MYM Mailbag #2

Posted by Frank

August 7, 2008

Thanks to everyone that has sent questions to us! If you don’t see your question below, don’t worry, we’ll answer it in the next round. Got a question? Don’t hesitate to ask or leave one in the comments section.

How much money do you guys have in an emergency fund or what is your target amount? - Mike

You’ll get varying answers as to how much you are “supposed” to have in your emergency fund. Some financial experts recommend having 2-4 months of living expenses and some say 6 months. Personally, I don’t pick a certain amount of months; rather, I pick a number that makes me comfortable. My wife and I have a goal of having $10,000 in an emergency fund, while we’re not there yet, we are making solid progress. To us, this number gives us a sense of stability and comfort, it’s more than enough to get us by for a few months, and that’s what is most important. I would recommend picking a number that makes you feel comfortable and start stashing away a few dollars away paycheck to paycheck, until you reach your goal.

In response to your grocery post, do you think buying organic - especially fruits and vegetables - is worth the extra costs? - Josephine

My sister has been trying to get me to buy organic for some time now. The price tag definitely holds me back, but I’m starting to buy into the idea. For whatever its worth, my great grandma lived to be 104, she wasn’t exposed to the great amount of fast food, preservatives, and pesticides that we are today. I think it’s safe to say her diet was mostly organic, and considering the advances in medicine since then, I think the idea of organic foods and our health is highly correlated.

Having said that, I have a hard time swallowing the added expenses of organic foods. Because of this, my sister gave me a list of vegetables that are best to get organic for health reasons, and I mainly stick to the list. If organic fruits and vegetables that are not on the list are on sale, I’ll pick them up. Likewise, I’ll not buy organic if I see good deals on the “normal” food. Overall, I think it’s worth buying the organic foods and at best keep try to keep an eye on them in order to snatch them up when they are on sale.

Here is my sisters short food shopping lists to live (longer) by:

12 Most Contaminated Fruits and Vegetables (worth buying organic): 1) peaches, 2) apples, 3) peppers, 4) celery, 5) nectarines, 6) strawberries, 7) cherries, 8)pears, 9) grapes, 10) spinach, 11) lettuce, 12) potatoes

12 Least Contaminated (not as important to buy organic): 1) onions, 2) avocados, 3) frozen sweet corn, 4) pineapple, 5) mangoes, 6) asparagus, 7) frozen sweet peas, 8)kiwi, 9) bananas, 10) cabbage, 11) broccoli, 12) papaya.

5 Most Important Ingredients to Avoid: 1) hydrogenated oils, 2) sugar (less than 4g. saturated fat/sugar) 3) high fructose corn syrup 4) enriched flour 5) bleached flour

I drive by a payday loan center everyday on my way to work, at times there seems to be quite a line inside. What exactly are these loans, what are the benefits? - KT

Payday loans are essentially a short-term loan for a small amount from a small institution, like the one you drive by every day. They get the name “payday” because of their small amounts can get you buy until your next paycheck. In my opinion, the benefits to these loans are nonexistent. Frankly, in many instances they should be considered predatory loans. Some states do not have caps as to what these lenders can charge you in interest and fees. It is not unheard of for somebody to take out a payday loan for around $100 and face an annual interest rate nearing 400%. No, that is not a typo. If people are in desperate need of cash, they most likely are better off using their credit card to get by. There are some circumstances where these help out, especially if you can pay them back on time, but for the most part I would recommend to keep on driving by.

I’m a mom that works more hours then I care to admit. Because of this, I find that we are spending a majority of our budget eating out. I’d rather spend time with my family than cooking after work, what advice would you have to help keep our food bill down? - Busy Mom

Busy Mom, although I don’t have kids, I’ll give this my best shot. My wife and I try to save time by preparing more advanced/delicious (supposed to be anyways) meals on Fridays-Sundays. During the week, we tend to eat quick meals and make good use of leftovers. Our quick meals include foods such as salads, spaghetti, fajitas/tacos, and chip beef on toast or shit on shingles, whatever you prefer to call it. I think you’d be surprised how fast these types of meals actually are to prepare - especially if you consider the amount of time it can take to go pickup food, not to mention the cost savings involved. I guess the best advice I can give is try to buy groceries for the week that allow for quick supper options, don’t try to bit off more than you can chew. $