The Allstate Blog » Young Professional

What has the Drought Done to Food Prices?

Brendan — Wed, 19 Dec 2012 12:00:37 +0000

If you’ve gone grocery shopping lately, you’ve probably noticed prices creeping up. In fact, the U.S. Department of Agriculture estimates that the average family of four with a 2- to 3-year-old child and a 4- to 5-year-old child on a moderate-cost plan spent about $861.60 on groceries in June 2012, compared to $836.20 last year. But Teri Gault, CEO and founder of grocery savings website TheGroceryGame.com, says we haven’t seen the worst of it yet. “Some experts are saying they believe grocery costs are going up 10 percent across the board,” she says. “There’s a six- to nine-month lag. Rather than raising prices suddenly, producers have talked about raising prices incrementally.” This summer’s drought and earlier-than-usual cattle slaughtering (due to rising feed costs) could haunt us at the checkout for months to come. Gault offers her recommendations for coping with rising food costs:

Know your sizes

Some food producers have maintained their prices but shrunk packaging sizes, so you’re paying the same but getting less food. When buying packaged foods like peanut butter, milk or ice cream, check the number of ounces on the package so you know if you’re still getting a good deal. Fortunately, though, “a lot of the store brands have not shrunk,” says Gault. “Name-brand peanut butter has gone down, but (certain store brands) have stayed the same. It’s a good option, especially when it’s on sale.”

Shop on a 12-week cycle, not a weekly basis

According to Gault, “The whole mindset of shopping each week for only what you need doesn’t work because of the 12-week sale cycle.” Rather than dashing out for butter or bread when you run out, Gault suggests buying only when it’s on sale, typically every 12 weeks, and keeping your pantry stocked. “Except for fluid milk and fresh produce, things have a long shelf life,” she adds. “Yogurt and eggs last five weeks. Think of it as an investor.” Any time there’s a limit on an item (for instance, if you can buy a maximum of 10 boxes of cereal for $1 each), Gault says that’s usually a loss leader for the store, so the price is as low as it’s likely to go.

Store food carefully

When you’re stocking up every 12 weeks, food storage becomes especially important. Gault suggests writing the date on packaged goods in permanent marker so you’ll remember to use older items first. Most foods (but notably not ham) can be frozen for later, but don’t just toss them in the freezer, says Gault. When freezing fresh berries for smoothies or pies, wash them first and lay them out on a tray or cookie sheet so they won’t freeze in clumps. Once they’re frozen, toss them in a plastic bag and store in the freezer. When freezing meats, make sure the package isn’t torn and write the date you’re placing it in the freezer on the package. With any frozen item, “if you start seeing crystallization, it’s time to eat it,” adds Gault.

Cook more and freeze extras

Cooking from scratch is often cheaper than buying prepared foods, so Gault suggests cooking a double batch of lasagna or a casserole and freezing the extras in an airtight container for nights when you need a quick meal. Also, a slow cooker can be a budget cook’s best friend because it makes quick and easy stews, chili and other items. Plus, as Gault points out, “cheaper cuts of meat will be juicy and tender” after several hours in a slow cooker. Groceries can add up to a large part of your budget. Because food is something you can't live without, rising food costs can eat up money you need to use toward other goals, such as paying off debt or saving for retirement. If the high price of food is making it difficult for you to stick to your budget and stay on track with your savings plan, you may want to check out these tips on how to make a personal budget. For more information on smart ways to manage your financial needs, visit Allstate.com's section on Managing Your Insurance and Retirement Throughout Life.

My First Apartment: How the World Sees It

Brendan — Thu, 08 Mar 2012 15:02:55 +0000

Renting your first place after college is a big deal. Living with roommates, paying bills, maintaining a social life and trying to furnish an apartment on a not-so-large paycheck can be challenging. Then, of course, there are the parties that may last into the wee hours of the morning, and the constant worry from parents that you live in an unsafe tenement on the worst street in the world. But to you, none of this is true, because you love your place and feel grounded in your new life, despite the creepy landlord and "colorful" neighbors.

Valentine’s Day on a Budget

Admin — Wed, 08 Feb 2012 23:26:42 +0000

Valentine’s Day is right around the corner and it’s hard to not get caught up in the flood of red and pink hearts and Cupid’s arrows in flight. When my husband and I first started dating, I had all sorts of ideas about what would await me on February 14—an exotic trip, fancy dinner and myself dripping in brand-new diamonds. But reality sunk in as I realized that neither of us had the funds or free time to search out such extravagant gifts. Here are a few ways I learned to manage my expectations for Valentine’s Day as our relationship matured:

Think realistically

The film industry is saturated with sweeping gestures—blaring a boombox outside a bedroom window, public serenades from football stadium bleachers, scaling a fire escape to declare undying love—all of which look beautiful on the big screen but aren’t something you’d encounter in everyday life. Looking to chick flicks for clues about what your significant other might surprise you with this Valentine’s Day will likely leave you disappointed. Instead, try focusing on the little things he or she does day-to-day to show their love.

Make it meaningful

Classic Valentine’s Day gifts like diamond jewelry, rose bouquets and couture perfume can add up quickly—and while they’re nice to look at, don’t always convey the importance of your relationship as well as less expensive gifts can. In lieu of something fancy, suggest that you each create a homemade gift, such as a photo album of your favorite pictures together or a personalized coupon book.

A few years ago, my husband (then-boyfriend) and I celebrated the occasion by re-creating our first date at home—he made a simplified version of the dinner we ate at an Italian bistro and rented a DVD of the movie we saw in the theatre. You may also want to consider combining efforts to splurge on an experience you can share, such as a couple’s cooking class or day trip to a nearby park.

