While I was thinking about writing about another food recipe, as food is really one of life’s pleasures, I feel the need to talk dollars and sense. Money can be a big (and sometimes painful) issue and there are plenty of blogs about money. I wonder how many people are intimidated by the financial blogs and stock market sites for buying and trading stocks? I know I was when I was younger, as I found that I didn’t really understand it.
With the food recipes, I focus on delicious and comforting food and that is what I am hoping to do with this money post. If you think of your household budget as a recipe for nurturing and caring for you and your family, this will make more sense. I found that budgets can be very confining and really didn’t match up with my time and my goals. However, a Spending Plan is more realistic and is more fun. I often hear people who classify themselves or their significant others, as either “savers” and “spenders”. In reality, we are all a bit of both and it comes down to focus. Just like with a recipe for great dishes, there are recipes for meeting your financial goals:
– Purchase a House or Car
– Save for College and/or Wedding Funds
– Purchase that cool pair of shoes!
– Splurge on the new, fancy restaurant
– Save for Retirement
And just like planning a dinner menu: what do we want to serve and how much should we spend? Should we serve burgers and dogs or steaks and shrimp? This ties into your spending plan. While this may seem like a small thing — just barbecuing for the 4th of July, these small decisions add up. Maybe you worked hard and were promoted and now you want to celebrate. This is a great example where you may want to splurge on the Steak or fancy restaurant. However, unless this promotion came with a HUGE salary boost, you may not want to make the splurge a habit.
How do you know when you can make this a habit? First look at your priorities and what are your long-term goals? Purchasing a New Car or New House? Then look at your short-term goals? Maybe a new dress and shoes for your best friend’s wedding?
Where are you with your finances? This takes honesty and a good look at what money is coming in and where your money goes. So, hopefully, you are at least covering your bills but … there is a recipe to handle that too but that will be in another post.
First, are you paying off student loans? Are you working at a company that has a 401(k) or similar retirement option? Most companies that have 401(k)s and retirement plans will match the funds, only after you contribute. Please contribute enough to get the match. Otherwise you are losing some of your benefits and will be shortchanging yourself in the long run. I have heard so many people say they can’t afford to contribute to their retirement account. However, saving contributions will reduce your tax burden and the company match is like your account (up to the match) earning double!! Remember most savings accounts are not paying this much and interest on credit cards can be 12-15% or more). This small amount may not seem like much, however, the earlier you start saving, the longer your investment can grow. You really can’t afford not to do this!
So how do you afford it? Let’s say you need to contribute 3% to get the matching 3%. This 3% you contribute will lower your taxes so sometimes you may not notice a huge difference. Even so, let’s say you make $2000 per month and 3% of $2000 is only $60 before taxes so your check may only be $45 less. So how to cover the $45 that you are going to save? Bringing your lunch or being a bit frugal makes sense. Finding recipes like the roasted chickpeas or making the coffee cake for snacking can be way cheaper than the snacks from the vending machine.
Even making breakfast ahead, like oatmeal with fun toppings, can be faster, cheaper and healthier than buying breakfast at your favorite coffee shop. Check out MJs Coffee Cake recipe https://mhockman.com/index.php/2020/04/
Making a delicious roast chicken to have multiple dinners and some chicken salad for lunch will go a long way to help offset the savings. Making food ahead of time may take some planning and possibly a rainy day. That all said, it will only take a few paychecks and then you won’t even miss the 3%. However, you will begin seeing your savings grow and this can be very satisfying and comforting.
