Las Vegas Sun

March 19, 2024

A guide to living large on $14,000 a year

Grocery Budgeting

Steve Marcus

Danielle Wagasky uses a calculator to keep track of her purchases as she shops at WinCo on Wednesday, Sept. 16, 2015, in Henderson.

Local lifestyle blogger Danielle Wagasky purses her lips at the pound of Darigold butter she weighs in her hand.

“This is where I have a battle with myself,” she says. “I wanted to buy six of them.”

Wagasky thought the butter would be cheap at WinCo, but it’s $3.99 apiece. She might be able to buy four.

Danielle’s four steps for financial freedom

1. Tithe at the beginning of the month. If you tithe a certain amount to your place of worship or regularly donate money to charity, do so at the beginning of the month. If you wait until the end of the month, when you’re feeling cash-strapped, you may be more likely to scrimp on giving.

2. Be conscious of how much you spend. Keep track of how much you spend and where you spend your money.

3. Live below your means. Save money now so you can weather financial difficulties more easily in the future.

4. Embrace a frugal lifestyle. Stretch what you have to make it last longer. Buy only what you need and have planned to buy. Think about it as a game and a challenge.

Having fun on a budget

Though the Wagasky family has a little extra money now, it still tries to be frugal with activities. The Wagaskys typically go to the park, take advantage of free events at the library or do extra activities with their homeschool group. Occasionally, the family budgets for a dinner out to try a new type of food or to go to the dollar movie theater.

Backlit by racks of butter, she pauses, doing mental calculations of her grocery bill and running through recipes in her head.

She glances back at the racks. Above the Darigold, a generic WinCo brand catches her eye: $2.28 each. She brightens instantly, putting the Darigold back and grabbing an armful of the generic.

Most people might see a measly $1.71 difference per package, but Wagasky sees $10.26 in total savings.

Wagasky has become a master economizer — she once had to budget just $14,000 a year for her family of four. Although the family has a bigger budget now, Wagasky likes to be frugal.

“There was one time in my life where the word ‘budget’ was met with great disdain,” Wagasky said. “I didn’t think about how I was spending my money, I just swiped my cards and went about my day. It wasn’t until later that I realized that by living beyond my family’s means, I was digging my family into a huge hole of debt.”

In the condiment aisle, Wagasky grabs two jars of Vlasic Zesty Dill Spears Pickles. They’re $2.32 each — not $1.98 as they were earlier in the month — but they’re her husband’s favorite, so it’s worth the splurge.

Wagasky has brought $200 cash with her — her budget for today’s purchases — and calculates a running tally on her phone as she shops so there are no surprises at checkout. She crosses each item off of a neatly printed grocery list and keeps a running total on the side just in case her calculator accidentally clears.

When she gets to the register, her phone reads $130.04. When the cashier finishes ringing her up, the bill is $131.47 — only $1.43 off, probably due to the weight of the produce.

“I’m usually within a dollar or two,” Wagasky says.

Danielle, 31, lives in Henderson with her husband, Jason, 34, and her two children Keagan, 10, and Libby, 8. She runs a lifestyle blog called Blissful and Domestic, which she started in 2009, where she doles out grocery shopping, budgeting, homeschooling and other life advice. She also has a YouTube channel and published a book this summer called “Living a Beautiful Life on Less.”

Though she now spends her time helping others live a frugal life, Danielle wasn’t always good with money. She grew up privileged, never having to pay bills.

Danielle met Jason six months after she graduated from high school, and they were married six months later in November 2003. Jason grew up the son of a Marine in a family of six children. Budgeting was essential for his family.

Jason enlisted in the military the summer after the couple married, when Danielle was six months pregnant. As soon as he finished boot camp, he was deployed to Iraq. Danielle didn’t know how to manage their money, and they were living paycheck to paycheck.

Before Jason’s second deployment, the couple started thinking about what they would do when he got out of the military. Since he was getting war pay, they decided to start saving. Except Danielle didn’t know how. By then, she had two young children, and she was overwhelmed. She couldn’t stop spending money.

