Beating Broke

World Diets: A Week’s Worth of Groceries

May 10, 2013 By Shane Ede 11 Comments

Ok, so I saw this post over at FStoppers about What a Week of Groceries Looks Like Around the World, and I couldn’t help but mark it for a second look, and eventually an article here. Click on that link and go take a look. Look at what each picture contains and then come back and see if you come to the same conclusion that I do. I’ll wait.

Done? Ok, first, let’s talk about some “givens” that I found to be somewhat ironic, simply because they also could be considered stereotypes. I’ll start at the top.

Mexico: OMG, you guys like Coke!
Germany: First thing I noticed was all the beer and wine right up front.
Italy: Lots of the expected breads and pastas
Japan: Fish, noodles, and rice.
Mali and Chad: That’s it?

Obviously, there are some things that we expect. Countries like Mali and Chad that we’re hearing about starvation or near starvation like conditions in sometimes have an obviously lesser pile of food. Japan is notorious for it’s high-fish diet. And Germany. Germany! I suppose I can’t expect much else from the country of Octoberfest.

A couple of surprises. I’m a little bit surprised by the lack of sausages in the Poland picture. For the number of Polish sausages we eat here in the states that is. (Ok, that’s kind of tongue in cheek.)

Now, let’s see if you noticed the same thing I noticed. Every single country on that list eats way more fresh food than the American family. Seriously. Look at that picture. There’s a little section of it that’s got some produce (a couple of tomatoes, some onions, and some grapes), and another small section of fresh meat. That’s it. The rest looks to be processed and packaged foods. The only other countries that appear to even be close are Canada, Great Britain, and Australia. Which is funny. In an ironic sad way.

All four of those countries are usually lumped together as “first-world” countries. We’re rich! We have everything we could ever want! And somehow, every other country on that list eats better than we do… Heck, let’s look at Mexico. Most Americans tend to think of Mexico as a drug addled, gang run, hovel. But, look at that food! Fresh herbs right off the plant! A whole table of fresh fruits and vegetables! Same story for India, Bhutan, Guatemala, and Equador!

Why is it that we all think that produce is so expensive, but we’ll gladly pay $10 for a large pizza? Or $10 for a burger and fries? It also makes me wonder just how much of that food those people grow themselves. It’s not that expensive to start a garden. Heck, even a container garden will do. We’re just getting ready to plant out our second season (see season one’s results) of container gardening. So far, I’ve spent about $2 on seeds. Buy a few pots, get some soil, and plant some plants. Fresh produce!

I’ve gotten a bit ranty, but it amazes me how poorly we eat in our “rich” country. You’d think we’d be smarter than that…

Creative, Frugal Mother’s Day Gift Ideas for Kids and Adults

May 6, 2013 By MelissaB 13 Comments

Mother’s Day is right around the corner. If you’re scrambling to find ways to show mom how much you love and care for her, don’t worry. There are many ways you can do just that without breaking the bank or relying on the same old boring gift of breakfast in bed or dinner out.

Projects for Younger Children

I have one word for you–Pinterest! Seriously, head over to Pinterest and just search “Mother’s Day Crafts.” There are so many creative, frugal ideas to choose from. Here are some of my favorites:

Hand print flower–Paint your little one’s palm, then press their palm down on paper. Either paint or add flowers to the tip of each finger. Your child’s hand makes the stem of the “flowers.” Then, cut out paper to make a flower pot and glue that to the bottom of the hand print. On the paper pot, write a message stating something your child loves about mom such as, “You make the best chocolate chip cookies,” etc.

Book mark–Does mom love to read? Cut out a rectangular strip of construction paper, and then glue a small picture of each of your children on the front. Laminate it; use a paper hole punch to make a hole in the top, and hang some yarn through the top.

Gift Ideas for Adult Children

If you’re an adult, your mother probably has every consumer item she could want or need. Instead of shopping and spending money on something she may or may not enjoy, why not go the non-consumer route. Why not give mom a gift from the heart?

