Tag: spend

  • How to Prevent Food Waste in Your Home

    How to Prevent Food Waste in Your Home

    Food waste is an invisible and expensive habit in our homes. No one wants to waste food, and no one walks into a grocery store and says, “Hey, I’m going to buy all this delicious food today and then throw it out next week.”

    So if your fridge is filled with good intentions but you still manage to garbage your groceries, I’ve got the goods on how to prevent food waste and save up to $1,000 per year.

    What is food waste?
    Food waste is the forgotten food stuffed at the back of your fridge, the odds and ends that could’ve been a meal but you’re uncertain how to whip it into a recipe, lingering leftovers, and the packaged products a little past the so-called “Best Before” date. All these foodie situations could become food waste. Food waste is the food that’s ok to eat, but it’s being discarded, composted, or left to spoil without a plan to turn it into a snack or meal.

    Food waste happens thanks to a chain of different (and expensive) behaviors starting with grocery planning, food shopping, meal preparation, leftovers, odd ingredients, and ending with everything in the trash or compost bin.

    How much food do we waste?
    I didn’t believe the number at first, so I asked a behavioral scientist who studies food waste to help out. Angela Cooper, PhD, an Associate at BEworks, says the problem is “pretty big”. Over $30-billion of food is wasted per year and about half of that is occurring in people’s homes. We might think it’s the restaurants or it’s the grocery stores, but we as consumers and as homeowners — we’re the culprits.

    How much money is wasted?
    Canadian households on average waste over $1,000 per year, says Cooper. That’s $92 a month, $21 a week, or $3 a day. The really tragic part is over 60% of that food is edible. This is what we call avoidable food waste — this is stuff that can be eaten — but maybe it just doesn’t look as nice, it’s a little bit shriveled or not the freshest looking, and this is what gets tossed. [This food] still has use, but a lot of people have an aversion to it.

    How does food waste affect the environment?
    Food waste has a massive environmental toll, says Cooper. In Canada, over two million tons of CO2 is produced from food waste which is about the equivalent of two million cars on the road. There’s been research that shows if food waste were a country, it would be the third largest CO2 emitting country in the world after China and the US.

    How to prevent food waste?
    BEworks, a behavioral economics firm, did a significant research study with Unilever Hellmann’s to help prevent food waste. After studying over 900 families, they found some very simple solutions that reduced food waste by 30% — saving families at least $300 per year.

    Step 1: Place a Bowl in Your Fridge for “Food Recovery”
    We all have ingredient odds and ends that get lost or buried in our fridge. Cooper says the simple act of using a bowl to collect a rogue celery stalk, half tomato, or apple slice “increases salience”, or in simple terms — hits you in the face when you open the fridge! The idea is if you see it, you’re more likely to use it.

    Step 2: Pick a ‘Use-Up Day’
    Pick one day per week to make a ‘Use-Up’ meal. Perhaps it’s the day before your next grocery haul, maybe it’s the beginning of the week or just a random day.

    Step 3: The ‘3+1 Approach’ & a ‘Magic Touch’
    So what to do with a bowl of odd ingredients? Here’s where the science of simplicity comes to play. BEworks and Hellmann’s found that giving families a simple formula for how to make a meal with food on hand made it easy to use it up.

    They call it the ‘3+1 Approach’, where you bring together ingredients from three categories: a base (bread, rice, pasta), vegetable or fruit (pick one or a few), a protein of choice (chicken, eggs, tofu, beans), plus a ‘magic touch’ in the form of spices or sauce to bring the dish together and add flavour. This is designed to encourage people to substitute, swap out, and think a little bit more flexibly because recipes can be constricting. A wrap with chicken, lettuce, leftover bell pepper with tomato, and a dollop of hummus or mayo could be a 3+1 use-up recipe for lunch.

    So grab a bowl, choose a ‘Use-Up Day’, and try the ‘3+1 Approach’ for a meal. Making these simple switches could reduce your food waste by 30% (or more) plus save you hundreds per year in trashed groceries.

  • How to Set Up Your Holiday Spending Budget

    How to Set Up Your Holiday Spending Budget

    Did you know Canadians spent $25 billion last holiday season? And retailers expect shoppers to spend even more this year, despite the pandemic. That’s a lot of photo cards, candy canes, CD’s, and sparkly ornaments. But unless you plan on skipping Christmas this year, you’ll find yourself a part of that $25 billion machine. To enjoy the gift-giving season without any guilt-ridden overspending, set up your Christmas budget now—and then stick to it like sap on a fir tree.

    First things first: It’s time to do some digging into your Christmas budget. That means you need to ask yourself the following questions to see where you stand now so you can know how much to spend on presents later.

