Investing, it makes sense!

Here a couple of weeks ago my fiancée and I went to the Dave Ramsey Total Money Makeover conference. It was a huge wake up call for us. Not that we live extravagantly, or (always) spend unwisely; but there is much more to finances, and a lifestyle of debt than either of us had thought about.

In the past 7 or so years I've become a big proponent of investing. In simple terms, it is making your money work for you. And even if you're not a math wiz you can understand the power of "compound interest" (interest that is reinvested).

Without getting into the "to have credit or not to have credit" debate; let's say that instead of buying that brand new slick car with a monthly payment of $400, you opt for a different but nice and reliable car that has a payment of $250 a month. If you were 20 years old when you took on this new car payment, and invested that $150 difference in a mutual fund with a modest return of 8%, for the life of the car loan (say 60 months). If you didn't touch your investment, and never even invested in it again after those 60 months, at age 65 your $9,000 investment will have become $269,314 !!!

Here is an example that Dave Ramsey gave regarding the power of compound interest:

Ben starts investing $2,000 per year at age 19 and stops at age 26. Arthur starts investing $2,000 per year at age 27 and keeps investing that until he turns 65. Both receive a return on their investment of 12%.

Ben only put in $16,000 but started early. Arthur puts in $78,000 over the course of his life. You'd think that Arthur would have more money right?! Nope. The magic of compound interest benefits those who start early, and have patience.

When Ben turns 65 his investment is worth $2,288,996!
When Arthur turns 65 his investment is worth $1,532,166.

Seeing numbers like this make me think about my spending habits, and even my "investment" in buying a house. They say that real estate is a great investment, and even though I have a 5% interest mortgage, about 90% of my monthly payment doesn't even go towards the principle. I'm losing thousands of dollars a year to interest. I bought my house when the housing market was hot, and sure it's expected to come back around. I got a house that was more than I needed and in a costlier area to live in because I expected to sell it right away and make some quick money. My next door neighbor, who has a similar house is selling his for $50,000 less than I paid for mine.

What if I had been wiser? What if I had purchased a used home, or a more affordable one, and then started putting money away in my investments? What about thinking in smaller terms, How can I cut corners, or get by on less so I can invest?

It's your money! Make it work for you! Stop giving it away!

Dave Ramsey's Investment Calculator

Make a Healthy Menu Plan on a Budget

For years people have asked me how I am so organized with planning meals, and say they wish they could do the same. I must admit that part of it is my personality type: I am a list maker, I like to be organized and have a plan. Also, I have cultivated a love for cooking which motivates me. All that said, I think some basic tools can get almost anyone started with menu planning.

Why Should I Make a Menu Plan?

Many people fly by the seat of their pants when it comes to grocery shopping and putting food on the table. If that works for you and you can stay within a budget, eat healthy, tasty meals and not wonder at 7:30pm what to make for dinner, then you may not find menu planning helpful. But if you are like me and most people, menu planning will save you time, money, stress and help you eat a more balance diet. It will help you make a grocery list to stick to when at the store to keep you from spending too much and buying junk food. And ultimately, you will have the satisfaction of being organized and making good meals.

How to Make a Healthy Menu Plan on a Budget

There are three basic methods of menu plannings. First and easiest is to make a "Master Menu Plan," second is to shop and make your menu plan according to sales, and third is to just make a menu plan of whatever you want that particular week/month, or according to nutritional goals, based upon whatever is in season, etc. Here I will focus on the first method, the "Master Menu Plan."

First, for any method, set a realistic food budget. The question is often, "what is a realistic food budget?." This guide from the USDA is very helpful http://www.cnpp.usda.gov/USDAFoodCost-Home.htm. If you have extra to budget you might fall in the "liberal plan" and be able to afford all organic, more meat, etc. Most of us can only afford the "thrifty plan." I am amazed that this plan is based off the USDA budget for food stamp recipients, and many people resort to Top Ramen on this budget. There is no need for that, we eat all whole foods on this tight budget. Granted, we can no longer afford organic, but it's still important and highly beneficial to eat whole foods and plenty of fruits and vegetables even if they are not organic.

