Running List of FTJ Boot Camp Assignments - Page 3

Kim · **Day Twenty & Twenty-One**

Grocery Planning

When it comes to saving on groceries, it helps to be a proactive grocery shopper. That means knowing what the best prices are and building a stockpile of things you need when prices are rock bottom, rather than when you run out of something and have to buy it at full price.

Create a Master Meals List

Take your price book one step further by creating a list of the ten frugal meals your family eats most often. Write down all the ingredients necessary to make those dishes from start to finish. Don’t forget anything – if you make garlic bread to go with spaghetti dinners also include the bread, butter, garlic, etc. Come up with a master list of all ingredients. These are the items you should focus on when creating your price book.

Your master meals list will also give you insight as to how much meals actually cost when you’re making them at home. This list will allow you to analyze the cost of what you’re making to see if you’re making smart choices. Sometimes certain meals (especially casseroles and one-pot meals with many ingredients) are more expensive than you think. A simple meal of broiled fish and a steamed vegetable often costs less than a casserole made with canned soup, cheese, and pasta and other ingredients. Also, pay close attention to the meals you make that require you to buy more of an ingredient than you need. For example, when you make a roast or a stew do you often have leftover celery, carrots, or other veggies? Do they often go to waste or do you incorporate the extras in your menu plan?

Once you’ve completed your master meals list, you’ll want to keep close tabs on the prices of those items for the next several months so you can spot pricing trends. Grocery sale prices hit rock bottom every 12 weeks on non-perishables, and that’s the time you’ll want to stock up. Certain things like fresh produce often hit rock bottom once a year when they’re in season and can be more difficult to stockpile, but it still helps to monitor their prices as well. In some cases you’ll still be able to stockpile them if you can freeze, can or preserve them in some other way.

Create a Master Pantry List

Now that you have a master list of ten standby meals and the ingredients required to make them, you have a great start to your master pantry list. Now, add all the things you need for day-to-day cooking – basics such as milk, flour, eggs, sugar, onions, garlic, etc. Once you’ve added them, you have a master pantry list.

Organize your master pantry list by grocery store department (produce, canned goods, dairy, etc). Then, print out the list and keep it posted in your pantry. Write down the number of boxes/cans you have on hand and take special note when your supply is diminishing. When you take something out of your pantry, adjust your list accordingly. This will also help you see what you have on hand at a glance instead of rummaging through the shelves, making it easier to keep your pantry organized.

Your goal as a proactive shopper will be to familiarize yourself with the prices of the things on your pantry list so that you can buy them when they’re on sale, rather than when you run out.

Kim · **FTJ Boot Camp: Day Twenty-Two**

Modified Spending Freeze

Congratulations! You made it through the spending freeze!

Here’s the deal. If you carry consumer debt, the only way to get out and to get out quickly is to continue on with the Spending Freeze. If you don’t continue on, the chances you’ll revert back to bad habits are pretty likely. Make it your goal to make it to the remainder of the FTJ Boot Camp (only three more weeks).

If you are a Boot Camp “recruit” that doesn’t carry consumer debt, you are hereby granted permission to go on a Modified Spending Freeze, with the following things in mind:

Impulse purchases are what get the majority of Americans in trouble with their finances. We are going to be working in a few more of the “wants” into your spending this month, but none of them are allowed to be impulse purchases. For the 21 days immediately following the Spending Freeze, you will need to think about something for 24 hours before you purchase it. This phase is called the Modified Spending Freeze.

Make a List, Check it Twice.
Create a second approved spending list for the Modified Spending Freeze. Go ahead and include some of the wants you’ve been avoiding purchasing since starting the Spending Freeze. However, the items must be on the list for 24 hours before you purchase them. This will help you avoid buying things you really don’t need (or could get by without) and haven’t completely thought through. Include things like clothing items your family may need, one lunch out per week (if your financial situation allows), gifts, and so forth.

Communicate
Make sure that you and your spouse are in agreement about what’s on the second approved spending list. Set a dollar amount that you have to get spousal “approval” on before it is spent. It could be $20 or it could be $200: The important thing is to choose a number appropriate for your own situation. Consider your net worth statement when approving big purchases. If you have considerable consumer debt, no amount of thinking or pre-planning makes certain purchases OK. Keep that in mind.

