June Challenge Wrap-up/July Challenge

June Challenge Wrap-up

So we are at the close of the June Challenge, which was "all cash all the time." I slipped up a couple of times and had an auto emergency that required some credit card usage. Overall, this was actually more difficult then I anticipated. Especially with the added challenge of no ATMs. Some lessons learned:

1) Going all cash takes planning. Not just planning that there is a whole day the bank isn't open to get cash. Budgeting, planning what the next few days may have in store for you, how much gas, groceries, and entertainment is coming up.

Part of that is to plan for the unexpected. Have a back up bit of cash in the house, car, and/or work to have something there for the unplanned for event is a great idea. Maybe the restaurant's internet goes down and need cash only. Maybe your kid needs field trip money that they didn't remind you until you pull up to the school ( I did that to my parents all the time). Don't have time to go out for lunch at work, so you grab something from the vending machine. Your wallet or purse is stolen and you are on E, having cash for gas will get you home. Having that back up money will help.

2) Cash can save you money. Some up front money, such as saving 8 cents per gallon at the pump. It can save you money by making you think harder about the purchases you are making. Knowing you have $10 in your pocket for groceries makes you prioritize your choices a bit. It also saves you on interest. I just learned (and I asked others and they didn't really put it together either) that no interest financing on a department store card for a certain number of months is not billed with the total divided so that you have a zero balance on the last payment. Minimum payments will not generally get you to zero. So the consumer needs to plan what that payment should be. You have to take control. I know for myself, fake credit card money is difficult for me to control. Out of sight, out of mind.

3) Money is real. I know that sounds weird in a few ways. Money is actually not really real. It is a piece of paper that has an ever changing imaginary value. Money is a note, and now it is not even backed up with gold. It is just paper. A dollar in 1900 was a lot different then a dollar today, but it is still a dollar, 10 dimes, 20 nickels, 100 pennies. But the meaning of it has changed over the decades. Talking to the elder generations illustrates this every time. "I remember when bread was 5 cents." Now it is $3.50! We have stopped seeing money. I see it in the cashier's eyes when I hand it over...that "what is this?" moment. A few weeks ago I had someone buy a refrigerator with cash...$2000 worth! Seeing it in the "real" thing was weird. I sell that refrigerator several times a week, just swipe the card and it is your refrigerator. But to see a stack of $20's makes the magnatude of the purchase feel more real for some reason.

4) Credit cards are not all bad. 

We live in a society that is almost ruled on credit. Credit decides whether you can get a house loan, student loan, employers sometimes check credit to make sure you are trustworthy. To get in an apartment, you need credit history. Banks even do it to decide if they can give you a debit card that can be backed by Visa or Mastercard...otherwise you get the ATM card. If you had no credit history because you always use cash, you have a credit score of 0. 

Credit cards are not the Enemy...it is just that we tend to abuse it. We live above our means. We think we have a $9000 credit limit and that $9000 can buy a few vacations, furniture, etc. then I just have to pay $30 for the rest of my life to pay it off!

We could still use credit cards to our advantage. Many credit cards offer points that you can get cash back, gift cards, airplane tickets, etc. You earn those points without ever having to pay interest! Free money! All you have to do is be disciplined enough to pay the bill IN FULL each time you get it! Then you can enjoy 1-5% back typically...which is a better rate than you even get in a bank savings account!

So let's say you have credit card debt right now. What do you do to get out of it without declaring bankrupcy? Some things I have learned from personal experience that might help others fight debt:

I had $10,000 in credit card debt because I paid for a year of college on it because I had no credit history to get a loan. I paid the minumum for years. That allowed me to have a pretty good credit rating, which allowed me to get a better interest rate on a new credit card or negotiate with the existing credit card company (I did both).

Then I took the amount I had and moved it to a card that was offering 0% for 6 months. Then I threw every extra penny to it for 6 months. Have a garage sale, sell plasma, go minimalist for a bit, go back to the dog days of ramen noodle dinners of college, get a part time job, income tax refund, birthday money, whatever you can do. It is just 6 months. We can all do something for 6 months. A short term sacrifice for such a sense of accomplishment, freedom, and peace afterwards. 

