Beating Broke

Personal Finance from the Broke Perspective

What the Pandemic Has Taught Me About Our Spending

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The pandemic has changed our American way of life.  More people work from home now.  Kids go online to complete their schooling. Many of us are wearing masks now.  And, our month or two quarantined at home has given us time to reflect on what are life used to be like. . .and whether or not we want to fully go back to that life.  I’ve spent some time considering what the pandemic has taught me about our spending.

What the Pandemic Has Taught Me About Our Spending

What the Pandemic Has Taught Me About Our Spending

Sometimes you get complacent in life and just do things the way that you’ve always done them.  This pandemic has allowed me to look at our finances with fresh eyes to discover what we did well and what needs improvement.

My Bargain Shopping Was a Boon to the Family

What The Pandemic Has Taught Me About Our Spending
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I used to drop by the grocery store three or four times a week, scouring the store for clearance mark downs.  I bought probably 1/3 to ½ of our weekly food this way.  I used to worry that I was spending too much money shopping this way, but now I see how much I was really saving us.

Since the pandemic, I’ve relied on grocery store pick up, which means paying full price for everything.  Our grocery bill has shot up by 30%.  When the pandemic is over, you can bet I’ll be back to stopping by the store a few times a week to pick up the bargains.

We Drove Around Way Too Much

What The Pandemic Has Taught Me About Our Spending

Before the pandemic, we were a busy family with three kids.  We spent our time, like many American families, in the car driving from activity to activity.  Gas was a large line item in our budget, especially since our town is very spread out.  We easily spent 2 to 2.5 hours in the car a day, dropping off and picking up a child from school, taking another child to therapy, going to horseback riding lessons, gymnastics lessons, religious education lessons.  On and on.

Since the pandemic, our gas consumption has dropped to nearly nothing.  I’ve bought gas for my vehicle twice in three months; my husband hasn’t had to buy gas at all.  We find we’re happier with more time at home.  Whenever things are more normal, we don’t plan to be as busy, which means less gas consumption.

Our Emergency Fund Is Not Large Enough

We’ve been working on building our emergency fund from a tiny $1,000 to a six-month emergency fund.  When the pandemic hit in mid-March, we had a two-month emergency fund.  While that’s certainly better than a $1,000 emergency fund, I really wish it was larger.

We’re lucky that my husband was able to keep his job and work from home, but he did get a pay cut.  While we have rearranged the budget to accommodate the pay cut, we won’t be able to grow our emergency fund like we had previously.  And, depending on the way this pandemic rides out, we’re both aware that he could lose his job next year.  I’d feel much more confident if we had a bigger cushion.

Final Thoughts

These three are what the pandemic has taught me about our spending.  I’m quite sure when this pandemic is over, our family won’t go back to the way things were.  I think we’ll drive a little less and try to save even more.

How has the pandemic changed the way you look at and spend money?

Can You Benefit from a Meal Kit?

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You’ve likely seen the advertisements for meal delivery kits and wondered, can you benefit from a meal kit? For a set amount, averaging about $7 to $12 per meal per person, the meal service company sends you a box with all the ingredients you need for three different meals with two or four servings, depending on what you choose, as well as the recipe for each meal.

Can You Benefit from a Meal Kit?

There are so many kits to choose from: Green Chef, Hello Fresh, and Blue Apron, just to name a few.  You can find meal kits that are offered for vegans, that have options for those who are gluten-free or nut-free, and those who prefer organic food only.

I’ve personally tried Green Chef, and my family and I loved the meals, but we didn’t love the price tag.  However, while regularly subscribing to a meal kit isn’t good for us at this stage in our lives, there are plenty of times that buying a meal kit is a great financial choice:

When You Don’t Know How to Cook

Can You Benefit from a Meal Kit?
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Unfortunately, more and more kids are leaving the nest without knowing how to cook.  If your cooking consists of boxed macaroni and cheese, grilled cheese, and eggs, a meal kit service might be perfect for you.  Not only will you get to eat tasty, nutritious food, but using the kit week after week will slowly help you learn to cook.  Eventually, you’ll be able to cook on your own, without the meal kit service.  Knowing how to cook is a skill that is priceless.

When You Would Go Out to Eat Instead

When I worked full-time and my husband was a full-time student and we had an infant, we went out to eat much more than we should have.  We wasted thousands of dollars because we were just too tired to go grocery shopping regularly and figure out what to eat.  In this case, a meal kit would have saved us so much money.  While meal kits are more expensive than cooking from scratch and buying your own groceries, they are cheaper than going out to eat for a meal in a nice, sit down restaurant.

