Beating Broke

Costco Can’t Be Beat For Large Purchases

October 28, 2019 By MelissaB 1 Comment

I love Costco for so many reasons! My primary reason for getting a Costco membership is because they offer fabulous prices on organic fruits and vegetables and rice milk and so many other grocery staples in our household. But, now that I’ve been a member for over five years, I’ve discovered two new, perhaps even better reasons why Costco can’t be beat for large purchases: their concierge service and their return policy.

Costco Concierge Service

Three years ago I bought a computer at Costco. Within three months, I was having serious issues with it. I called Costco’s concierge service, and they arranged for the computer to go back to the manufacturer for repair at no cost to me. They sent me a box, and I shipped out the computer.

I’m a freelance writer, so not having my computer for two weeks was inconvenient. When we were reaching the promised repair time of two weeks and I didn’t have my computer back, I simply called the concierge service who kept me on the line while they contacted the manufacturer’s customer service. Thanks to some nudging by the Costco concierge service, I got my computer back within the promised two-week window.

The concierge service also helps you troubleshoot. We bought a TV about five years ago that could show YouTube, Netflix, Amazon, and other internet programs. Yet, when we moved across the country and set up the television, it no longer would sync with the internet. A quick call to Costco’s concierge service, and we had the programs on our tv again at no cost for the assistance.

Costco Can't Be Beat for Large Purchases — Photo by Henry & Co. on Unsplash

Costco’s Return Policy

I love, love, love Costco’s return policy. Forget holding on to receipts for proof of purchase. If you need to return something, Costco simply looks into their data base using your membership card and finds proof of purchase. I returned some new pajamas that my daughter didn’t like, no problem. I rarely use their return service because I like almost everything I buy, but when I do need to use it, I couldn’t ask for better customer service.

Last May, my husband and I bought a Shark vacuum at Costco. My daughters love to craft, and frequently, there are scraps of paper and yarn on the carpet, which we vacuum up. Apparently, this type of work was too much for the Shark vacuum that we bought because by December, the vacuum had stopped working efficiently; instead, it just spit out everything it sucked up.

Costco Return Policy — Photo by The Creative Exchange on Unsplash

I called the concierge service, hoping to have it repaired, but apparently they don’t repair vacuums. Instead, I was told to return the vacuum to Costco, which I did. To my amazement, Costco offered me a full refund, even though we had used the vacuum for seven months.

I took the store credit and turned right around to buy the heavy duty Shark vacuum that Costco sells. You can bet I will keep buying all of my electronics and small appliances at Costco. No other store rivals Costco with their concierge service and generous return policy.

Are you a member of Costco? Have you taken advantage of their concierge service and return policy?

Should You Create Sinking Funds Before You’re Debt Free?

October 21, 2019 By MelissaB 1 Comment

You have debt. A lot of debt. And now you want to pay it off, IMMEDIATELY! You’re fired up. You’ve read financial blogs, read debt payoff gurus books, and you’re setting up your budget. Should you create sinking funds before your debt free or put all of your money toward debt repayment?

What Are Sinking Funds?

If you’re new to budgeting, sinking funds are money you put aside for irregular expenses you know will come up during the year. Let’s say you spend $1,000 each Christmas, so you decide, in January, to set aside $83 a month in your Christmas sinking fund. When December rolls around, you have all of the money you need to pay for your Christmas gifts debt free.

Create Sinking Funds Before You Pay Off Debt? — Photo by Eugene Zhyvchik on Unsplash

The Argument Against Sinking Funds

Some argue that you shouldn’t set up sinking funds until you’re debt free. What is the point of putting $83 aside for Christmas when you’re paying 15% interest on your credit card? That $83 each month would be better served if you applied it to your credit card and reduced the balance and therefore the amount you’re paying in interest. You’ll get out of debt more quickly this way.

The Flaw With This Kind of Thinking

There is one major flaw with this kind of thinking. What will you do when you need to actually pay one of these irregular expenses?