Consider Your Mood before You Shop
Everyone knows you’re not supposed to go grocery shopping when you’re hungry. My husband can attest to that – that could be why we have enough food in our pantry to live off for several months. I can also add: Don’t go shopping for scrapbooking supplies when you’re bored or go to Old Navy when need a pick-me-up. Of course most of these emotions are temporary, but the bills aren’t.

Knowing exactly how and where you spend your money will provide you with key information about where your money goes. It will also give you valuable insight into what your spending weaknesses are and provide information about what you can improve upon.

For the remainder of the Forget the Joneses Boot Camp, account for every penny you spend. There are many ways to track your spending. It’s important for you to pick the method that is easiest for you, fits your lifestyle, and one that you can stick to.

• Keep a Spending Journal You can use your small spiral-bound notebook to do this, one that fits in your purse works well. For every item you buy, track the amount spent and to which category it belongs, such as: groceries, gas, entertainment, restaurants, clothing, and so on.
• Save Receipts in an Envelope This is a really simple way to track spending because it doesn’t require much time. Simply grab an envelope and make sure that both you and your spouse account for all of your purchases – whether cash or credit – by placing the receipt in an envelope. If you make any purchases where a receipt isn’t available (vending machines, for example) write the amount spent and the item on the envelope itself. This works well for spouses who may be less than cooperative. It isn’t too much to ask them to simply hold onto their receipts.
• Use a Program Like Quicken or Money This can be done in conjunction with keeping a spending journal or a receipt envelope and works well for those who plan on using a computer program as a part of their budgeting system. Don’t worry about categorizing the purchases right now. Simply gathering the information will be sufficient. After the end of the three weeks, we will begin to categorize your purchases so that you can create a budget.
• Use Online Sites Like Mint.com If you want to take electronic budgeting one step further, consider an online tracking site like Mint.com. Not only does Mint.com use features like Quicken and Money, it connects to your banking/credit card information nightly to automate the process even further. Best of all, it’s completely free.

Assignment: Come up with a Second "Approved" Spending List

Kim · **FTJ Boot Camp: Day Twenty Three**

Be a Proactive Shopper

Groceries
In the weeks left of the FTJ boot camp, I want you to change the way you view your meal planning and grocery budget. Become a proactive grocery shopper vs. a reactive grocery shopper. Instead of buying something when you need it, you’ll be buying it when you can get it at the best possible price.

Continue to create meals based on what you have at home rather than what you want to eat. Then, use the money in your grocery budget to build your stockpile – with an emphasis on your frugal meals list and pantry list.

Being willing to try new things can also help you save. Are St. Louis Ribs half price this week and an additional $1.00 off with a coupon? Score! Even if you don’t regularly make ribs, that’s a great deal, and can bring the price of a typically more expensive meat down under that of ground beef or chicken. Make it your goal to learn new cooking techniques. You’ll experience some flops along the way, but over time you’ll build up a great collection of recipes that will enable you to take advantage of great deals with confidence.

Use your price book as a guide to research what are truly the best grocery bargains and purchase those things when the time is right. Eventually, you’ll have a large enough stockpile so that you will be able to create your family’s favorite meals with what you have on hand at home already.

Gift List
Most of us have lots of people on our gift list throughout the year, but it’s something that we often fail to plan ahead and budget for. Keeping a master list of every gift you need to buy throughout the year: not just holidays and birthdays, but teacher appreciation gifts, and other holidays like Valentine’s Day, Easter, and so on can help you save money as well as stay organized. Write down everyone you need to buy for and when you find a great deal, snap it up and check that person and occasion off your list – no matter what time of year it is. Keep your “gift stash” in one place so that when you need to find the gift you know where it is. You may also want to keep a few generic gifts for baby showers, housewarming parties, and other unexpected occasions.

