Experiment 2: Separate Checking Account For Entertainment Expenditures

After Christmas I opened a new checking account at a different bank. My thinking at the time was that I could deposit all my Christmas money where I could access it easily, but where it wouldn't end up being spent on bills. Yes, a savings account may have been smarter but since I only had it in there until June (6 months) I'm sure I only lost a few cents by not keeping it in savings. In June I finally tapped the Christmas money in order to help purchase a sofa from Ikea (I moved to a new apartment and no longer have a roommate or use of a sofa). Since my purchase depleted the account, I was planning on just closing out the account.
Then an idea struck: what if I left the account open and deposited a planned amount of entertainment money for each month? I've heard about people who withdraw a specific amount of cash each month and use only that for discretionary spending but cash and I do not get along well. Typically I end up frittering cash away and not remembering where it went. With this system, I'm limited to a set amount of money but will also not waste money on small things. Plus there is a record of where the money went.
Today was day 1 of my plan and so far everything is working well. I successfully deposited money into the account and then went out to dinner with a friend and used that debit card instead of my usual card. I'll post at the end of the month and report whether I was able to only use the money in the new account for entertainment and if there were any glitches.

Sidenote: As another little experiment, a few friends and I have decided to try out a new restaurant once a week. With so many amazing dining options and happy hours in the area we need to experiment. At first I questioned whether I could really afford this, but then I determined that I just need to cut out lattes, lunches out, and trips for snacks, etc. If I am successful in that effort I should easily be able to go out and try new restaurants and bars. Potentially (hopefully) this little experiment will also lead to increased dating prospects.

Check out my guest blog posting on www.poorerthanyou.com

It is all about the new Federal programs for Federal Student Loans: Consolidation and the new Income Based Repayment. www.poorerthanyou.com.

Experiment 1: Report on the Grocery Shopping Trip

I must admit that at first I was a bit skeptical of the "Cook for Good" plan's claim that you could eat for a little over a dollar a meal and still eat healthily. As I explained in my previous post, I had gone to the website of a local grocery store and added up the cost of buying everything on the list (divided by 4 where I could because the Cook for Good list assumes a family of four) and found the cost to be over $200 (astronomical!). But, not wanting to admit defeat quite yet I set off to a different grocery store in town. This other grocery store is renowned for being inexpensive - you even bag your own groceries there! I wanted to see if it would make any difference at all shopping at that store. I'm pleased to report that the cheaper grocery store made a world of difference - my total came to $94.16. Granted there were things on the list that I did not need to purchase because I already had them on hand. The addition of those items would have only brought my total to $142.42 (an addition of $48.26) well within my goal budget of $150/month or less for groceries. Included in the $94.16 total are also a few items that didn't make it on the Cook for Good shopping list like non-wheat flour (I try to limit my wheat intake due to allergies) coffeemate (one of my guilty pleasures) a few small notebooks, treats for my dog, etc.
My first few days with the meal plan have been positive. I've learned that making your own bread and yogurt is incredibly easy (not to mention delicious!). The main courses have also been tasty and nutritious. This plan may just be the answer I was searching for in terms of a low-thought, low-time, low-cost plan to avoid blowing my food budget on eating out and processed convenience foods.

Things I learned:
1. It does make a difference where you shop - while I may wish to support the local grocery store because they provide health care for their employees, etc., this is a time in my life where I need to shop cheaper in order to live within my means. Good healthy food can be found at other stores.
2. The produce at this other store is not great - I think in future months I'll be shopping the local farmers market for produce.
3. It is easy and doesn't consume much time to make things from scratch (ie. bread, yogurt, dessert). It's also much healthier.
4. You really can eat inexpensively and well. Check out www.cookforgood.com for more information.
5. A well stocked pantry may mean more expense initially but in the end it will mean cheaper grocery bills.

Experiment 1 of the month - Following the "Cook for Good" Plan: Beginning

Awhile back, I stumbled upon http://www.cookforgood.com, which is a website that took on the challenge that you can't eat healthy if you live on food stamps. The creator, Linda Watson, and her husband were determined to disprove the notion that you can only eat unhealthily on food stamps or a small budget. So Ms. Watson set out to design a menu plan that would use no processed, pre-packaged foods, would fit within the typical food stamp budget, and would be healthy. One of her other goals was to make the plan simple enough that it would not occupy too much time or energy. Her experiment was a success - she and her husband never felt hungry, they ate well, lost weight (because they weren't loading their bodies with garbage) and had more time to spend on other activities. She even explains in her book how she was able to invite friends over for dinner and bake for social functions while remaining within the constraints of her budget.
Her website contains a e-cook book, which I purchased today for $6.95. I encourage everyone to buy it as it has some great tips for saving time (and clean up) in the kitchen. Given the amount of work that went into the project, the cost is really quite reasonable.
In order to make the plan fit my needs I had to make major modifications of my own. The Plan has a shopping list designed for a family of 4 - so I had to change the quantities as much as possible to fit the single lifestyle. Between both my budget and my small 500 square foot apartment bulk shopping only works to a point.
To get an idea for the expected costs I entered all the items into one of the local grocery stores websites that allows online shopping (it should be noted that the products cost the same online as they do in the store) and came back with a whopping $231.63. That is MUCH much more than I can ideally spend on groceries. I need to figure out a way to cut that cost down to about $150 (or less).
Perhaps the grocery store I choose will make a difference. Tonight I'm going to scope out the cheapest store in town and compare the prices that lead to the $231.63 - I'll report later whether that made a substantial difference.

Paycheck to paycheck

A whopping 75% of Americans live paycheck to paycheck. As much as I desire to fall outside of that statistic, I'm afraid I don't. It seems as though every time there is a possibility of getting ahead, some other unforeseen expense shows its ugly little head. Add to that the debt load (from education loans, a car, credit cards) and its enough to stress any sane person out.
When feeling particularly stressed and in need of a solution to my financial woes, I often turn to the internet - running searches like "frugal living," "saving money," "pay down debt quick." I've found that there are some insightful and inventive ideas out there. Unfortunately most of the blogs and resources I've found apply to families and offer nothing in the way of workable solutions for young single people. For example, buying in bulk may be a great way to save but a studio apartment and the need to only cook for one doesn't make bulk buying that practical.
Over the summer I plan on embarking on some experiments - to see how inexpensively (and well) I can eat, how many cheap or free activities and social events I can take in, and anything else I can do to save money and pay down (at least some) of my debt. I will share my findings, failures, and successes. Are there any other single people out there who have some tips to share?