I'm Giving Inflation A Run For Its Money. How Are You Doing It?

[Teacher Terry]

Diva, being on the board is fairly new to me and I have been reading about the correct way to increase hoa fees. Research suggests that people tolerate a small yearly increase like 10/month on a yearly basis rather than no increase for years and then a bigger one. We are going to do this moving forward. People don’t stop to think that they would be having to do maintenance if they owned a house.

Each building has a boiler system for heat/AC and water which are included in our dues. When the water boiler died we had 16 days without hot water. We had to buy a gently used one for 40k because we couldn’t wait 2 months for a new one plus it cost 75k. The boiler in the other building is also old.

 

[OneEyedDiva]

Diva, being on the board is fairly new to me and I have been reading about the correct way to increase hoa fees. Research suggests that people tolerate a small yearly increase like 10/month on a yearly basis rather than no increase for years and then a bigger one. We are going to do this moving forward. People don’t stop to think that they would be having to do maintenance if they owned a house.

Each building has a boiler system for heat/AC and water which are included in our dues. When the water boiler died we had 16 days without hot water. We had to buy a gently used one for 40k because we couldn’t wait 2 months for a new one plus it cost 75k. The boiler in the other building is also old.

I know exactly what you mean Terry. I hear the complaints from the VP of the board. I am friends with his wife and him. We went a long time without any increases at all. They were few and far between and only $50 each time. But unfortunately, very poor management on the part of board members at the time, allowed a few people who were living here to get away with not paying their CCs for far too long. That put us in the hole when the taxes started rising. Some of the money was recouped, finally, but not all of it. In this day and age, I don't see how anyone can complain about paying $644 a month for a two bedroom. Our VP is concerned that we won't have enough money for the various repairs and maintenance that needs to be done and doesn't want to see what happened to a couple of apartments in neighboring towns happen to us. That is they literally started collapsing and could no longer be inhabited. One was a nice looking building too but the area out front and the parking area started giving way. A couple of buildings in New York City were also evacuated because of structural issues in the past few years.

 

[NorthernLight]

The complainers are so clueless that they don't know how the rental market is these days.

Yes, most people are clueless. A few years ago I rented a small cabin for CAD 500 per month. I thought it was reasonable. Several people expressed shock and said I was paying too much. I couldn't figure it out. Then I realized that they paid less than that on their mortgage/taxes for a real house.

 

[Teacher Terry]

We have been building up the reserves which the previous board had much too low. We have over a million which is considered adequate but not great for 150 units. We have hired an engineer to go through the buildings to list everything wrong and then make a priority list for us. This will be money well spent so we can plan.

The condos collapsing in Florida was horrible and we intend to maintain decently. Our fees are by size of the unit. With the increase mine will be 419/month but that’s all utilities except for sewer and a tiny electric bill.

 

[StarSong]

I know exactly what you mean Terry. I hear the complaints from the VP of the board. I am friends with his wife and him. We went a long time without any increases at all. They were few and far between and only $50 each time. But unfortunately, very poor management on the part of board members at the time, allowed a few people who were living here to get away with not paying their CCs for far too long. That put us in the hole when the taxes started rising. Some of the money was recouped, finally, but not all of it. In this day and age, I don't see how anyone can complain about paying $644 a month for a two bedroom. Our VP is concerned that we won't have enough money for the various repairs and maintenance that needs to be done and doesn't want to see what happened to a couple of apartments in neighboring towns happen to us. That is they literally started collapsing and could no longer be inhabited. One was a nice looking building too but the area out front and the parking area started giving way. A couple of buildings in New York City were also evacuated because of structural issues in the past few years.

When was your building built, Diva?

Ongoing maintenance is crucial for virtually everything humans create. We ignore it at our peril.

 

[Skyking]

First, this disclaimer: I own a unit in a complex where our monthly housing expenses are far below the average for the area and they rarely increase. Heat and hot water are included so the rise in oil prices also doesn’t affect me and since I don’t drive anymore neither do higher gas prices. I only eat red meat a couple of times a year and then it’s a fast food hamburger, so the high cost of meat is not an issue. My doctor visits and medication costs are very little due to my excellent State retiree group health and prescription plans.