Kids’ Clothing List
A key to saving money on kids’ clothing is to shop the end of season sales for the following year. The problem with this is that moms often just shop randomly instead of really determining what they’ll need. Consequently, they often overbuy certain things and underbuy others. It’s a good idea to keep a short checklist of what your kids go through in a given season. Your inventory might look like this: Three pairs of jeans, two pairs of dress pants, two sweatshirts, five t-shirts, underwear, socks, tennis shoes, dress shoes, coat, etc. Then, when you see those end-of-season sales, you’ll be able to buy what you truly need and skip the things you don’t.

Ongoing Wish List
This is one that I keep for items I’d like but really don’t need. My list usually looks something like this: pair of brown leather boots, wall décor for living room, sheets for queen bed, etc. I keep my eyes peeled for sales, but realize that I won’t buy these things unless I find the right item at the right price. I know I need to replace the sheets on our bed soon, but I can wait for a 50-75% off sale. I also have my list handy if anyone asks me what’s on my wish list for birthdays and Christmas.

Kim · **FTJ Boot Camp: Days Twenty-Four and Twenty-Five**

Getting in the Decluttering Mindset

Your external surroundings can also help (or hinder) your dreams and goals. In the next few steps we’ll be focusing on decluttering and how it can help us all to “Forget the Joneses.”

Your home right now is a function of your current life. With your goals and dreams in mind, think about what you’d like your life to be like in the future. Is there some way you can change your home to facilitate it? By changing it slightly, it can allow yourself to grow into your ideal life.

As with most things, it’s hard to accomplish a goal without a clear plan or vision. Decluttering your home is no different. Many of us set off to “declutter” or “purge” without knowing what that really means to us or our home.

To get to the heart of this project, begin by asking yourself a few questions. Why are you decluttering? What do you hope to get out of this process? What are your goals? Do you hope to rid your home of things you no longer use or need? Or, are you getting rid of excess things in order to be able to manage your home more efficiently? Do you want to turn your clutter into extra cash by having a garage sale? Grab a notebook and write down what you hope to accomplish by participating in this phase. When you get in touch with your motivations for jumping on the decluttering bandwagon, you’ll energize the process.

Next, visualize the space you’d like to create. Go through each room in your house and imagine the perfect version of how you would like it to appear. As you visualize, also think about how you’d like the room to function. What will you be doing in it? What will you NOT be doing in it? How would you like to feel when you’re in it? What will you need to remove or add to the space to facilitate those activities and feelings? How would the furniture be arranged? What would the shelves, closets and drawers look like? Then, while the vision is still clear in your mind, write down a clear description of that vision.

Don’t rush this step. Take a long time sitting in each room and reflecting on how you’d like it to be. It’s helpful to get your spouse involved with this and talk about what you hope to accomplish together. Often spouses have completely different agendas when it comes to how rooms should function – he wants the TV front and center, you want a relaxing sanctuary in which to read, etc. If your ideas differ, try to figure out a plan so that you can each accomplish your goals.

Make Room for New Experiences
Decluttering is more than just getting rid of what you don’t want in your life anymore. It’s about creating room for new things and experiences to enter. What will getting rid of things allow you to do and accomplish? Here are some examples:

• If you want to procure new clients at work, clear out old files and create blank ones for new clients
• If you want to try your hand at writing, try clearing away some old clutter and creating a special new space for you to write
• If you want to learn a new topic, clear away old books that you’re not reading anymore to make space on your shelf for new interests
• Try clearing off your kitchen countertops to make more space for cooking if you want to hone your culinary skills

What goes around comes around. It may sound counterintuitive, but if you want something to enter your life, try giving it away. If you want friendship to enter, be a friend. If you want your spouse to be more compassionate, try showing him some compassion. The same principles work with material things. Ever notice how many women become pregnant again as soon as they give away all their baby gear? If you want to improve your wardrobe, donate old clothing to Goodwill. If you want to do more cooking from scratch, get rid of the old kitchen appliances you no longer use. With the empty space you create, the more room there will be for new things and experiences to enter. Try it and you’ll see.

Refer back to your vision of what you want your space to look like. Go one step further and imagine what feelings that space will provoke. Really think about the type of positive change you want to see in your space and in your life, and make sure your home reflects that.

