As evidenced from my infrequent posts, I have been a bit uninspired for the last year or so. Therefore, I feel like I need to reintroduce myself and my blog. I am hoping to share ideas, knowledge and just some camaraderie. I do like to cook and bake — baking is really more of my thing. I will try recipes, especially some of the older (mom/grandma, favorite) recipes and share my results. Also, I am still experimenting to find a “healthy” cake recipe! I like to try new restaurants so

a review or two may appear. I also have a dog, a 20 lb Sichon* (Bichon Frise mixed with Shih Tzu). I may share some tips to save time/money and just to make life a bit easier. If you can share some good food with your family and friends, life is always better and that is a very comfortable place to be.

*I don’t receive any monetary compensation from sharing this link.

https://wagwalking.com/breed/shichon#:~:text=Shichon%20Breed%20Appearance,over%20the%20little%20one’s%20eyes.

With school graduations happening everywhere, it’s not hard to reminisce about my own graduation. While some kids knew what they wanted to be when they grew up, many of us were still trying to sort things out. I remember thinking, how am I supposed to decide what I want to be when I grow up and select a college major and career trajectory for the rest of my life?  I had barely been anywhere that didn’t involve visiting family or the place with the Big Mouse and his friends.

Unfortunately, just getting a college degree doesn’t guarantee a happily ever after, especially if that degree comes at a very high price in the form of student loans. So many people talk about living paycheck to paycheck and usually this is good in the sense that it means they have a job. However, it is not good as this also means the cash flowing in is usually already going out to pay bills, if there is even enough to cover the bills.

Cash flow is very important as it can be the difference in families keeping the lights on, feeding their children, and even keeping a roof over their heads.

Literally, a positive cash flow can mean someone does not end up moving in with family, sofa surfing, or worse, homeless. Ironically, this term – Cash Flow – is usually only discussed in the business realm even though it applies to personal finance as well. Lately, you may hear the term “income streams.” This refers to the various forms of cash flow. It’s trendy to discuss part-time jobs as ‘gigs’ and you can have several “side hustles” for income streams. This is another way to say having several jobs part-time, or otherwise, to keep the cash flowing in.  

That all said, even having several income streams may not be enough to keep a positive cash flow. There are people who make six figures and still may be living paycheck to paycheck. If making a high salary or having several jobs is not enough to keep a positive cash flow, what else is needed?

Good Habits! Plenty of articles provide tons of financial advice so sorting out what is best or where do you start can be overwhelming. I have had friends tell me “I am not good with money!” Not being good with money is not a life sentence. It does require a change to live differently which is easier said than done. However, it CAN be done – baby steps! One of the first steps is to look at all of your bills and your income. Do you have any cash left after paying the bills? This is the hardest part: identifying where the problem lies, be it too many bills/not enough cash, shopping too much, or just not saving money!

Usually, it is a combination of multiple factors. And it can be ‘all or nothing’ thinking – meaning, if you can’t save a lot of money, it’s not worth trying. Step one is setting up an emergency/savings account – even if means saving only $5 per paycheck. Even $5 per paycheck is starting a good habit!  Yes, even if you don’t think you can do this – you can!! 

Next is to identify: are you spending too much on things that you could cut back on or change? Yes, most will say, cut out that “fancy” coffee and you know, if you have a daily Café Mocha habit – making coffee at home could help give you the $5 to start your automatic savings for your emergency fund. If things are not that easy for you, it may be time to look at what larger bills can be cut and/or do you need to find another income stream. Shoot, even if you are covering your bills – did you know (if you have Verizon), you can go to their website and it will review your usage and recommend the best (cheapest) plan!  I have done this several times.

When I was in my early 20’s and first working, sharing an apartment with roommates and still trying to finish a degree, I was super busy. Buying lunch out every day was expensive, yet I also didn’t have a lot of time either.  I admit for a few months, I made and ate peanut butter and jelly sandwiches. Yes, on the days that I had evening classes, I made 3 peanut butter sandwiches (PB&Js) – one for each meal! I only had to purchase a drink. Before you feel too sorry for me, I like peanut butter and jelly sandwiches. I only had to do this for a few months until I got a raise at work! 

