The “Sweet Rims” concept makes it’s TV debut [video]

Yesterday while driving on I-5, I hit a bit more traffic than I’d bargained for. A shooting/crash had all lanes of the freeway blocked for over an hour. The silver lining on this cloud is that I was interviewed on local news (click that link if you don’t see the video embedded below).

Longtime readers will note my subtle reference to the sweet rims concept — things in your life that you spend an inordinate amount of money on.

I was taking the boys to see the B-17 that my dad helped restore. It’ll be at Seattle’s Museum of Flight through Wednesday. You should check it!

How Urban Homesteaders Figure Out Their Food Costs

Yesterday I had lunch with a friend who’s a Foundry in the Forest reader, and she commented on my family’s food budget, which is a modest (though not totally low) $922 a month, including groceries and dining.

While talking about it, the fact dawned on me that we sneakily get food through other spending categories, namely “gardening” and “chickens.” I did a blog post on the actual cost of a dozen eggs from backyard chickens.

We also have a modest garden, which Venessa puts a lot of work into. Like the chickens, it doesn’t save us any money vs buying comparable products at a farmer’s market, but it’s a fun pastime that keeps us in touch with nature, and gives us some very fresh and tasty veggies every season.

So in the interest of full disclosure, here is our true monthly food spending (averaged over the past year), for a family of 5:

Groceries:* $656
Entertaining:** $33
Restaurants: $233
Chickens: $31
Garden: $6
Total: $958

Our non-restaurant food spending has decreased over the past few years, even taking inflation into account. Not sure how we did that.

* This still puts us well below the “thrifty” spending plan as outlined by the USDA.

** I keep keep a separate category for entertaining, since it’s fun to have friends over to eat, or to buy a friend a drink at a bar. I like to see how much I’m spending on social stuff like that as opposed to just buying food for myself.

Lost my first post to the angry internet gods

Sorry about the lack of posts. As you can see from the photo to the left (taken by the talented Mrs. Foundry), our family was on vacation the past few days.

I guess it’s bound to happen. I had a great post all written, and then I must have done the internet dance incorrectly, because now it’s gone. It was about a letter I got regarding the post on dealing with medical expenses. I’ll just post the letter and call it a night.  Sorry.

Name: Hayley J.
Comment: Hi Joe,

I’m interning at the Washington Health Foundation and a co-worker forwarded me Cathleen’s inquiry on dealing with medical expenses. If you would like, I believe it would be to Cathleen’s benefit to learn of our Personal Health Advocates, as this is a service we provide which assists those precisely in Cathleen’s situation.

The Personal Health Advocates is a phone service where advocates work with callers to provide personalized health advising; they answer questions on insurance coverage, help callers with any issues they may experience in receiving health care, and work with callers to find the best health coverage available to them, among other things. As we are a non-profit, not an insurance company, the Personal Health Advocates have no ulterior motives, so clients really can trust that they are receiving honest advice and guidance- working with an advocate that is purely on their side in the complex world of health care.

Cathleen also mentioned that she’s struggle with covering expenses because of the small size of her work, to which I would like to point out that this is one of the main reasons why our Personal Health Advocates exist- to help those who don’t already have someone navigating the world of insurance for them.

I hope this information is sufficient if you choose to relay it to Cathleen. If you would like to learn more, please feel free to contact me at [email address removed. Contact me if you’d like to get in touch with Hayley]. Thank you for setting up this blog, I’ve been browsing around and already find many of the past posts quite useful! Thanks for doing what you do!

-Hayley J
Intern at the Washington Health Foundation

Personal Health Advocates: (855)-WA-HEALTH

I sent Hayley a few follow-up questions on whether the service is offered to those outside Washington state, and if there are any qualifying criteria. I’ll let you know when I get an answer.

Not having an Emergency Fund IS an Emergency

This is my first guest post, from lucky writer Allen Long. Alan enjoys writing about economic news, finance, and employment verification, and long walks on the beach. Take it away Allen…

Financial emergencies are not only common, they’re inevitable. Whether you lose your job, acquire sudden medical expenses, your car breaks down, or a water pipe explodes, making your home inhabitable, unforeseen circumstances can easily make having an emergency fund necessary. Not having the funds to handle a situation like this can cause you to lose your home, lose your job, or ruin your credit rating. Being prepared is part of being financially responsible. The following guidelines will help you begin an emergency fund to ensure your future financial stability should you face an emergency situation.

How Much Do I Save?
The general rule of thumb has always been to save at least 3 months’ worth of living expenses. With the current state of the economy however, it could be beneficial to aim for 6 or even 9 months instead. If you should lose your job, it could take some time to find something else. Unless you want to have to settle for something you really don’t want to do, saving enough money for a sufficient job search is the only way to fully protect yourself.

Don’t Mix
It’s important to know the difference between an emergency and other forms of savings. You don’t want to mix your emergency funds with your vacation funds, for example. If you’re saving for a wedding, keep the emergency money separate. The best way to do this is to have separate accounts for the two. Keep your emergency funds somewhat liquid without making them too easy to access. Don’t get a debit card for the account. This way, it is there when you need it, but not easy to grab when you don’t.

