Fundamentals of Budgeting

Before you start any type of budget, know how much money you are dealing with first. Grocery shopping is only one line item in the entire budget. To decide what money you can devote to grocery shopping, take an inventory of all of your expenditures.

Start with the large bills that are due each month, or fixed expenses. This includes your tithes, mortgage or rent, car payment, insurance, and utility bills. Out of what’s left, you have your flexible expenses like groceries, etc.

Getting Down to Budgeting Brass Tacks

What does your family eat? Creating a budget that you can live with starts with knowing what foods the family eats most and which ones you can probably do without to save money. It may require you to do a little research at the grocery store just to assess the prices of certain items.

Consider alternatives to some of your food choices. For instance, if your family likes breaded chicken tenders or nuggets, buy a pack of frozen chicken tenderloins and bread them yourself to save money. Any time you buy foods that are packaged and ready to pop in the oven with no preparation, you can count on paying almost twice as much as their un-prepared counterparts.

Eliminate as many snacks as possible from the food budget. They are always expensive and can quickly upset even the best planned food budget. If you do need a few snacks in the budget, choose one or two that are nutritious and can substitute for lunch or even a light dinner. Look for snacks that can be prepared at home; things like popcorn are perfect.

Remember the foods that are purchased often when planning your budget. A gallon of milk may be bought on Monday but by the following Monday you will need another one. Be sure to account for items that are bought more than once a month to keep up with demand.

Once you have a number, strive to stick with it for at least three months. Budgets always have to be tweaked at some time, but give it an honest try before you determine if it needs to be expanded. Review the areas you spend the most money and see what can be trimmed more, and see which areas you keep going over budget and figure out an adjustment to stay within your budget.

Keep a grocery journal to help monitor your spending. Writing the costs of each item or group of food items will help you see where you are spending the most or least money on food.

Save money on groceries by sticking to a budget. You will find that you have more money left for other things once you get a handle on the money you spend in the grocery store.

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Join us at the online CSAHM club, we now have weekly menus that include grocery lists, recipes, and more!

Here is what I’ve learned:

List your yard sale in your local paper and give GOOD directions!

Make GOOD signs that look alike. I use hot pink posterboard. (You can find hot pink, electric yellow, neon green and fluorescent orange posterboard in the arts and crafts or school supply sections of most retailers.) Whatever you pick, make each sign the SAME color. That helps people looking for your yard sale to find you when they know what signs to follow.

Make your signs BIG with thick BLACK lettering. List in your ad what color your signs are so people can spot them and follow them.

Price EVERYTHING. Nothing is more annoying than having to ask how much everything is. Be reasonable with your prices. Remember, people who frequent yard sales are looking for a bargain. They are more likely to buy more when the prices are good. To me, it’s about getting rid of the stuff FIRST and what I make off of it second.

The more you can spread your sale items out, the better. I hate yard sales where someone has 5 or six big boxes and you have to dig through them. Hang clothes up on a portable clothes rack, along a fence or makeshift clothesline. Set up tables to lay out smaller items so people don’t have to bend over to look through everything. Short on tables? Use your boxes! Flip them over and lay stuff on top. This is great for shoes or purses.

Profit from the summer weather. Have a cooler with can sodas and bottled water. Sell for 50c each. If you have a stockpile of sodas and waters just use those. If you want, keep track of what you make from selling drinks separate and you can put that money back in your grocery budget.

Have a rain plan. I always list “rain or shine” in the ad because I have a garage. Two years ago it rained on my yard sale day and I still made $120!

Go in with a friend or neighbor who wants to sell stuff. Have a yard sale together.

Have PLENTY of CHANGE. I start out with at least $30 in ones, $30 in fives, $10 in quarters, and $5 each in dimes or nickels.

Offer a bargain. I always have a 10c box for all those things that don’t feel like it’s worth my time to price. T-shirts, belts, athletic shorts, tank tops, makeup bags, change purses, kitchen utensils, koozies, pot holders and socks are all things I’ve put in a 10c box before. I throw in boxes and put a sign on the box. (This is where I break my “spread everything out” rule. But I do make sure to group like items together.) Last year, I had a lady spend $2 on things from the 10c boxes. I always put magazines and books out as 25c each or 3 for 50c.