I bring this up to say that while it may sound painful, you need a short-term and a long-term plan to improve your finances. As much as I like PB&Js, even I couldn’t keep up that habit more than a semester or two. When my old car “left” me, I bought my new car and then, one of the roommates moved out! Instead of only paying 1/3 of the rent and utilities, I was paying half. Eek! I realized I had only enough money to cover some bills and none left for the car insurance, gas, and food money! Not even the PB&Js! Thank God for waitressing jobs – I was able to work a few nights per week. One of the great things about waitressing is – TIPS! I usually made enough to put gas in my car for the week, provide cash for lunch and some groceries, and while the paychecks were small, I was able to start a savings account and use that money to cover the car insurance. Also, guess what I love more than a PB&J – pizza! Working at a pizza place also provided a free meal on the nights I worked. Again, I only had to work the extra job until the next raise at my day job.   

Depending on where you are in your financial situation, it may be harder than a few PB&Js along with an ‘extra gig’ here or there. However, a problem once identified is a problem that can be solved! Looking at your finances, you may need to put multiple strategies into action like the Debt Snowball method. It may take changing jobs to get that ‘raise’ at work to get the income stream positive. That said, starting – even with only saving $5 – can be the first step! And while it may feel impossible, dream about your future and where you would like to be financially. Keeping that vision can help you start and keep those good habits and that will lead you to a more comfortable life.

*Kaela’s Cookies – Falls Church, VA (@Kaelas.Cookies)

What does that mean? When you borrow money there is always a cost – even if funds are borrowed from family, where the cost may be emotional capital. The primary cost is the interest charged on the loan. It can also be the cost of your time in earning the money, e.g. how many hours did you have to work to pay for the item. Let’s look at interest rate costs and how you may use borrowing money to your best advantage.

While you may think this is “too financial,” as in “I am not good with money,” it is a very important concept to understand. You may already understand the concept but think “it doesn’t apply to me.” When thinking about money and looking at budgets and finances, the “cost” of money now becomes very important. Especially, when you are looking at big purchases or have started accumulating credit card debt.

The “cost” of money is the interest rate and the total amount you will have paid at the end of a loan. How do you know what that cost is? How much more per month do you need to pay off the 30 year mortgage early? Why does it feel like you can’t make progress paying off your credit cards?! How many years will you have to work to pay off these student loans? Using an amortization chart or table can help you calculate the total costs for your loans. There are many calculators out there (yay!) to walk you through the process.

The answers to these questions depends on your credit rating and your needs. If you are trying to decide if you should buy a new car or a used car or if you have a older car should you trade it in to lower the payments. Usually the interest rate on a new car is lower than the rate on a used car. And, a new car usually comes with a good warranty so the maintenance should be less costly.

The real advantage if you owe money on your credit cards and you have an older car to replace, then borrowing the funds for the new car and selling your old car outright could be a better financial decision. If you can pay off your credit card with proceeds from selling the older car, it may be a better financial decision. A new car loan may be at 4% and the credit cards could be at 16%. It may make sense to pay off the credit card and purchase the new car. Or, use the older car proceeds to start an emergency savings account to ensure you don’t have to borrow more money on your credit cards. Or use the funds to help pay for college for your son or daughter.

The main goal is to have your money work for you. Perhaps, you want that new designer purse and the sale price is only $300! So, you think $300 is not too much so you charge it. However, if you are only making minimum payments (like $50), now that $300 gets added to a continually growing balance. In the long run, that purse will cost a lot more than $300 and that is not a bargain.

What if you have more than one credit card with a balance — eek! The Debt Snowball Method is needed! I have used this method when I was younger and it does work. Looking at your options can save you money in the long run. It can be tricky getting out of debt and trying to save for an emergency fund. The emergency fund is going to be critical to eliminate debt. So start saving even $10 per pay period into a savings account — usually credit unions are more favorable for not charging fees on small balances. Once you get a raise, you can up the amount even if it’s only $5. Use direct deposit to automate the savings, even if you think you can’t afford it. You can’t afford not too. You can withdraw the funds if you need to but surprisingly you will get used to it and not miss that $10.

If you are working and have the option to have a 401(k) or similar plan, please take advantage of it. I know it may sound like, how can I save for retirement when I owe on my credit cards? Two reasons! 1) your company match is “free” money and it is actually part of your salary compensation package. 2) Tax benefit! You don’t pay taxes on the contributions to the fund. If you can, contribute the minimum to get the match. If you can’t at first, do the minimum to participate and increase your contributions at the next raise (or once you pay off your credit cards).

Once you have your credit cards paid off, have an emergency fund, and are contributing to your retirement fund at work, you may want to buy a home. Most realtors and mortgage companies will try to sell you a house saying you can afford the payments for the 30-year loan.

However, looking at the amortization tables, BankRate.com, has a nice one, you may find that a 20-year loan at the same interest rate is not that much more and will save you 10 years of payments!! Most lenders are not suggesting the 15-year mortgages and try to steer you to a 30-year loan. And, if you ask about the 15-year loan they will often say, “you can still make double payments and still pay off your loan in half the time.” The issue is that most people won’t make the extra payments. And, some banks will only credit you the real savings if you pay the double payments on the exact due date.

