Higher Prices, Lower Wages

There was an article in the Des Moines Register today that confirmed what everyone already knows, prices have gone up.  The premise of the article was that many people have not recovered from the Great Recession because prices have gone up and wages have gone down.  Okay, I already knew that, but the article gave statistical information which I found quite interesting.

In Iowa the median household income in 2007 was $52,371 and in 2012 was $50,957.  In the U.S. as a whole the median household income in 2007 was $56,189 and in 2012 was $51,371.  Americans are paying about 12.5% more for household goods.  In 2007 a pound of ground beef cost $2.40 and in August of this year a pound cost $3.46.  A loaf of whole wheat bread in 2007 cost $1.71 while in August of this year a loaf cost $2.04.  A pound of coffee was $3.50 in 2007 and in August of this year a pound was $5.21.  Gasoline has consistently fluctuated over the past few years and has increased to the point that it was not uncommon in Iowa to pay an average of $3.37 by the end of August this year.  Fortunately as of today, the price of a gallon of gas in our area is $2.97. 

Many Americans continue to feel the pinch as they are still cutting back, have tried to adjust to lower wages, higher costs, have lost their homes, jobs, are having problems paying their mortgage and have increased credit card debt in order to pay basic bills. 

The recent fiasco in Congress created more financial problems for many people which has led me to believe this:  we are on our own people.  I have stated this recently on this blog.  While thankfully there are programs that can be helpful for families, many people don’t want to have to need these programs.   It is comforting that they are there to help but when the government shut down occurred some of these resource programs were suspended such as the W.I.C. program (Women, Infants and Children).

I believe it is becoming the responsibility of each of us to take care of each other.  If you have a little extra and you have a neighbor in need, it is up to us to take care of our neighbors.  Sometimes we may not have a lot, but a loaf of bread or a half a gallon of milk can go a long way for someone who does not have much.

Recently I had an individual comment and ask what I am doing to combat higher prices.  I cut out some frills in our budget such as getting my nails done and working out at Curves to help our budget, but there is more that I can do.  I have become a little lax, but with retirement only 13 years away and the desire to continue to be a stay at home wife and grandmother, there is more I need to do. 

You know what it is like, you sacrifice for such a long time, you need a vacation from the sacrificing.  You get tired of counting pennies and you just want to go out to a restaurant and spend some money on a great meal.  I have been there.  Funny thing is this:  I can buy a 16 oz. steak on sale for $6.99 (recently $4.99), cut it in two, grill it, add a potato, small salad and a homemade dessert for a lot less than I will spend for the two of us at a great restaurant and it tastes better.  The same is true if I marinate some inexpensive chicken breasts and grill them with some vegetables.  The point is that sometimes you need to take a break from the scrimping but you don’t need to throw the budget out the window.  Sometimes it is creating a special meal and serve it by candle light OR as we did when our kids were little, having pizza on a blanket on the living room floor in the winter  - our version of a winter picnic.

When it comes to scrimping and getting the most out of your hard earned money, there is one thing that will save you a lot:  being aware of what you are doing daily.  I know it sounds weird, but think about it.  Are you aware when you run the water for a shower or bath how much water you are using?  When you squirt dish soap into the dish pan to wash dishes, are you using too much soap, the same being true for dishwasher detergent? When you cook a casserole could you get by with using less meat and more vegetables or pasta and rice?   Instead of purchasing ice cream bars and cones as a treat, buy a half gallon of ice cream on sale and put it in your own cones.  Sprinkle a few inexpensive sprinkles on top and you have a cheap treat for your kids.  Treats are great to keep us going during hard times.

One thing I know is a fact, you can still get great results in cleaning products by using less.  You can save even more money by making your own products or by using plain water to clean extremely dirty windows and then spritzing on the cleaner to finish them off.   The same is for dirty services of any kind.  Get the dirt or grime off as much as possible with warm or hot water and then spritz on the cleaner at the end to finish the cleaning process.

Be aware of what you are doing throughout the day and you will find ways to save money.  

As far as combating food prices, my main tool is my freezer and a storage space for pantry items.  Buying meat and frozen vegetables when they are on sale is a great tool.  If you only have the freezer above your fridge to use, then use it for expensive food items that go on sale such as meat. 

I am a believer in Ivory bar soap.  I can get it on sale with coupons all the time for about 15 cents a bar.  I am steering myself away from the shower gels which are costly.  I don’t need the fragrance as I spritz on a very light amount of perfume after I dress.  No need for the scents of a shampoo with a shower gel and then a lotion along with perfume.  Don’t buy into all of the hype and instead find a bar soap that is cheaper that you like. 

