Don’t Feed the Alligators

I participated in my first blog carnival this week at the Carnival of Personal Finance. I submitted my article about the parallels between losing weight and growing wealth. You can see it and all the other great articles at this week’s host Gather Little By Little. This week I also joined the conversation on a number of topics at other blogs. Some of the blogs that mentioned me or in which I participated were:

• Lynnae at BeingFrugal.net solicited the best financial advice that her readers had ever received. My words of wisdom were 1.Pay yourself first and 2. Anything you can measure can be improved.
• Glblguy at GatherLittleByLittle.com wondered why he still has to carry cash. I don’t usually carry much cash, and it tends to sit in my wallet for a long time. In the comments I shared my strategy for using my rewards credit card for everything I can.
• Frugal Dad at FrugalDad.com wondered whether it was cost effective to buy a new car for the explicit purpose of saving on gas mileage. I suggested that for people who continually carry loans, the cost of gas is minor compared to the other operational costs of a car.

Another article that caught my eye today comes from the Boston Globe’s Personal Finance Section which reported on a new study being conducted at my alma mater which will “explore how people make decisions about their money, and how technology can shape and assist in these choices.” This study is part of a new Center for Future Banking that seeks to understand how changes in technology will affect banking. This study will explore many of the questions that fascinate my about the social psychology of money decisions. It is a bit dubious, however, that Bank of America is providing the financing for the study… Lastly, I made some updates to my Blogroll at the right this week. Check out some of my fellow bloggers sites if you haven’t already. b

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“Anything that is measured and watched, improves.“ — Bob Parsons

Over the last several years, I have embarked on two journeys that share a lot in common: dieting and wealth building. Both of these exercises require many of the same elements in order to be successful:

1. Planning - In most cases and for most people, you do not lose weight or grow wealth accidentally. Both require some kind of budget, one for calories and one for dollars. Good planning should include interim rewards, such as a new smoker and a pork butt to cook on it. (Might as well combine my vices!)

2. Organization - Both endeavors need some way to track progress. I use a spreadsheet for my diet and Quicken for my wealth.

3. Self Discipline - Ultimately, both of these projects require a large degree of self denial. You can’t eat everything you see. You can’t buy everything you want. You must stay the course even when the winds are blowing against you.

4. Inspiration - I’ve lost weight in the past, only to gain it all back and then some. However it was only after reading John Walker’s The Hacker’s Diet that I learned how to manage my weight once I reached my goal.

In wealth creation and growth, I am continually inspired by the lessons in some of my favorite books: David Bach’s The Automatic Millionaire, George S. Clason’s The Richest Man in Babylon, and a new favorite, Burton G. Malkiel’s A Random Walk Down Wall Street. I’m also inspired by a large number of insightful personal finance bloggers, many of whom are featured on my blogroll to the right.

5. Setbacks - I recognize the fact that I am only human and that I’m going to have moments of weakness, down markets, and other internal and external influences that are going to slow or reverse my progress. However, with a good plan (see Point 1 above) these short term reversals can be overcome quickly.

6. Support - My wife has been my best partner in both of these undertakings. Her reports to me of how many calories were in meals she had prepared were essential to my calorie balances during my 1 pound per week loss phase. Her like mindedness and buy-in for our financial goals has been integral to the success of our net worth increase. Comments from people who haven’t seen me in a while are also a great motivator: “You’re smaller than you used to be,” said one particularly keen-eyed observer.

7. Investment in the Future - My pre-loss weight was not what would be considered morbid, but clearly was detrimental to my long term health. My pre-accumulation wealth (yes, it does tip the -40% level) clearly was detrimental to my long term well-being, both mentally and ultimately physically (eating dog food in retirement takes a toll…). I was never fat, and I was never poor, but by taking charge of both of these aspects of my life I have put myself on a long road to well-being, which with luck will allow me to enjoy many years with my wife and daughter and future children and grandchildren — not to mention parents, brothers, in-laws, nieces, nephews, etc. — all the things in my life that really matter.

If you liked this article, you may be interested in seeing some related articles:

• Using Google Apps to Track Spending and Budget (5)
• Using a Twice Yearly Pay Bonus to Meet Your Goals (7)
• How to Create a Spending Plan: Part II, Iterating (1)
• How to Create a Spending Plan: Part I, Getting Set Up (8)

Editor’s note: This is the second of two parts of a guest post by ScrapperMom on Saving on Food.