You may ask why does this matter so much? For example, a house with a mortgage of $330,000 for 30 years at an interest rate of 5.27% may not look that bad at a base payment of $1,826 (before taxes and insurance) but over 30 years, that loan/house will cost $657,490. That is literally, almost the same as if you bought “two” houses!! Or the cost of the house and putting a child through a private college. A loan of 15 years will cost $2,656 (before taxes and insurance) is only about $800 more per month and the total cost is $478,128. Yes, this loan will cost about $150,000 more but it’s less than half of the extra $330,000 with a 30-loan. So, when calculating if you can afford a new home, consider a 15- or 20- year loan over a 30-year loan. Of course, there are other factors to consider when buying a home than just the cost of the loan. Making educated money decisions can make for a more comfortable life.

References: https://www.bankrate.com/mortgages/amortization-calculator/

It has been a while since I sat down to write an article and I didn’t realize it had been so long!  It feels like some days there is so much to do.  I went to visit my family and saw my niece graduate from high school.  She has done so well and it was nice to see the family.  Interestingly, even though it has been years since I graduated, in many ways, they are the same:  exuberant graduates, relieved and happy parents, supportive and happy friends.  Speeches and pomp and circumstance but now with big screen TVs  — this grad ceremony was held in the Toyota Center! 

So … after the speeches and celebrations, it’s up the graduate to decide the next steps:  college, trade school, working, or maybe a gap-year full of travel?  Big decisions that can be literally life changing! 

College costs have risen so high, it can exclude many students.  However, there can be ways to make college more attainable besides just expensive loans. 

The College-Level Examination Program® (CLEP) can help students achieve college credits for a fraction of the costs.  This can be a good option if someone is good at reading and taking exams.   Many students are very smart and a regular classroom moves too slow.  CLEP exams allow you flexibility to study and take the exams at your pace.

Tuition Reimbursement Programs at private companies can help as well.  Usually, you have to get the class (and/or degree program) approved.  Pay for the first class up front and if you don’t have the funds, this is a good use for your credit card.  Pay the minimum payment until you pass the class with a B or better and then file for reimbursement and use that payment to pay off the first class.

Both of these options together can help a student pursue a degree.  Maybe not as fast as the full-time path but it can be a jump start and you can earn valuable work experience with health insurance!

While it is great to pursue a vocation in an area you love, it may not make a lot of sense to pursue a degree that may leave you with a lifetime of debt.   This is not an endorsement to suffer through college to get a job that is boring and/or you are otherwise unsuited for.   Rather, most colleges have as part of their orientation classes, tests for aptitude, interests and personality to aid in career planning.  Often there may be several occupations or career paths for which you are well-suited.  Therefore, how do you choose?!

Well, one way is to look at the free Government resource:  The Bureau of Labor and Statistics (BLS), Occupational Outlook Handbook. They even provide a helpful video to help you in your career search.  I am so surprised that most high schools never mention this free resource.  Well, that said, many adults have no idea that it exists.  Why is this important.  College is one of the most important investments you can make besides buying a house and saving for retirement.   Well, there may be a few more things, but college may be the foundation of your earnings for the rest of your life!

So…when deciding to invest time, money and hard work towards a future occupation, there are things to consider such as:

• Job Opportunities and Locations
• Salaries
• Future growth and/or decline in Occupations and Areas

These are important factors since most students take an average of 4-5 years to complete a Bachelor’s Degree.  If you desire to be a Lawyer or a Chiropractor where are the new job openings?  What is the cost of living in the area?  The job may pay more in NY City but the cost of living may mean your actual money after your bills may be less than if you took a lower paying job in Alabama.  Often cities have higher rent costs than small towns.

When you first go the BLS site, it may be overwhelming.  Another awesome and free resource is your neighborhood Librarian at the Public Library or the College Counselors. All of this information can also be useful for someone going to college, looking to make a career change or to move to a new location. The key takeaway is that investing wisely in you and your future can help you build a very comfortable and rewarding life! Best Wishes to all of the new graduates!

