Tracking credit card purchases in Quicken

I used to cringe when my credit card statement arrived in the mail. And, actually, not because we carry a huge balance. We pay off our balance every month. Still, there would always be a couple of purchases I had forgotten about, and they would totally throw off my monthly budget.

I admit that I’m a bit anal about our monthly family budget. My friends and family know this and tease me about it. But I can’t help it. It’s in my genes. My dad was a tax preparer and math nut. It’s a built-in idiosyncrasy in my family!

So a couple of months ago, I figured out a solution in Quicken, my financial computer program of choice. (You’ll hear about my beloved Quicken often if you follow this blog, just to warn ya.)

What I do is this: I keep track of my credit card purchases in Quicken as we make them. And I have the program deduct them from the appropriate categories (Groceries, Dining Out, etc.) in our monthly budget as we go along. That way, when our credit card statement appears, I’ve already subtracted every plastic purchase from our monthly budget. No surprises! (Well, OK, fewer surprises. I still forget to record receipts from time to time.)

Back-to-school savings

Ai, yi, yi — it’s August already! Time to buy the kids new backpacks and school supplies. How is it that an innocent little list of stuff can get so spendy? And I don’t know why, but somehow I ALWAYS forget something on the list. My eyes glaze over and I cross off “glue sticks” or some such but never put them in my shopping cart.

The one thing I’ve learned (I’m such a veteran now, with a 6th grader!) that does save me bucks is NOT to stock up on back-to-school clothing by Sept. 1. When I used to do that, I’d invariably OVERbuy. I see now that it’s OK to start the school year with just a few new items, then see if the girls really need more shirts or underwear later. And really–I have a little time before they need tights. I don’t need to have them in the drawer by the first day of school. Plus, they will definitely be on sale after the September rush is over.

Here are some other ideas on cutting back-to-school costs from “The Family Manager”–Kathy Peel. I’ve interviewed her for several parenting-related articles and she’s one smart cookie. Her books are great, too.

Tempted to trade in your gas guzzler? Think twice.

Last weekend as my DH and I drove around town, we noticed a ton of newish Priuses, Mini Coopers, SmartCars and others. It looks like folks in our environmentally conscious town (Portland, Oregon) are fighting the gas-price wars by buying new “gas sippers,” as they’re often called. Even my SIL has made some comments about regretting the purchase of her cool-looking-but-expensive-to-gas-up Honda Pilot. (But I know there’s no way she’s selling it! Good thing, too, because I’d be tempted to buy it, even though I know I shouldn’t.)

But is it really a smart financial move to buy a new car just to pay less at the gas pump? Will that move really pencil out in your favor? In most cases, no, according to Smart Money magazine. Read more and use their interactive calculator here to find out whether a new car is the right move for you.

Also, here are some thoughts on buying a new hybrid car from radio talk-show host and financial counselor Dave Ramsey.

Frugal is cool again

Any of you remember the voluntary simplicity movement that was HUGE maybe 10 years ago? Well, it’s coming back. All this doom-and-gloom recession news apparently has people thinking twice about their spending habits. While I’m not happy about the economic news, I’m sort of happy that folks have an opportunity to really consider their money choices carefully. I know I am.

I love the title of this article– “Is Frugal the New Black?” Read it here.

And I appreciate this writer’s ability to see the “silver lining” in the economic slowdown: “10 reasons to love a recession.”

Debt takes a toll on your body, too

I’ve had my share of headaches and stress freak-outs over money. Sort of glad — but sorry at the same time–to see that I’m not alone. Check out this story.

Boomers can learn from their parents’ money habits

A June 2008 study by the market research firm Matthew Greenwald and Associates reveals that our parents attribute their ability to live comfortably in their retirement years to
* Avoiding credit card debt (81%)
* Having an emergency fund (86%)
* The ability to save well (79%)

Have subsequent generations followed suit? Read a good overview here. Or if you’re a detail person who wants the whole study, it’s here.

Annoyed by gas prices? There are worse things

Interesting analysis here in a podcast by MIT professor Dan Ariely, author of Predictably Irrational: The Hidden Forces That Shape Our Decisions. I agree: Our health insurance costs have gone up much more than our gas purchases.

Are we a generation of spoiled spenders? Maybe not completely.

Whenever I’m poring over grocery ads and clipping coupons, I wonder: Are we big food spenders compared to our parents’ and grandparents’ generations? I don’t feel like we buy a lot of expensive or convenience food, yet somehow I’ve always had a gut instinct that we are spoiled shoppers compared to the families who came before us.

And eating out? I remember going out maybe once every other week when I was a kid in the 1970s. My own family today (2 parents, 2 kids) goes out slightly more often—maybe twice a week. And my husband eats lunch out more often than my dad (a consummate brown-bagger). So I often feel a pang of guilt when we pay a restaurant bill.

Then I read this interesting book, which really opened my eyes. Turns out we aren’t entirely the “Overspending Generation” we guilt ourselves out to be.

Harvard professor Elizabeth Warren did a comprehensive comparison of American spending patterns in the 1970s compared to today. And guess what: We aren’t blowing our paychecks on expensive restaurant meals and designer clothes after all.

A small victory in eldercare insurance

As if managing our own little family’s money wasn’t hard enough, I’m also in charge of my elderly dad’s financial life. He’s in his 90s and has pretty severe dementia, so it’s absolutely necessary that I step in.

Last fall, Dad developed pneumonia and ended up in a rehabilitation center for a couple of months. I kid you not: The insurance hassles related to a rehab stay are mind-boggling. Enough to make an adult kid want to find ANY solution other than a rehab stay for an elderly parent.

One good thing came out of all this, though. By pure luck (ok, and maybe some divine intervention of some kind!), I found a folder in my dad’s papers titled “Tricare.” I had a vague sense that this was an extra insurance program my dad had through his federal government pension. But he rarely used it when he was of sound mind. There was only one piece of paper in the file–coverage for some long-forgotten dental services.

Dump your credit cards– even if you’re not in debt?

I’m intrigued by this article in the July 2008 issue of Money. Mostly because I’m hating my credit cards these days.

My issue with credit cards is not about racking up debt. We pay off our cards in full every month. But I have two gripes:
1. I feel like I spend more freely with plastic than with cash.
2. It’s tough to stick with a tight monthly budget when “old” purchases show up in a new month needing to be paid.