When I am at the store if I need a product and don’t have a coupon, I always give the store brand a try.  This is true for many items.  I am not brand loyal and I am always looking for a cheaper alternative.  For basic items such as canned tomatoes, pork n beans, and such I can virtually not see or taste a difference especially when these items are going into soup, chili and casseroles.  I have always added my own ingredients to pork n beans (ketchup, mustard, brown sugar and vinegar).  Why would I care if they are name brand, store brand or generic?  The same is true of laundry detergent.  If I get a name brand on sale at a really great deal, I buy it (during the summer I can get a great deal on Tide).  I reserve a bottle of  Tide, Wisk, Oxydol or other name brand for those wicked stains that won’t come out.  Then I mix the rest half and half with a store brand that I get on sale.  Once a year a store here in town has their store brand detergent on sale for $1.00 or less for a 29 load size.  I have also done the same with mixing sale bought name brand powdered detergent with the Fels Naptha powdered laundry soap recipe.

I use ivory bar soap (rub it into the stain and let it sit) or a small amount of liquid Dawn dish detergent for pretreating stains.   And since we are on the discussion of laundry, does each family need a ton of clothes in their closets? 

If you have children in the home and you are working, you will have a much more difficult time in saving money because you are busy and you may not have the time to do some money saving tasks.  I am going to address this in another post this week as I have been there and I am also there a little bit now with watching my grandson 4 days a week.  What questions do you have about saving money in general or in a specific area?  What help or ideas do you have or need?  Where are you at in your household budget?  Are you discouraged and struggling?  We may be facing a different America than was there 20 or 40 years ago, but if you are willing to put forth effort and keep a smile on your face, you can make it.  It is sometimes about attitude and the willingness to not give up. 

Leave a comment and I will address them.  

What is Your Cost Per Day?

What does it cost you per day to run your household?  Have you ever thought about your household expenses this way?  We have budgeted amounts for food, gasoline, housing, utilities, debts, and so on and in the past I have worked hard to reduce our spending in each category.  But what if when we were trying to get motivated to cut back on expenses we looked at the whole picture and reduced our daily cost of running the household?

Does it cost you $50 a day, $100 a day, or $150.00 day to run your household?  Does it cost you less or more?  Simply add up your expenses for the month, multiply by 12 and then divide by 365 to get your cost per day.

Now start to set a goal of reducing that cost per day by doing all the little things that add up to big savings.  What should your goal be?  Perhaps try to reduce your expenses by $2 or $5 per day.  That means that all of those expense reductions must equal between $14 and $35 per week.  Can you do it?  Can you combine savings on food, clothing, gasoline and entertainment (as examples) in order to save that amount per week?  It will be a daily reminder of your goal to live on less, and perhaps get more money into savings.

Looking at something in a different way may be the impetus you need to start cutting back on expenses. 

Reusing Packaging

Last week I was making some no bake bar cookies using a small box of corn flakes.  I emptied the corn flakes into a bowl and I flattened the box for our recycling bin.  Then I looked at the wax paper inner bag that the corn flakes had been in.  I held it up and decided that it was too good to throw away.  I put it in a drawer where I keep my foil, plastic wrap and baggies.  We went through 2 more boxes of cereal last week and from each one I saved the inner bag and put it in the drawer.

Today I needed to crush some graham crackers to put in my ham ball recipe and I reached in the drawer for one of those cereal bags.  I tossed in the graham crackers and I crushed them using a rolling pin.  Then I poured the contents into the meat mixture and put the bag back in the drawer for another use.  I used an entire sleeve of graham crackers and the crackers were wrapped in the same type of paper.  I saved it knowing that I could use it to wrap homemade cookies for my husband for a snack at work. 

My husband wanted to know why I was taking a picture of garbage.
He doesn't get it.

I have been saving spaghetti sauce jars and lids as I think they will make a great "package" for those "gift in a jar" recipes.  Why go out and buy mason jars when you can use something that cost you next to nothing?  I also use these jars to store leftover oil from frying chicken and to put homemade soup in to be given to a family.

