Part 1 Food Shopping - Planning, Budgeting, Frequency

I was listening to Gavin and Kim Webber's podcast on budgeting and saving money and thought about our own experiences in Food shopping. Hence a few tips from our own experiences.

Planning is simple, in a kitchen drawer there is a piece of paper for each shop. When we use or open the last item of something we write it on the appropriate list. Everything is then ready to go. Not flying by the seat of our pants and no rushing about compiling a list as we try to race out the door. Those lists cover everything so that a shopping trip involvs everything including fuel collection, groceries, vehicle servicing, the lot. Less trips less fuel.

 

Deciding where to shop was not a haphazard exercise. We established which suppliers sold which products at the lowest price. We calculated everything at a per kilogram price (simple spread sheet). This then gave us the optimum size to buy as well as which supplier and brand. Once this price list is built it is easy to maintain as suppliers seem to stay consistent with the exception of the occasional special.

Budgeting was based on historical fact. We kept all our grocery shopping dockets for a few months and compiled a summary of each category - month by month. We then knew what we had spent and that became the maximum allowance. If we could spend less we did so as often as possible. In the following year's budget (we prepared a budget annually) we took the actuals of the prior year as the new budget. If grocery shopping was down the allowance was lowered accordingly.

 

We made allowances in the budget for all sorts of things, personal items, maintenance jobs and white goods replacement. But that didn't mean we spent the money. If it wasn't absolutely needed it wasn't spent.

 

Because our sole focus was on clearing the mortgage we were careful with every purchase. We made our own espresso coffee and took it with us on a day out finding a quiet park to enjoy the coffee and some home made cake.

 

Any money saved went towards mortgage reduction. Some of the most satisfying moments were seeing how much we hadn't spent at the end of each month.

 

When we finally paid off the mortgage there was this large amount of money appearing in our bank account that once used to go to the bank to pay off the debt. Now it sat there for us.

Frequency plays a significant part in saving money. We gradually, through circumstance initially and then by design went from weekly shopping to fortnightly to every three weeks and then monthly. We settled on monthly and continued that regime because we discovered we were spending less on groceries when we shopped monthly than when we shopped at any other interval. This saving remained consistent over the 5 years we maintained a detailed budget.

We couldn't put our finger on why exactly but the suspicion was that a number of factors came into play:

• Firstly, the obvious one is there were 75% fewer opportunities to buy something on impulse.

• Secondly, if we ran out of a much loved item in week 3 we did without and ate something else that was in the pantry.

• Thirdly, we took advantage of bulk buying to cover the monthly interval and sometimes covering more than one month. Bulk buying not only means going to a wholesaler and buying a carton it also means taking advantage of the "buy 10 and get them at a discount" type offers that you often see with cat food (which we fed to the cats).

• Fourthly, when shopping monthly there is less attraction in buying easily perishable products such as bread and instead buying flour and making your own. Baking your own bread is much cheaper. So in this we also mean getting back to the basics i.e. cooking using the basic ingredients rather than pre-processed products such as sauces.

• Fifthly, we grew as much of our own food as possible. Vegetables, fruits and herbs. And avoided buying anything if we had a substitute product in the garden. Especially important was not to buy out of season items in the supermarket. This forced us to cook according to what was in season in our garden and to become creative. Taking the easy way out encourages laziness. After a while it really does become easy to walk through the garden collecting what is available and create a meal. It broadens the imagination and the palate and reduces the costs.

• Finally, we never bought pre-cooked meals. No matter how hard we worked, how late we got home, how tired we felt. We always cooked our own food. And this is not hard to do. How often don't you know you will have a long day at least the day before. We just planned ahead and made extra of the meal that day before and had it ready to warm up. Sometimes we even had a meal in the freezer ready to warm and serve. Often we would remember to get it out of the freezer in the morning to defrost.

Next: Part 2 Food Shopping: Value & Quality, Preparedness, Diversity, Nutrition & Health

 

Survivalism, Preparedness or just Planning - Part 3

Wealth

A rarely considered subject until it hits you in the face. What happens if all the income earning members of your family lose their jobs. What is the backup plan? How long before your mortgage and credit card debt catch up with you. How will you pay the energy bill, the water bill, rates, fuel or buy essential foods.

