Twenty One Gun Salute

Is usually used as a salute for Presidents, heads of state, and special occasions. So, paying down debt is not exactly a reason for that kind of respect, it is deserving of at least notation. We are at day twenty-one (I had to think of something catchy for the title) and the running total now stands at $112.63. While that may be chump change to a lot of people, it isn't exactly that for someone who has spent the last quarter of a century living paycheck to paycheck. These techniques I share with you will hopefully help you in your quest to become free of credit card debt, or prevent you from getting in those dire straights to begin with. A question often arises when the discussion about saving money on food.

Do we have to sacrifice quality and taste when we save money on food? That depends. Store brands of food items are often made by the same manufacturer as the name brand foods. Take for example Frosted Flakes. I have been a fan of cereal for most of my life. There is a slight difference in the Kellogg brand and the store bran, but that is really a minute change. When shopping at the grocery store, you will notice a big difference in the price of the two. Why?

Advertising costs. As a child, I would spend many of my afternoons and most of my Saturday mornings watching cartoons. Looking back, there were tons of cereal commercials on, particularly from Post or Kellogg. I don't recall a single commercial for the store brand of those foods. Since stores don't have to pay for the advertising, they can basically get the same thing for a fraction of the cost. In fact, the store may make a higher margin of profit on these items so we, as consumers, win by having a fine quality food for a fraction of the cost of a box of cereal.

As an ingredient, one can rarely tell the difference between the store brand and the national brand. It is when you eat them as a solo item that you may be able to tell a marked difference. You should try the low-cost alternatives...at least try them to see how much more food you get for your money. You can always use that saving to pay off debt.

Have a great day!

Eighteen and Counting

Hard to believe that the journey has crested the halfway hill and is gaining momentum. While I did make a brief stop at the grocery store ($2.10 for animal crackers for a snack for our weekend ritual of a drink and popcorn, except I have been expressly forbidden from having popcorn due to the cracked tooth that I now possess and our dog prefers animal crackers). Running total is $87.63 and a large credit card debt payment of well in excess of $125 dollars is looking more and more like a reality. A new month is underway and the adjustment to the budget is already in place.

Credit card debt is the issue here and now that it has only been 19 days, a habit has started to ingrain itself into a way of life. This was evident when we stopped at the store and instead of blindly grabbing the "best" or name brand snack (that would have cost easily twice as much), the prices were quickly computed and the choice was made not on the short term pleasure that would have been from the more expensive cookies or snack cracker, the choice was made on cost per serving. It is amazing at how easily the choice was made. One of the contributing factors was one of the important grocery savings tips (pointed out at Dolans):

Don't Shop on an Empty Stomach!!!

I am sure that you have heard this at some point in your life, but it is true. You tend to end up with more items than you originally intended in your cart, You spend more, and you end up further from your goal of having more money in your account. The grocery store counts on the extra income (they strategically place items where you will be most apt to purchase them, like the checkout line) that they will get from you for purchasing impulse items. These have a higher profit margin, but you don't think about it because they are usually a dollar or two (or less), but THOSE DOLLARS ADD UP!!

Unfortunately we don't always plan our spending so we fall victim to marketing and impulse. If you fail to plan, you are planning to fail. Harsh, but true. If you are to get control of finances, pay off your credit cards, and begin to enjoy the relief of pressure of ever-mounting bills, you should plan a budget, but also plan your expenses, including when to shop for things.

Have a great weekend and here is to eliminating your credit card debt.