When You Need A Healthier Option

If you eat out frequently or dine on delivered pizza or Chinese, a meal kit may be perfect for you because it’s likely healthier than the food that you’re currently eating.  I found Green Chef to be very healthy; each meal had a lean protein and a variety of vegetables that were of different colors.  Another bonus is that the meals are already portioned for you, so you won’t overindulge, unlike restaurant portions.

Can you benefit from a meal kit?  Only you can answer that.  A meal kit service isn’t right for everyone.  Certainly, choosing your own recipes, grocery shopping, and cooking for yourself is a more frugal option.  But not everyone cares about frugality when it comes to meals.  There are times when a meal kit subscription is the perfect option.

Have you ever subscribed to a meal kit service?  If so, which one?  Were you happy with the food and recipes that you received?

Personal Finance Reassessment

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Occasionally, there comes a time when you have to take a look at your personal finances and do a little personal finance reassessment.  While the need may arise to do a complete overhaul once in a while, a simple reassessment can usually suffice.  All it takes is a little attention, and some dedicated time to making sure that your finances are in order.

Recently, my wife and I were, more or less, forced to do a little personal finance reassessment.  That’s such a nice, delicate way of saying it isn’t it?  Truth be told, our finances were (are) in a mess. The ripples from when I quit my job last November are still plenty big, and the new job that I have seems to have come just in time to keep us from completely going under.  Combine the drastic decrease in income that event brought about with a couple of people who remained stubborn in their budget, and it was a recipe for disaster.

financial peace jrLuckily, we’re usually pretty good at talking about money with each other.  Don’t get me wrong.  There’s plenty of room for improvement.  But, we’re good about not getting into any heated arguments with each other, and being able to figure out where we’ve gone wrong and correcting it.

So, we sat down and caught up our dreadfully behind budget.  And, let me stop here to say something.  What kind of idiot doesn’t keep doing the budget when he quits his job and is making a fraction of what he used to?  This guy.  Dumb.  So, yeah, we caught up the budget.  About 6 months worth of financial data entry.  Some by hand because our bank doesn’t keep history online over 90 days.  So, one by one, directly from the statements I printed off.  Did I mention how dumb that was?

In case you’re curious, catching up on about 6 months of budgeting takes about 6 hours.  6 HOURS!  It’s done though.

One of the things that we discovered, after having done all of that, is that the reason that we were in the pickle that we were in wasn’t because of the loss of income, although that played a part, but more because of how badly we had slipped in the last few months with our spending.  July and August in particular were well above what June was.  In our defense, those are usually higher spend months because they’re usually the only real summer months we get up here in North Dakota, but it was still way off.  And it cost us.  The last several weeks have been pretty hairy, financially.

The scary part of all of that is that we haven’t had a bad financial situation like that for over 5 years.  And, maybe, in that 5 years, we’ve become a little bit lax in our budgeting, and in our finances in general.  No more.  We’re taking the control back, and keeping our finances in order.  Not doing so could mean disaster.  It surely means stress, and that’s something we just don’t need.

During our little reassessment, there were several things that we picked up on.  Like the fact that we didn’t have any life insurance on me.  In my previous job, my employer kept a policy on me that would have been more than sufficient.  For some reason, they decided to cancel that policy when I quit.  😉  So, we’re now budgeting for life insurance policies. Or, the fact that our spending on eating out and groceries had gone way up.  A simple attitude adjustment helps with the eating out, and we’re going to start trying to use menu plans to keep our grocery bill down and to spread it out over the month. Another thing that seems to be part of the issue is the timing of some of our bills.  Before, I made enough that it wasn’t an issue when the bills came due, we always had at least enough to make it to the next payday.  Now, with my lower salary, it’s getting a bit tight right before the 15th (when my wife gets paid), and a few of the bills that come in right before the 15th are adding a little extra stress.  I need to call a few of them and try to get them moved to a slightly later due date.

In the end, our personal finance reassessment came just in time.  We kept a close enough watch on our finances to see the need arising, and were able to meet the need and keep things from getting any worse.  Chalk it up to a lesson learned.  The (almost) hard way.

When was the last time you had a personal finance reassessment?

img credit: Matt Mcgee, on Flickr