A sound family budget?

why don't you get a little piggy bank for yourself?

every day, when you go out, if you want to go into the shops, do! BUT don't buy ANYTHING! instead look at the price you WOULD have spent. when you get home, put that $ into the piggy bank instead! then you will see daily your $ increasing!

I'll bet after 2 months, you'll have enough for a short holiday for you and hubby!

as for food.... THAT is my downfall, too! $45 for a little box of raspberries... umm... ok, once every 2-3 months. i think the trick there is, not buying everything you like everytime you want it. $250 for fruit is ok, so long as you don't throw $150 of it in the bin next week!
 
We choose to spend money on food, so you can work that into your budget if you know it's your weakness. start cutting out the things you are OK to live without first.
 
the biggest problem when shopping for food arises is if you are hungry when you are doing it.

if you REALLY want to cut down and find shopping to be too tempting, try ordering on-line. you are less likely to get stuff that you don't need.

we order frozen meat on-lineor i buy a lot of our meat at reduced prices. i must admit, i LOVE my thick-cut steaks and pork chops for bbq!
 
Hi Carang, you are already making my mouth go watering with your 'thick cut steaks' and 'pork chops'... So everybody agrees that I can loosen up a bit on the food bills...Thanks for the great tip for a piggy bank. Unfortunately the whole spending process does not involve cash for me(only credit cards). But I get the idea. And regarding throwing out the fruits---the answer is no, because there were only a few items, and had already consumed 2/3 of them at afternoon tea time...Carang, come on, look after yourself please! Once every two to three months for your favorite raspberries---I'm make sure to bring you a box when we meet up after you come back from Canada...I think I can make aussie bacon a once-in-a-month thing, but fruits? they are good for us in every way...

MilkMonster, you are absolutely right. I will cut out things that I don't need for sure. I swear, solemnly:teeth:
 
exactly!

the raspberries i save for when i'm having a really good month financially or for when i'm really homesick!

if you are spending money on fruit, that's healthy and i wouldn't worry about it so much. far better than spending money on potato chips or chocolate (my weaknesses!)

don't get me wrong, there are days i go through the supermarket and i'm afraid of seeing anyone i know for what i rubbish i have in my basket!
 
You really made me laugh out loud! Then again, who won't treat themselves at least some chocolates once in a while...that's my hubby's weakness and I was ordered to keep them always in stock at home...lol
 
And also, we cannot afford to get homesick too often, eh? Because all the 'daily necessities' we used to get back home are 'imported goods' here, so we have to pay a much higher premium to have a taste of our home...So let's make HK our new home!
 
so, a lady goes to a pizza parlour in NYC and orders a pizza. after finishing the entire thing off, she goes up to the chef and says, "Man! I was just in Italy and your pizza is SOOOOOOO much better!"

the chef answers, "of course it is! We use only imported cheese. They use local!"
 
Hi

one way to save money is to buy things you need out of the main shopping area.

Like clothes for my boy, I saw a jacket I would like to get for him it was HK$599 in central and I found the same jacket for HK$399 in Hang Hau.

P3 stroller was HK$2980 at Ocean Terminal and I got mine for HK$2400 at Hang Hau.

All these savings add up
 
things i stock up on when i'm in canada:

deoderant
favourite shampoo (aussie mega)
favourite toothpastes (aim, close-up, arm & hammer)
CHOCOLATE
beef jerkey
sweets & candies
marshmallow cookies
special sauces etc that i can't get here
dog treats
 
Thanks again to all the ladies who contributed to this thread with your great saving tips:thanks I know now that it's kind of cool to be wanting to make the best value out of the limited amount of income(unfortunately:frown:), even by being a little 'thrifty'. Please keep the good ideas coming...:bounce:
 
HK2008, it's a great thread and you have given me food for thought.

