Beating Broke

Why You Should Avoid Grocery Delivery and Pick Up

December 12, 2019 By MelissaB Leave a Comment

Our lives just seem to be getting busier and busier. Luckily, our society offers conveniences to help us save time where ever we can including grocery delivery. Seriously, does anything beat not having to go to the grocery store and having your groceries brought right to your door? While this sounds like a dream, there are reasons why you should avoid grocery delivery and pick up.

Delivery Fees

Many grocery stores will offer customers a one-time free delivery. This is an excellent way to try out the service, and you could get grocery delivery for a few weeks by shopping at a different store each week and trying out the free trial from each store.

After the free trial, most grocery store delivery services charge $5.99 and upward. Many people argue this fee pays for itself because you’ll likely save by not giving into impulse buys. However, if you rarely give in to impulse buys, you’ll be paying an extra $24 in delivery fees every month (if you shop once a week).

Some Items Are Automatically Substituted

If an item that you ordered is not available, the store will often automatically replace it with an item that they consider comparable. While this may be fine some of the time, other times, the item may not be what you want. You may need to make a separate trip to the grocery store to get the item that you actually need.

Can’t Buy the Bargains

If you’re someone who likes to peruse the clearance items, you may be disappointed by a grocery delivery service because most items aren’t on clearance. You’ll not only have to pay full price, but sometimes the grocery store marks up the items that are available for delivery to help cover the cost of the service.

Some Produce May Be Less Fresh

For about a year when my children were very young, I ordered groceries through Peapod. I was worried how the produce would arrive, but almost always, Peapod sent produce that was fresher than I could have bought in the store. I absolutely loved this, and it was one of the main reasons why I continued with a grocery delivery service. However, this is not always the case.

A hobby of mine is to watch grocery hauls on YouTube, and some of these vloggers take advantage of grocery delivery. Time and time again a common complaint is that the vegetables and fruits are not fresh. One woman even showed that the greens she ordered were already slimy. Yuck! That particular vlogger no longer orders produce when getting grocery delivery.

The quality of your produce may depend on the store you order from and their delivery service. You’ll just need to try out several to find the one that offers the best quality.

Grocery delivery is a wonderful service, but like anything, there can be drawbacks. If they bother you, the added delivery fees and possible item mark ups and less than fresh produce are why you should avoid grocery delivery and pick up.

Do you use a grocery delivery store? If so, what has been your experience? Would you recommend it?

Zero Net Worth: The Next Steps After Beating Debt

December 9, 2019 By MelissaB Leave a Comment

Debt can feel like a heavy shackle around your neck, weighing you down and making every movement difficult. The funny thing about debt is that you may not even realize that you feel this way until the debt is paid off. Then, you suddenly feel free and light, as if you can do anything! When you reach zero net worth the next steps after beating debt are imperative for a financially secure future.

Celebrate (A Little)

Most people’s natural tendency is to splurge once they pay off their debt. Maybe they take an exotic vacation or just increase their standard of living.

While it’s okay to celebrate, do so in moderation. Achieving zero net worth is a fabulous milestone, but don’t erase all of your hard work by immediately living above your means and slowly putting yourself back into debt again.

Zero Net Worth: The Next Steps After Beating Debt — Photo by Jeremy Bishop on Unsplash

Decide on a splurge amount that you want to spend, and go ahead and spend the money. But after you’ve spent the amount you decided on, get right back to being financially disciplined and increasing your net worth.

Establish an Emergency Fund

You likely have a tiny emergency fund, if you have one at all. That was understandable while paying down debt. Now that the debt is gone, it’s time to make your future more secure with an emergency fund. In general, a six-month emergency fund is a good goal. However, if you’re the primary breadwinner or if your job is based on commission or not secure, you may want to have a nine-month emergency fund.

Create Sinking Funds

Zero Net Worth: Steps to Take After Beating Debt — Photo by Max Rovensky on Unsplash

At the same time you’re building your emergency fund, I’d also recommend creating sinking funds. Sinking funds allow you to save for future expenses, helping you avoid going into debt in the future. Let’s say you think you’ll need a car in four years. You plan to buy used and think your car will cost $20,000. Each year, you’ll want to save $5,000 for that car or $416 a month. You’ll set that money aside every month just as if you were paying a regular bill. When you’re ready to buy your car, you’ll be able to do so with cash.

