06/04(Wed.) Saving Money (Host: Anne)

[Anne Lin]

I am sure that everyone must have noticed that a high inflation era is coming, with high price of oil, food, materials, commodities and houses, and low interest rate etc., resulting in the depreciation of currency values, while the salary still remains at the same level.

The following article is an excerpt taken from a website regarding the ways of saving money on the grocery shopping. In addition, I would like to use the article to bring in other related issues for the discussion, such as financial planning, fighting inflation, etc.

http://supermarketguru.ivillage.com/foo ... oday_Money

Ways to save money at grocery stores
I am positive that you are well aware that the cost of food is rising, and quickly! According to the recent numbers from the Bureau of Labor Statistics, during the 2007 calendar year, the U.S. food prices increased by a whopping 4.9% - 8%, which was higher than the 2007 inflation rates and 2.8% higher than food prices increased in 2006, and most folks would agree that we ain’t seen nothin' yet!

In the past, agricultural commodity prices tended to be volatile, with an overall decline trend, because they were supply-driven. Technology and productivity improvements in farming increased agricultural yields to meet supply, keeping prices down. Today, higher fuel prices are increasing the cost of transporting commodities, while various weather conditions and trade issues are currently contributing to lower supply. The result is higher prices across the board.

In the U.S., staples like milk, cheese and bread experienced especially marked hikes, with poultry, fruits and vegetables, cereal and meats following close behind. Internationally, increases in the prices of dairy and grains pushed the food price index used by the Food and Agriculture Organization of the United Nations up by almost 40% over the last year. By comparison, in the previous year period, the food price index was up only 9%.

With global commodity stocks at historic lows, a growing demand for food, feed and fuel, tight supply, and no plan for increased agricultural productivity, the phenomenon of higher prices is likely to continue. The International Food Policy Research Institute estimates that global cereal prices will rise 10 to 20% by the year 2015.
So what can you do?

Here are my five basic tips for budgeting.
1.Make a shopping list and stick to it.
Create the ultimate shopping list by taking receipts from the past months, list all the groceries you regularly buy by name on a spreadsheet. Then go thru the fridge, freezer and cupboards and look at what you have. Then cross what you don't need off this week's list. You'll cut your spending by 15 to 25 percent by not buying more of the same.
2.Use coupons.
Don't think you're above clipping coupons from the newspaper, magazines or even online. The average coupon value is almost one dollar! Also, put your kids in charge of coupon cutting and gathering, since it teaches valuable lessons about money, and be sure to give them a percentage of what you save as their allowance.
3.Sign up for frequent-shopper cards.
You will end up giving up brand loyalty because you'll be going for whatever is on sale. But there is no doubt you'll save money.
4.Buy the store’s own brand.
Most stores offer a 100%, money-back guarantee on their products and most of today's store brands are of the same quality or exceed the quality of name brands. This alone can save you 15% or more.
5.Buy produce in season or from local growers.
It’s tastier, more nutritious (as it had a longer growth cycle and was picked when ripe) and less expensive. For those fruits or veggies that are not in season, head to the frozen food case. Frozen and canned fruits and veggies are picked and processed at the height of flavor and can be up to 50% less than their out of season imported

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Discussion

Session I - Questions:
1. Share your tips on how you can save big bucks $$ on your grocery shopping list.
2. How much money do you spend on your monthly budget for living? How do you keep the budget?
3. How do you distribute monthly salary in living expense, entertainment, investment, and others?

Session II – Questions:
4. With the rising prices of oil, food, housing, and raw materials, what is your plan to resist the effect of the global inflation?
5. Do you have resources as an extra income to subsidy the living expense besides monthly salary?