I save the styrofoam trays that our produce is packaged in at the grocery store.  These make great "trays" for cookie giving.  Never, never, reuse the ones that meat is packaged in.   I save the plastic berry baskets from strawberries as they will look great filled with pieces of fudge and then wrapped entirely in plastic wrap for gift giving.  What makes these baskets great is that they are already a beautiful shade of "Christmas" green.  My favorite jars are the ones that chili sauce comes in.  They have a "neck" on them and they are perfect to put a few flowers in for a vase.  In the summer time I have several of these on my kitchen counter, kitchen table and patio table with one or two flowers (daisies are perfect).

I always wash and keep the plastic bags that brown sugar or confectioner's sugar come in.  I take ground beef and package it in 1 lb. packages and wrap it in a little plastic wrap and then I take one of these "sugar" bags and place the hamburger meat in it for added protection from freezer burn.  I do the same with the ziplock bags that shredded cheese comes in. I always wash these out thoroughly in soapy water and since the meat is also wrapped in plastic wrap prior to being put in these bags, I feel pretty safe in using them. 

I never used to re-use the bags, jars, baskets and trays that our food is packaged in, but since being home full time I have looked at all of these items in a different light.  I can throw everything into the recyling bin or I can recycle it myself.  As much as possible I re-use these items and if I can't, they go into the recycling bin.

Check Those Grocery Receipts

There was a time when I could catch the checker as he/she was scanning the groceries if I noticed a mistake in a price.  Now they scan things as fast as I can put them on the conveyer belt, so I don't notice anything until I am out of the store. 

Today at a grocery store I noticed right after the checker handed me my receipt that I was not given a package of a dozen pastries for free.  Okay, to anyone who is eating right and watching their weight which is also me, I rarely buy pastries.  Since tomorrow is the Iowa Hawkeye vs. Iowa Cyclones college football game - big rivals - I decided that this would be great for breakfast - a real treat.  I used a free pastry coupon as I knew I would be purchasing over $35.00 of groceries from that one store - the required amount to spend to get the freebie. 

The checker reviewed the receipt and sure enough even though she had entered the coupon code, it was not taken off my amount so she gave it to me in cash - $7.00. 

Then I loaded my groceries in the back of my car, got in the driver's side and decided to take another look at the receipt.  I was not given $1.00 off on a package of toilet paper from an instore coupon and I was also charged full price and not the sale price on two bottles of dish detergent.  I went back in the store to customer service, showed them my receipt and was promptly given $1.50 in cash. 

It is definitely worth checking my receipts for any errors.  There have been times that when I have been charged full price instead of the sale price, I have been given the full amount back in cash. 

Perhaps I am a little compulsive/obsessive, but if I go through the sales ads, match things up with a coupon so that I am really getting the most for my money and then being charged the original full price - well it makes me a little crazy.  Today I would have been out $8.50 if I wouldn't have checked my receipt. 

So I am now in the habit of sitting in my car and taking a minute to look over my receipt to make sure that I have received the correct price.  And yes, I have gone back into the store when they have under charged me.  They have never asked for their money back, but I would be willing to hand it over to make it right.  It goes both ways. 

What have I learned?  Grocery store managers want to know if there has been a mistake as they do not want to overcharge customers.  They want to keep their customers and if a customer thinks that they are shopping at a store that is cheating them, they will spread the word and not shop at that store. 

So, check your receipts. 

$150 Challenge Update

I will give my total results at the end of this month, but so far we are doing great on this challenge.  Putting it in writing on this blog has helped me to stay on track.  One example is that while on vacation I only spent $8 on myself.  My DH didn't spend anything on himself.  We normally would pick up books at museums and such to read later, but both of us just browsed and walked on.  We were having a lot of fun with our DS and I think we just didn't feel the need to spend money on stuff. 

I read the book "The Simple Dollar" while on vacation.  I downloaded it on my Kindle and the main thing I learned from that book was the value of relationships over stuff.  I would much rather spend time with my family creating memories than buying books.  I am surprised at how I have reduced my spending and more surprised at how I don't feel the urge to go and buy stuff. 

Also my DH and I have had several discussions this month about ways to save on expenses.  We plan to drop our land line.  It has been discussed in the past but we always felt that since it only cost us an additional $10 a month on our cable and internet package, it just wasn't worth giving up.  When we got back from vacation there wasn't one message on our land line as everyone called us on our cell phones and left messages.  Dropping the land line will be easier than we thought.

Interest rates have been low so we checked into refinancing our house but the monthly payment would only be reduced by $15 so it is not worth the expense of refinancing.  But we did talk about it and check into it.

The challenge has caused us to be more conscious about spending and about ways to save money.  In the end it was a lesson well learned. 