References:

https://clep.collegeboard.org/clep-benefits-for-everyone

https://www.nerdwallet.com/cost-of-living-calculator

https://myscholly.com/50-companies-with-amazing-tuition-reimbursement-programs/

https://www.bls.gov/ooh/

Dinner time!  Planning a meal, healthy or just filling, every night takes time and energy.  Especially, when you want to be frugal and healthy or even if you just want an easy meal that is tasty without breaking the bank.  With so many folks cooped up at home many of us either had to learn to cook or at least break out of our normal routine.  Well that was me, I was getting very tired of my normal routine and yet, it was hard to look at recipes, shop for all these items and then spend an hour learning to make it.   Sooooo…. I decided to try Hello Fresh!  This post is about sharing my experience with this food service.  (full disclaimer – this is truly all based upon my experiences.)

Let me preface this review with one of my life philosophies:  Cook once and eat twice!  If you are going to cook and have to do the dishes, try to make enough to have another meal or two (or at least lunch the next day).  During COVID, shopping was also a bit trying so I was already looking at some of the various services to try.   Christmas came around and I was ordering some flowers as a gift and they provided me a coupon for Hello Fresh which made it very affordable to try. 

I signed up for the 3 meals for two people per week.  It’s a very easy service to use – their website will show you the pictures of the meals and tell you the descriptions.  Based upon your choices, of regular type meals (meat/potatoes or pastas) or vegetarian or gluten-free, you will be given a selection for the week.  It’s easy to change and save for that week as long as you do it before cut-off date/time.  The boxes arrive on the day you select in a box with ice packs.  Meats under the veggies/other items.   It doesn’t take much time to unpack – it’s good to put the instruction sheets in a specific place for reference.   

Here is what I learned:

• Unpack and prioritize the meals based upon the veggies to be used (so you use the most perishable first).
• Review the instructions to also look at how long it takes and if you need to pre-heat the oven – many of the meals call for roasting the veggies in the oven.  This makes them tasty but means you will need to allow a bit more time.
• It saves time in cooking if you read all of the instructions and prep the food per the instructions.
• If you are a (slightly) picky eater, this meal prep allows you to add as little or as much spices per your taste.
• It is really nice that the plan comes with tiny little bottles of the vinegars or comes with little sour creams, or stock or jelly.  Especially, as a single person, this not only helps you have the ingredients, it saves money and waste.
• Also, if you have concerns with salt, this is good as you can control the salt or fat in your diet.

Tips:

• When roasting potatoes, if you have other veggies in the house, e.g. like carrots, prep them and toss them on the pan.  It will add additional health benefits and help reduce your veggie waste and I like more veggies.
• Try to reuse some of the pans – often, the recipe will call for browning and then moving the meat to a baking sheet.  If you can brown in an oven safe pan, you get to keep the pan juices which adds more flavor and reduces cleaning.
• I found that for most of the meals, I portioned out two dinners and often had enough left over for a small lunch to take to work.
• Look at your work/social schedule and energy level, skip the week or reduce the number of meals if you are getting behind in cooking.
• Also, if you are getting the three, or more, meal plan, freeze the meat for the meals that will be cooked later in the week.  This way if you get busy or end up eating out, the meat will keep in the freezer.

So, how hard it is to cook these meals?  I consider myself to be a decent cook who can make some delicious things but I have never had any formal training.  Also, as I was a single mother for quite a while, often my main cooking goal was getting a hot meal, that a picky kid would eat, on the table in 30 minutes!!  With that said, I found that this helped me expand my repertoire and I learned that I can make “pan” sauces and they are pretty easy.  Also, on the website, the meals will identify if they are easy, quick or more advanced.  One of the great things, is you can do the “add-on” for chopped salad kits and pre-cooked individually wrapped chicken breasts.  These are a huge win for saving time for dinner or lunch!

An unexpected benefit is while, it may appear to be expensive for the service, in reality it can be frugal.  Spending an estimated $65-$70 dollars per week sounded expensive, however, it helped me stay on budget.  I also found shopping was easier as I knew for me, I had 5-6 dinners and lunch several times a week accounted for.  Especially, if I had an “MJ” salad too. When I took the leftovers, I saved ‘lunch money’ too as I was not buying lunch in the work cafeteria.  Granted if I cook other meals on my own, I often bring leftovers to work for lunch too.

This service has its perks and makes it easier to cook meals at home since they provide all the ingredients and you just have to have the basics.  The basics are oil, salt, pepper, and butter.  It does still require prepping some of the veggies and washing dishes and after 6 months or so I did get a little bored with some of the meals.  Now, that we can get out more, I am taking a break from the service and planning to cut back to two meals for two for the summer.  

One of the downsides, is the extra boxes and the ice packs to be disposed.  All in all, if you are interested in improving your cooking and your diet, Hello Fresh, or one of the other services, may just push you out of your comfort zone. And this can be a more comforting and delicious place in the long run.

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.