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Agenda
6:45 ~ 7:00pm Greetings and free talk among members and guests /taking individual orders/getting newcomers' information
7:00 ~ 7:10pm Opening remarks/ Brief self-introduction/ Grouping (Session I)
7:10 ~ 7:40pm First discussion session
7:40 ~ 7:50pm First summarization
7:50 ~ 8:00pm Regrouping and taking a break (intermission)(Session II)
8:00 ~ 8:30pm discussion session
8:30 ~ 8:50pm Acting(vote/rewarding)
8:50 ~ 9:00pm Concluding remarks/feedback from newcomers/ announcements

聚會時間：2008/6/4 (星期三) 請準時 6:45 pm 到 ~ 約 9:00 pm 左右結束
聚會地點：日安。KAFFA 北市南京東路三段303巷24號 (02)2719-7895
捷運南京東路站（木柵線）
走法: 出捷運南京東路站後, 順著慶城街直走 3 分鐘到 "萊爾富便利超商" 時, 右轉直走 30 公尺即可看到 "日安。KAFFA"

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[Bill Yu]

Saving money is critical.
I found articles about saving money.

Cheers雜誌: 薪水不漲，省錢生財有妙方！
http://www.cheers.com.tw/doc/print.jspx ... aa04d8054d

共乘網站 禁帶寵物 座位分級…共乘怪咖多
http://udn.com/NEWS/NATIONAL/NATS9/4364341.shtml

[Kooper]

Though being offered at lower prices, I don’t recommend purchasing shopping mall brands of commodities. It is an illusion that shopping mall brands are of the same quality as name brands even if they are produced by the same commodity vendors. My reason is shopping mall only have the know-how to run a shopping mall, they have no idea how to produce the commodities they sell, not to mention how to guarantee its quality. Needless to say, the goal of companies is always maximizing their profits. When facing customers lacking expertise required, chances are that commodity vendors will reduce their product quality levels.

[Kooper]

It is imperative for us to think outside the box and develop creative way to save money when facing rampant inflation.

[technobabel]

Shouldn't we just be glad that we are not in hyperinflation? Well, at least not yet.

In economics, hyperinflation is inflation that is "out of control," a condition in which prices increase rapidly as a currency loses its value. Formal definitions vary from a cumulative inflation rate over three years approaching 100% to "inflation exceeding 50% a month."

Here comes a crash course in hyperinflation:

[Sherry Liao]

Hi Wayne Chiang, I bet you don't know any song about "inflation". Do you?

[technobabel]

Songs about inflation? Well, that is a toughy.
Can't think of anything off the top of my head.
Maybe it is because I don't know enough about country western music.
There are plenty of songs in which one can indulge during times of inflation.
If desperate times calls for desperate tunes that doesn't drag you down,
Please consider this classic from Elton John:



With this song one can always say, "we might not be able to afford anything but at least we still have each other."

[Just JJ]

Though being offered at lower prices, I don’t recommend purchasing shopping mall brands of commodities. It is an illusion that shopping mall brands are of the same quality as name brands even if they are produced by the same commodity vendors. My reason is shopping mall only have the know-how to run a shopping mall, they have no idea how to produce the commodities they sell, not to mention how to guarantee its quality. Needless to say, the goal of companies is always maximizing their profits. When facing customers lacking expertise required, chances are that commodity vendors will reduce their product quality levels.

Kooper, Maybe I heard different story. I heard "mall brand" is the mall outsouring a product,
and the mall seeking one manufacturer who is specialized in one particular product and simply
put on a new package labeling the mall's name on it.
Toilet pater, for example, with Tesco's name on it might be produced by 五月花.
If I have been wrong, please let me know....

By the way, searching for adding income (開源) will be another way around to "save expense"? Does it count?

[Kooper]

Though being offered at lower prices, I don’t recommend purchasing shopping mall brands of commodities. It is an illusion that shopping mall brands are of the same quality as name brands even if they are produced by the same commodity vendors. My reason is shopping mall only have the know-how to run a shopping mall, they have no idea how to produce the commodities they sell, not to mention how to guarantee its quality. Needless to say, the goal of companies is always maximizing their profits. When facing customers lacking expertise required, chances are that commodity vendors will reduce their product quality levels.

