Is Meal Planning My Ticket?

I've been ashamed of my food spending for the past few months. I budget $50/week for food and have easily blown through more than a quarter of that budget with my work day breakfast purchases, alone.

Shout out to Panera Bread. I love your hazelnut coffee (w/skim milk) and cinnamon swirl and raisin bagels, toasted with no cream cheese or butter.

Any who, I've laid out my spending through the end of the year using my new budget template, noting that I'll be using my new rewards credit card (and maintaining the tradition of paying the balance in full), and trying to plan for upcoming expenses, such as a weekend trip to the Big Apple.

In an effort to restore my ability to "respect the budget", I know I have to do a better job of sticking to my $50/week food budget. And I'm wondering if meal planning is the way to go. Frankly, I have not been a model for eating meals that are nourishing or financially responsible. I won't go into any great detail about the $20+ I spent for lunch at the Cheesecake Factory a week or two ago...or about the beer and banana chips I ate for "dinner" last night, but I know I have to spend a reasonable amount (i.e. not $20+/meal) and it should be good for me (ex. add veggies, protein, and maybe better carbs to my beer).

This is where meal planning comes in. I've heard about it here and there, I know that it involves me making a list of stuff I want to eat for the next week, and making sure that my grocery list allows for some flexibility around core items, but frankly, I've never done it. The closest I've come to meal planning is whipping out a grocery store circular and buying only what's on sale. I wouldn't say that peanut butter, cantaloupe and pork chops constitutes a meal, but at least I spent less on such purchases =)

Have you successfully used meal planning to manage your finances and to ensure you eat balanced meals? What has worked best for you? I appreciate your insight!

Do You Keep Maintenance Records?

I went for an oil change last week and learned that my car requires additional repairs estimated to cost more than $1000. It seems like it was just yesterday that I was wigging out about the egregious amount of money I'd have to divert [from my car payment] in order to ensure I have a reliable ride. Actually, that was November 2010 when I paid  for the "check engine light" issue to go away and May 2010 that I paid for the rotor replacement (hundreds of bucks). 

If you guessed that I'd be talking about this again, your guess would be half right. Lately, I've been thinking about all of the work that I'm getting done to my vehicle. Frankly, I haven't been keeping an organized record of all services performed. Fortunately, however, I've been going to the same mechanic (at least since I've moved to this area), so they have a pretty good record of my oil changes, fluid flushes, and major repairs and whatnot. I've read a little bit here and a little bit there about the benefits of recording your vehicle's service history, the gist of the advice being that you'd be able to negotiate a higher selling price when you sell the car. I guess a record screams "LOOK AT ME!!! I'VE BEEN CARED FOR!!!"

Perhaps I'll get around to keeping a service record for my car. But I wonder, what's truly valuable to keep record of? Oil changes? Sure. Tire rotations? You bet! Car washes? Maybe not so much. 

I'll keep poking around to see what information is recommended to be part of such a record and will look to the comments in my budget for insight about the specific services I paid for. I'll keep you posted :)

Do you maintain a service record for your vehicle? 

If so, what information do you include?

I Spend Less than 75% of My Income

Lately, I've been thinking about how fortunate I am to be able to spend less than 75% of my income on necessities (housing, transportation, food, debt repayment, etc.) In fact, I am currently spending just over 71% of my income (or $1,999.46/month). The $785 left over goes towards the car payment that I obsess over (hooray for principal-only payments!). Later, it will go towards my savings goals. 

I'm happy about these circumstances for a few reasons. First, I've made some updates to my income, and throughout each update, I am able to stay on track with my "financial success plan." Specifically, when I started this blog, my net income was $1,389.01/pay period; later, because of recent and temporary changes to the payroll tax, that amount increased to $1,417.23/pay period; finally, I increased my contributions to my 403(b) thereby reducing my net pay to $1,392.23 each pay period.

Secondly, I am happy about this fraction of spending because it confirms that I can live well within my means. For example, I think a lot about increasing my income and how I would spend it (one of my other 'obsessions' is writing budgets of how I would spend $5,000 and $7,500 of monthly net income). Even with increases in housing expenses (assuming that I'd be a homeowner with thousands more at my disposal) and modest increases in my food, travel and miscellaneous expenses, I'd still be able to pay extra toward my student loan debt, max out the Roth AND max out the 403(b).

Finally, I think about the high percentage of Americans who live "paycheck-to-paycheck." These are folks who spend every cent they earn, leaving very little- if anything at all, for savings or additional debt payments.

Ultimately, my goal is to spend 50% or less of my income. And considering that I aspire to live a comfortable lifestyle (i.e. consistently save at least $10K a year in non-retirement/non-investment accounts, max out individual and employer-sponsored retirement accounts, and travel domestically and internationally every year), I MUST increase my income. I better get started thinking about how to do that....

What percentage of your monthly income do you want to spend? What percentage of your monthly income do you currently spend? What's your plan for achieving your goal?