Friday, May 2, 2014

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When a good deal... just isn't
This is one area that I find people who are trying to be thrifty often get mixed up about.  A lot of people feel that if it is a good buy, you should buy it.  I can tell you from experience, that kind of thinking will keep you financially strapped.

I am a pro at stock piling large amounts of stuff at incredibly low prices, but the bottom line if it is excess of what I can use in a reasonable amount of time, I shouldn't have been spending money on it. I am amazed by the storehouses that coupon queens can have of 2 years of supplies for their families.  They have rooms dedicated to the stuff.  I believe moderate stockpiling is more money (and space) efficient for most people. For me, I want to be insulated for 6 months against bad times, so for me, a six month stockpile of just about anything is enough. Recently, I "flagged" myself from further toilet paper and paper towel purchases.  But I do try to keep a six month stockpile of non-perishables that I would "need" to survive for six months. (ok, lets face it, we could live without toilet paper and paper towels if we were desperate, but part of my plan is not only to isolate myself from undue financial stress for 6 months, but also be able to function at a normal level).

Should a worst case scenario happen, like losing my job, quite frankly, I want to have to purchase very little during that time, even if I have six months of expenses saved.  Part of the reason behind that is my expenses could possibly go up during that time.  I would need to pay for health insurance out of pocket, and may have travel expenses for job interviews that may be out of the area and could require air travel.  I could potentially be spending more on gasoline to drive to local interviews. I also have been known to deliver "house starter" boxes to those who have moved, lost their house to fires, or need a helping hand.

The flip side of the coin is I have to have space to manage and hold all my stuff.  I also have to rotate it.  Right now I have about 6 cans of organic pumpkin that I need to use.  I have to search for recipes.  If I am buying so much that I have waste or am having to trip over it or having to have an additional room in my house that I pay for square footage wise and have to climate control, in my opinion, I have gone overboard.

Yes, I could donate all the extra stuff I get at great prices, however, I think this is an area that needs budgeted too. I am finding I generally pull my expenses in around $20 a week for food.... and I am thinking about using that "extra" $5 a week to purchase great deals for donations to local food banks.  I can afford that $5 a week. If I go over, I am not going to meet my financial goals.

And, to borrow Dave Ramsey's though process... right now, I am living like no one else, so later I can live AND give like no one else.  So right now, my giving also has to be in reasonable relationship to my budget. (and I do believe giving is an essential part of a healthy cash flow plan).

Do you stockpile?  How much?  Do you know when to limit yourself?

The photo?  Well, if your pantry area looks like this, you are not doing the stockpiling thing right.  I admit, this WAS my house, quite a few years ago.  I have since gotten this under control, but I learned how to buy lots of stuff cheap before I learned you have to be able to manage what you have.  

2 comments:

  1. I got nervous when I saw this picture!!! I thought… wait - we fixed that!! Then, I read the article and realized it was "pre-simplifying". LOL Keep maintaining. :o)

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  2. Yes Bobbie... what a blessing it was to be able to "Simplify" in my house... it isn't perfect, but it is far cry from what it used to be!

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