Assignment: Before you begin the actual work of decluttering, get in touch with your motivations for purging and visualize what you’d like the end result to be. Review your list of goals. How can you create space for these new experiences to enter your life? Write down your goals and clearly describe what you’d like each room to look like and how it should function. Take “before” photos of each room so that you will be able to see your progress later on.

Susannah · 01-25-2009, 01:54 PM

Wonderful idea! DH and I have started this on our files. I am excited to get the rest of the house in a good working order too!

Kim · **FTJ Boot Camp: Day Twenty Six**

Decluttering

Why do you hang on to things?

Memory Clutter
For the sentimentalists among us, memory clutter is the hardest type to get rid of. Certain things remind us of special times (high school, college) or special people (relatives, our kids when they were babies. The key is to select a few things to hold onto that have special meaning and toss the rest.

Things are not a substitute for memories. Often this is the case when hanging on to items that once belonged to special people who are now deceased. When it comes to family heirlooms and memorabilia, do you love it enough to display it within your home? Does it have a place of honor? If not, it may be time to part ways. Tell all family members you can no longer store Grandma’s collection of doilies at your home and give them ample opportunity to take it off your hands. Then, your conscience will be clear.

• Create a Memory Album
This works well for kids’ artwork. Instead of hanging on to each “masterpiece;” consider a photo album of their art and keep only a few of their drawings instead. Photograph them with their art to create a reference point for how old they were when they created it as well.

• Shadowboxes/Framed Art
If your grandmother was a great cook, consider framing or shadowboxing one of her handwritten recipes along with one of her doilies or hand-stitched tea towels with a photo of her in the kitchen.

“I Might Need It” or “I Paid So Much for It!” Clutter
If you’re living the frugal life, you realize the value in hanging on to what you have because it would be costly to replace it. However, when you cling to things you really aren’t using, you’re projecting an energy of lack, or want. There is a fine line between the “waste not, want not” mentality and one of a pack rat. The key is learning how to balance the two. If you really do need an extra pot holder, semi-dressy sweater or book on gardening one day, would you be able to replace it? If the answer is yes, consider getting rid of it and you’ll shift your energy to that of abundance.

All those things you’re storing in your home come with a price, and it isn’t the price you paid when you bought them. That boat sailed long ago. Your price is NOW paid in the time it takes to maintain them, the mental strain you experience every time you think about them, and the lost opportunity of what could be if you they were no longer around. Consider what you’d gain by getting rid of them, and if the benefit outweighs the price, then do it.

Now that we've talked about why we hang onto things, what kind of space we want to create in our homes, and making room for our dreams and goals comes the fun part... actually diving in and getting it done!

As you de-clutter, your unwanted belongings generally fall under one of three categories: throw away, donate or sell. Sorting them accordingly can help speed the process along. However, it’s often tough to decide what to do.

Donating may be the easiest and fastest route to take, but many people shy away from it because it doesn’t result in a nice fat wad of cash in their pocket. What it does result in, in most cases, is a tax receipt for your contribution. The amount of this financial perk can vary greatly depending on your tax bracket and whether or not you itemize on your tax return. In general, the higher your tax bracket the more valuable your write-off will be. Decide what makes the most sense for you given your own financial situation and time constraints.

Including your kids in the de-cluttering process helps hone their organizational skills and builds self-esteem. Let them decide which of their belongings to keep and which to get rid of. Talk about the importance of giving to those in need and let them help select a charitable organization for their donation. Have them accompany you when you drop off their things.

The key to a lot of large projects is starting small and just plodding along. Instead of thinking of the huge scope of the entire project, what can you do in 15 minutes today? As with most things, success isn't one huge thing that you do in a short period of time, it's an accumulation of small everyday activities. If there are things you want to do in life, whether it's decluttering or working on a goal -- try just focusing a few minutes each day on it and see where that road leads you.

