Grocery Budget – January 2017

I believe it’s time to experiment with a new type of post. I’m not sure how well this will go over but I figure some people might find it interesting on how I spend my money when it comes to buying food. Now, I already talked about my budget and how much I allocate every month to food. I went shopping today and decided that I would post the receipts and talk about what I purchased.

In the past, we would just shop at Walmart for everything and when they introduced their Savings Catcher App, we thought we were just saving even more. I never really bothered with shopping around because I just thought I could afford it. And I can, but it’s not a smart way of getting the most out of our paychecks

I first start off by viewing the grocery stores weekly ads online. I believe almost every store does this now and a simple google search will show you what stores are near by. This trip I decided to stop at Piggly Wiggly and a discount food store named Save-A-Lot since they are right next to each other where I live. The weekly ads on their websites allow you to “Add” items to your shopping list and then email/print them out for use in the store. This makes a convenient way to make lists. You can view the ads for  Piggly Wiggly’s and Save-A-Lot if you feel so inclined.

To make it easier, I simply copy each item with the price into a program called Zim. I like this program cause I can easily add check boxes to each item which allows me to simply check them off as I find them at the store. Then I can just print it off like normal. You can do the same thing in notepad or just go off the emails if you want, the choice is up to you!

Here’s what I wanted to pick up from the weekly ads.

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I don’t usually go into the store with a plan on what meals to make, even though I probably should. I like to just pick up the things I know my family and I will eat and then go from there. The items on the bottom without checkboxes are just things that need to be picked up. When it comes to meat and vegetables, we just make meals based on whatever is on sale. There’s usually some form of chicken or beef on sale every week and thankfully no one in our family is a picky eater. Dark meat or white meat is just fine for us!

The first stop was Piggly Wiggly. Here’s the receipt with what got purchased.

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Click to Enlarge

The cheese was not on sale so I paid full price for it. Up next is Sunny D for a buck each. I decided to pick up two since my son loves to drink juice and I sometimes feel nostalgic for it. The banquet meals for $1 each are what I call “lazy meals.” It’s for when we don’t want to cook but want to eat something. I also use it whenever the wife and kid are gone and I want to eat something.

Up next are two huge bags of crinkle cut french fries for $1.50 each. Everybody loves french fries and this is way cheaper than getting them from Mcdonald’s. I also picked up some pop tarts for 3/$5. I’m not that big of a fan of them but my wife and son love them, so who am I to keep it from them.

The best deal comes from my meat purchases. I bought two packages of boneless chicken breasts for $1.49 a lb. One of the packages was frozen and went straight into the freezer. The other was put in the fridge to be used this week. It’s a great price for chicken breast though!

I also bought a five pound box of bacon for $10. I didn’t know what to expect from them but when we got them home, I was surprised that it’s just a big box of slices. And with bacon prices going up lately (single packages of bacon are going for $3-4), I figure this might be a gamble that pays off. We went ahead and broke the box down and put the bacon in a few freezer bags. Whenever we need bacon, we can just pull out one freezer bag for the week.

I originally went for Bounty paper towels for 9.99, but when getting there realized that their store brand was cheaper per sq ft. There’s a few things that I don’t want to skimp on, like toilet paper, but for paper towels, this is more than fine. I also didn’t pick up the T-bones because, quite frankly, they didn’t look so great.

For a total of $66.91. Not a bad haul from Piggly Wiggly.

Up next is the haul from Save-A-Lot, a local discount food store here in North Carolina.

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I picked up quite a few cans of beans and diced tomatoes for some chili that I plan on making in the future. At 59 cents a can, you can’t really beat that. Some notable standouts was a 15-ct box of corndogs for $4.99 which, again, is mostly for that lazy meal that we find ourselves wanting to have. We’re also trying some store brand food with their Mac-n-cheese and their store cheese nips that are both $1.49 each.Also 2 for 88 cent Yoplait yogurt is a heck of a deal.

Again, for $58.72 this is a pretty decent haul. The weird oddity here is the Frozen Pork Tails for $9.78. Not sure why they came up as pig tails since I definitely picked up Ribeyes and I verified the package as well as the price per lb.

This grocery shopping day should last us through the month and put us under our $300 food budget by about $60 bucks. What I’ll do is go ahead and deposit the $60 bucks into my dividend portfolio next month to take advantage of the extra money.

Thanks for reading, I’ll try and do this again in 2 weeks for February!

 

Robinhood App Tutorial – Investing the Free Way

I’ve been meaning to sit down and write a Robinhood App Tutorial for awhile now. The Robinhood App is alluring to a lot of beginner investors due to it’s no-fee stock trades. If you have no idea what that means because you’re a complete Noob–don’t worry, we all were there at one time.