I am really tired of shopping at the big supermarkets for tired, old and overpriced vegetables, and really want to start exploring the wet markets. Was not sure how to go about it and found this YWCA course (Sadly I can't attend as have another meeting on that day) but thought will post the link in case you, or anyone else is interested.

http://www.esmdywca.org.hk/Courses/CourseDetail.aspx?type=subcategory&id=1000113&courseid=1004669

Also, just wondering: Is there anyone out there who regularly shops in the wet markets on HK island who'd be willing to show me around - I'd buy you lunch with all my savings ...Thanks!
 
I was thinking about some of the practical things that I have found helpful for budgeting. It might not be that useful to some of the ladies here who aren't on a super tight budget. I am starting to see two distinct camps here: Those who want to be thrifty and those who must be thrifty. And maybe there is an in between group of those who could be more thrifty but it's not of absolute urgency. Anyway...

But, for us:

-We use the "envelope system"--so when my husband (or my) paycheque is deposited in his account, he withdraws the money and I separate it into envelopes--Rent, Food, Utilities, Savings (10%), Church Offering etc.... So, essentially, our paycheque is already spent at the beginning of the month. So we operate on a cash basis. We "pay ourselves" first (through savings). When the money in the food envelope or clothes envelope or whatever envelope is gone--for us it's as if there is absolutely nothing left (even though, the savings envelope may have money in it and our bank account still has money in it--that is untouchable--not even an option).

-We also order our food at the beginning of the month online from Park n' Shop so our food supply for the month is already bought. We have a make-shift pantry. Of course, there will be some things that we will buy fresh throughout the month--such as vegetables, milk, eggs and other dairy products. But, going online really gives me the opportunity to sit and think carefully about my buys and edit my list (I have enve saved my list for later and came back to it)--and because I buy all the food at once, I get the free delivery for my food. One tip, though--if you're buying a lot of food, it's better to split the list into segments of $600/HKD each--if you order over $500 HKD you will get free shipping anyway. Then, just set up the delivery date for the same date and time (they will figure out that the multiple orders are yours). The reason why it's good to do that--is that for each delivery, the delivery people only get paid $30 HKD and if you are buying like many kilos of rice or water or heavy things and they have to pack them into your house--they only get paid $30 HKD from Park n' Shop for that. However, if you split your order into several $600 HKD segments, they will get paid $30 HKD for each segment--which is really good for them--because it is hard physical labor to do that. So, just keep that in mind.

These two things are really helpful for us.
 
Hi Ladies

For those ladies who are staying in Clearwater Bay, Sai Kung, Hang Hau, TKO. I would be able to show you around the wet market if you like. Thats where I do most of my shopping. Currently its only me and my baby here in HK so the pre-pack veg and meat is too much for me, so I shop at the wet market where I can just buy whatever I need.

I also shop at the neighbourhood stores around here for bargains.
 
MLBW - we do the same as you but instead of taking out the cash, I use Microsoft Money to virtually allocate funds at the beginning of every month. I have an 'account' for each expenditure: Rent, Dogs, Medical, Groceries, Dog Walker, Travel, Houshold bills, etc.

The great thing about this is that I can calculate easily how our spending habits would have to change if we, for example wanted to pay more in rent. Then I can see immediately that I would have to lower saving, groceries, misc expenses by such and such amount. So we always know what we are really able to afford.

Actually I've set up the computer program to automatically distribute the money, so we have already spent from the day we get paid. And yes, we always put money into savings first and don't touch it ever.

We've got 2 dogs, so every month the money I put aside for them is greater than what we spend on their food so when they have to go to the vet, there is money 'saved' up to cover those expenses. Same goes for travel, we actually 'save up' every month for our travel and don't go unless our virtual account says we have enough money to go. We also carry forward any under-expenditures to cover any unexpected things that come up.

Every week I will take the receipts we've collected and enter it into the system to keep check of how we are doing for the month. at the end of the month if we are short on our food budget, we will eat tofu and veggies for the last week of the month just so we are within budget. We also do this if there are a few additional nights out for birthday parties, etc. that we didn't plan for.