A letter–If you haven’t told mom lately how much she means to you, now is the time. For instance, when I was in high school, my friend and I spray painted our biology teacher’s rocks in his front yard in the middle of the night. Not the best idea, I know. I felt so guilty, I woke my mom up at 2 a.m. to tell her. She didn’t freak out or lecture me; she just told me that we’d need to clean it up in the morning. I appreciate that she could stay so calm, but I’ve never told her that. I’d include that in my letter and also all the ways she has helped me grow into the woman I’ve become. (The spray painting days are long behind me!)

A gift of experience–If you do want to spend some money on mom, why not give her a gift of experience? My grandma always wanted to ride a hot air balloon. However, she was a child of the Great Depression and was extremely frugal. Even in retirement, when she knew she’d have enough money for life, she couldn’t justify spending money on what she viewed as an extravagance. Instead, her kids chipped in and got her a hot air balloon ride for Mother’s Day. She talked about that gift for years. It was one of her favorite experiences.

This Mother’s Day, take the time to plan something special for mom to show her how much you love and appreciate her. Often, you just need to use some creativity, not money, to show mom how much she means to you.

What’s the best gift you ever gave your mom for Mother’s Day?

Are You Guilty of Short Term Financial Thinking? Here’s How to Fix It

May 3, 2013 By MelissaB 9 Comments

Let’s be honest. We’re all a little bit irrational with money.

Think of the person who drives 5 minutes out of his way to buy ten gallons of gas that is 2 cents cheaper per gallon. Was the additional .20 cents savings worth 5 minutes of his time? No.

What about the person who buys clothes she had no need for just because they were on clearance 75% off and were such a great deal? Is spending money for something you don’t need ever a good deal? This person just spent more than they would have if they hadn’t run across the “bargain”.

Stop Short Term Financial Thinking In Its Tracks: Do The Math

The best way to stop short term thinking in its tracks is to do the math.

Take the person who drove 5 minutes out of his way to save .20 cents on gas. An easier way to see how worthless this endeavor was is to compute an hourly wage for his savings. There are 12 five minute increments in an hour. Twenty cents saved per 5 minute increment gives us an hourly wage of $2.40. If you’re always chasing the gas bargains, ask if it’s worth $2.40 an hour.

Nope.

Of course, only you can decide when an endeavor to save money becomes worthwhile, but doing the math will help you decide.

A friend was recently asking me whether she should refinance. She just refinanced a few years ago, and as part of the deal, she opened a high interest rate checking account that nets her about $200 in cash back a year. If she refinances with another company, she’ll lose the high interest rate checking account, which she didn’t want to do.

However, she found a new company that offered a mortgage interest rate that is 1.5% lower than her current interest rate. In addition, she would have no fees to pay to refinance. We did the math and found out if she refinanced with the new company, she would save $700 in interest on her mortgage in one year.

Not refinancing to keep the high interest rate checking account was essentially costing her $500 a year, but in her short term thinking, all she could focus on was the “loss” of $200 a year in cash back.

Take the Emotions Out of Your Financial Decisions

Have you ever noticed that it’s much easier to tell other people what they should do with their money rather than figure out what we ourselves should do with our money? That’s because we’re not emotionally tied to someone else’s decisions.

Too often our emotions muddy up our financial decisions.

If you’re contemplating a major financial decision like buying a house or refinancing your home loan, first do the math. Look at hard numbers to see which decision would benefit you most. In my friend’s case, refinancing is the clear winner. Over the course of her 10 year home loan, she’ll save $5,000 total by refinancing rather than keeping her current loan, even when factoring in the high interest rate checking account. It’s hard to argue with the numbers.

If you’re still unsure, talk to friends about your decision. Just make sure to talk to friends who are financially savvy, not those who are broke. As Dave Ramsey says, “Broke people giving financial advice is like a shop teacher with missing fingers.” Take the advice from those who will steer you toward the right financial decision.

We’re all guilty of irrational money decisions. Recognizing this weakness and taking the time to do the math and seek other people’s opinions can help each of us make smarter financial decisions.

What irrational money decisions have you made?

Original Image credit: Burning Money Isolated on White by Images_of_Money, on Flickr