Losing employment is more likely than losing power for two months and but it has the greater devastation and is the least thought about.

Stop spending money now. Reduce debt and put some money away for an emergency. You do not need to treat yourself by going out to dinner because you saved a $100 on food this month. This is plain silly. Every cent counts and you should resist rewarding yourself at every turn. You are an adult making sure your family is taken care of. Think about the longer term not the immediate gratification.

The smallest less visited treats are the most delicious. Treats are like Heroin. The more you take the more you need to take to get the same level feeling as the last time.

Saving money before you lose your income is easier than after. Don't buy that coffee each day make it at home and take it with you. Make your lunch at home and take it to work. Its not hard to reduce your telecommunications bill by calling fewer people and spending less time online, Cut your energy bill by keeping lights off, using more efficient lighting and making sure your refrigeration equipment is working correctly. Don't grocery shop without a pre-written shopping list. Grow your own food. Each day loose change goes into savings. Make a detailed budget and either stick to it or try to go lower. Pay off the credit card and leave it at home. Pay a little/lot more off your mortgage each month. Don't carry much cash or credit/debit cards with you. Don't buy anything without prior discussion with your partner. Leave acquisitions for a week before reviewing your need for them.

When you are debt free and have a pile of money in the bank then by all means celebrate your success - in moderation.

Evaluation

List down the things that might happen and the then the probability they will happen. You will see that nuclear war, Zombies, invasion by a foreign power are all pretty well down the list. Some things will happen but not for decades so push them down the list and work on your most immediate issues first. Focus on the obvious. Lost my job, storm blew the roof off, no power, I got run over by a bus on the way to work.

Everyone will have particular circumstances. Think about yours a bit more than 5 minutes. Reading a blog and saying "Yeah I should be ok" doesn't really work. Don't become a victim through inaction.

Having a plan is the cheapest and best insurance you will ever take out.

Resources

A lot of web sites exist for the survivalist, the prepper and the self sufficientist (just made up that word).

People like Jack Spirko in his TSP podcasts cover every angle of preparedness. There are aspects in some of his programs which don't appeal to me but that doesn't stop me listening to him and gleaning some comprehensive and well thought out information on all matters of self sufficiency. Be it financial, Permaculture, gardening, food preparation, health, livestock etc. The topics seem endless as do the variety of people that come on the show.

His program has led to finding out about people like:

Darby Simpson – Livestock and Farm Management/ Homestead Consulting

Chef Keith Snow – Cooking

Stephen Harris – All things Energy

Paul Wheaton – Permaculture

Ben Falk - Permaculture

And these are just the expert council that answer listeners questions or speak about their subject matter. There are dozens of other interviews with very interesting people practising self sufficiency.

Cattle Happiness, Spending Management

Cattle Happiness

Do cattle experience happiness?

Our cattle were let into a fresh paddock today. They began leaping about kicking their rear legs into the air twisting and turning and running from green tuft to green tuft. A good time for us to stand back and out of reach of their hind quarters.

Is this a sign of their pure joy? It has to be. We've watched this occur in different herds many times. Sometimes you wonder how 400+ kilogram animal can be so flexible. It's a joy for us to see it when it happens. And then there is that rip rip rip as they tear mouthfuls of fresh grass. This is one of the most pleasant sounds in the world.

One day someone will podcast a catalogue of the loveliest sounds in the world. The morning carolling of the magpies. Jean's uncontrolled laughter at something silly I've said or done.

And then there are the scents. That unique smell cows exude when on fresh pasture, The first Jasmine flours of Spring. Grapes fermenting. How will we catalogue and share these?


Spending Management

One of the best ways we found to restrict our spending urges was to discuss every expenditure with each other. And this is not just the big items but everything that may be classed as discretional. Every dollar saved is still a dollar saved. We both feel the same way about spending money and therefore this consultative approach comes naturally.