Assignment: Commit to declutter 15 minutes each day for the remainder of the boot camp. Consider taking "before" pictures today to compare to the end of the project

Kim · **FTJ Boot Camp: Days Twenty Seven and Twenty Eight**

Organize

A place for everything and everything in its place. That’s the goal that most families are striving for. Unfortunately, it’s easier said than done. Taking a look at how your household functions can help you come up with creative solutions for keeping your belongings in check.

• Analyze the Space
Keep your goals for how the space should function in mind as you attempt to keep it organized. For example, if your goal for the bedroom is to have it serve as a sanctuary for you and your spouse, it’s not a good idea to keep your home computer there. This means you may have to move some things around and store them elsewhere. Revisit what you had written down for the ideal vision of each room in your house.

• Focus on Trouble Spots
Pay special attention to trouble spots like kitchen counters, utility drawers, and basements that are used as common “dumping grounds.” Keep the things you use most frequently in easily accessible spots, and store the rest.

• Successful Storage
Store similar items together whenever possible, in a place close to where they’re used. Purchase storage solutions that make organization simple and easy. Clear containers that allow you to see what’s inside work well. For things that need to be stored out in the open, pick something attractive such as a decorative basket. Anticipate future storage needs and leave some empty space.

Label boxes, folders and containers accordingly, so there is no questions what belongs where. This makes it easy for everyone in your family to quickly put things away. For kids, use photos instead of words when labeling storage units.

Freshen Up

The final step of creating a clutter-free space is to freshen it up and make it truly reflect the person you are and hope to become. A little change can go a long way in stimulating a fresh start, whether it’s financially or simply motivating you to achieve your dreams.

Re-Arrange
A quick way to change your point of view (literally) is to move your furniture around. Feng shui principles suggest beds should be placed so that you can see the entrance. In your workspace, avoid placing your back to the door as well (or, use a mirror so you can see people as they enter). Make sure hallways are clear of obstructions to allow energy to move freely.

Liven Up
Plants and flowers symbolize life and growth, so be sure to incorporate them as much as possible in your living environment. Shrubs and blooms can be found in your own backyard. Combine them with great vases/decorative stones from the Dollar Store and you have a gorgeous arrangement for a couple bucks. You can do the same thing with fruit: apples, lemons and limes look great in glass hurricanes or decorative bowls. They add a burst of color and can be consumed when you’re done using them as décor.

A Fresh Coat of Paint
One of the least expensive yet most effective ways of making a room look new is to give it a fresh coat of paint. Consider what you’d like to be feeling when you’re in the room. Warm colors energize and stimulate (red, yellow, orange) and cool colors tend to calm and relax (blue, green, purple). Look for mistinted paint at your hardware store to save 75% or more off the original price. Sometimes you can even ask to have it tinted again to something that is closer to the color you want.

Positive Imagery
Review your list of 100 dreams and incorporate as much imagery as possible – on walls, screensavers, in frames, etc. If you want a better relationship with your spouse, make sure you have plenty of photographs of the two of you in happy times around your house. If you enjoy travel, display artwork or posters of the places you’d like to visit. The more you focus on those images – whether consciously or subconsciously, the more likely they are to materialize.

Assignment: Keep going with 15 minutes of decluttering and organization each day. Keep the images of what you want your ideal space to look like in mind. Think of ways to incorporate your dreams into your living space.

Kim · **FTJ Boot Camp: Day Twenty Nine**

Buidling Your Emergency Fund

Emergencies happen. Cars break down. Kids get sick. People lose jobs. Those are simple facts of life. It’s not a matter of if they happen -- it’s more of when. Don’t act like a victim when life happens to you, but instead be prepared.

Add a rainy day fund to you budget. If you don’t have one at all, start out with a goal of having $1,000 set aside, continuing the spending freeze until you do. Then, after you've paid off consumer debt, increase that goal to having three months’ of living expenses set aside. When you’re completely debt-free and building up retirement savings as well, increase that goal to six months or more. In a tough economy like this one, especially if your job isn’t secure, you may want to save up to twelve months’ of living expenses.