I didn't have a zero balance after 6 months, but I had a lower interest rate on the new card and a much smaller balance for that interest to go off of. I just kept focused for a bit longer and made payments each paycheck. Within a year, it was gone. Zero balance. Each month I auto pay something with that credit card and then pay it as soon as the bill posts. No interest, but it is still active which counts a lot toward credit history and rating. Having a credit card that is never used is actually a hindrance to building a credit rating. Use it a little and pay it immediately. 

This is just what I did. It may help, and it may not...just some thoughts.

Things happen...

Things happen that will possibly demand that need for credit. Your car dies prematurly and a new car is needed, a great deal comes up for a house, medical issues come up, etc. Having planned some ahead by keeping your credit history active and saving toward those large purchases (even if you didn't have time to save to buy it all on cash, you will be taking a loan on a smaller amount and pay interest on a smaller amount which saves money in the long run) you will be in a much better position then if you hadn't planned ahead. 

Keeping in mind that money is real, maybe that will slow your roll and let you think if this is really something to go into debt for. Maybe a good used car will do ok instead of a brand new car. Maybe buying a fixer upper house in a better location than a dream house in an ok location will save money and can eventually become the dream house with some sweat equity and in a great location...which will save money, maybe even make you money when you sell. You can fix the house, but you can't fix the location.

Bottom line: Remember, you rule your money, don't let money rule over you.

July Challenge: Clean it up!

I tend to leave cleaning for the last thing on my list. It has to get pretty disorganized or messy for me to break down and clean. This month, I am going to dedicate 15 min a day to all out clean and organize. 465 minutes this month devoted to cleaning. 7.75 hours. 

Buying Club: Update

Last week, I picked up my box of organic fruits and veggies. It was a very easy process. I switched my box to a more fruit based box before the payment deadline because that is what my family likes most. It had blackberries, blueberries, strawberries, pink lady apples, black plums (which are mind blowingly good), nectarines, avocados, tomatoes, corn, grapes, bananas, peppers, rainbow carrots, and a melon. Pretty good haul. All certified organic.

All I had to do was go to the pick up location and sign that I recieved everything. It was all sorted when I got there. Everything looks fantastic!

Yes, there is an economic benefit to me buying with a buying club verse going to the grocery. Statistically, it saves about 25% to buy from a buying club verse the grocery store. However, that is not the only reason. Part of buying with this club is choosing to support a cause that I believe in. In every purchase we make, we vote in support of that product. Economics 101: Supply and demand. If we demand a certain item, the supply will eventually catch up with demand. Generally, prices drop at that time too. 

So what was I voting for? I voted for an increase supply of organic foods. I voted to have a supply of food that is closer to the grower. I voted for smaller business. I voted for local businesses and farms. I voted for a wider variety of produce options. I voted. 

We put our money out there on an almost unconsious basis. We buy what is easily available to us, generally. One stop shoping, even if the quality is not as good as what it could be. A coworker of mine passed along some advise this week, "a lazy person works twice as hard." I try to save money by shopping for the cheapest "healthy" food I can find, but end up throwing it out because it spoiled faster than it should have. 

I think American culture has turned too far toward getting more bang for our buck and giving up quality and standards we should expect. A friend of mine once told me that she would rather eat less and spend more on high quality food then to eat more on low quality food. I wasn't in a mindset to agree or really understand her point at that time, but now I am getting closer and closer to truly understand where she was coming from. 

What will we stand for right now? What decisions will we make right now to stand up for our tomorrow?

What did you vote for today?

Gardening: Lemon Plant's Possible Issue

Looked up the issue of my lemon plant's pock marks...looks like it might be sun burn. Going to try using the small hole netting idea and see if it helps. Will update later.

Gardening: Spring/Summer Crop Update

In February, I planted a bunch of plants from seed. I have never planted for spring in Florida, so I was not sure what to expect.

I planted beefsteak tomatoes, cherry tomatoes, green beans (bush), and zucchini. 