The small expenditures are probably the most insidious. You know the ones, that inexpensive tool on special for only a few dollars - a nice to have but how often will it get used? A little trinket or bauble that looks pretty but will it find its way into a drawer and be forgotten. That book that looks good but turns out to be disappointing. We used to buy books at the drop of a hat and accumulated many that eventually had to be passed on to op shops. Book acquisitions are now controlled. We borrow the book from a library first to see if we want to add it to our collection.

Another good method for control is the "research and leave". Especially useful for larger more expensive items such as electrical goods. Research the item thoroughly, visit it in the shop, touch it, ask a lot of questions and then go away for week and think about it. If you still feel the need to have it go back and visit again and maybe buy it.

Finally the prepaid mobile telephone or internet access. All so simple to top up as it begins to run out and before you know it you've just spent $100 in two weeks. Each time you finish using it write down how much is remaining to remind yourself  what you have just done.

First Spring Vegetables, Bees, Budgets and The Pond

First Spring Planted Vegetables

Japanese Climbing Cucumber

This week the first zucchinis were picked. All baby size but just perfect in freshness and flavour. One of our favourite ways to serve is sliced longways in half and fried in Extra Virgin Olive Oil drizzled with some soy sauce and served warm either as a nibble with wine or as a side dish with the main course.

Yesterday the first two Lebanese Cucumbers were picked. Only small, no more than 150 mm in length so that the seeds are immature. Cut off the bitter top and tail then slice lengthwise and served with a little sprinkling of coarse salt. The slight coolness of the interior contrasting with the sun warmth of the skin.

Tomatoes over 2 metres Tall

A pleasant surprise to find two ripe Beefsteak Tomatoes. Also found two Hungarian Wax Capsicums ready to go. Must be a good season as this is the earliest harvest of these two we have ever had.





Rattlesnake Beans

The rattlesnake beans are flowering more heavily and multiple tendrils have climbed the baling twine with some already tangling at the top. One day it would be interesting to see just how high they might grow. On the other hand that might awaken giant up there. The early flowers are already beans 75 mm in length. Another few days and we should be eating our first crop. Again we favour a simple recipe. Top and tail steam lightly until they change colour slightly then drizzle with Walnut oil and again a light sprinkle of salt. Serve as an entrée or with the main course.

Bees

Bee Hive

Bees are so important for successful pollination. With so many fruit trees and vegetables growing we find it critical to have our own hives. The free honey that comes with the hive is a bonus that more than justifies the small amount of work to maintain them. Our hive numbers fluctuate. We try to catch any swarms that form, sometimes these are not viable. As with so many other projects we can’t claim any great expertise but we try our best. Sometimes we lose a hive because of our poor management and this encourages us to take more care. Reading the bee books and experience improve our performance ,however we yearn to spend time with an experienced apiarist to get a better grounding.

Budgets

When we first began this low income lifestyle it was imperative to understand how much we were spending and on what, as well as to be able to mould our monthly outgoings to our varying monthly incomings. There was also a goal to put some money aside each month to service the remaining mortgage and when it evaporated that surplus was needed to build a reasonable buffer against lean times. Initially we set the buffer at a minimum of six months then as opportunities arose grew it to 2 years. That means if we were unemployed for two years, we would not be destitute.

The critical tool for achieving this was the budget. The initial setting up requires a little effort. There are free software tools available on the web but we chose to use Microsoft Excel. The time consuming work revolves around gathering the historical data of the past 12 month’s expenditure. In our case, we had a shoe box with the past years shopping dockets and invoices from the various utilities etc. Once sorted, the task wasn’t too bad. Starting with expenses sets the scene because it dictates how much you must earn. The breakup of categories depends on what needs to be tracked. Telephone, fuel and electricity are three classifications it pays to keep separate at first as they can be reduced. After twelve months of targeting fuel, telephone and electricity reductions personal behaviours change permanently.

At first it is a good idea to have a lot of categories to track in order to build a bit of history. Personal items mostly involve discretionary spending and we tracked these by individual. Shopping was broken into a number of categories such as food, wine, pet food, seeds and seedlings, fish, meat, cheese making supplies etc. The motor vehicle costs are split between fuel, services (including tyres & batteries) and registration and insurances.