I’m fighting inflation by:
~Comparison shopping for who has the better prices on each item.
~Buying store brands I actually love (this initially involved trial and error).
~Buying wholesale when it’s beneficial.
~Monitoring sale cycles (works particularly well with Costco and our local supermarket) and shopping the sales.
~Making optimum use of my credit card cash back rewards. About 9 months out of the year, I get 5% back on groceries.

In 2022, my grocery bill averaged $12.50 more a month than in 2021. Since my son moved in, our average monthly electric bill has been $84 up from $71. The rise in those two monthly expenses equals $25.50 or $306 a year. My 2022 cash back rewards for buying everyday, normal stuff I need far exceeded that increase and came to $1,100. Exact figures courtesy of Vertex Family Budget Planner self tallying spreadsheet.

A few examples of savings on groceries include these price differences: $2.40 less on wheat bread, $1 on pasta sauce, $2.50 ice cream, $3 on oatmeal 10 packs, $1 waffles courtesy of the supermarket brands I love and 24 cents less for each can of cat food via Amazon.

I paid $17.85 for 8.5 pounds of Tidy Cat litter from Petco but $10.99 for 42 pounds of Scoop Away on sale at Costco. The regular price is $14.79, still a huge savings. Vegetable egg rolls at our supermarket were $4.99 for a box of 5. Spring rolls at Costco were on sale…$7.69 for a box of 50. Granted it takes about 3 spring rolls to equal 1 egg roll but that’s still about 46 cents a serving as opposed to $1 a serving. The regular price is $10.79 or 65 cents per serving.

During the pandemic, I found only one box of Bromley decaf green tea (48 bags) at Shoprite and it was on sale for $2.29. Amazon had a bulk pack of 8 boxes for $3.16 a box which I grabbed because I drink that tea daily. Now Amazon is charging $4.88 per box for the bulk pack and $6.20 for a single box, which is insane! Before I sent my son to Shoprite last week I looked through their circular and found that the tea was on sale for $1.99 a box so I got another 8 boxes.

What moves are you making to give inflation a run for its money?

I applaud your fight. Really! However, saving on tea bags and cat litter means very little. Wait till you see your next round of utility bills. Maybe it'll be that or Mr. Cat.

 

[OneEyedDiva]

I applaud your fight. Really! However, saving on tea bags and cat litter means very little. Wait till you see your next round of utility bills. Maybe it'll be that or Mr. Cat.

I feel for you if your utility bills will be massively high Skyking. Little Ms Cat is not going anywhere. My electric bill averages $84 a month and that's split with my son who I invited to move back home a little more than a year ago after his wife died. We just paid a whopping $102 this month as the catch up amount due to AC usage in the summer. I went back on PSEG's budget plan so I could know exactly how much we'd be paying each month. I expect our new bills for the next 6 months won't be more than $90/mo. We don't pay extra for heat and hot water; it is included in our carrying charges (co-op speak for HOA fees). Since our mortgage was paid in 2012 and our carrying charges, which also include property taxes, are only $644 a month (which we also split in half) I come out way ahead as far as what I have left over each month.

BTW...you've somewhat missed the point. I'm not only saving on cat litter and tea bags. I'm saving on mostly everything I buy when I grocery shop...either one way or another. All of that adds up to substantial savings in the long run. Today I took advantage of a $15 cash back bonus on cat supplies using my BOA card on Chewy.com Last month, I got a $20 coupon off cat food on the same site. Again...just a couple of examples.

 

[OneEyedDiva]

When was your building built, Diva?

Ongoing maintenance is crucial for virtually everything humans create. We ignore it at our peril.

You are so right Star. The buildings in our complex were erected around 1970. In 1971 I moved into our brand new apartment a couple of days before my son's 3rd birthday. He was in the hospital at the time and came home to a new home and his own room.

@Teacher Terry Your management/board are handling things as they should. We'd be over the moon if we had a million in reserves, but through some shady stuff and mismanagement, too many people lived here for too long without paying anything! Therefore, our reserves got very low. When a mostly new board was elected and we changed management, we started being able to build up our reserves again. We previously lost money too with the board hiring "jackleg" contractors who didn't do the jobs right and they had to be redone. A couple of the board members were penny wise and pound foolish. Soooo much foolishness was happening around here!

