The Plan for Food Spending in 2016

Food Spending.

The bane of my existence. 8-)

Here is a list of what I have spent since 2010(the year I started fully tracking where all the food/toiletries monies went).  Not too scientific as the number of persons being fed varied during these years from 5 to 2, depending on kids at college or not, and kids moving out or not.

2009--$6,254.84 +(I didn't track rebates and gift cards received that year)

2010--$2,291.67 + ($841.73 rebate checks/ $563.99 gift cards received)

2011--$3,080.59 + ($433.22 rebate checks/ $76.00 gift cards received)

2012--$4,196.36 +($67.48 rebate checks/ $5.00 gift cards received)

2013--$4,560.82 +($80.99 rebate checks/ $15.00 gift cards received)

2014--$4,989.49 +($44.54 rebate checks/ $10 gift cards received)

2015--$4,338.87(including $103.17 in rebates/$110 in free grocery store/drugstore gift cards)

A little explanation of these figures--

I started couponing and deal hounding seriously in Feb. of  2009 so my full year's spending in food was even more than shown that year.  Yikes!

Obviously 2009 was the year I started stockpiling and learning how to coupon in earnest and by 2010 I had a system and ramped up the rebating.

As you can see a combination of rising food prices, a dearth of rebate deals/gift card deals in each succeeding year and a bit of "food lifestyle inflation" and even though I am feeding less people now than in 2010 my food costs have inched up every year until I started bringing them down in 2015.

LOOKING AHEAD for 2016.........

My Goals are much the same as they were in 2015.

With some planning and watching the pennies better we should be able to keep the food/toiletries/paper goods/cleaning products spending at $4000.00 or less in 2016.  Last year we brought the spending down to $4,333 so I am cutting this a bit more to bring it down some more.

Here's how I am going to accomplish that---

*  Buy Less.  Since we are looking at selling this house and moving within the next 2+ years I will start reducing the size of our stockpile.  This means using up more of it in 2016 so I'll need to buy less.  Less $ spent + Less stuff to move=Success!

*  Seek out the best deals I can find on what I need to buy.  Stick to my price book principles and think twice before splurging on items I "want" but don't "need".  Make better decisions with the food dollars.

*  Preserve our garden harvest.  We did preserve what little we harvested last year.  I'll garden again this year and hope we have a larger yield in 2016.

*   Only buy seasonally and when possible more locally. 

We pretty much buy seasonally now so it's just keeping on, keeping on in this area.

*  Food Waste.  While we have minimal food waste most months I could do better.  I will do better.  Successful meal planning goes hand in hand with food waste(or the lack thereof).  By planning you are halfway to eliminating the waste.  8-)

*  Utilize any savings I can find.  This will take the form of shopping ONLY sale items, pairing sales with coupons(if applicable), sending for rebates when applicable, using offers of free gift cards to purchase needed foods(cashing in c/c points, transferring RXs for free gift cards, etc.).  These are all ways to bring down the out of pocket costs to us for our groceries.

*  Cooking from Scratch more.  I already make most of our meals so this means making more items(components of our meals)from scratch myself rather than buying ready-made foods.  I am talking about dried beans rather than canned beans, making tortillas from masa and flour rather than buying already made ones(unless I can get the tortillas for less than hand making them would cost), etc.

I am hoping that with these measures I can get the spending down below $4000 out of pocket for the entire year in 2016.

$4K a year on food/toiletries/paper goods/HBA is roughly $333.34 per month.

I spent less than $333.34 in 7 out of 12 of the months of 2015.  If I can get those other 5 months under that mark this is very doable.

Of course all of this goes without saying that I won't compromise the level of the quality of the food I buy now to save more on food purchases.  Sure I could just buy more processed foods for cheaper and save money at the expense of our health but that's not an option for me.

So what do you spend on food/toiletries a year if you track those expenses?

What measures do you take to keep your food/toiletry costs down?

Sluggy

Why I Don't Do Spending Fasts

With 2016 a bright and shiny new year it's time for all those frugal blogs out there to hold or participate in what's called A Spending Fast or a No Spend Month.