We continue our discussion about saving money on food by looking at what you can do at home to save money with the food you have already purchased.

Morph one ingredient into multiple meals

To save even more time and money choose your main ingredient for the week out of the items that are on sale. This idea is the main focus of Robin Miller’s Quick Fix Meals show on the Food Network. In her show she makes up kits of food that she can use for the whole week. She also cooks more than she needs on one night to use for multiple dishes throughout the week. This saves both time and money which for me, as a work at home mom, is invaluable. This is where you can buy a big package of chicken, make all of it one night and use it in multiple dishes throughout the week. For example it can be chicken parmesan the first night, chopped and used for quesadillas and chicken salad on other nights. With ground beef it can be morphed into meat sauce, chili and tacos. Read the rest of this entry »

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Editor’s note:  I am away on business in New York, and so I introduce Mrs. MITBeta, ScrapperMom, who has volunteered to write a guest post in my absence.  I hope you enjoy what she has to say!  — MITBeta
Do you ever feel like all you do is throw away produce that has since gone bad? Are you eating Ramen Noodles even though you have long since graduated from college? Is your pantry full of food, yet there is nothing to eat??

If you want to save money, throw out less or no food, and eat healthier, then the following tips should help to accomplish those goals. It does take a little bit of planning, but in the end, like budgeting your finances, planning your meals and food purchases will also bring great rewards.

Write a list of the meals you are planning to make for the week.

I find that if I plan all my meals on the weekend I am more likely to eat what I have in the refrigerator. It only takes about a half hour to do this and will save you a lot of time mid week (think laying out your clothes the night before). This list can and should include any leftovers you may have. Also, each meal does not have to be unique. You can plan to make a big pan of lasagna for you and your husband and eat that all week for lunch. If you plan for this you won’t end up buying cold cuts at the market and having them go bad when you don’t eat them. The Organized Home website has a great form for weekly menu planning.

Buy on sale.

Base your meals on the sales flyers, which typically come out on Thursday. For example if chicken is on sale this week, plan meals with this in mind. We will talk more about how you can utilize a 3 lb package of boneless chicken or ground beef in Part II.

Use the grocery game or a price book.

A great way to save even more money at the store is to buy things at their cheapest price. The stores put all their products on sale in cycles, you just have to be savvy enough to buy them only when they are at or near this low price. This means you need to change the way you shop. By stockpiling your pantry you can eliminate the need to buy things at the last minute when they are at their highest price. A price book can help you determine what a good price is on each item you buy. The Organized Home also has a great article on making a price book if you want to go this route. This is a time consuming method though and for a cheap price you can play the Grocery Game and essentially have someone else tell you when to buy certain items.

Seasonal Shopping.

We all love the fact that you can get strawberries year round but if you try to eat seasonally you will win financially. Eat foods that are available in the winter months to make stews, pot roasts…. In the spring look to leafy greens… In summer, fruits and squashes… In the fall, carrots and sweet potatoes. The World’s Healthiest Foods has a great article on Seasonal Eating.

Shop on the exterior of the store.

This is more of a tip for healthy eating, but processed, prepackaged foods can add up in the long run. By shopping around the exterior of the store you are only buying the fresh ingredients; produce, meats & poultry, dairy, seafood and grains. Although the fresh foods due tend to be more costly, in the end eating healthy foods will be a benefit to your health and that saves money in other ways.

Don’t shop on an empty stomach!

This one should be a no-brainer, but I am still guilty of it as well. If you are not hungry (try shopping after lunch or breakfast) you will not be tempted to buy snacks and other items you may not need. You also may be able to avoid a stop at the in-store coffee shop, which is becoming more and more common!

Check out the day old bakery items.

I find great deals here. Usually the bread is still very fresh and if you plan to use it that night you can get the items half off. I also like to buy French and Italian bread on sale to cut and freeze for French toast. It doesn’t need to be fresh for this use anyway.

So head out to the store armed with these tips and tricks and watch the savings add up. It becomes a fun and addictive game to see how much your bill will decrease after they scan your rewards card and coupons! I find I average at least $25 to $35 worth of savings at each trip using the tips listed above.

Editor:  So what do you think?  Do you have any tips for saving on groceries and other food items?  Share them with us in the comments section.  Interested in writing a guest article here?  Send me an email.

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