Almost every stock broker (Schwab, TradeKing, TDAmeritrade) charges a fee anytime you buy or sell a stock. The prices can differ between brokers, but it’s usually around $9.99+ per trade. When you’re just starting out, a lot of times you don’t have a lot of capital (money) and you end up taking a big chunk out of your money every time you buy/sell. Once you get rich and can start doing trades in increments of thousands, the price doesn’t effect you as much but when you’re just starting out, it hurts. That’s where the Robinhood App comes in:

First things first. You have to have a smartphone. The Robinhood App currently supports Iphone and Android devices. It currently doesn’t have a web app, so you’re going to have to do the ordering on your phone. There’s also some Account requirements below:

  • Be 18 years or older
  • Have a valid Social Security Number (not a Taxpayer Identification Number)
  • Have a legal U.S. residential address
  • Be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa*

You can read all the requirements here.

Step 1: Download the App – Yep, you should have known this was coming. Go ahead and open the Apple or Play Store on your phone and download the Robinhood – Free Stock Trading App.

Step 2: Follow the Steps and Enter Legal Information –  Enter a username or password to login with along with your real First, Last Name and phone number. From here, more secured answers will be asked such as your Social Security Number (tax purposes), Address, Citizenship and Employment information. There’s some additional questions you’ll have to fill out truthfully as well.

Step 3: Fund your Account – You’ll have to link either a checking or savings account in order to deposit/withdrawal funds to Robinhood. For instance, I hooked up my main savings account that I have from Capital One 360 (affiliate).  Before you can transfer money into your Robinhood account, they’re going to make two small deposits into your checking/savings account in order to verify the information is correct. This process takes a few days, so come back once that’s been done. Usually it’s a few cents for each of the two deposits. Confirm the amounts in the App and you’re good to go. Go ahead and make your first deposit in to your Robinhood account.

Question: How much should I deposit?  That’s entirely up to you but the rule of thumb is only invest the money that you’re willing to lose. While most of the stocks I talk about here on Dividend Noob are safe long term, nothing is guaranteed and stocks can go up and down for any reason. With that said, make sure you did your budget and have an emergency fund for those times when you need spare cash. There’s also making sure you fully fund your Roth IRA and contribute to your work 401k, where applicable, but that’s outside the scope of this post.

Question: What should I buy first? Slow down partner. Go ahead and read up on the stocks that interest you and make sure they’re right for you. There’s a plethora of sources to pull information from. I will say this though: Make sure you do your own research before buying a stock. Don’t rely on some random internet person. Trust but Verify goes a long way. If you’re entirely new, read up on the Dividend Aristocrats, Champions and Challengers.

Question: Why is this scary? The idea of losing money is always scary. You’re not exactly paying for something tangible that you can hold in your hands. Our goal here is simple: Buy High Quality Dividend Stocks that not only make us money in growth over the years, but also pays out a healthy dividend to us each and every quarter. Double-dipping like an ice cream, twice the fun.


Hopefully this was helpful. See you guys next week.


 

DRIP with Robinhood App – The Manual Way

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Does the Robinhood App allow investors a chance to DRIP? If you’re looking for the Robinhood App to provide a dividend reinvestment plan, you’re out of luck. At the time of this post, Robinhood does not provide any way to do it. They also don’t allow partial shares, so if they are going to implement it in the near future, they’ll have to radically change their overall design for Robinhood. Hopefully they’re working towards adding it in the future but until then, what do we plan on doing with our dividends from our high quality dividend growth stocks?

What I’m going to start doing is manually reinvesting the dividends back into the company. Yep, a manual DRIP so to speak. Every time I get a dividend from a stock in my portfolio, I’ll take that money and apply it to an additional share(s) in the company. While not quite the definition of DRIP, it’s the closest thing we can do with the Robinhood App. And considering it’s free trades, it sort of acts the same.

There’s a few cons to this approach, let’s go ahead and discuss them.

  1. No Partial Shares – With the Robinhood App not allowing partial shares, we’re going to have to provide the transaction with extra equity in order to round it up to a full share. While this is true, I always keep a percentage of cash in my account and I can cover the single share with no problem. I know this might not be the case for everybody, so the cash dividend will have to sit in your account until you accumulate enough to do a transaction.
  2. Not Automatic – The beauty of a DRIP is that it’s automatic. That means you can go about your life and not worry about the money that your stocks pay out to you. For those hands off investors, this is a god send. That just means we’re going to have to do a little extra work. This comes with some added benefit though–if we believe a stock is way overvalued, we can put their dividends to use in a separate stock that we feel is undervalued. Again, this might not be for everybody, but its something to think about.

While not perfect, I believe this is a decent way to get started with doing a Robinhood DRIP. Let me know in the comments if there’s a better way!

You can always check out my current portfolio here. You can also follow me on Twitter.