While I can applaud the theory behind the idea I don't participate in them.

I find them pointless really and here is why.....

1. No Spends cause undue stress in your life.  Most people have enough stress just living their lives.  Between, spouse's demands, kid demands, work demands and extended family's demands everyone's stress levels are filled to capacity already.  So putting yet another demand-of not spending in the face of times when you really need to spend money-on oneself just adds to your anxiety level and when/if you fail at it to your guilt load.

2.   No Spending/Low Spending can cause overspending.
Many people who undergo a No Spend/Low Spend Month will be required to stock up so they can go without buying ANYTHING for a month.  You have to go into a No Spend Month with a full pantry and fridge stocked in order to get through the month.  This means the month before your NSM you have to spend more to lay in the required food/toiletries/paper goods/etc. for a full 30/31 days.

Add to this that most people who go through an extended period of time in which they are Not allowed to spend money tend to go off the deep end and overspend once that period is over.  It's only natural that people who are deprived of something want it even more once the period of deprivation is over. It's the same reason you shouldn't skip meals or go on restricted diets.......it leads to overeating once you can eat again.

3. No Spends or Month long Fiscal Fasts are artificial.
Picking an arbitrary time frame in which to avoid spending is in no way organic to how your life runs.
While the idea of a Fiscal Fast is a good idea I'll venture to say that they never give you long lasting results.
This is born out because people keep going on them year after year.  If the behaviors they purported to change really came to pass there would be no need to continue to do these No Spending Months over and over again.

4.  No Spends/Low Spends don't change the underlying Spending Behaviors.
Let say that one again......No Spends/Low Spends don't change the underlying Spending Behaviors.
A NSM is just a temporary state.  Once the month is over most people go right back to spending at the rate they usually do.  It's only a temporary behavior and doesn't last long enough to become a permanent habit.
Devotees of Spending Fast say they "reset your spending". Yes, they may lower your spending but it's only a temporary fix since you don't actually change your money habits.
While studies have shown that it takes 21 days to FORM a new habit it takes over 60 days, 2 MONTHS, of a behavior to make that habit part of your routine.

 The only way you will change your spending habits is to make it a permanent behavior.  Not spending for a month and then releasing yourself form the challenge and going back to your regular spending habits changes nothing about your life in the end.

5.  Most people don't really learn anything from doing a No Spend Month.  Well, except that at the end of that month that they don't want to be doing a No Spend Month anymore.  lolz


The ONLY way to change your relationship with your money permanently is to....

1.  Track your spending religiously over a long enough period to get a true sense of how you use money.  A month is not long enough to get the broader view of how you use money.  6 months to a year is much more helpful.  Anybody can change their spending habits for a few weeks but by tracking a year or so it will show you where your money truly goes.

2.  Analyze that tracked spending you did to see how much, of what, goes where, and actually learn about how you interact with money.  There are no shortcuts.  You must take the time to study how/why/what/where you spend and then ask the hard questions of yourself.

3.  Put these newly discovered perceptions about how you use money into action and permanently change those behaviors with money that are keeping you from overspending/wasting your income.

I spent an entire year not shopping for "things" back in 2008 while part of The Compact.  We pledged to not buy anything new for an entire year.
Yes, there were exceptions like food, medicine, paying bills, etc.  And I allowed myself to purchase underwear and footwear new, but only if truly needed.  Other than that I bought nothing in a store for an entire year, except for 1 photo album.  That photo album was my only "want" purchase all year.  At the end of the year was a "Jubilee" day during which you could go and buy ANYTHING you wanted to and that you were prevented from being during that Compact Year.  But since my money habits had changed and taken root over the course of that year there was very little I did buy once I was released from my no shopping year.  "Things" I had lusted after during that year when I wasn't allowed to buy them held little interest to me once I was no longer Not Buying Anything.