Another tip, we try really hard not to waste food. If I over shop I end up throwing away rotten foods and it's such a waste of money!! Before we grocery shop, (which we limit to once every 10 days) we spend the 2 days before eating the fridge, clearing out anything that we may have to throw away if we leave it another day or 2. Not our favourite thing to do but it keeps us from wasting.

For us, we choose to spend our money on travel, but it doesn't mean we have excess money or don't have to budget, it just means that instead of paying for higher rent, or putting my boys in nursery for the time being, we travel as a family instead. We still must budget. in the end i believe that every family must budget in order to grow a solid financial safety net.

Tip for wet market shopping:
When starting out, if you're not sure how much things cost and don't want to be cheated, you can always say, give me $8hkd worth of vegetables. This way you can see what $8hk gets you and you have a good reference point. Same goes for fruits, something like I have $50hkd, what can i get? The poorer local people do this depending on how much money they have available for food on that day.

I also would recommend you always pick your own produce instead of letting them pick for you. If you get a dishonest seller, they will give you 50% fresh produce and 50% older items so then can off load their loss. If they say it's sweet, it's not always true. Once you find a seller that you are comfortable with, stick with him/her, your loyalty will be rewarded with discounts and honest recommendations.
 
MLBW and MilkMonster, excellent practices! I think it's easy for me to say 'hey I want to save some money starting from now...', but to make it achievable, I need to sit down and do some good thinking on how to design the budget. I might take MilkMonster's approach and do it by monthly-then carry the previous months balances forward, then it'll be very easy to tell whether my budget is a realistic one and whether adjustment is needed on certain items; and I especially like the idea of 'do not spend on something unless the money is saved up to cover those expenses'. This will definitely help increase my level of self-dicipline. MLBW and Carang, I'm hopeless with cash. I think it's one of the most scary monsters that human beings had created...Then again, it's equally scary to think that I might just as well be sticking my head in the sand with credit card numbers...

There is also one thing I found in common with both of you: you don't grocery shop on a daily basis. And I think I just found out why I'm always doing needless shopping: Firstly I think going to the shops is a great fun and good way to kill time; secondly I don't have a menu planned ahead and will only know what I'll cook until I see the produce. That's why I also end up picking up something that I don't need; or some luxury items which are not meant to be consumed on a daily basis!(soooo guilty there...) Now I know how important it is to plan the menu(aiming at five days first), then probably reduce to one shopping a week, then I don't have to fight temptations all the time. What a great discovery! I'm seriously over the moon now by the prospect of greater savings without too much sufferings(for me to let go of something that I've seen/touched and badly wanted is like hell).

MilkMonster or other ladies out there, how do you decide what percentage of income should go to savings? MLBW saves only 10%, does it seem to be on the low side even when each individual situation is very different? What do you suggest could be a reasonable and doable benchmark? I personally think 50% plus is excellent...It'd be interesting to know someone can actually achieve that, or maybe I'm just day-dreaming here?

Many many thanks again for your food for thought...:flower:
 
HK2008 said:
MLBW and MilkMonster, excellent practices! I think it's easy for me to say 'hey I want to save some money starting from now...', but to make it achievable, I need to sit down and do some good thinking on how to design the budget. I might take MilkMonster's approach and do it by monthly-then carry the previous months balances forward, then it'll be very easy to tell whether my budget is a realistic one and whether adjustment is needed on certain items; and I especially like the idea of 'do not spend on something unless the money is saved up to cover those expenses'. This will definitely help increase my level of self-dicipline. MLBW and Carang, I'm hopeless with cash. I think it's one of the most scary monsters that human beings had created...Then again, it's equally scary to think that I might just as well be sticking my head in the sand with credit card numbers...