Planning ahead to do Laundry

Now that I am consciously being careful with energy usage and saving money, I find that I have to plan when to do laundry according to the weather.  I have been using my dryer for years and did laundry whenever, no matter what the weather.  No more.

In Iowa we are supposed to get a lot of rain tomorrow and Monday.  We have been watching the news as many areas of our state are facing flooding and the last thing we need is a lot of heavy storms.  People are watching levees and they are getting nervous. 

My DH was mowing the lawn this morning and I was weeding, when it dawned on me that I do laundry on Monday and with what they are reporting there is no way I will be able to hang out clothes on my normal wash day.  Today was hot, sunny and a breeze was blowing, so I put in a load of laundry, and then another and another and kept on going.  I hung all the clothes on the line, including dress shirts and my son's casual cargo pants. Everything came out soft, wonderful smelling and the dress clothes looked like they had come out of a dryer.  I am so sold on hanging clothes on the line that I will find it hard to stop when winter comes.

I always wash towels and bedding on a separate day so if the weather is nice on Tuesday I will wash the bedding and towels.  For the first time I am going to hang towels on the line and just when they are about dry I will throw them in the dryer to fluff them up and soften them.

I really believe that on my old wash days my dryer would run for at least 4 hours in order to get all the clothes dry. 

My DH has kept track of our utility usage going back to 2003 so I plan to look at next month's utility bill and compare it to the previous Julys to see where we are coming in on our electrical usage.  It will be interesting to see how much electricity was wasted on using a dryer.  If it is a lot, I may just have him hang a line in the basement to dry some of the clothes this winter. 

Frugal Tip #3 - Using less paper products

Each week I have tried to incorporate a few frugal tips that I have learned along the way.  Today's post is about the benefits of using less paper products.  This is one area I didn't change until last week. 

I went to buy a package of Handiwipes at the Dollar Tree and they weren't selling them anymore.  I have always liked Handiwipes to use in my kitchen as they dry quickly.  When they start to smell I can wash them once and use them again and then throw them away.  This isn't very economical in the long run.

So I stood there looking at my choices and I picked up 3 - 2 packs of dish cloths.  I now have 6 dish cloths to use in the kitchen.  The reason for using the Handiwipes was due to how a dish cloth can smell after a while.  (Yes, I have a dishwasher but I still have to handwash pots and pans and such.)  Now I use them for a day. Sunday's and Saturday's dish cloth can cover both days.  Then each evening I toss the dish cloth into my laundry sort pile.  No more smelly dish cloths and no more buying Handiwipes.

I took all of my old dish towels and put them in a container under my sink.  These are for my DS's use.  He likes to use a dish towel as a napkin.  It was a losing battle as day in and day out he took the dish towel that I had hanging up to use as his personal napkin.  Now he has his own stash and I don't have to worry about if a dish towel I am using to dry dishes was used as a napkin.

While at the Dollar Tree I picked up a few packages of terry cloth bar towels.  These are being used for all of those paper towel clean ups.  In fact, I prefer using a towel to wipe up a spill as compared to paper towels.

Next up - cloth napkins.  I need to buy or make cloth napkins for our table.  Actually I am starting to think that my DS may be on to something in using terry cloth dish towels as a napkin.  Think about it, they are absorbent and thick and they wash up great.  So I may be heading back to the Dollar Tree to get some dish towels for our every day use.  When it comes to company, I have plenty of paper napkins on hand.

Micro Fiber cloths - I bought a stash and keep them with my cleaning supplies.  I also have some in my bathrooms to use for daily clean up.  I love micro fiber cloths.  They do a much better job on cleaning mirrors, sinks and faucets.

Dust cloths and lambs wool - I have quit buying swiffer dust cloths. I don't think they were really that great in the first place.  In their place I purchased some dust cloths and I invested in two lamb's wool cleaning tools.  These are like sticks that have lambs wool wrapped around them.  One is long so I can reach and get all those high spots and the other is smaller for getting in and around places to dust.

I have quite a supply of paper towels on hand as I purchased these at some great sales with coupons.  I am using these for cleaning up pet mishaps.  Lately it would appear that my cat loves to chew on grass and then comes in the house and gets sick.  Paper towels are great for that purpose.

Kleenex - sorry, I will continue to buy these on sale as I don't think I could start to use a hankerchief like grandma.  All of grandma's hankerchief's were beautiful embroidered works of art, so I don't think she ever used them anyway.

Toilet Paper - no way am I going to use pieces of cloth. I draw the line.  Toilet paper is bought on sale with a coupon and always will be.