Sinking funds can also be created for smaller expenses such as a vet fund for your dog. When he needs to see the vet, you’ll have the funds to pay cash. Other common sinking fund categories are home repairs, home improvements/decoration, car repairs, and medical bills.

Start Saving for Retirement

Unless your employer matches your retirement contributions, I’d start contributing to your retirement fund AFTER you have a six-month emergency fund and sinking funds established.

If your employer does match, I would start investing right away up to the amount that your employer matches. So, if you make $50,000 a year, and your employer matches the first 3% of your salary for retirement contributions, I’d go ahead and invest the $1,500 a year (3% of your salary). Your employer’s contribution will double your amount to $3,000 a year. Definitely take advantage of that offer for free money.

Final Thoughts

Congratulations! Paying off all of your debt is a huge accomplishment. Now that you have zero net worth the next steps after beating debt are crucial to your future financial security. If you take these steps, you’ll be on your way to a solid financial future.

5 Ways to Save on Utilities and Amazon

December 5, 2019 By MelissaB Leave a Comment

If money is tight and your income is lower than you’d like it to be, there are many ways you can save money. Several utility providers and even Amazon offer discounts to those with documented lower incomes. These discounts can provide necessary help to those who most need it. Here are five ways to save on utilities and Amazon.

Ways to Save on Utility

Depending on the season, utilities can cost several hundred dollars a month. If you’re at or near the poverty level, paying these bills is difficult. The following discounts can help customers meet their basic needs.

Gas and Electricity

5 Ways to Save on Utilities and Amazon — Photo by Clint Patterson on Unsplash

The Connecticut Legislature lists 11 states that are required to offer discounted gas and electricity to those with lower income. The states are Arizona, California, Georgia, Maine, Massachusetts, Minnesota, New Hampshire, New York, Pennsylvania, Rhode Island, and Vermont. Most states require an income level 150% or below the poverty level. However, some issue a maximum income based on a family of four. The discounts range from 25% to 35% off to a percentage off your utility bill. The amount depends on your income as based on the federal poverty level.

Phone Service

A number of phone and internet providers are part of the Lifeline Program. As part of this program, low income customers can receive reduced rates on phone and internet services. Only a few states are participating. These include Connecticut, Delaware, Massachusetts, Maryland, North Carolina, New Jersey, New York, Pennsylvania, Rhode Island, Virginia and D.C.

You are only allowed to receive Lifeline services from one provider, not multiple providers. Discounts and requirements vary by state.

Spectrum Internet Assist

Spectrum offers phone, internet and television services. Customers who receive the National School Lunch Program, or The Community Eligibility Provision, or Supplemental Social Security are eligible for Spectrum Internet Assist.

Comcast Internet

Comcast offers internet for $9.95 per month (plus tax) as well as free installation to its low-income customers. Families can qualify if their child is eligible for the National School Lunch Program. Customers are also eligible if they receive HUD housing support. In addition, Comcast has rolled out a program for senior citizens, available in select locations. To qualify, the customer must by 62 or older and receive federal or state public assistance. Lastly, community college students are also eligible if they’re enrolled and are receiving a Pell Grant.

Ways to Save on Amazon Prime

An Amazon Prime membership is $10.99 a month. However, for low-income customers, Amazon Prime offers membership for $5.99 a month. To qualify, customers must have either an Electronic Benefits Transfer (EBT) card or Medicaid card. These customers can renew their memberships yearly up to four times.

Living on a tight budget can be difficult. Yet, with these five ways to save on utilities and Amazon, you can stretch your money further. Utility discounts help low-income customers have their most basic needs provided. In addition, internet and phone service discounts help people to work from home and students do their work. Amazon Prime provides families with low-cost entertainment and cheaper goods that are delivered right to their own doors. This is especially important if low-income customers live in food deserts.

What other discounts do you know of for low-income customers?