Be prepared for haggling. Yes, you will put 50c on a pair of shorts and yes, some lady will ask you if you’ll take 25c. Give it some thought ahead of time about what you’ll waver on and what’s firm. Anything under $1 I will usually take what they offer me. Large items I usually price a little more so I can haggle. For example, last year we sold a pushmower. We wanted $60 out of. I priced it $75 so I could negotiate down. We ended up selling it for $65! Some people feel like they get a better bargain if they get you to come down on the price. If I had price the lawnmower $60 that guy would’ve still asked me to take $10 off. But I wouldn’t have because I wanted $60 out of it so I probably would’ve lost the sale. But don’t price too high or people won’t even ask.

Push your merchandise! When customers arrive, greet them and ask if they are looking for anything in particular. If someone is looking through your collection of rock band t-shirts from the 80s that you’ve priced $1 each, tell them if they are interested in them they can have them for 75c each or buy 2 get 1 free. Tell the guy thumbing through the box of car magazine that he can have the whole box for $2. Be friendly. Chat. Point out some of your larger items. “Could I interest you in an area rug today?” You want to sell, they want to buy. Work with it!

Remember to arrange for pick up of what is left if necessary. I call the Hannah Home (a local mission center that runs several thrift stores) to come pick up around 3pm on yard sale day. I always have my yard sales from 6-2. (Yes, I like early birds.) I put in my newspaper ad and one my largest sign (out on the highway) that everything is half price after noon. I’ve done this for 3 years and have GREAT success from it. People who see that come by after 12 for that reason. I’ve had morning shoppers to come back after lunch to get more deals. Usually after 12 your flow of customers will slow down. Now that I do the half price after noon I’m still getting a steady stream of customers!

About the Author
I’m a 26 year old full time mom, wife and preschool teacher (and part time blogger). My husband and I were high school sweethearts and we got married 5 years ago. Our wonderful son, Gavin, is 19 months old. I started blogging about coupons and ways to save and make extra money about a year ago after my husband was out of work for a month. We had to change some of our lifestyle and behaviors. I have saved us hundreds of dollars a month since we made these changes. My blog can show you how you can do it too!

Below are 5 tips to save on your grocery bill:

1. Buy in bulk. If you do not belong to Costco, Sam’s Club or BJs, now may be the time to join. You can save quite a bit of money on bulk groceries and over-the-counter drugs.

2. Check the Sunday newspapers for grocery pull-out ads with coupons. The circular denotes sales for that week, and you can buy in bulk by taking advantage of sale items.

3. Check online grocery coupons frequently. There are many websites where you can print out coupons for a variety of items.

4. Refrain from impulse buying. Make a grocery list and stick to it. Before you shop, have breakfast or lunch (grocery shopping on an empty stomach promotes excessive purchasing). Check your supermarket website to determine what’s on sale, and for paper goods, either buy generic brands or take a trip to the dollar store.

5. Purchase store brands where applicable. You can save money while not sacrificing taste. Pick up the store circular upon entering the supermarket. There may be in-store sales that were not advertised in the Sunday newspaper.

Finally, here are some additional tips:

Buy a freezer. Even a small one will help you make the most of great sales on meats and other perishables.

Stock up after Thanksgiving. There are more food coupons issued in November and December than in any other month. Combined with pre- and post-holiday sales, the end of the year is tops for food savings.

While shopping, scan the shelves above and below eye level. That’s where you’ll find the cheaper items. If it’s looking right at you, it’s more expensive.

Join frequent-shopper programs. Store-incentive programs can slice up to 10 percent off your total bill. Join them all!

Mix it yourself. You can pay up to 50 percent more for foods that come with sugar, spices, or sauces already mixed in. Pre-mixed juice costs a hefty 60 percent more than frozen concentrate.

Bigger isn’t always cheaper. Sometimes the unit price is the same whether you buy regular size or jumbo.

Pick up large bags of frozen vegetables instead of the boxes, which generally cost more per serving.

Don’t buy toiletries at the grocery store unless you a have coupon. The price can be 25 percent higher than what you’d pay at the drugstore.

Go with paper plates. Plastic usually costs twice as much.

Here are some suggestions on what to tell your five-year-old about money:

1. Although it may be a cliché, you can still tell them that “money doesn’t grow on trees.” Explain how mommy and daddy make money.
2. Sit your child down, show them coins and dollars of different denominations and explain what they are.
3. Explain the importance of tithing money.
4. Explain why it’s a good idea to save money.
5. Talk to your child about banks and what they are for.
6. Explain how a budget works and why it is important.
7. Talk about how saving money for something you really want is important.
8. On your next trip to the supermarket, show your child the different prices of items.
9. Tell your child that once you spend money for groceries, you have to save money for the following week so you can buy more groceries.
10. Explain how money is used to purchase different things.