Not spending for an entire year showed me where my weaknesses were and I was able to change my behaviors involving money.
Before, I shopped when I was bored or wanted something to do, thus I stopped shopping for entertainment and found other ways to spend my free time.
Before, I carried around multiple credit cards and had no second thoughts about pulling one out at the drop of a hat to buy anything that struck my fancy, thus I cancelled cards and kept them in a box at home unless I purposely had a need to buy something.

If you really want to spend less money(and save more)I'd say don't do a No Spending Month.

Instead, analyze how/where/why you spend after tracking that spending for an extended period of time and see what behaviors you have with money you need to change.

Then make yourself change them over a period of time until they become routine.

This will take much longer than 30 days but in the end it will be worth the effort it takes.

And as for the spending you "have to do", the needs,(ie-bills)go and study how and if you can reduce them too.

New money habits and lowering your required bills will reap you benefits with your money for the rest of your life.

Sluggy

First Grocery Shopping Video of 2016

While it's not my first grocery shopping trip of 2016 it is the first one where I thought to video record it.

I didn't pick up the eggs or onions yet this week as that would take me down the mountain and across the valley and the weather is questionable this week.....maybe I can have Hubs pick those up at Maine Source on his way home later this week?

But I did get the other things I wanted this week AND some stuff for College Boy.
$70 set out to spend for all our needs/wants this week and I actually spent $30.67 OOP.



What are you buying this week at the grocery stores?

Sluggy

2016's Savings Challenge Goal

$28K Savings Challenge Updates & 2016's Savings Challenge Goal

So this Savings Challenge I do every year, well, since 2009 at least........I use the previous year's SC $ saved as an emergency fund for the following year.

IE-the money saved in 2012 was used to fund emergencies & irregular expenses in 2013 when regular income didn't cover everything.
Then at the end of following year, when all the emergencies that were going to take place had, I took whatever was left in that SC and put it into an interest bearing non-retirement account of some sort and it became "permanent". And hopefully when we retire it will be added to our sack o' money/retirement funds.

I started my personal Savings Challenge in 2009 when I was on a Yahoo group called "The Compact".  I was younger and pretty naïve about how much I could save from our income then and challenged myself to put away 60 THOUSAND DOLLARS!  Yes, 6 with 4 Zeroes after it. lolz

I didn't even get halfway there.
But you know what?
It didn't matter that I failed at my goal.
What mattered is that I had a concrete number goal and I saved something even if I didn't achieve that goal number!

They say it's hard to save money if you don't have a target so figure out your target.  Then you can set about figuring out how to reach it.

In 2009 I saved $23,865.36
We used $13,460.81 of that money in 2010 for unexpected expenses, sending the remaining $10,404.55 to permanent savings.

In 2010 I saved $34,019.88
We used $427.81 of that money in 2011, sending the remaining $33,592.07 to permanent savings.

In 2011 I saved $34,461.31
We used $2,627.16 of that money in 2012, sending the remaining $31,834.15 to permanent savings.

In 2012 I saved $28,907.08
We used $23,611.66 of that money in 2013, sending the remaining $5,295.42 to permanent savings.

In 2013 I saved $24,033.60
We used $0.00 of that money in 2014, sending the full $24,033.60 to permanent savings.

In 2014 I saved $27,427.06
We used $0.00 of that money in 2015 sending the full $27,427.06 to permanent savings.

In 2015 I saved $40,000.00 and this will be the pot of money we draw from for any emergencies/irregular expenses in 2016 that we can't cash flow, before sending whatever remains to permanent savings when the year ends.

You can see from above that some years we had many unexpected expenses and most years we had few.....what we spent from the previous year's savings varied from $23,611.66 in 2012 to using $0 in 2015.
I am just thankful I DID save money because if there hadn't been that pot of money sitting in the bank in 2012, we would have had to delay or worse, put some of those expenses on a credit card!

So with 6 full years of my Savings Challenges(2009-2014) tucked away for our retirement years my total is sitting at $132,586.85.