 

[againstthegrain]

I don't think I save money, just spend less. 10% off groceries during senior hours, in addition use the sales of course, buy food in bulk such as oat meal, flour, and beans, and use Costco for rice, and olive oil, paper goods, etc. Look for close-out, end of season, or preseason deals on sporting goods, clothes, and patio furniture, for instance, take cheaper vacations closer to home(camping instead of flights and a resort), make the most use of our ski passes, gym, and golf course.....ride bikes and hike for free. To prevent unnecessary spending take great care of home, car, and most importantly health.

 

[Skyking]

I feel for you if your utility bills will be massively high Skyking. Little Ms Cat is not going anywhere. My electric bill averages $84 a month and that's split with my son who I invited to move back home a little more than a year ago after his wife died. We just paid a whopping $102 this month as the catch up amount due to AC usage in the summer. I went back on PSEG's budget plan so I could know exactly how much we'd be paying each month. I expect our new bills for the next 6 months won't be more than $90/mo. We don't pay extra for heat and hot water; it is included in our carrying charges (co-op speak for HOA fees). Since our mortgage was paid in 2012 and our carrying charges, which also include property taxes, are only $644 a month (which we also split in half) I come out way ahead as far as what I have left over each month.

BTW...you've somewhat missed the point. I'm not only saving on cat litter and tea bags. I'm saving on mostly everything I buy when I grocery shop...either one way or another. All of that adds up to substantial savings in the long run. Today I took advantage of a $15 cash back bonus on cat supplies using my BOA card on Chewy.com Last month, I got a $20 coupon off cat food on the same site. Again...just a couple of examples.

You truly are awesome, my budget plan electric bill is over $220 a month... and we have gas heat! Utilities, and transportation expenses like gas, car, insurance, etc. are also way up and are a larger percentage of my monthly budget. So watch out little Ms Cat, someone has to eventually pay for those 'free' heating and hot water charges at your place. There's no such thing as free kibbles. (At least not without a coupon) ;-)

 

[OneEyedDiva]

You truly are awesome, my budget plan electric bill is over $220 a month... and we have gas heat! Utilities, and transportation expenses like gas, car, insurance, etc. are also way up and are a larger percentage of my monthly budget. So watch out little Ms Cat, someone has to eventually pay for those 'free' heating and hot water charges at your place. There's no such thing as free kibbles. (At least not without a coupon) ;-)

"You truly are awesome" ..well thank you It amazes me when people tell me their electric bills are in the range of yours. What size house do you live in? I've never had a $200 electric bill in my life...not even when running the AC full blast for most of the summer.
"someone has to eventually pay for those 'free' heating and hot water charges at your place." Well, that's what our CC's (aka HOA) fees are for. We have close to 100 families in our complex. Some of them pay more than the $644 because they have more bedrooms. There is a difference between "free" and "included". Our fur baby Deja does not have to worry about losing her home, at least not under normal circumstances.

Truthfully, the last time they raised our CCs, I was in agreement with one of our board members and his wife, who is a friend, that they should have raised it by $100 instead of just $50. I would have gladly paid the extra $100, but there are several people here who are struggling financially, so they capped it at $50. Before our mortgage was paid off, we were told that after it was paid off our PILOT program would end and we'd wind up paying double, which at the time, would have come to $888. I was expecting and preparing for that but it never happened. Our CCs went up to $494. As it stands now, my personal expenses (including food and discretionary spending) are only 49% of my net income, so like I said...we'll be alright.

 

[StarSong]

I applaud your fight. Really! However, saving on tea bags and cat litter means very little. Wait till you see your next round of utility bills. Maybe it'll be that or Mr. Cat.

BTW...you've somewhat missed the point. I'm not only saving on cat litter and tea bags. I'm saving on mostly everything I buy when I grocery shop...either one way or another. All of that adds up to substantial savings in the long run. Today I took advantage of a $15 cash back bonus on cat supplies using my BOA card on Chewy.com Last month, I got a $20 coupon off cat food on the same site. Again...just a couple of examples.

A very wise friend a generation older than me often advised me that if I watched my pennies, my dollars would take care of themselves. I'm happy to say I took his advice to heart. While far from a cheapskate, I contemplate and reconsider most purchases before making them.

Diva's financial awareness and strategies from stem to stern, and her resulting financial solvency despite taking a very early retirement, are living testimony to the value of this strategy.

