Periods of inflation create panic and fear.That one sentence got me to thinking about some of my recent shopping.
I bought 8 cans of green Lima Beans. Normally they are $1.45 a can. which means I don't buy them very often. I love the things, probably as much as I love corn (my favorite vegetable). So when the Falley's store in North Topeka started their 20% off everything sale (now through Nov. 10), I went hog wild, as they say. I rationalized that these beans will never this cheap again. Sure I bought other items and stocked up. I spent more then I have budgeted for groceries to get the great prices.
In fact you can say I did so many financial no no's, that I totally blew my budget for the month. However, this one sentence brought it all into perspective.
I knew that people will spend $3 in gas to save $1. But, I thought I had grown past that. Looking back though, I am still struggling with that, I seen the great prices and panicked (in a sense) and started buying. The thing is, later this week, if the last four cans of Lima's are still on the shelf, I am likely to buy those to. Unless of course I can convince myself to get back to my budget and stick to it.
This is one area I am torn. I can avoid credit with ease, but sticking to my budget is a huge struggle.
Budgeting is a huge part of personal finance (as it is the means to wealth). It is something, I along with the rest of America must get a handle on. We all must learn to budget (spend less then we make), avoid all credit and save. Saving being the biggest aspect of our finances.
I frequently suffer budget woes, when I spontaneously shop. My written spending plan goes off track when I go shopping. I am doing something wrong. I haven't been using cash only, like Dave Ramsey recommends. That would be a good starting place. I like using my debit card; It is more convenient. And it becomes a little tedious to guess how much cash I need to take with me for each category, like food, and consumables. Because I don't shop one time a month. I have to return to the store at least once a week for certain items, like my coveted pepsi, and I need bread. I seem to be spending more than I expect on consumables, like household cleaners and over-the-counter medicine, and other household items. I don't know what happens, but when I go grocery shopping, I magically add $40 in those consumables. So when I think back to my budget, I say to myself forget it, this isn't working. Then I also have house maintenance costs like mowing expenses. Also, my new job likes to have treat day every week. They also ask for money for gift cards and plants and going away presents and coming back presents. It cost a small fortune to work there. If you can sort through that string of observations and can see a solution, I am all ears. I am terribly undisciplined at budgeting. Another problem I have is that I buy stuff that I really want, but can't afford. I have spent $160 on dress pants and I even overdrew on my checking account. I thought I needed them that day, and I thought I had the money in the checking account. Also I was thinking that I get paid in a couple days. Boy! Was I wrong! I knew I messed up when I called the bank and they said I had an overdraft charge. That is stupid-tax for ya Dave Ramsey listeners. Please help. Make me budget savvy and debt free and a wealth builder.
ReplyDeletekevin, i believe "there's never a bad time for a good investment." the warehouse is a store, the store is a store, and your home is a store. if you've got truly good prices, stock up. that's as true for buying beans as buying stocks, houses, or any other asset. if you know you will eat the beans eventually, and you know they won't go bad, then the purchase makes sense to me. sometimes my budget is tight and i can't get something even though it's hard to find or super-cheap. i will still dig deep and see if i can do it.
ReplyDelete20% off is not that great of a deal,if they were 50% off, I could understand it.....but you just blew your money on beans, when you should have paid off a debt or saved it - as you state on this blog.
ReplyDeleteAnonymous -
ReplyDeletereally, use other, if you don't have a blogger id. If you knew anything about the grocery business, you would know that 20% is the cost of the goods, if not below. When you have a multi-store chain, it becomes cheaper to transfer any left over product to other stores, then to give it away, like you suggest. The only goods that have a 50% margin is the general merchandise items (drugs, utensils, pot holders, office supplies, etc). Food at best only has a 20% margin.
Of course you are right, the money could have gone towards debt, but then again, I won't have to buy groceries for a little longer now.
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John -
Thanks...still though I should still stick to a budget.