Again when 2016 is over and everything is paid for, whatever is left from that $40K I saved in 2015 will go into permanent savings for our retirement years.
************

Now I need to settle on a savings goal amount for 2016.
Since we actually saved $40K in 2015(without the bonus $), I think I'll keep the goal at that level for 2016.

$40K is possibly doable for a second year, given our income level, but it's not a given.  If I keep my frugal nose to the grindstone and no big expenses wallop us this year we could make that number again.

$40K averages out to saving $3,333.33 per month.

Now how do I plan to get to this goal?

I'll remain frugal in my spending, keeping our living expenses as low as possible.

* We'll keep food spending in check.
* Utility bills will be monitored and usage adjusted if it gets too high.
* Gift giving costs and Christmas spending will be tracked.
* We don't foresee any larger car bills this year(as 2 of the 3 cars are newish), our housing is basically sound and HVAC systems are running well so those expenses shouldn't be a factor in 2016, just gas for cars and regular maintenance on cars and house systems.
* Entertainment will be sought out that is inexpensive or free.
* Travel will be done on the cheap if possible.
* Clothing spending will be low this year.  Last year much of College Boy's wardrobe was replaced and I also bought clothes for the Daughter but those costs won't be duplicated in 2016.  I'll try to do some sewing when I need clothing items replaced and Hubs is good to go with his wardrobe.

Items that may hijack my saving goal--
* We will have some extra expenses in 2016 with home repairs(getting things ready to sell in a couple of years).
* Hubs current medical issue with no resolution in sight yet, so the medical co-pays are a wild card in the spending plan.  Also any unforeseen medical issues that may crop up during the year.
* 1 child still in college and dependent on us and another child still on our medical insurance will mean higher spending than if we didn't have dependents at this point in our lives.

So who wants to play along and save some of their income in 2016?
Figure out what you can reasonably live on and put the rest away for your retirement....or if you still have debt(and why do you still have debt at this point in your life?!?)put something extra this year toward that goal and get yourself DEBT-FREE and/or MORTGAGE-FREE before you retire.

Set whatever goal feels right for your life.  Experts have said that people who set goals do better with their money overall.  Set a goal to keep yourself accountable.  Better yet, post a goal on your blog or in a community forum online and let other people's eyes help keep you more accountable.  8-)

Yah, it might not be fun to track your expenses but if you don't know where your money is going(and with most folks the money DOES GO!)how can you know if you keep any and how much you keep?

Tell us your savings goal for this year and how you plan to go about achieving that number.


Sluggy

A Few More 2015 Recaps

Just a couple more recaps here at Chez Sluggy before we move on to 2016 Goals.

*  Exercise Program
I started "real" exercising in 2015 in mid-March.
I was able to log in 460 miles on the exercise bike for the year.
My best months were June, July and August.
While I only did a few miles in September and then in October, I was also doing Physical Therapy for my foot issue(lol)those months so I was exercising just not riding a bike.
I really didn't add in any weight training last year.  That will be an added thing going into 2016.

*  Eating Out
I try to keep a limit of $100 on Eating Out per month.  This doesn't count Eating Out when traveling and there was a LOT of traveling last year!  This $100 mark doesn't include any special occasion Eating Out either.....like birthday celebrations, when people come to visit and we take them out, that sort of thing.
Eating Out amounted to $3212.71 in 2015.
Of that, just the "Regular Eating Out" came to $874.81.  This comes to $72.90 per month average so we stayed under the $100 a month goal for that.
Now the remaining $2,337.90 in Special Eating Out?....that's another story! lolz
True we can afford it but still, that's a big pile of cash!
Other than not eating out as much(or traveling as much)I'll be thinking on ways to bring this down a little in the new year.

*  Now I am just in waiting mode to get our end of year credit card statement that breaks down all the c/c spending into categories so I can see "how much we spent on what" in those categoriess last year. I put much of our spending on the credit card(and pay it off every month in full)rather than pay by cash or check/debit for the free reward points putting it on plastic gets me.  It's not much of a savings in the end but spending this way does give us FREE gift cards that I can use for giving, food spending or purchasing items we need/want.

Sluggy