 

[OneEyedDiva]

A very wise friend a generation older than me often advised me that if I watched my pennies, my dollars would take care of themselves. I'm happy to say I took his advice to heart. While far from a cheapskate, I contemplate and reconsider most purchases before making them.

Diva's financial awareness and strategies from stem to stern, and her resulting financial solvency despite taking a very early retirement, are living testimony to the value of this strategy.

"Diva's financial awareness and strategies from stem to stern, and her resulting financial solvency despite taking a very early retirement, are living testimony to the value of this strategy."
Thank you so much for that compliment sweet Star The gentleman's advice to you reminds me of something I thought of while reading @Skyking's replies. The old saying is "A penny saved is a penny earned". Taking it further, according to how well one invests, a penny invested could be two pennies earned.
You also wrote: "To be fair, when our small business started taking CCs and processing online sales, it quickly became obvious that most payments would shift to CCs. We had to raise prices 5% across the board to compensate, which is roughly what it cost us to process CCs back then. Fees for each swipe plus about 2% of the full amount sold. Monthly fees, equipment costs, etc. were costly. We only took MC and Visa because AmEx and Discover charged merchants even higher rates."
I think a lot of consumers don't realize the fees merchants have to deal with. I had heard that AmEx charged higher rates (and took longer to anty up, I think) but not Discover. Costco dropped AmEx a few years back.

 

[OneEyedDiva]

I don't think I save money, just spend less. 10% off groceries during senior hours, in addition use the sales of course, buy food in bulk such as oat meal, flour, and beans, and use Costco for rice, and olive oil, paper goods, etc. Look for close-out, end of season, or preseason deals on sporting goods, clothes, and patio furniture, for instance, take cheaper vacations closer to home(camping instead of flights and a resort), make the most use of our ski passes, gym, and golf course.....ride bikes and hike for free. To prevent unnecessary spending take great care of home, car, and most importantly health.

That's the beauty of choices ATG. You have been able to adjust your spending according to your needs; smart move. I have found that Costco's prices on TP and paper towels is very good (especially on their brand) but not on paper plates, which I buy from Walmart instead.

 

[OneEyedDiva]

I do not think I am winning at all this last year. I have been hemorrhaging money for months…and really can not see where it went. Yes…i know i need to wright it all down and add it up…just have not yet. I am not used to this feeling. I have saved and invested my little heart out for the last 25 years…and do not like the feeling that i have lost control.

I used to find that when I used cash I could never account for where it all went. It's much easier for me to keep track and in control when I use my cards. I'm sure what you are going through financially doesn't feel good at all. Hope things improve for you soon.

@Blessed Not trying to rain on your parade, but I've seen several reports that link processed meat like bacon to cancer risks. I don't eat pork anyway but I even stopped eating turkey bacon and sausage. Instead I make turkey burgers, cut them into strips and pretend they are sausages. Ingredients Bubba burgers: turkey, kosher salt, rosemary extract Jenny O turkey burgers: turkey, turkey fat, rosemary, black pepper, salt, onion and garlic powders. If I have to read ingredients for more than 5 seconds or can't pronounce some of them, I figure I don't need to be putting them in my body. Here's an article about the bacon-cancer connection:
https://www.healthline.com/nutrition/bacon-cancer#cancer-risk

 

[katlupe]

I used to find that when I used cash I could never account for where it all went. It's much easier for me to keep track and in control when I use my cards. I'm sure what you are going through financially doesn't feel good at all. Hope things improve for you soon.

@Blessed Not trying to rain on your parade, but I've seen several reports that link processed meat like bacon to cancer risks. I don't eat pork anyway but I even stopped eating turkey bacon and sausage. Instead I make turkey burgers, cut them into strips and pretend they are sausages. Ingredients Bubba burgers: turkey, kosher salt, rosemary extract Jenny O turkey burgers: turkey, turkey fat, rosemary, black pepper, salt, onion and garlic powders. If I have to read ingredients for more than 5 seconds or can't pronounce some of them, I figure I don't need to be putting them in my body. Here's an article about the bacon-cancer connection:
https://www.healthline.com/nutrition/bacon-cancer#cancer-risk

I believe just the opposite since I follow a keto lifestyle. Bacon is in fact a big part of the low carb world. Has helped many people overcome all types of health issues. Media still working on trying to promote disease. What's So Bad About Bacon?

