Another shopping mission: $200 cash

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November and December are busy months around here. My birthday, my husband's birthday, my brother's birthday, then Christmas equals a lot of gift buying and gift giving. I received $200 USD from  my family to spend on clothing that I needed for work. My wardrobe at work is work-casual, but I have been wearing the same clothes for more or less four years, and everything is starting to look worn. Plus, I have had 2 babies in those five years, and the clothes were starting to feel a bit tight (my personal fitness journey should be starting soon, but that's another story). So I was sort of compelled to get some clothes for work, and I had $200 to do it. The idea was to get functional clothes (as many as possible) for the money. Obviously, I wanted to spend as little as possible for each piece, but didn't want to cheap out too much, because with all the wear and tear, cheap clothes will wear out faster. (I work 40 hrs/week, and each piece gets washed every five days). So I went to the US to shop, mainly due to the lower prices for clothing there and also because the Canadian dollar is currently at par. I went to a mall, checked out a few department type stores (time being an issue!) and walked away with the following:
- two pairs of dress pants
- three semi-dressy tops, suitable for work and evening wear
- one pair of Nike running shoes
The running shoes are not exactly work-related, but my current pair was 6 years old, and I have been wanting to start walking/running soon, so a new pair that fit properly was something that I had hoped to find. The total for all items was $170, so I went out for lunch, and still came home with $20 USD in my wallet. Another good shopping mission accomplished! I feel empowered that I can go out there with cash in hand (NO CREDIT!), and stick to my shopping list. No impulse purchases!

Black Friday: Retail Bombardment

Even though I am not an American citizen, I am married to one, and so for that reason, we celebrate Thanksgiving twice, once in October and once in November. We also live close to the U.S. border, so it is hard not to notice Thanksgiving, and the crazy retail shopping holiday that is Black Friday. I already talked about Black Friday in a recent post, but I thought it beared repeating: the whole Black Friday phenomenon can be absolutely toxic to someone who has trouble controlling his/her spending. I am absolutely astounded at how much the media-overload seeps into your psyche. Over the last year, I feel like I have been so sure of my need to save and my aversion to spending money I didn't have seemed rock solid. But then the advertising-- print, online, television and radio-- began building a few weeks ago, and reached its crescendo this week. I could feel myself start to crumble, I started coveting all the things I could not afford. Every day a new bundle of flyers would appear in the mailbox, and I could not stop myself from eyeing all the sales. I have not buckled (yet), still resolute from my successful trip to Costco. But I can see how this environment causes people to overspend. Retailers know just what buttons to push in order to get cash-strapped, debt-burdened North Americans to spend money they do not have. It's a minefield out there!

Postscript: Happy to report I am over 200 pageviews for my blog. It may not seem like anything much, but it's a nice milestone for me. I started this blog not really knowing what I am doing (still don't really know!) but I am learning a little more each day, and I am glad to see some people are reading! 

Empty Pockets: Shopping mission: Accomplished!

Empty Pockets: Shopping mission: Accomplished!: "I began this week with my bank account perilously close to zero. I had precisely $200 left until payday (Friday). I had a few things to get ..."

Shopping mission: Accomplished!

I began this week with my bank account perilously close to zero. I had precisely $200 left until payday (Friday). I had a few things to get for our upcoming U.S. Thanksgiving celebration on Thursday. I made the decision to go to Costco to get some of these things. What I did was this: make a list, and withdraw the $200 cash and vow to exit that store with at least some of that money left.
Costco can be a real minefield for the cash strapped. When I first started shopping there, I used to blow $300-$400 each time, and rarely examined the costs too carefully. Now, I always go there with a list, and I am more diligent about checking the unit costs. My experience has showed me that while there are definitely some good deals at Costco, other things are not so differently priced as your average big box store. I also find that you have to be able to dodge the diversions, the things that they keep on the ends of the aisles which often turn out to be impulse purchases.
So I brought my list, my cash, and my Blackberry to do some quick calculations in the aisles. I felt a bit weird doing the calculator thing in the store, but it was a good idea! I found myself well under budget ($110) and was able to get a couple of the optional items on my list. Total cost: $180. I walked out with a measly $20 until payday, which still isn't great, but my shopping mission was accomplished.

Black Friday Frenzy

We`re coming upon another Thanksgiving week (for my U.S. friends and family). That means Black Friday is fast approaching, and the consumer frenzy is about to begin. I have to admit that I am a relative newbie when it comes to Black Friday.  When I started dating my husband, I quickly figured out how big a deal it is in the U.S. My stepson scours the Black Friday ads online starting a couple weeks before. Then, he gets up in the middle of the night (usually 2am) and gets in line at his preferred stores (often Best Buy and Walmart) and gets the door crasher type items. I must admit, I was kind of mystified by this annual shopping holiday. Here in Canada, we have no equivalent day. I have seen a couple retailers here and there try to emulate the Black Friday phenomenon, but it really has not caught on.
I must admit, looking at some of the advertisements, it really gets tempting. I have seen some really, really good deals, especially on toys and electronics equipment. It definitely makes me want to part with some of my hard-earned money, and I guess that`s really the point. Consumers need that temptation, that little push, to open up their wallets and spend some money on Christmas gifts. In a recession tinged  year such as 2010 this has never been more true. However, it also encourages me (and a lot of others, I suspect) to sink deeper into consumer debt. I can definitely imagine having that rush, scoring that one thing I wanted to buy for 50-70% off retail. However, that rush would soon turn to guilt, watching my credit card bills climb, something that I definitely don`t want to do this year. So I guess I will be sitting out Black Friday this year, sigh.