Beefsteak tomatoes: didn't sprout at all. I think I had a couple but never grew past a couple inches tall.

Cherry tomatoes: one grew very well, but took a long time to actually produce anything. By May 15, I had some green ones finally, just ripened a week and a half ago.

Green beans: they grew pretty quickly and then died pretty quickly. They only produced a handful of green beans each time. Not really seeing it as worth the real estate to grow the bush variety in the future. Plus, they are fuzzy on the outside. I have tried soaking then and washing them and they still have a fuzzy texture to them. After the green beans died, I had a couple of sprigs that I kept watering to see what they are. It appears that one is a small cherry tomato plant and the other might be a small beefsteak. I am still watering them and seeing what happens.

Zucchini: I had one grow and flower, but didn't produce anything. Then it flowered again but the roots started to grow out of the soil. I think maybe the pot was too shallow to grow it. So now it is dead.

Lemon tree: I still have a bunch of green lemons but in the last week they have started to get yellowy pock marks on them. Maybe something small is eating the fruits? I will try going to the home improvement store and get some fertilizer specific for citrus plants and see if it helps develope them to finally change color and ripen. 

Some things I might try for next summer:

1) Change the soil completely between the fall and spring crops. This year I used the old fall soil and mixed in some fresh to fill them.

2) Try placing some sort of black netting over then to prevent the sun from burning them so much...there might be such thing as too much sun. We passed a farm today that had a large part of the field covered by something that looked like a greenhouse that was made of a small hole netting. It might be for pests, but it might prevent them from getting too hot in the tropical sun. Something to experiment with.

3) Definitely planting my cherry tomatoes again...its a staple. 

4) Going to try zucchini again but want to research if they are more cold-ish weather or a hot weather plant. If cold-ish, then might go with the fall crop instead. Also would plant a few together. I hear they have female and male plants that are needed to produce anything. 

5) Want to try jalapeños again.

6) Want to try bell peppers as well next year.

I will give more updates as I find out what mystery plants are wanting to grow in my green bean pot. Also, how the lemon tree fairs. As well as how long my cherry tomato crop lasts in the summer.

June Challenge: Mid-Month Update

15 days into the June challenge of "all cash, all the time." I stumbled yesterday due to poor planning and laziness. Yesterday, I used my debit card (not my credit card, at least) to purchase a gift. Then, because the banks are closed Sunday, I went to the ATM to get cash for parking to go to the baseball game Sunday. I thought about going to the bank before work, but thought I would go in on my way, but was running late so I didn't have time.

Other than yesterday, I had been successful. So what have I learned so far.

 

1) Going all cash, takes planning (a budget, an idea of what you are going to do each day, etc)

2) Having a back up bit of cash on hand, helps in those times something gets more expensive than thought, or when banks are closed for the weekend fun. Have some tucked away at home and in the car in case something comes up.

3) You feel the money going more when you actually fork it over from your wallet verse swiping a card. Swiping a card feels like it is imaginary money.

4) Sometimes you want more than you really want to spend. Having cash, puts a leash on those wants.

I will get back on the horse and finish this challenge out strong. Updates to come.

Buying Club

Yesterday, I signed up for my first buying club. A buying club is basically a group of people that pay a certain amount every, or every other week and the club then uses that money to negotiate a better price for fresh fruits and vegetables. While buying in bulk directly from a supplier, the members of the club enjoy better buying power to negotiate with. Often times they are seeking fruits and veggies that appeal to the group, such as buying all local or all organic. Then, every or every other week, everyone meets on the delivery date and timeframe to get a random box of fruits and vegetables. 

The buying club I joined has different "share" options available to fit different tastes. Ones that cater to smoothie makers, Paleo followers, little families, or big ones. So you first choose which option will suit you and your family the best. 

You then choose to pick up each week or every other week. This group I joined also gives an idea of what will be in the shares the week before. This allows people to skip shares if they want or allows you to have time to find recipes for something you might not normally eat. 