“I was addicted to shopping,” Danielle said. “I used it as a way to escape. I was sad my husband was gone, so I shopped. But whenever I came home and that initial high went away, you’re left with this stuff.”

Jason would call from Iraq to see how she was doing. Danielle would say “fine,” but she wasn’t fine.

“Finally one day, he called and he was like, ‘We’ve talked about this dream. You want to get a house, but if you don’t stop what you’re doing, it’ll be your fault we don’t do it,’ ” Danielle said. “I’m so thankful, and now I can look back and say that was a blessing. I needed someone to be blunt with me and say, ‘You’re screwing up right now.’ ”

Jason suggested Danielle read a book on budgeting by Steve and Annette Economides, who market themselves as “America’s cheapest family.” Danielle says it was a game changer. She started saving little by little.

First, she went to her bank account to see how many times she went to the grocery store and how much she spent.

“It was ridiculous,” Danielle said. “I don’t remember what that number was, but it was big, and I said, ‘Let’s cut this in half.’ ”

Grocery Budgeting

Danielle Wagasky shops at the WinCo supermarket in Henderson Wednesday, Sept. 16, 2015. Launch slideshow »

Grocery shopping became an orderly process. Danielle set a budget and tallied the price of her purchases on a calculator as she went through the store.

Once she got the hang of grocery shopping, she learned how to bake bread and sew. She stopped carrying credit cards, going so far as to lock them in a safe.

By the time Jason came home, the couple had saved $30,000 for a down payment on a house. But the family couldn’t afford a mortgage or even rent. Jason was attending school on the GI Bill, and the family had to survive on only his $14,000 annual cost-of-living allowance. They decided instead to take their down payment and pay cash for a small trailer in foreclosure.

“We basically lived on a need-to-pay budget,” Danielle said. “You need a home to live in. You need electricity. We were in survival mode, and we lived that way for a few years.”

After four years in school, Jason graduated with a degree in criminal justice. Now, he works full-time for the Clark County School District and is getting ready to go back to school to get a second degree in computer science.

The family still lives frugally, and they still budget everything: homeschooling supplies, clothing, car insurance. Danielle and Jason bought a Prius — an investment for the long term due to its high gas mileage — and are saving for a down payment on a new home.

Keagan and Libby help their mom shop and generally are supportive of the family’s efforts to save, Danielle says. Keagan typically is the one to point out whether something Danielle wants to buy is not on the list, while Libby encourages Danielle to buy it anyway.

Danielle says she and Jason have worked hard to set a good example for their children and to teach them how to get through tough financial times.

“It’s all about creating a way of life and rewiring our brains,” Danielle said. “It’s about changing our relationship with money and knowing it’s not just disposable. We should know where that money is going.”

Budgeting

Average family budget

Average monthly costs for two adults and two children living in the Las Vegas Valley

$1,038 (Housing) + $782 (Food) + $1,114 (Child care) + $608 (Transportation) + ($736) (Health care) + $879 (Other necessities) + $534 (Taxes) = $6,691 (Monthly total)

Annual total: $68,289

Median income for a family of four in Nevada: $69,475

Budgeting used to take Danielle a long time. Now, she sits down for an hour once a week to go through her family’s bank account online.

“Online banking is amazing,” she said. “It keeps you in check and helps me know, ‘Whoa, you need to hold your horses, Danielle’ or ‘You’re OK.’  ”

The family’s budget is based on Jason’s base salary. Any overtime pay he receives goes into savings. Each month’s budget varies depending on upcoming expenses, such as vacations or birthdays.

Though the family occasionally splurges, every treat is written into the budget. For instance, Jason has wanted a new cellphone for about a year, so the couple has been researching options, looking for the best deal and putting away money so there’s no hesitation when it comes time to buy it.

How to budget

Save money on transportation

Danielle recommends combining trips across town to get the most out of your gas mileage.

1. Choose a spending limit: If you have a salary, budget based on that amount. If your income fluctuates, work off a conservative average of how much you make every month.