    How much do you have saved? Before you know what you can spend, see what you’ve got to work with. Hopefully, you started saving early. If not, we’ll talk about how to get extra money, so you don’t end up just doling out coal this year.

    What budget lines can you tweak? Even if you started saving early, you might still need more cash to cover all the Christmas costs. Look through your normal budget and figure out what budget lines can get trimmed down to free up gift money for your Christmas budget.

    Don’t know where to start? Here are a few nonessential budget lines you can probably cut back: restaurants, clothing, personal spending, entertainment, and gourmet coffee.

    How can you boost your income? If you’re able, boost your income for a couple weeks as a way to up your spending power. You could sell some things, take on extra hours at work, or start a side hustle. Get creative: Babysit so parents can go Christmas shopping alone, shovel driveways and sidewalks, offer gift-wrapping services… you get the idea!

    What Christmas traditions can you skip? You can save money this year by cutting some expenses—and that includes traditions that don’t really matter (like the annual office ornament swap). Be open and honest with your budget and your loved ones.

    Do you have a shopping list? If not, make one! You need to list out every person you’ll need to buy for and start brainstorming present ideas.

    How can you save on gifts? Shop sales. Use coupons. DIY and make homemade gifts. Skip random gift exchanges. These are just some of the ways you can save serious cash this Christmas on presents.


    How to Set Up Your Christmas Spending Budget

    1. Plan how much you’ll spend this year.
      Last year, the average Canadian was expected to spend $1,593 on holiday spending. And remember, retailers expect even more this year! First of all, you should never feel pressured to spend that much. You should spend what you’re comfortable with based on what you make, what you’ve saved, and what you can move around in your budget to get the job done. So, crunch some numbers and see how much you’ve got to play around with this year.
    1. Add the names of everyone who need a present.
      Once you’ve set up your budget, make a list of each person you have to buy for. Now, go ahead and assign spending limits to each person.
    1. Track your spending as you go.
      Want to know how you don’t overspend? You track. You track hard. You track often. Keep up with all that spending as you go.
    1. Move amounts around when needed.
      Oh no. You overspent on Mom by $5. What will you do? It has to come from somewhere. You can lower Dad’s line (sorry, Dad!) by $5 and use it to up Mom’s line. Move that money around until your budget balances again.
    1. Budget early for next Christmas.
      Here’s a quick shout-out to planning early—do it! Put a sinking fund in your budget as soon as January to start stashing away cash for next year’s Christmas. If you do it little by little, month by month, coming up with Christmas money won’t hit you like the reindeer that ran over grandma in that song that’s now stuck in your head!
  • Before Spending Your Emergency Fund,  Ask Yourself These Questions

    Before Spending Your Emergency Fund, Ask Yourself These Questions

    We get so used to thinking of our emergency fund as cash we shouldn’t touch.  It can feel wrong to actually spend that money.  But the financial situation that’s cropped up as a result of the COVID-19 pandemic makes now a perfectly legit time to tap into your reserves.  Honestly.

    Your individual circumstance, however, may leave you questioning whether it’s really okay to be spending your emergency fund.  Maybe you have a spouse who is still working or enough money in the bank to stretch a few weeks longer.

    Here are four questions to ask before spending your emergency cash:

    Is this expense a need?
    This is a pretty obvious question but one that’s vital to consider.  When you use your emergency fund to replace lost income, you can’t spend like you used to.  Ask yourself: Is this expense necessary for my survival?  If not, it’s not worth draining your rainy-day fund for.  That may mean pausing your cable service or taking a break from tithing so you can eat, stay healthy and keep a roof over your head.

    Are there resources to help with this expense?
    In response to this financial crisis, various organizations and companies are providing assistance to those in need.  Banks are waiving overdraft fees and adjusting payment plans on loans.  Many credit card and mortgage companies are letting customers defer payments.  Food banks are trying to distribute more food.  Utility companies are vowing not to shut off service for those who can’t pay.  Any assistance you’re able to get will help stretch the money in your emergency fund.

    Do I have cash outside of my emergency fund?
    Before you start spending your emergency fund, look at other money you can use first.  If you have money saved up for a summer vacation or holiday gifts, use that cash.  If you have more money than usual left in your checking account because social distancing eliminated your entertainment spending, spend that.  Hold off on using your emergency fund until you’ve exhausted other viable options.  Avoid pulling money from your retirement accounts.

    Can I get what I need for less money?
    Your emergency fund will only stretch so far.  Be smart about what you spend by looking for cheaper alternatives.  Buy store-brand products instead of name-brand to save money on groceries or shop at a store that offers lower prices.  Even if those aren’t your normal habits, think of them as a temporary belt-tightening.  Reduce your utility usage to help lower your bills.