Building up savings and paying down debt is a true balancing act. Here is a great article to read to better understand the order in which you should be paying things down and building certain accounts:
Couples can navigate around perils of debt - USATODAY.com

Kim · **FTJ Boot Camp: Day Thirty**

Retirement

In today’s uncertain times, it isn’t enough to plan on Social Security covering your retirement. The debt that the government took on in the recent financial bailout will strain the federal budget for many years to come, making cutbacks in Social Security and Medicare even more likely. Your retirement security rests in your own hands now more than ever.

It’s never too late to start saving for retirement, but the sooner you can start socking money away the better off you’ll be. Use time and the potential of compound interest to your advantage and begin saving for retirement as early as you can.

Think about this: Let’s assume you can save $500 per month for retirement and will earn approximately 7%. If you start at age 35, you’ll end up with about $613,000 at age 65. If you start earlier, at age 25, you’ll end up with well over twice as much – around $1,320,000.

One of the easiest ways to save is to have money put into a 401(k), 403(b), or SEP account through your employer. Money is taken out of your salary before taxes, so the funds go into the account tax-deferred. Additionally, your employer will most likely match your contributions up to a certain percentage. Automatic deductions make it easy, so there’s really no reason not to take advantage of such plans. If your employer doesn’t offer a retirement program or you’d like to supplement what you already have, consider an IRA.

How much you’ll need in retirement largely depends on the lifestyle you wish to lead. As a general rule of thumb, financial experts recommend saving enough to replace at least 70 percent of your pre-retirement income for retirement. For a household with a $100,000 annual income, that would be $70,000. However, if you tend to ramp up activities like eating out and traveling during your retirement like so many couples do – you’ll need to plan on having more.

Assignment: Calculate the amount you will need for retirement. Here's a great tool to use: How Much Will I Need To Save For Retirement? - Financial Calculators from CalcXML
Are you on track? If not, make saving for retirement a part of your budget today.

Kim · **FTJ Boot Camp: Day Thirty-One & Thirty-Two**

Wills & Insurance

Day Thirty-One: Wills
According to Bankrate.com 57% of Americans do not have a will even though most realize the importance of having one (76%). If you have a family, creating a will is the ultimate act in ensuring their security and long-term well being. Additionally, it saves surviving family members from having to make tough decisions on your behalf. If you don’t have a will, the state decides what happens to your house, finances, and even your children. In many cases, their decisions aren’t in line with what your wishes and desires would be.

Once you create a will, revisit it every few years to make sure it is up to date. Any major life changes such as births, deaths, and divorce are times when re-evaluating is a must. In most cases you won’t have to redraft the entire will but instead amend it with a codicil.

Day Thirty Two: Insurance
If you haven’t re-evaluated your insurance policies lately there could be some gaps in your coverage leaving you financially vulnerable. Births, deaths, homes rising in value can all be reasons to tweak your coverage – but you may simply want to shop around to see if you can lower your rates. Treat insurance as a necessity, not a luxury. Here are some tips to avoid common insurance blunders:

• Avoid Being Underinsured
Just because you already have insurance doesn’t mean it’s is the right insurance. If you have a policy through your employer, it may not be enough. A good rule of thumb for life insurance is to carry an amount 7 to 10 times your annual salary. Being underinsured can expose you to the same types of financial risks as not being insured at all. Do you have enough homeowner’s insurance to replace your home and its contents in the event of a disaster? Should you have supplemental flood or earthquake insurance?

• Get the Correct Amount of Life Insurance
Life insurance is designed to protect dependents if a breadwinner were to die. However, if you’re a stay at home parent your spouse would have to pay someone to replace what you do (take care of the kids while your spouse is at work, for example) if you were no longer around. Consider those needs when calculating how much insurance your family really needs. Who probably doesn’t need life insurance? Your kids. While losing a child is a tragedy, it’s not one that will put your family at financial risk.

• Disability Insurance
The U.S. Census Bureau estimates that nearly one in five Americans will become disabled for a year or more before age 65. Since it’s more likely that you’ll become disabled than die early, making sure you are financially protected if you lose your ability to work is extremely important. If you or your spouse doesn’t have it, look into getting it.

Assignment: Do you have a will? If not, make a plan to get one in place. Are you properly insured? If not, plan to update your policies.

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