Financial purgatory

It's a tough spot to be in, this financial purgatory. We're in a bad spot, yes, as I have already documented. Could things get any worse for us? Well, yes, of course, one of us could lose a job, we'd lose our home, and we'd really hit rock bottom. That being said, the financial place we're at right now is kind of grim. The problem is that we're kind of stuck. Both of us are very cognizant of the peril we're in, and want to take steps to secure our situation, but there's just no wiggle room right now. We have pared down expenses as much as we can. Our money goes strictly to paying bills, mortgage, taxes, and child care. After that, we buy groceries, gas for the vehicles and clothes/supplies for the kids. Often we don't even have enough money to do the basics. We don't spend any extra money on ourselves, for clothes, entertainment and the like. As much as we would love to splurge once in awhile, we are committed to living within our means right now, and so there is no putting things on the credit card for the things we can't pay for.

It's so tough--I have the motivation, the drive, the will to dig myself out of debt, I simply lack the funds.
We have no excess cash at the end of each month, and will probably remain in this limbo until February 2012 when three major debts are paid off simultaneously. Then, we will able to go into attack mode, and throw major chunks of money at our various debts. Then, we will finally be able to see some progress. In the meantime, barring a lottery win, (right!) we will try to stay the course, and not get any further into debt.

"Mad" money

I have read several commentators talk about how to do a household budget, and quite a few talk about the concept of "mad" money, that is, having a small cash allowance built into the budget to do whatever. I think this is quite important. No matter how dire your situation is, and how much you are trimming expenses, it is necessary to be able to keep one's sanity and enjoy a tiny bit of whatever it is that makes you giddy. All this must be in moderation (and hopefully legal) and in keeping with one's own financial situation.

For me I keep about $20 in cash each week, mainly to feed my caffeine addiction. I have to bring a Tim Horton's large coffee to work, no matter what. It's not something I am willing to give up. I have heard people expostulate on the total cost of buying coffee in a shop versus brewing it at home, I know there is a cost involved, and I don't care. I truly don't have many vices, I don't smoke, I don't buy designer labels, I very rarely drink, etc. Buy I really truly love my coffee, and it doesn't seem like such a bad habit to have. (at least my vice is fairly cheap)

My other little vice is magazines. I love to read, and I don't have a lot of time with working full-time and caring for two young children to read novels, so magazines fit the bill. I have 3 subscriptions, each fairly inexpensive (total cost for all 3 each year might be $60), and in keeping with my "cheap vices" mandate. For about $5 monthly I get hours of enjoyment, and some quiet time to myself.

The quagmire of Christmas part 2

I was out running some errands today, and went into a book shop to get my brother a birthday gift, and into the Hallmark store to get him a birthday card. In both cases, the person ahead of me in the checkout line tried to pay for their purchase with a debit card, and in both cases the purchases were declined. Unbelievable, but true. So many times, I feel alone in this process, like no one understands how much it sucks being broke, and then something like this occurs, and suddenly I realize, there's a whole lotta folks just like me. We're all running on empty, trying to purchase yet another gift, with only the hint of a whiff of gas left in the tank.

Yesterday, I mentioned as part of my need to be thrifty this year, I purchased both my husband's Christmas gifts using rewards points. I also used rewards points to purchase a free photobook from Shutterfly (www.shutterfly.com). I plan on giving my Dad and stepmom a photobook of my oldest son's first year. Using rewards points is one way to try to minimize costs at Christmas. With the many types of rewards programs out there, there is certainly a wide range of gifts you could select.

Another aspect of my gift giving this year will be to give the gift of Christmas treats. I did this last year, and it turned out well. I'll make a few dozen cookies and bars, buy some decorative boxes and ribbons at the dollar store, and voila, instant personalized gift that most people will appreciate! It certainly didn't cost me much money, maybe $30 total on baking supplies, and $10 at the dollar store. A really smart Christmas idea for the cash strapped consumer!

The quagmire of Christmas

The holiday shopping season is once again in full gear! The stores are filled with glittering displays of beautiful merchandise. It is all so intoxicating. It's easy to see how we can so easily get sucked in by it. Retail outlets have their pulse on the consumer, knowing just how to merchandise their wares to get our attention, and open our wallets.
Unfortunately, for those of us in deep debt, Christmas is a tricky time. I am very nervous on how to get it all done, make all the purchases, meet everyone's expectations, and still keep my head above water. We made the decision a few years ago to forgo gift giving among the adults, and simply buy Christmas presents for the kids. It's all about keeping costs in line, and everyone seems to think it's a wise idea.
I have made my resolution to try as hard as I can to stay within my budget, and NOT use my credit cards to buy my presents. We'll see how this works. So far, so good. I made one major purchase online, paid with a credit card and paid it right off the next day. For my husband's gifts, I am buying him a new phone for his office using Air Miles (www.airmiles.ca) and a new Bauer electric razor with my Shoppers Optimum points (www.shoppersdrugmart.ca). So I feel good about that, he'll be receiving the things he really wants, and I found a way to do it without spending any money. It'll be more challenging buying all the kids' gifts, but I have done well so far, and no major debt has been incurred. I'll keep you posted on my progress.
 