There is also one thing I found in common with both of you: you don't grocery shop on a daily basis. And I think I just found out why I'm always doing needless shopping: Firstly I think going to the shops is a great fun and good way to kill time; secondly I don't have a menu planned ahead and will only know what I'll cook until I see the produce. That's why I also end up picking up something that I don't need; or some luxury items which are not meant to be consumed on a daily basis!(soooo guilty there...) Now I know how important it is to plan the menu(aiming at five days first), then probably reduce to one shopping a week, then I don't have to fight temptations all the time. What a great discovery! I'm seriously over the moon now by the prospect of greater savings without too much sufferings(for me to let go of something that I've seen/touched and badly wanted is like hell).

MilkMonster or other ladies out there, how do you decide what percentage of income should go to savings? MLBW saves only 10%, does it seem to be on the low side even when each individual situation is very different? What do you suggest could be a reasonable and doable benchmark? I personally think 50% plus is excellent...It'd be interesting to know someone can actually achieve that, or maybe I'm just day-dreaming here?

Many many thanks again for your food for thought...:flower:
Click to expand...

I think the percentage you save depends totally on how much you're bringing in and how much you need to live. For us, 10% is achievable. I don't know anyone who is able to save 50% of their earnings--if they are, they likely earn quite a lot of money. For example, if you're only bringing in 12K/month in HK--and you pay rent, transportation, insurance (out of your own pocket as your employer doesn't pay it for you), food, clothes, utilities and a tiny bit on household goods and entertainment--it's not likely that you could manage to save 50% of your earnings and still be able to live in HK. If you were saving 50% then you would be only living off of 6K/month--and even for a small family of 3, that's stretching it--and for us, more than 1/2 of that would be for rent. Try to make 3K go very far in HK and you'll soon reach a dead end. Of course if you're in a situation where you're bringing in substantially more than 12-15K/month AND your employer gives things like a housing stipend, travel stipend and pays for some health care costs and insurance...then, maybe you could sock that 50% away. So, of course it depends, again on what your goals are and what your income is--which is completely personal.
 
Ohhh...in the classic "Personal Finance Books"--10% savings is the beginning place for all savings strategies--especially if you're not a saver by nature (which both my husband and I are)--it's a good place to start. If you live in the USA, your housing is supposed to be no more than 35-40% (some will say 20-30%) of your income--that sort of thing--there is an entire budgeting equation that goes along with this. However, some of this might be thrown straight out the window in the financial climate we're in right now.
 
remember savings is just that.... it's NOT miscellaneous expenditures!

i think that depending on what you are making, what your current debt situation is etc that 50% maybe way on the high side.

the great thing about cash... you can't spend it if you don't have it.

credit cards, to me, are WAY to easy to go overboard. it's so easy to hand over that little piece of plastic. you think...oh, well, i'll deal with the $ later. but if you had to hand CASH over for whatever it is you are buying... would you still buy it?
 
We save 25% of our income - split up into retirement, university for the boys and long term savings for down payment on a flat later.

We also save 15% of our income for taxes every month. This way we are not hit with a huge expense once a year.

Short term savings is 20% - for preschool, travel, etc (this is how we choose to spend our money instead of using 30% of our income to pay for rent - this will probably change in the future)

I think it's best to get a real picture first. track your spending unaltered for 3 months. Then you will get to know yourself and your spouses spending habits. Then you can sit down and talk about something that is real and not just an idea of how you think you spend your money.

During this discussion, you could also talk about your long term goals and then work backwards to see how much you need to be saving on an annual basis if you want to retire at 55 or buy a flat in 5 years, etc. We work backwards a lot. Ex. How much will the kids need for school? how much do we need to save up every month in order to reach that amount? We want a new Plasma (we don't but i'm just putting an example out there) in 2 years, how much does that cost and how much does that cost us every month for the next 24mths?

Definitely limit the number of times you shop every week! The more often you go the more chances you get to waste money!!
 
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