The budget then consisted of four columns for every month ie Planned Expenditure for the month, Last Year’s expenditure for this month, Actual expenditure for this month and the variance between the Plan and Actual. There was a subtotal of expenditure for the month at the bottom, followed by the income items for the month by individual and a subtotal for income. Income and expenditure were subtracted to see if there was a profit or loss for that period, this could then be either put aside as savings or put towards the mortgage.

Every month, once the numbers were complete, we would look at the variances over a cup of tea and discuss progress. Sometimes the savings were false as the expenditure had been deferred to the following month. In these cases we adjusted the plan accordingly. If there were true savings or overspends, we assessed why and discussed future actions.

One benefit of laying out the whole year’s expenditure by month is that one off big bills such as Home Insurance are visible ahead of time and can be accommodated accordingly.

Although we use a Credit Card to pay for shopping and other outgoings we never ever not pay off the full amount each month. Better to have a few lean months and go without some things than needlessly incur interest payments.

A surprising thing happens when the mortgage is paid off. Suddenly there is this quite a large amount of money which doesn’t need to be spent. Depending on the size of your mortgage and repayments, this can be a significant sum. At this point the sensible thing to do is forget you have the surplus. Don’t be silly and try to justify its spending as some form of reward. Put it straight into a special savings account with the best interest you can get and build up your security buffer.

When we want something special such as a new large screen TV then we set up a savings program to get it. This serves three purposes. Firstly, there is a separation of time between your desire and the actual event. This is an ideal situation to ensure that your interest in the acquisition is not a passing fad. Secondly, by saving separately you confirm that you have the long term funds to contribute to the new object. Thirdly, waiting for something increases the pleasure. Not only satisfaction of reaching the savings level needed, but then the purchase and use afterward.

One important shopping tool that we always use is discussion. Anything that is not a standard shopping item on a list is not purchased without prior discussion. And that means anything irrespective of the value. An item of clothing, a new tool, a book all are bounced off the other partner. This discussion starts with do we really need it and progresses through is there are better way of getting it to is it the best model ie should we pay extra and get a higher quality more expensive item with a greater duty cycle. We don’t set a minimum dollar limit to discussion items. Every dollar adds up.

Speaking of dollars all loose change is confiscated in this household. The eye opener is how often this results in another $100 going into savings or off a mortgage.

Two other planning tools are useful. The first is the Capital Replacement Program. This is a list of all our major appliances such as washing machine, dishwasher, freezers etc. Against each are its age and an estimate of when it may need to be replaced either because of age or inefficiency and a generous estimate of cost. When planning each year’s budget a quick reference to the Capital Replacement Program allows the insertion of any potentially large expenditure. The second tool is the Repairs and Maintenance Plan. This lists all the big jobs. Painting the house outside, painting certain rooms, fencing replacement, additional paving etc. Again against each item the associated costs and when it should be scheduled. And again this is referenced when planning the new year’s budget.

There is surprisingly little effort required in maintaining these plans and budgets once established. Gradually from year to year the categories change as the process is streamlined and we feel the situation is under control.

Pond

The Pond

Being so high up in the valley we don’t have ready views of bubbling creeks, dams or rivers. Our solution was installing a pond as our water feature with resident gold fish and water lilies. There is a flow form waterfall which we activate from time to time. We don’t have the pump operating all the time as we found there was a correlation between the flowing water and the reproduction processes of the resident gold fish. The original 7 gold and one black have grown considerably over the years. We now practise sensible birth control by switching on the pump less frequently.

The design of the pond has meant a draining and resurfacing every few years was necessary. Some of this may be a result of the odd dog cooling off on a hot day which may have breached the membrane. A small design fault also causes cracks. The pond is cemented too closely to the pergola uprights which flex from time causing the concrete to fracture. Either way the occasional refurbishment is minor to the pleasant vista and gurgling sound of running water nearby. In the evenings there is beautifully serene scene across the pond and its foliage with a backdrop of the valley beyond.