The art of couponing

Ahhhh, coupons. They've become quite trendy with the recent economic downturn. Suddenly, economizing has become tres chic. There was once a time when it was almost shameful to use coupons in the grocery line. Like, somehow it indicated extreme thrift or poverty. Not anymore! Coupons are an essential tool in the smart shoppers wallet. It's money that you keep instead of spend. What could be better than that! The whole idea behind couponing is to use coupons wisely, for things you would buy anyway. 

Some tips:

1. Use your coupons for items that are already on sale! This is a great strategy. It's not always possible to do this, but for certain items (e.g., diapers) that go on sale frequently, it's a must! For example, at the store where I usually buy my diapers, the retail price for a jumbo pack of Huggies is $21.99. Using my Huggies coupons (I almost always have $2.00 or $3.00 coupons at all times for these), that brings the price down to $18.99 or $19.99. However, at least once every 2-3 weeks, Huggies go on sale for $14.99. A huge difference in cost $12.99 vs. $19.99.

2. Keep your coupons organized! My friend Pamela bought me a mini-accordion file that fits nicely in my purse. So I have files set up for food, kids items, hair care products, cleaning products, etc. It makes it much easier to find what you need when you are at the store.

3. Share with your friends. My friend Pamela and I often take out our files, and exchange coupons. We give each other our duplicates, or the coupons we no longer need.

4. Grab 'em at the grocery store! Often, grocery stores will have a pad of coupons for a particular item attached to the shelf. If it's a product you already use, grab a bunch of coupons, and stash them for future use. 

Where to find coupons:

I have a number of sources for good coupons.
www.save.ca  One of the best sites for coupons in Canada. You choose what you want, and the coupons arrive in your mailbox 3-4 business days later. 
www.webSaver.ca  Also a good site, not as great a selection as the previous site, but they conveniently are mailed to your home within 3-4 business days. 
www.brandsaver.ca  This site, operated by Proctor and Gamble, has a great selection of coupons for personal care items and cleaning products. Similar to the previous sites, you select what you want, then they mail the coupons to your home within 3-4 business days. 


There are many other sites out there offering great savings on goods or services. Be a savvy shopper and grab your coupons. Keep your money!

needs vs. wants

I think of the biggest eye openers for me of this process is diffentiating between needs and wants. It is amazing what you think you "need". Then, adversity strikes, your income dries up, and you have to decide what is absolutely necessary. I should preface this by saying that not everyone scales back their spending when their income dries up. Some people live in patent denial, and rack up credit card debt, compounding their problems even more. However, in my case, I have gone into survival mode. When the paycheque is dropped into the bank, the bills get paid. If there isn't enough money to pay all the bills on time, then the sequence (in order of importance) is usually: mortgage, electricity, car payment, gas bill, credit card bills, phone/satellite/internet bill, then cell phone bills. A bit of money is always set aside for groceries/personal care items and gas for the car. And then usually that's about it. I almost never have anything left over for anything like clothes, entertainment and the like. I make sure the kids are fed, they have clothes that fit, buy diapers/formula and that's about it. My husband and I have wardrobes that are beginning to look worn out, but at the moment it's not a need. I get down at times, feeling sorry for myself, bemoaning my old raggedy clothes, but really it has to be put into perspective. One only needs to turn on the news and see the situation in countries like Haiti, and then your own life looks pretty darn comfortable in comparison. We really don't need anything that badly.

Peer pressure

I got invited to this show, which I felt compelled to attend. It was a Christmas gala, put on by a local merchant, meant to showcase this shop's merchandise for the holiday season. I was very hesitant to attend, partly because it was not really my thing (I'd rather be home with my kids after a long day of working) and partly because I am totally broke this week and have not an extra dime to spend on anything. You go to these types of events (females primarily get invited) and you spend some time doing some token socializing, eating hors d'oeuvres and the like. But the primary reason for the fete is to hock some products (Pampered Chef, Tupperware, Fantasia, Partylite and many others). Generally these products are not items you really need. You feel compelled to buy because others around you are. There is also the element of not wanting to offend the host, who likely has extended to you the invite. So peer pressure has really got you between a rock and a hard place. I held firm, I didn`t buy anything tonight, and I felt incredibly awkward about it.

Lottery ticket

My friend Dana, after reading my last post,  sent me a birthday card with a lottery ticket in it (Cash for Life). Thanks Dane! Unfortunately, I did not win $1000 a week for life (or any other prize), so back to the tough stuff. But it was a nice thought! In one of the financial blogs I read, someone wrote ``a lottery ticket is not a financial plan`. True enough.