I live in Arizona, and six months of the year, my air conditioner runs night and day. During those months, my electric bill ranges from $225 to $275, depending on how warm it is outside. Then there are about two months a year in flux when the electric is $125 to $175, and, in the winter, for four months, my electric settles down to $80 a month.

My budget can’t handle such big fluctuations in our electric bill, so every month, I set aside $150 for electric. When summer comes, I have a large sinking fund to help me pay for those hot months when the electric bill will be much higher than $150.

If I didn’t have a sinking fund, how would I pay for the high electric bill in July?

A Happy Compromise

I encourage everyone to set up sinking funds, even if you do have lots of debt. Part of getting out of debt (and staying out of debt) is changing your attitude toward money. What’s the use of putting all of your money on your debt if you have a $1,500 car repair, no money set aside, and you have to charge it and go further back in debt again? That’s not a budget roller coaster I want to be on.

But there is a compromise; if you have extra in the sinking fund after the event is over, apply that money to debt. For instance, let’s go back to the sinking fund of $1,000 at Christmas. Let’s say you’re conservative, shop the deals, and only end up spending $750 on Christmas presents. Great! Take that leftover $250 and apply it to debt. Then, in January start saving for the sinking fund again.

If you’re paying down debt, make sure to create and fund sinking funds. You won’t be sorry, and you’ll be changing your attitude toward money so when you get out of debt, you stay out of debt.

Do you create and fund sinking funds each month? If not, how do you handle it when large, unplanned or irregular expenses come up?

Save on Groceries by Limiting Junk Food

October 14, 2019 By MelissaB 1 Comment

Almost all kids love to eat junk food, and if they have unlimited access to it, they can plow through a surprising amount of it in very little time. This is especially true if your kids are teenagers. However, you can save on groceries by limiting junk food.

limit junk food — photo courtesy of idpinthat.com

Some people do this by simply not buying junk food. Instead, they give their kids regular meals and fruits or veggies for snacks. While this is the healthiest way to feed your kids, they may feel deprived if they don’t get some of the fun snacks that their peers get.

However, there are several strategies you can use to give your kids the snacks that they want without compromising their health or your grocery budget.

Will Work for Snacks

Recently, I learned this ingenious trick from an experienced mom. She has created a win-win situation for herself and her kids. Each time a child completes a chore, he earns a ticket. He can then use the ticket to buy snacks from mom that he enjoys such as granola bars, chips, cookies, Popsicles, etc. Once he runs out of tickets for the week, he doesn’t get these types of snacks anymore. Instead mom will give him fruit or veggies for snacks, no tickets required.

Using this technique, the kids are happy because they have some control over how many snacks they get, and mom has noticed that the snacks are lasting a lot longer in her house.

No More When They’re Gone

Another mom buys a set amount of junk food treats a week for her family to eat. When they’re gone, she doesn’t buy anymore until the next grocery shopping trip. If kids eat all the treats in one day, they have to wait six more days until the next grocery trip.

Lock Up Junk Food

Some parents have even taken the extreme route of locking up treats so that the kids don’t eat all of the stash. This is more likely to work if your kids are younger and are used to this type of system.

Hide Them Away

A similar, though less extreme, practice is when parents hide away goodies. Then, they can slowly bring them out so the kids get treats little by little. This was the technique that my mom used. She had a friend who worked at Hostess, and she could get us treats at a steep discount. My mom would buy two cases and hide them, bringing them out slowly for lunches. For many kids, out of sight means out of mind.

Make Homemade Treats

Another idea is to make homemade treats like granola bars, brownies, cookies, etc. While these taste good and are often healthier than the pre-made counterparts, kids may still feel slighted if all of their friends are eating packaged junk food. A way to avoid this is to give them some prepackaged junk food and supplement with homemade treats.

There’s nothing wrong with giving your kids a little junk food, but if they’re devouring it the minute you bring it home, you may want to save on groceries by limiting junk food consumption in your home.

Is junk food killing your grocery budget? If so, which of these strategies do you use, or do you have a different technique to keep your kids happy and your budget in line?