really wants.

He still hasn’t decided how he wants to spend the day, but it’s beautiful outside, so we’re going to get out of the house. We’ll also be going out to dinner tonight (it’s the last weekend of the month, after all!), and he’s requested brownies.

Happy birthday, Tony!

TGIF Link Round Up: Surviving the economic crisis edition

With everything that’s happened in the economy in the past two weeks, there’s been a lot of buzz in the personal finance blogosphere and the news on the topic. Though the topic of tonight’s presidential debate is officially on foreign policy, the candidates have agreed to spend some time on the economy as well.

In times like these, the question on the minds of most everyday Americans is, “What can I do to protect my own finances?” In my opinion, the best thing you can do for yourself is spend less and start saving more. Today I’m sharing some tips from other personal finance bloggers on simple ways to minimize living expenses and cut back spending.

  • Our Fourpence Worth shares an exhaustive list of 101 ways to save money in everyday life. It’s amazing how “tiny leaks” can add up to a bucket throughout the month. (Check out the fun design on the post, too!)
  • Not Made of Money shares a great method of organizing your pantry stockpile. Stockpiling is a great way to take advantage of store sales a minimize grocery costs, but organization is key to making the most of this system. A cluttered, disorganized pantry can lead to wasted food and overspending.
  • Lynnae at Being Frugal challenges herself to plan meals based on her leftover pantry stockpile once a month to clear things out. This is a great method for taking stock of your pantry and ensuring you’re not letting things go to waste. It can also be a good way to cut spending if you’re having a particularly tight budget week.
  • Paid Twice discusses what to do if your current grocery budget (or other budget) isn’t cutting it, but you don’t have the extra money to increase it. It’s important to make sure your budget is constantly updated to reflect your current needs, but it’s also important to ensure you’re not increasing your budget due to unnecessary overspending.

I’m off to see what the candidates say about the economy. Happy Friday!

Stay healthy, save money

Photo by smaku
It’s that time of year again. One by one everyone in the office and at school starts sniffling, coughing, and sneezing. It’s only a matter of time before you come down with it, too. Or is it?

Cold and flu season is no fun. Getting sick not only makes you feel bad; it can be expensive. Even if you don’t need to pay a visit to the doctor or fill a prescription, you’ll still spend money on expensive over-the-counter drugs and lose valuable time when you could be doing something productive. It may even affect your paycheck if your employer doesn’t offer sick time.

While a flu shot may ward off the flu, I choose not to get them. The last time I had a flu shot, the nurse nicked a nerve and my arm was sore for 6 months. So I choose to fight off illness the old-fashioned, frugal way. Here are some tips to keep you well this flu season and save money:

1. Take good care of yourself.

Plenty of sleep and a healthy diet go a long way when it comes to staying well. Try to get 8 hours of sleep every night, and make sure your diet is rich in whole grains, protein, produce, and calcium. Avoid alcohol and don’t smoke. It seems obvious, but taking good care of yourself in general is half the battle.

2. Keep your hands clean.

Washing frequently throughout the day will decrease your risk of picking up germs. I always carry a little bottle of hand sanitizer in my purse, and frequently pull it out and use it throughout the day. Always wash your hands before eating.

3. Avoid touching your eyes, nose, and mouth unless your hands are clean.

Your hands are the first line of defense when it comes to germs. They’re the body part most likely to come into contact with germs through doorknobs, phones, and other things you touch. Whenever I tell people this, they look at me like I’m some kind of germaphobe. But when you absent-mindedly touch your face after picking up germs, you infect yourself.

Make a concerted effort to keep your hands away from your face unless you’ve just washed or sanitized them. If you get an itch, just use the back of your hand or your wrist to scratch it. It only takes a couple weeks to form a habit. Pretty soon you won’t even think about it anymore.

4. Carry a pen.

Think about how often you pick up a pen without thinking about where it’s been – at the bank, at the grocery store checkout, at a co-worker’s desk. If you keep a pen in your pocket or purse and always use your own, you’ll decrease your chances for picking up a virus from a germy pen.

5. If you do get sick, be courteous.

If at all possible, stay home until the virus passes. You should be getting rest anyway. If you absolutely have to go to work, try to isolate yourself as much as possible. Make sure you cover your mouth when you cough, but don’t cough into your hands. That will just ensure that you’re passing the germs on when you touch things around you. Instead, cough into your sleeve. Try to keep your hands clean, too.