Next, write down healthy meals the family already enjoys so you can keep staple ingredients on hand. If you are having difficulty coming up with anything try for at least 10, you can go to 20 or 30 if you are up for it. You will use these meals to create your menu plan.

For breakfast, alternate between a few quick, nutritious meals your family enjoys. Think oatmeal, eggs and whole grain toast, whole grain cereal, smoothies, whole grain English muffins with peanut/almond butter and honey or jam, etc. Reserve making pancakes and more elaborate breakfasts for lazy weekends and so they remain a special treat. Saturday breakfast is one of my favorite times of the week.

For lunch, plan leftovers a few days per week by simply making double batches of a few dinners, then keep on hand healthy staples you enjoy (whole wheat with natural PB&J, pita and veggies with hummus, cooked beans, tortillas and fixins for burritos, organic mac n' cheese, salad stuff, etc).

Don't forget healthy snacks! This is key to eating healthy, keep healthy snacks on hand and you will eat them. Don’t keep junk on hand or you will resort to eating junk. For snacks I plan or at least keep on hand: fresh fruit, carrots and hummus, stuff for smoothies (fresh/frozen fruit, yogurt, soy milk, flaxseed, spinach and kale, etc), yogurt/soy yogurt, rice cakes (plain and flavored), nuts and dried fruit (usually almonds and dates), celery with almond/peanut butter and raisins (a.k.a. "ants-on-a-log"), whole grain crackers like Ryvita or Wasa (I love these with Trader Joe's Olive Tapenade), granola bars, etc.

For dinner have a basic menu rotation of types of meals your family enjoys. Example:

• Monday: Mexican
• Tuesday: Chinese
• Wednesday: (Whole grain) pasta
• Thursday: Soup and sandwiches or home-made muffins or main dish salad
• Friday: Home-made pizza (using pre-made dough from Trader Joe's or Fresh and Easy)
• Saturday: "Fancy Dinner" - chicken/fish or meatloaf/vegetarian loaf with starchy side (potatoes/sweet potatoes/roasted squash/brown rice or other cooked grain) and a green veggie or salad
• Sunday: BBQ - beef/veggie burger, sloppy joes, grilled chicken sandwich or hot dog and sides.

Don’t forget to plan dessert once or twice per week. Looking forward to it on the menu will keep you from getting ice cream every night.

Now, that doesn't mean you'll eat the same seven dinners every week. Each theme is just a jumping off point: Mexican night can be tacos, burritos, enchiladas, quesadillas, with meat or vegetarian, etc. Again the menu plan is not meant to restrict you, but to make things easier so you aren't wasting time wondering what to make. Also, customize your rotation to fit your tastes, Steve and I have curry weekly, but that may not be on many people's list of favorite foods.

Try to buy at least 1 green veggie for each day of the week and prioritize working it into your menu. Example: buy broccoli, spinach, asparagus, kale, romaine lettuce, brussel sprouts and bok choy. Then make asparagus on the side with Monday's Mexican food, bok choy can go in Tuesday's stir-fry, sauteed kale with garlic can go on the side with Wednesday's pasta, broccoli can go in Thursday's soup, a spinach salad or sauteed spinach can go on the side or on top of Friday's pizza, the brussel sprouts can go with Saturday's dinner and a salad made from the romaine can to go with veggie burgers on Sunday.

Finally, go over your menu for the week and make your grocery list. Do a quick inventory of what you already have that you can use, then fill the rest in from there. Consider the quantity you will need of everything. Think of the store(s) you will shop at and how they are laid out, and group things together on your list in the order that you will go through the store. Of course, shop sales, price compare, use coupons if applicable, etc. I don't recommend basing shopping off coupons as coupons are mostly for processed foods, but if it is for a nutritious or treat food already on your menu and list, great!

I usually do weekly menu plans, but for a sample of a full one month master menu plan, see my blog, http://welcometonicoleskitchen.blogspot.com/2011/03/1-month-master-menu-plan.html

Now, relax a little knowing you’ve done most of the work in advance and enjoy the fruits of your labor with your family and loved ones!