Another important aspect in teaching children about money is to utilize a visual component such as showing the child different coins, taking the child to the supermarket and pointing out different prices, having your child watch you as you balance your checkbook, or figuring out the household budget for the month.

Suggested Activity: Play store. Once your child knows how much a penny, nickel, dime, and quarter is worth try setting up a pretend store around your house. Place different items around the house and put price tags on them. Set up a cashier counter with a table, box, or chair. Create a cardboard cash register and buy some play money and you are all set to go! This is a fun and easy way to teach your kid’s about how to count money.

At the end of every seven years, you shall grant a release. And this is the manner of the release: every creditor shall release what he has lent to his neighbor. He shall not exact it of his neighbor, his brother, because the Lord’s release has been proclaimed.

Now, in truth, these verses are talking about the year of Sabbath, which occurred every seven years, but the idea of creditors forgiving their debtors is not without merit, even in this modern day.

Of course, the act of forgiving a debt does not mean that someone should borrow indiscriminately, and without a plan. There are numerous versus within the Bible extolling the virtues of borrowing money responsibly.

For example, in Psalms 37:21:

The wicked borrows but does not pay back, but the righteous is generous and gives;

Furthermore, in Romans 13:8, a Christian is encouraged to:

Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law.

Also, in Ecclesiastes 5: 4-5, the importance of a vow or promise to repay a debt is illustrated:

When you make a vow to God, do not delay in fulfilling it. He has no pleasure in fools; fulfill your vow. It is better not to vow than to make a vow and not fulfill it.

Based on these verses, and others found throughout the Bible, the borrower is obligated to repay his debt, in full, under the criteria of the original loan. While this might seem to exclude filing bankruptcy, it does not. Filing Chapter 13 bankruptcy does not mean that your debts are forgiven; it only means that the debt will be repaid over a longer period of time.

The Bible does not forbid bankruptcy, and does offer instances of debt forgiveness, but it is important to realize that borrowing and paying debts in a responsible manner should be a goal of any Christian.

Tithing and offerings are not about the Christian giving his own money to the Lord, but rather an act of returning it to the original owner. All things exist through His grace, and therefore in truth, the wealth that you have, you keep only as a steward upon His behalf. So, if you think about it, when a Christian chooses not to tithe, he is in fact stealing from God.

According to Malachi 3:7-10:

Even from the days of your fathers ye are gone away from mine ordinances, and have not kept them. Return unto me, and I will return unto you, saith the Lord of hosts. But ye said,’ Wherein shall we return? Will a man rob God?’ Yet ye have robbed me. But ye say, ‘Wherein have we robbed thee? In tithes and offerings. Ye are cursed with a curse, for ye have robbed me, even this whole nation. Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the Lord of hosts, if I will not open you the windows of heaven, and pour you out a blessings that there shall not be room enough to receive it.

In this passage, there are two very important ideas that should be recognized. The first is that tithes and offerings are returned to God, and not given. Christians are stewards of what they have, and therefore the possessions within our care should be treated with respect and love.

There is a difference between tithes and offerings, and it is one that many Christians fail to realize. A tithe, by definition is a proportionate part of your gross income, usually 10%. An offering is what you choose to give back to God above and over that 10%.

So, besides not stealing from God, why should a Christian provide tithes and regular offerings? The passage in Malachi quoted above provides a very real incentive. Whatever is returned to God, He will return in full. If you return to God what is His, He will in turn bless you with the promise and grace that only he can provide. What could be a better incentive than that?

One potential source of difficulty is a lack of financial understanding. For some, the basic principles of budgeting, investing, and even money in general were never learned. However, by admitting that they are lacking in this area, a Christian can easily and quickly gain the guidance that they need through prayer, studying of God’s Word and honest fellowship with other Christians.

Another potential cause of financial struggles occurs within a marriage. Often, a husband and wife will divide the financial duties between them; perhaps the husband is responsible for paying the utilities, while the wife is responsible for monthly food shopping.

When a married couple acts as two separate individuals in a financial sense, this can lead to potential problems. Instead, they should act as one, as a team in all aspects of their lives, especially the financial aspect. By communicating properly, and making joint decisions concerning monetary issues, many struggles stemming from poor planning and miscommunication can be avoided.