Kooper, Maybe I heard different story. I heard "mall brand" is the mall outsouring a product,
and the mall seeking one manufacturer who is specialized in one particular product and simply
put on a new package labeling the mall's name on it.
Toilet pater, for example, with Tesco's name on it might be produced by 五月花.
If I have been wrong, please let me know....

By the way, searching for adding income (開源) will be another way around to "save expense"? Does it count?

My point is although toilet pater with Tesco brand are also produced by 五月花, they are definitely worse than 五月花 brand in quality because Tesco have no idea what to request in terms of quality. Facing a purchaser like Tesco who have no know-how at all, there is no motive for 五月花 to keep the same quality as their own brand.

The opposite happens in notebook market, years ago when IBM was still an American company, many users like me knew that IBM notebook was better than Acer in quality even though IBM notebook is also made by Acer. The reason behind it is IBM own all the know-how to design and make notebook on their own; they outsource notebook design and production not because of the lack of know-how but to cut cost. Therefore, they know very well how to request Acer to reach the highest quality level. You may ask since Acer have the ability to make such a good product, why their own brand is not as good? As I said above, the goal of an enterprise is not to make the best quality product, but to maximize their profit. As long as they think a better quality is not necessary, they have no desire to go for it.

Do you agree my point?

[Anne Lin]

The self-brand is to provide another option to customer. The company of self-brand seeks contract manufacturer to produce the products and sell those products through its own channels. So it certainly can offer prodcuts with the low price and same qulity, we assume that, comparing with other brand's product. I agree that some of self-brand products have less quality, even though the company claims that products is manufactured by big-name company. But I also found that some of self-owned brand products still have certain quality. Sometimes you get what you pay. Everything come with price. The highest principle is to shop around to get the best deal (貨比三家不吃虧). Don't you think so?

[technobabel]

I don't recall ever hearing the phrase "mall brand"
Where did you hear that from?
From Wiki:

Store brands (house brands in the United States, own brands in the UK, and home brands in Australia) are brands which are specific to a retail store or store chain. The retailer can manufacture goods under its own label, re-brand private label goods, or outsource manufacture of store brand items to multiple third parties - often the same manufacturers that produce brand label goods. Store brand goods are generally cheaper than national brand goods because the retailer can optimize the production to suit consumer demand and reduce advertising costs. Goods sold under a store brand are subject to the same regulatory oversight as goods sold under a national brand.

[Georgia]

The less I go out, the less unnecessary expenses there are.

[Just JJ]

The opposite happens in notebook market, years ago when IBM was still an American company, many users like me knew that IBM notebook was better than Acer in quality even though IBM notebook is also made by Acer. The reason behind it is IBM own all the know-how to design and make notebook on their own; they outsource notebook design and production not because of the lack of know-how but to cut cost. Therefore, they know very well how to request Acer to reach the highest quality level. You may ask since Acer have the ability to make such a good product, why their own brand is not as good? As I said above, the goal of an enterprise is not to make the best quality product, but to maximize their profit. As long as they think a better quality is not necessary, they have no desire to go for it.

Do you agree my point?

Yeah! I see your point.
I feel like we brought up an ethical issue here.

[Kooper]

I don't recall ever hearing the phrase "mall brand"
Where did you hear that from?
From Wiki:

Store brands (house brands in the United States, own brands in the UK, and home brands in Australia) are brands which are specific to a retail store or store chain. The retailer can manufacture goods under its own label, re-brand private label goods, or outsource manufacture of store brand items to multiple third parties - often the same manufacturers that produce brand label goods. Store brand goods are generally cheaper than national brand goods because the retailer can optimize the production to suit consumer demand and reduce advertising costs. Goods sold under a store brand are subject to the same regulatory oversight as goods sold under a national brand.

Hi Wayne C.,
Thanks for correcting me. Mall brand is just a word I coined.

[Georgia]

Hi Wayne C.,
Thanks for correcting me. Mall brand is just a word I coined.

And I was going to say I heard it from Kooper.





===

Kooper 不要打我～