2. Plan for the essentials: First budget for items you absolutely need to live, such as housing, food and power. Then, add in any extras you might have to pay for, such as children’s activities.

3. Think about future costs: If you know you’re going to have higher expenses in the future — holidays, car registration, doctor’s visits, etc. — start setting aside money now. Also, consider saving for bigger-ticket items in the future, such as a down payment on a house.

4. Start an emergency fund: Decide how much you want to have as a buffer, then work toward that goal. If your income is lower, start with a $100 buffer. If you earn a higher salary, set aside a more significant portion.

5. Don’t be afraid to say no to extra expenses: If your friends invite you out to do something you can’t afford, don’t feel guilted into saying yes.

Grocery shopping tips

Purchase fresh items at a food co-op

Danielle and her family use Bountiful Baskets, but there are other food co-ops that serve the area, including Vegas Food Co-Op and Azure Standard.

Buy in bulk

• Flour (50 lbs.): Lasts 3-4 months, $13.99

• Sugar, 25 lbs.: Lasts at least 6 months, $15.04

• Semi-sweet chocolate chips, 4.5 lbs.: Lasts about 2 months, $9.79

• Oil: Lasts at least 6 months, $9.36

• Pancake mix: Lasts 2-3 months, $6.46

• Salt: Lasts months, $2.46

• Mayonnaise: Lasts 2 months, $9.49

• Jasmine rice: Lasts 6 months, $31.57

• Tortillas, 40 count: Lasts 1-2 months, $4.45

• Peanut butter, two pack: Lasts 2 months, $13.50

• Ranch dressing: Lasts 2 months, $11.42

• GoGurt: Lasts 1 month, $9.17

• Vinegar: Lasts at least 6 months, $3.37

• Nutella, two pack: Lasts 2 months, $9.98

• Lemon juice, two pack: Lasts 2-3 months, $6.16

• Raisins: $9.02

• Craisins: $8.43

• Yeast: $3.25

• Lawry’s seasoned salt: $6.04

• Garlic salt: $7.07

• Brown gravy mix: $4.22

• Other items to buy in bulk: Canned peaches, pears, mandarin oranges, green beans, peas and carrots; applesauce; refried beans; some fresh fruit; some canned soups in winter.

Thoughtful storage

Danielle stores her flour, sugar and rice in 5-gallon tubs she bought at Home Depot. She stores other dried goods in small canisters on her counter.

The key to grocery shopping is to go only once a month, Danielle says. Each trip typically takes her about four hours, but she won’t return until the following month.

Danielle starts by taking an inventory of everything she has at home. Then, she creates a meal plan for the month based on what she has. She also schedules leftovers as some meals.

Danielle then makes her grocery list, including any pantry staples she might be running low on. She groups similar items together so they’re easier to find at the store.

The entire inventory, meal planning and list-making process takes Danielle several hours over one weekend.

For shopping, Danielle usually visits several grocery stores — typically WinCo, Wal-Mart, Costco and Smith’s. She tries to do all of her shopping in one day, although occasionally she spreads it out. Before she goes to the store, Danielle checks to see what sales are being offered so she can make sure she’s getting the best deal.

As she goes through the store, Danielle crosses items off her list and totals her purchases on her calculator so she can be sure she’s staying on budget, which is $400 a month for food.

When there’s a sale, Danielle takes advantage and stocks up. Any portion her family won’t eat before it spoils, she freezes. Danielle also buys bigger portions of food — large bags of shredded cheese from Costco, for instance — and divides them into smaller bags for freezing.

• Price matching: Instead of couponing, Danielle price matches, shopping at stores that honor other stores’ advertised prices.

The best way to price match is to scan ads from different grocery stores, then circle good prices and items you’re running low on, Danielle said. Write the price on your grocery list, and be sure to bring the ad along to show the cashier. The key is to make sure you’re buying the same brand and the same size featured in the ad.

If you’re going to price match, try going to the grocery store when it’s not busy, Danielle said. Price matching takes cashiers extra time, and they may be more impatient or frazzled if the store is busy.