How to Start
You don’t want to start off by dumping half your paycheck in the account. This might trigger a financial emergency earlier than it has to be. Start out small. If you generally have trouble saving, try putting 5 percent of your pay into the account. Chances are you won’t notice this amount, and you can always bump it up later on. Don’t get discouraged; it will take a while to accumulate 3 or 6 months’ worth of expenses. The important part is to start saving as soon as possible and save something every single paycheck. If you are particularly short on cash one week, throw $10 in the account. Everything adds up, and once you convince yourself you can skip one week, you’ll quit putting money in altogether. Stay consistent.

Don’t Spend It
What’s the point in having it if you can’t spend it? I know the temptation is tough when you’ve got that money sitting there and you want to take a much needed vacation. However, you must resist. Dipping into your emergency fund for non-emergencies is the fastest way to spend the money before an emergency happens. This fund needs to be limited to real emergencies, such as the loss of a job or another financial disaster. Be tough on yourself.

Having an emergency fund will give you peace of mind and lessen your stress should an emergency arise. Don’t take it for granted. If you do lose your job, it’s not going to benefit you to wait the 6 months before looking for another job. Use your funds sparingly, even during an emergency. Just remember how long it took you to save up that amount, and remember you will have to replenish it once you get back to work.

Thank you, Alan! Great article. The only thing I would add is that if you’re in debt, limit your emergency fund to $1000-$2000 and then work like mad to get out of debt before adding more to the emergency fund.

Is it worth driving to farmland to get cheaper produce?

[This post was copied over from my old blog, so apologies if you already read it there.]

It’s yummy fruit season again here in the northwest. Last year, some friends took a trip to Yakmia, WA to take advantage of the cheap produce in farmland. Is it worth a drive like this, in order to save money? Let’s run the numbers:

It’s 140 miles from Seattle to Yakima, and driving costs about $1 a mile. In order to recoup the cost of the round-trip, you’d need to save $280 in produce.

Last year, we took part in a bulk-buy of organic, heirloom tomatoes. We got around 40 pounds of juicy goodness, at $2 a pound. Venessa froze them, which apparently is easier than canning and just as useful (the chest freezer pays off again).

In Yakima, similar tomatoes can be had for only 40 cents a pound, a savings of $1.60 a pound. So one would need to buy 175 pounds of produce to recoup the money it takes.

Our 40 pounds of tomatoes fit into two boxes, which easily tucked into one corner of our car. Our friends are taking a pickup truck, so it’s not a stretch to imagine them coming back with 175+ pounds of produce.

Other considerations:

* Time: it’s about 5 hours round-trip, plus the time spent in Yakima, so you’re looking at a full day journey. Depending on how you value your time, you might need to take the opportunity cost into account. Also factor in the time it takes to can, preserve, freeze, etc.
* Experience: on the other hand, taking a road trip with a loved one is a lot of fun, and whenever you ate the produce you could think of the experience.
* Cost: do you have enough money to afford the up front cost of all that produce?
* Space: do you have enough space for all this food?

There are so many variables to determine if this is worth it for you, but if you have the time, space, and money, it does save money to drive to the heartland to buy a bunch of produce.

Give Away 100 Things: Challenge Update

The month is half over, so let’s see how I’m doing on the July Challenge to give away 100 things. I have to admit that I stretched the definition of “give away” and recycled or threw away a few things that weren’t fit for donation. I thought of it as giving them away to the the earth (hopefully) or landfill (unfortunately).

You can see a photo of the Goodwill run I just made over the weekend. I lost track of the number of items, after packing up two boxes of books, two bags of clothing, two bags of housewares and some other assorted items. I’m going to estimate that this was about 100 things, but this is stuff from both Venessa and me, so we’re only half way done. And this was the easy stuff. The low-hanging fruit, if you will. So we have the second half of the month to dig deep into the corners of our house and find the next 100 things each.

Wish us luck!

Frugal School: Sophomore Year

[Frugal School is my fun way of maintaining a book list. It has 12 books total, meant to be read one book per month. You can check out the introductory post about Frugal School, and see the entire syllabus.]

Sophomore Year – Getting Started

Welcome back to Frugal School. Hope you enjoyed your Freshman year and didn’t get hazed too much. These Sophomore Year books form the foundation of understanding your relationship with money, perfect for getting started on your own frugal journey. This year only has 3 books because the first book takes some time to digest.

ymoyl Your Money or Your Life by Vicki Robin and Joe Dominguez
This book is the big one. Remember when you finally picked a major in college, and you took that intro class for the major and it totally opened your mind to a new way of thinking? That’s this book. I wrote a longer review of it that goes through each of the 9 Steps. You should read that post.
i will teach you I Will Teach You To Be Rich by Ramit Sethi
Ramit has a unique writing style that might turn off people older than 30. But once you get past that, his method for automating your finances can’t be beat. Learn step-by-step how to get your financial life in order, how to negotiate on the price of major purchases, and how to invest for retirement.
bank of dad The First National Bank of Dad by David Owen
This book isn’t just for dads and it isn’t even just for people with (or planning to have) kids. It’s a primer on the meaning and value of money, investing, and the stock market. If you don’t have kids you can skip the second half of the book, which details the author’s method of helping his children learn to invest without forcing any particular value system down their throats.

Once you’re through reading these books, you can continue on to Junior Year of Frugal School.