Of course, there’s not a lot that moms can do to prevent kids from bringing viruses home from school. However, taking these steps will at least help you avoid picking up viruses from other places.

Keeping your immune system strong by taking good care of yourself may even protect you when the kids do bring it home. At the very least, being in good health with a strong immune system will shorten your recovery time.

Budget weddings: It’s ok to spend a little more on what’s important to you

Every couple has a different set of priorities. Some couples choose to spend next to nothing on the wedding so they can take the trip of a lifetime for their honeymoon. For some brides, a designer dress is the budget buster.

For us, it was photography. When we first started planning, we weren’t going to hire a photographer at all. My mom has a professional-grade camera that she uses to take photos for fun. We were going to put her in charge of photographing the day.

Then I started talking to my married friends. Their advice? “If you’re going to spend money on something, it should be the pictures.” Why? Because the day flies by so quickly, you probably won’t remember any of it without the photos to remind you.

When I really thought about it, I realized they were right. I wanted a permanent keepsake that would last long after the food was gone and the flowers had wilted. Tony and I will never be that dressed up again. We wanted professional photos to remember it forever.

We started looking for a photographer who could take professional photos at amateur rates. After interviewing several people and looking at their work, we just weren’t impressed. Their portfolios matched their amateur rates.

In the end, we decided to hire a professional photographer who was highly recommended by a friend. We spent less in other areas so we could devote almost half our budget to photography. It was worth every penny.

Because we were married in our college town, the pictures serve as a reminder not only of the wedding, but of the place we met and fell in love. The picture above is us in front of our favorite college bar. Ha!

We were married on campus, and our reception was held in a restaurant downtown. We walked from the chapel to the reception, and the photographer followed and took some great pictures of us in the heart of Bloomington.

It’s only been four months since the wedding, and I already feel wistful when I look at the framed wedding photos on our bookshelf. I know I’ll cherish these photos even more when we’re old and gray.

If you’re getting married in the Indianapolis area, I hope you’ll consider Zach Dobson Photography for your photography. All of the beautiful wedding photos in this series were taken by Zach Dobson. We were thrilled with his work.

Maybe your top priority is the honeymoon. Maybe it’s an open bar or a professional DJ. If it matters to you, then it belongs in your budget. The important thing is that you’re not going overboard on everything.

Figure out what your priorities are, and adjust your budget accordingly. If there’s something really important to you, it’s ok to work it into your budget even if it’s expensive. Just remember, you’ll have to cut corners in other areas to make room for it.

What about you? What was your wedding budget buster?

Exchanging gifts with joint finances

My husband’s birthday is this Saturday, and I’ve been struggling to come up with a special gift for him that won’t blow our budget. Exchanging gifts with joint finances is tricky.

Our birthdays are 2 weeks apart, and we’re taking a trip to Seattle the week in between, so we both agreed to a very small gift budget. We considered skipping gifts for each other all together, but that just didn’t feel right. We enjoy choosing gifts for one another and exchanging. Our solution is to limit our gifts to something small and thoughtful.

When we first opened our joint account, we decided to keep separate personal accounts with a bit of money in them specifically for this purpose. The idea was that the personal accounts would be used for discretionary personal spending and gifts for each other. We didn’t plan on the personal accounts getting lumped in with our regular money. That’s kind of what happened, though.

Now I’m faced with two dilemmas: he’s requested ideas for what I’d like for my birthday, but I’ve kind of shut off my “want” mode for the past year. It’s easier to live frugally if I’m not constantly wanting things. You would think I’d have a ton of ideas built up over time, but I don’t. Everything I think come up with just seems so frivolous. Is it completely terrible that receiving gifts used to be a lot more fun when they were coming out of someone else’s budget?

I also have to figure out what to get for him. The problem is, when it comes to gift giving, I still struggle with the urge to go overboard. All of the ideas I’ve come up with are out of our price range. In short, I don’t want him to spend anything on my gift, but if I had it my way I’d way overspend on him. Funny how that works, huh?

So I’m asking you: Do you exchange gifts with your partner? If so, what kind of budget rules do you set? And how do handle the joint finances issue?

As a newlywed, I’d love to know how all of you handle all of this stuff.

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