 

[ronaldj]

kind of been our way our whole life, once my son-in-law said to me, "you're not frugal, you're cheap."

 

[Muskrat]

In spite of my angst I also am well versed in frugal. It is exactly how I was able to reach the level of financial independence I actually have. Currently writing down every nickel… however this does little to change my situation. My current situation is more related to loss of income coupled with an aversion to using savings for living expenses. I suspect I will feel stressed till my income corrects.

 

[BC Flash]

re RonaldJ post #67 One of my friends claim that she can squeeze a nickel (American) until the buffalo cried real tears!!

I guess being Canadian, I can squeeze a nickel until the beaver cried.

I have ALWAYS been frugal (cheap?) - product of parents who lived through the depression.

- Bulk buy toilet paper, detergents; dried and canned foods from Costco.
- Do not allow: chips, junk food, candies, prepared foods into the house.
- Breakfast is "bircher oatmeal" (7 days prepared for a ready breakfast after our morning walks).
- Lunch is a salad and fruit or whatever falls out of the fridge!!
- Shop the weekly sales flyers for fresh produce and meat.
- Always cook from "scratch" - prepare 3 meals in 3 days, resulting in a variety of leftovers until time to cook more "meals".
- No meeting friends for coffee or lunch since covid - savings of $8 to $15 a week;

 

[OneEyedDiva]

re RonaldJ post #67 One of my friends claim that she can squeeze a nickel (American) until the buffalo cried real tears!!

I guess being Canadian, I can squeeze a nickel until the beaver cried.

I have ALWAYS been frugal (cheap?) - product of parents who lived through the depression.

- Bulk buy toilet paper, detergents; dried and canned foods from Costco.
- Do not allow: chips, junk food, candies, prepared foods into the house.
- Breakfast is "bircher oatmeal" (7 days prepared for a ready breakfast after our morning walks).
- Lunch is a salad and fruit or whatever falls out of the fridge!!
- Shop the weekly sales flyers for fresh produce and meat.
- Always cook from "scratch" - prepare 3 meals in 3 days, resulting in a variety of leftovers until time to cook more "meals".
- No meeting friends for coffee or lunch since covid - savings of $8 to $15 a week;

I admire your financial and healthy eating style BC, though I won't pretend I follow the latter. To you and @ronaldj there is a difference between being frugal and being cheap. I like the buffalo analogy...never heard that one before.

 

[Capt Lightning]

I don't know what savings rates are like in other countries, but for years, UK banks gave virtually no interest on savings. Then suddenly savings rates shot up, so I moved what I could afford into the highest interest accounts that I could find. I'm not going to make a fortune, but 5% is better than 0.5% !

Day to day, I've found that our supermarkets are offering good deals on some food lines, so I've been buying meat and vegetables cheaply and freezing what I could. However, I would rather cut quantity than quality.

 

[kaydee]

I have mixed thoughts about eating out...of course you can save money if you "never" eat out but really, our local eateries need support. We have been trying to eat at smaller local restaurants when we do eat out which is once or twice a week and often take a neighbor lady that lives alone with us.

Sometimes cooking for one, the spices and ingredients you purchase for a specific recipe, far outweighs just ordering from a resturant. Although, its never quite as good as my home cooking, lol.

 

[Muskrat]

The little chain grocery store down the street puts these bags of slightly blemished vegetables or fruits on sale for a dollar. I am pretty convinced that at this point they think that they are doing it just for me. I freeze what I do not use right away. Great bargain. Also now have most of my savings in higher interest accounts. I am really quite lazy when it comes to some of these details…

 

[Packerjohn]

If the present inflation and higher interest rates will get some of those ugly trucks off the highways along with all those "personel water craft" they are carrying, then I am all for it. Ditto for pontoon boats and big expensive cottages in the bush!

 

[Brookswood]

I have cut back on some purchases including the purchase of certain adult beverages like craft beers. As much as I enjoy them, the price has gone from two to three dollars a bottle to five dollars a bottle. Really? $5 for a 12 oz bottle of beer? I think not. Even the light beers are now hovering near $1 a bottle unless I get them on sale in the big quaintity packs. But, I don't drink that much beer, if you can call lite-beer beer.