Another common reason why many Christians struggle financially is that they have a sense of timing that is different from God’s. Many Christians want to be able to enjoy the fruits of their labors quickly, within a few days, or months, instead of being patient and waiting for fulfillment and a time of proper harvesting. Because of this impatience, many Christians chose to borrow money, and become laden with debt. While debt itself cannot always be avoided, its power over you can be lessened by simply taking the time to ask yourself:

“Am I following God’s timetable? Or am I substituting my own?”

Thankfully, with a better understanding of God’s plan, and what can be done, financial obstacles can become a thing of the past.

Romans 13:8 states that:

“Let no debt remain outstanding, except the continuing debt to love one another”.

This clearly states that as a Christian, a person has the responsibility to live a financially stable life, save for the continued love of his God, and fellow man.

So is debt considered a sin in the eyes of God? In truth, there is nothing in the Bible that specifically calls it a sin. However, there are many cautions about debt becoming a source of conflict or problem. For example, it can become a problem if the source of the need is envy from a neighbor’s possessions or even greed.

According to 1 Timothy 6: 10:

For the love of money is the root of all kinds of evil. Some people, eager for money have wandered from the faith and pierced themselves with many griefs.

And Hebrews 13:5 states that:

Keep your lives free from love of money and be content with what you have, because God has said, ‘Never will I leave you, never will I forsake you.’

These two verses clearly indicate that the cause of debt is sometimes envy of the possessions of others, the love of wealth, and a lack of faith in that God will provide.

In addition, the Bible clearly indicates that all debts should be repaid.

According to Romans 13:7, the Christian should:

Give everyone what you owe him: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then, honor

Also, the Bible indicates that borrowing money should be a temporary state of affairs. For example, in Deuteronomy 15: 1, debts should be resolved or canceled, within seven years.

In summary, debt in and of itself is not a sin, however, the causes of it, and the reckless borrowing of money can lead to sinful actions, so the Christian should make every effort to live responsibly.

One valuable lesson taught concerning money in the bible is that a Christian cannot have two masters. He cannot be a servant of God, and be a slave to his worldly possessions and money.

Matthew 6:24 states that:

“No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to one and despise the other. You cannot serve both God and Money.”

Another idea that many Christians lose sight of is the idea of being financially prepared. In fact, Proverbs 6:6-8 encourages the reader to:

“Go to the ant, O sluggard, observe her ways and be wise, which, having no chief, officer, or ruler, prepares her food in the summer and gathers her provision in the harvest.”

In addition, Proverbs 21:20 and 21: 5 state respectfully:

“In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.”

“The plans of the diligent lead surely to plenty, but those of everyone who is hasty, surely to poverty.”

In other words, by careful planning and management, along with God’s grace and guidance, your needs will be provided for, and your financial life will become stable and relatively worry free.

Another idea that is seen throughout the Bible concerning money is the obligation of the Christian to provide for others out of love and reverence for God.

As it clearly states in 1 Timothy 5:8:

“But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever”

In a very real sense, the Bible teaches that money should not be your master and it should not control you. Rather, it is a tool provided by God as a way to provide for your needs. As a Christian, you should have only one master and that is God.

When I try to be the super frugal mommy I often get overwhelmed, discouraged, or confused as to how to do all of this.

In my process to become a frugal mom I have learned a few things I would love to share with all the other frugal mom wannabes out there:

• It’s a process! You may see all these women getting something for nothing, but know this that they too had to learn the secrets and it sure didn’t happen over night.

• You need to clip coupons. I know for me I would clip coupons then forget to use them, or my organization methods just never really panned out and it really turned into one of the things that made me feel overwhelmed. My suggestion to all the frugal mom wannabes is to find an organization system that works for you. I recently started the coupon binder system and so far it has worked incredibly well.

• You need to be willing to print coupons. When I first started on the path to become a super frugal mom I was opposed to the idea of printing coupons. I really didn’t feel like it was necessary until I saw how many people were using online coupons to get these awesome deals! If you want to be a super frugal mommy then you need to be willing to print online coupons.

• It takes time. It takes time to build up your stockpile of coupons, and when you have that stockpile you will certainly find more and more great deals. Be patient and take the time to build your stockpile of coupons.

I am a firm believer in the saying “A penny saved is a penny earned.” and I feel as Stay at Home Moms we can help contribute to the family budget by being frugal and saving our family some money in the stores.

So get on out there and save some money, mama!

Here are some websites I use to help me save money:

• A Full Cup
• IN Good Cents
• Deal Seeking Mom