Of all of the frugal tips this one was a little harder for me to start.  It just seemed more convenient and "clean" to reach for a paper towel or a napkin when I needed it.  Now it is just as easy as I have plastic bins of these items under my sink right next to where I keep a small roll of paper towels. 

Frugal Tip #2 - Clean Showers

I spent the afternoon cleaning out my basement and getting my pantry organized along with my laundry room.  We had water in a portion of our basement two weeks ago and I needed to spend some time sweeping and putting some things away.  Laundry day is tomorrow and I am almost giddy at the prospect of doing the laundry in a neat laundry room. 

One thing is true and that is to live a frugal life you must be organized.  If you are disorganized, you end up going out and buying stuff that you probably already have stashed somewhere.  I found a few things that I had been wondering where I had put them.  I'm sure it's not age catching up to me - just being in a hurry and not putting things in their proper place. 

I couldn't let the weekend end without sharing another frugal tip that I have tried and liked.

I was never comfortable with the daily shower cleaners on the market.  I didn't really want to put those kind of chemicals on my shower every day and besides it is money better spent elsewhere. 

I have a daily routine for keeping my shower mold and mildew free, especially during the warm summer months.  I am the last person to take a shower in our house each day.  After I turn off the water I take a cloth that I have hanging on a hook in the shower and I wipe the shower walls and doors down.  This doesn't dry them off, as that is not my intent, instead it wipes off any soap scum or shampoo residue that may still be on the shower. 

Then when I get out of the shower I lightly mist the shower with a bleach water solution.  I take 2 to 3 tablespoons of bleach and pour it into a spray bottle and fill the bottle with water.  I do not use a recycled spray bottle as I don't want to take a risk of mixing any bleach with leftover chemicals that may still be in a recycled spray bottle. 

As to the bleach, I watch for sales and I always buy the scented bleaches to use in my shower mist.  Then I don't have that bleach smell in my bathroom.

Lastly I leave the shower door open for the rest of the morning in order to help the shower air dry.  And that is that.  Since I have been doing this, my shower stays fresh and clean inbetween the regular days I clean the bathroom. 

I have found that this same principal can work in the toilet.  Give the toilet a quick swish with the toilet brush and then mist with the bleach spray each morning. 

For the price of an old washcloth and about 2 tablespoons of bleach I have a frugal alternative to the daily shower cleaners on the market.

Frugal Tip #1 - Mascara

I like to wear some makeup even if I know I am going to be home for the day.  I always purchase a good quality foundation, usually from Merle Norman.  It lasts close to 6 months and for $20 that is a good deal in my mind.  I buy name brand mascara and eye liner from Walmart.  The rest - eye shadow, blush, lip gloss/stick I purchase on the cheap from the dollar store.  I have never had a problem with allergies and I have always been satisfied. 

No matter what brand of mascara I buy, after about 2 weeks, it always seems to glop and it is hard to apply to my lashes. I am sure it is the result of air getting into the tube as I push the mascara brush down each time I use it.

I like to put on one coat of mascara and not several coats of thick mascara on my lashes.  At my age (51), less is definitely more.  This morning I tried a tip that I had read about a long time ago.  Before I got in the shower I took my tube of mascara and set it in a cup of very hot tap water and let it sit in that water until I was done with my shower and had dried my hair.  I didn't cover the tube with the hot water but only let the water come up to the lid of the mascara.

When I went to apply the mascara it was warm, melted and perfect for applying to my lashes.  It gave me a nice smooth coat, no glops and I was very happy with the result.

Now, I don't recommend keeping makeup for a long time as it is not sanitary, but I do expect mascara not to get gloppy after only 2 weeks.  Mascara usually runs around $5.00 without a coupon and most of the time I have at least a 50 cent or $1.00 coupon to use.   I am sure that I will be able to get at extra month's worth of mascara, without the glops, from doing this simple tip. 

Hmmm - maybe I should invent a mascara warmer and sell it on the internet.

Picking up the Pennies

Am I the only one that is willing to bend down to pick up a penny?  I always do because it makes me feel happy.  Yeah, I know, it doesn't take much to make my day.  Sometimes we forget that pennies are not worthless, they are valuable when accumulated.

As part of my $150 challenge, I will be trying out some frugal tips and I will post what has worked for me.  Just like reaching down to pick up a penny off the ground, I will take those pennies (frugal tips)  and watch them grow into nickles, dimes and dollars.