• Buying produce: Danielle buys produce only once a month. She has a price range in mind for each fruit or vegetable and will buy it only if it’s within that range.

The best way to save on fresh produce is to bring a notebook shopping and record the prices of each item at each store. Eventually, you’ll get a sense of what a good price is, and you won’t need to carry the notebook anymore.

Though Danielle enters the store with a wish list of produce, if it’s not on sale for a good price, she won’t buy it. Many people forget that fruit is seasonal, Danielle says, which means you pay extra for items that are out of season.

• Freeze your fresh produce: The secret to making fresh produce last all month is to freeze it. After a shopping trip, Danielle heads home to wash, chop and freeze all her fruits and vegetables for the month. She refrigerates the produce her family will eat over the next week or two.

Though some apples and oranges last longer, softer fruits such as bananas, peaches, pears, mangoes and kiwis won’t last a month outside of the freezer. You also can freeze carrots, celery, bell peppers, yellow onions and green onions; avoid freezing spinach, lettuce, cabbage, cucumbers and tomatoes, which get soggy when thawed.

Eat fresh fruits and vegetables in order of how they spoil:

First, berries, bananas, cherries, kiwis, avocado, spinach, lettuce and grapes.

Then, tomatoes, mangos, peaches, pears, melon, apricots and zucchini.

Then, cucumbers, pineapple and pomegranate.

Finally, carrots, potatoes, celery, apples and grapefruit.

Consider thrifty gardening

If you’re starting from scratch, choose a small section to start with, such as a corner. It’s difficult to fix up an entire garden at once.

Set a budget and stick to it. Write down what you will need and see if you can get any of the items from a family member or friend. Try to buy other items at a thrift store or yard sale.

Choose climate-friendly plants. Danielle suggests sedum, jade, rosemary, snapdragons, aloe and marigolds, since they all require infrequent watering and can withstand the hot valley temperatures.

Start small. Buy smaller, immature plants that cost less but will grow bigger.

Keep an idea board. Danielle uses Pinterest to save inspirations so if she’s at a thrift store and spots something she likes, she can pick it up.

Danielle's wardrobe basics for women

Danielle's wardrobe basics for women

Dressing on a dime

Set a monthly budget for clothes. Danielle says this is especially important if you have young, growing children. She budgets $40 a month for her family of four.

Thrift and shop sales. Some thrift stores even have rewards programs that give shoppers money back or a stamp on a punch card. Danielle’s favorite thrift stores are Deseret Industries, the Salvation Army and Savers Thrift Store.

Think of clothing as an investment. Each item you buy should be versatile, Danielle says. Don’t buy a statement piece just because it’s “in” right now. Instead, consider investing in jewelry to dress up outfits.

Rework clothing to make new items. When Danielle can’t wear something as is, she refashions it. If a dress is too short, she makes it into a skirt. She turns T-shirts into cardigans and pants into capris.

Keep a wish list. When thrifting, you might not immediately find what you want. That’s why Danielle makes a wish list, so she can be on the lookout for what she has in mind.

Make finding good deals a hobby. If you think of something as fun and an adventure, you’ll be more likely to do it, Danielle says.

Holiday spending

Always pay cash

When you have only a certain amount of cash on hand, it’s hard to go over budget.

Avoid credit-card debt

Don’t let credit-card debt build. Either don’t use credit cards or pay them off each month, Danielle says. If you do have a credit-card balance, budget for it so you can pay it off as soon as possible.

• Set a budget. Calculate exactly how much you can spend given your financial situation. Set a price limit for each person. Danielle typically spends $10 per person, the same budget she uses for birthdays.

• Pay cash. Don’t make purchases on a credit card. Shop with a calculator to make sure the total is less than the cash you have on hand.

• Make or thrift presents. Danielle has made rag-tie wreaths and a beauty salon set with fake makeup and old curling irons with the cords cut off. You also can check local thrift stores for gifts.

• Go for quality, not quantity. Think about what will last, and avoid cheaply made items, Danielle says. Think of each purchase as an investment.

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