Here We Go Again

January always seems like crunch time. We refuse to finance on our credit cards and would probably sell some things before dealing with credit card finance charges.
The idea of switching to a cash system still has some draw backs. It is important to track the money. More important is to spend less than we make. No longer immune to the changes in the economy; everything has gone up in price. Has anything gone back down?
The real problem this year seems to be the higher price for oil heat. How can one home need $2000 worth of oil in less than two months? Last winter and summer (Dec 09 thru Aug 10) we spent $3,000. The year previous (Dec 08 thru Aug 09) we spent $2,400.00.
Our electric is on a monthly budget plan. It has rose 35%. From $200 per month to $270 per month.

What is the price of a smile?

When planning a child's birthday party, what is your intended outcome?
A) For your child to be happy.
B) For your child to have fun.
C) For you to have a relaxing day.

Can all of these goals be accomplished without breaking the bank?
If your venue cost $200 or more without food you might be spending too much.
Let's start with the basics. Fun, fun, fun.
How do you accomplish this task?

Create your own party games.
Bake your own cake.
Skip the party bags.

As your child ages; the guest list increases. Sometimes you even have two parties. How can you have a party without cutting the guest list? Sometimes you can get a discount by having a party at a non-popular time. Skip the extra food. Try just serving the main event, beverages and cake. If it is not a long party this should be fine.
Entertainment
Plan your time well. Always better to have more things to do then not enough.
Location
Can you hold an event at a local park or at your house?
Party Favors
Maybe your party favors can be part of the activity that you did.

A simple snack, craft or game, drinks, cake and a camera might be all you need. Kids enjoy getting messy, being loud and having fun. Parents enjoy seeing a smile.

Happy party planning.

Grocery Shopping

At the beginning of the year is the time to start analyzing your expenses such as grocery shopping. How much of your bill (dollars) is going to food and how much is going towards other items? Some grocery stores actually will give you your categories of spending. More likely, you will need to figure it out yourself.
Here are some percentages from a recent shopping trip.

Food includes fruit and Baby items include formula and baby food.

Food 21%
Beverages 11%
Snacks 14%
Household Supplies 13%
Baby items 41%

A few impulse buys are included in the household supply amount. Rather than hold an impulse buy to one or two items maybe a dollar amount might be a better approach.

Winterize Your Car

You are at work and outside you car is being snowed on. You are prepared because you have your boots and your ice scraper. It is starting to snow pretty heavy. Your employer releases the employees but the parking lot does not get plowed properly. You are stuck with a snowed in car. What should you do?
Well you forgot to put your mini snow shovel in the car b/c frankly you do not own one YET.
Readers, please share your thoughts on how to get out of this jam and what to pack in the future.
My suggestions would be have an ice scraper at your office, at your home and in your car. Sometimes you just can't get to the ice scraper that is in the car. Have a spare car key in the house in case you accidentally lock your keys in the car while warming up the car. Have a small fold up shovel or a child size shovel. It is a good investment.
Without a snow shovel in this scenario you either need to stamp down the snow around your car or start making snow men to remove the excess snow. Happy winterizing!! Oh and take an extra pair of socks. Trust me, someone will need them.

Fees Paid for Making Partial Payments

Does anyone have any issues with paying in installments for insurance and then getting charged a fee for paying in installments?
For example
Life insurance could be $150 per year but if you chose to pay monthly, quarterly or semi-annually you are penalized. The life insurance invoice does not state the obvious. There is a fee if you pay in installments.

Our auto insurance has a similar fee if you pay monthly rather than every six months. You are charged a set dollar amount with every installment payment that you make.

I would prefer that the extra charges were obvious. Always pays to do the math.
So if I am willing to pay for a full year of life insurance I could save up to 8%. 8% penalty or fee for monthly payments; 6% for quarterly payments and 4% for semi-annual payments.

Overdraft Protection

If you decide to use your debit card; make sure you set up overdraft protection. There might still be a fee for the use but it should be less than without the overdraft protection. Normally you would need the bank to link the account or accounts for the overdraft protection. If you have multiple accounts; you should be able to designate which account can be used first.
Example:
You make a debit transaction and then have the debit transaction reversed for an error and the transaction is re rung. If you are carrying a low balance you will actually need enough money in the account to cover both debit transactions before the credit is applied. If this is the case it would be better to use a different account or a credit card (without a balance) to re ring the transaction then to risk getting a non sufficient funds charge or to use overdraft protection if there is a fee associated with the overdraft protection use.
My hunch is this is the same with hotels. They put a hold on more money then will be needed. This might give you a negative balance also.

My Mantra

I think it is time to revisit my mantra.

mission statement

If you teach a child to fish he will become a fisherman.
If you teach a child to read he will become a reader.
If you teach a child to be potty trained you save on diapers.
If you teach a child to tie shoes you can stop buying velcro.