The goal is to get fresh, organic fruits and veggies at a better price then you would get at the grocery store. I know that when I get produce at the grocery store in Florida, somehow it is spoiled as soon as it enters my home. No idea how long it has been off the plant or on the display by the time I get it. Negotiating directly with a supplier will stop the middle man and get one step closer to the grower.

Not having total control of what I get each time will also expand my horizons on different types of fruits and veggies I might not normally get. They also try to get produce that is in season. This increases the nutrition and freshness of the food. 

I have read about different buying clubs online and read about it in a magazine recently and decided to stop waiting and just try it. I will blog later once I pick it up and let you know how it goes.   

Relay for Life 2014

Today is the Relay for Life in our town. This is the first time I have ever participated in this event, so I am really excited to see what it is all about. Fortunately I have great friends and family who have donated toward the cause to stop cancer in the future and some who are participating with me. My mom was diagnosed with stomach cancer 2 years ago almost to the day. She unfortunately passed away 7 months ago. We all miss her greatly. 

June Monthly Challenge: Planning Ahead

Today was the first challenge of the "All Cash, All the Time" month; gas and groceries. This took some planning ahead to prioritize purchases with what I had on me. Let's start from the beginning...

Yesterday, I went to the bank...inside. I added to the challenge that ATMs are a no go as well. I am the type of person who only sees the bank inside when I get my tax refund check (I know I could let the government direct deposit it, but I am superstitious that if I sign off that they can access my account, they will somehow have my ok to withdrawl as well as deposit. It is silly, but that is the truth of it) or a relative goes old school and sends me a check for a holiday. So I am there trying to figure out how much I 1) want on me, 2) need to not come back here too often 3) plan on having fun in between bank visits. So I get $60 out...I felt this was a lot...I now realize I am out of touch with my money...

Today, I decide that I need gas (I am also the type that waits for the light to come on between fill ups...except in hurricane season. I got the don't-fill-up-until-the-light-comes-on habit from my mom) and a few items at the grocery store. So I make a grocery list. I love lists, so this is nothing new. I figure a certain amount needed for groceries and subtract that from the total to figure what I can spend on gas. 

So I go to the gas station. Punch the button on the bottom that says "pay inside." I dumbly watch the "one moment" screen come up thinking, bet that confused you! Then realize I must pay first before it moves on from that screen. I go inside and I am amazed that there are a few people paying for gas with cash inside. So I wait. Normally, when I have my card, I fill up. It usually is about $50-$60 worth. With cash, you have to know up front. Because of groceries, I decide on $30. Pay the nice man, and head back out. The machine stops at $30! Genius! 

This did save me money because they give a discount to cash customers... 7 cents/gallon! So I saved 58 cents! I also didn't spend as much as I would have if I had my magic play card called a credit/debit card. I generally need 30 gallons of gas a month, more when I have to go to the north campus of my school...like now. So let's say 45 gallons. Paying with cash would save me $3.15 per month. That is $37.80 per year in savings! Just saying...it adds up.

On to the grocery store!

Got to the grocery and start the math. Normally, with my magic card I get surprised at the register with the total. Today, I was hoping to avoid the void out of shame...yes, when you have to play the priorities game at the register. The void out of shame="The I put everything on the belt that I wanted and it all got bagged but my wallet is indicating that today is not the day I get everything I want and have to fish through bags to see what I need and what I just want while the line grows and groans." I was a cashier for a grocery store...believe me, that happens and it happens to the best of us.

To avoid this, I have to pay close attention to the prices...sorely miscalculated what I wanted verse what my $30 was going to cover. So I prioritized the best I could. Rounded up the prices to figure in tax (some things are taxed and some aren't...so I say estimate tax on everything to make a cushion for yourself). Had to leave out the turkey bacon for some frozen sausage the family likes. Downscaled the amount of greek yogurts I wanted (over $1 each! What!?). Got to the register and came up with $23.30. Donated $2 to a charity they were supporting this month. Had 50 cents rolling around in my wallet so I got to keep a whole $5 bill! 

So far, I think this challenge is going to be very good in getting me back in touch with my REAL money.