Say it simply

Last year, we scrapped gifts altogether and each used the hour we would have spent shopping to write a list of things we love about the other person. This was so much fun—and gave me a chance to really think back on the wonderful memories we’ve shared through the years. Then, we read our lists aloud during a cozy dinner at home. I couldn’t have asked for a more perfect present—and it didn’t cost us a penny.

Sometimes, less truly is more. By shifting the focus from what your loved one will bring you this Valentine’s Day to what they bring to your life every day, you may find this to be your happiest couple’s holiday yet. And if he does go big for some diamond earrings, make sure those beauties are insured.

The post Valentine’s Day on a Budget appeared first on The Allstate Blog.

Why Saving for Your 401(k) Matters

Lindsey — Tue, 07 Feb 2012 23:18:28 +0000

When I first got my own place, I felt overwhelmed by the mountain of monthly bills I was responsible for. Paying for rent, cable, Internet, groceries, car insurance and student loan payments added up fast—and that’s not including my social tab! So when my company gave me the option of enrolling in its 401(k) plan, I was hesitant to opt in. The last thing on my mind was how my life would look 30 years down the road. And with so many fixed expenses, it seemed impossible to set anything aside on my entry-level salary.

But after talking to a family member who’s a financial adviser, I learned that it’s never too early to start saving for retirement. Here’s why:

1. Free Money from Your Employer

Money doesn’t grow on trees, but it can really add up when your employer sends some extra your way. Many employers will match the dollar amount you put toward your 401(k) —some match 100 percent of your contributions, but most will match a portion of what you contribute. With a match program, not only will you have more money going into your 401(k), the money you do have will accrue more interest.

2. Tax Benefits

Having a 401(k) can lower your taxable income. The contributions you make to your 401(k) happen pre-tax—the income isn’t taxed until the benefits are paid out to you later in life. This allows your money to compound more quickly, which means you save more money in the long run. (I can already see the dollar signs…)

3. Flexibility

If you change jobs, you can usually move your 401(k) over to another retirement account fairly easily. When you’re unsure of where the future will take you, like most of the 20-somethings I know, that’s a huge plus.

4. The Future Matters

You may spend a third of your life in retirement, so in order to maintain a solid standard of living, you’ll need more money than you think. Experts recommend that you start saving at least 6 percent of your salary in your 20s and increase that amount (even if just a tiny bit) every year. If you start saving now, you won’t have to set aside as much later on to reach your retirement goals. While it seemed unimportant at first, I totally get why it makes sense to start saving for the future now. It’s about securing a future for yourself. And there’s nothing like the satisfaction of feeling young, free—and financially responsible.

Market Yourself for a Promotion…and More Money

Admin — Thu, 19 Jan 2012 18:49:35 +0000

When I first started with my company, I put in a lot of late hours and weekends trying to master my new role—and prove they’d hired the right person. Eventually, I learned the ins and outs of my job and regained my personal life. This was great for a while, but as time passed, I missed that feeling of being challenged each day. Plus, I knew that earning a larger salary would help me meet the financial goals I had for the next few years, like buying a home and new car.

In today’s job market and economy, it seems there are only two ways to increase your salary: Switch jobs to a higher-paying position, or ask for a promotion. Few and far between are the times when people are given raises simply based upon performance or cost-of-living increases. You’ve either got to ask for it, or go find it. I’ve never been the type of person to wait for good things to happen but I also wanted to stay with my employer, so I decided to work toward the promotion I wanted. Here a few tips that helped me move up the company ladder:

Highlight your contributions

In order to make a move up the ladder, you’ve got to show your co-workers and supervisors you’ve got what it takes. You don’t want to brag, but don’t downplay your successes, either. During weekly status meetings with my boss, I made sure to mention goals I’d helped my team reach since our last meeting and future benchmarks I planned to meet. This helped show that I had the potential to take on more responsibility—and do so with confidence!

Don’t be shy about career goals

Your chances of a promotion improve dramatically if someone actually knows you’d like one. Use a little word-of-mouth marketing and, when appropriate, talk about your goals with your boss and other co-workers. Just be sure to keep the focus on your desire to be challenged and grow in your role with the company, not on your desire to earn more money. Also, see if someone higher up would be interested in mentoring you. Before my promotion, I had lunch with a senior co-worker once a month to discuss my progress. She helped me see work situations in a totally new light—and provided a ton of constructive advice.

Dress for the job you want

Whether your aspiration stems from wanting a larger salary—one to help you save for a new car or the home of your dreams—or you’d just like more responsibility, put some thought toward the job you see yourself doing a year or two from now. Then, start acting the part. I took cues from people who had the position I wanted, taking a look at how they dressed, spoke with other employees, and contributed to meetings and brainstorm sessions. I also tried to show leadership skills in less formal ways, such as helping to organize the company’s holiday party. While it took a few months for my “strategy” to pay off, I’m glad that I took control of my career instead of waiting for someone else to notice my hard work. Now, when I get up in the morning, I’m not exactly sure what to expect—but I wouldn’t have it any other way.

5 Reasons Young People Need Life Insurance

Brendan — Tue, 13 Dec 2011 16:06:07 +0000

Most young people think that they don’t need life insurance. After all, mortality is far away from twenty- and thirty-somethings. There are, however, certain cases when young people do need life insurance to guard against the unexpected. Life insurance doesn’t have to be expensive. Term life insurance provides coverage for a limited period of time (for example, 10 years, 20 years, or 30 years) and is one of the most cost-effective ways to purchase life insurance. Here are five situations when you should consider having life insurance.

1. You have parents who are depending on your income. We typically don’t think of young, single people as folks with dependents. But if you are the main source of support for your parents, siblings, or relatives, you need to get life insurance as much as the sole earner who is supporting a spouse and three kids. 2. You have a partner or spouse who is depending on your income, especially if you have a home. Many times a young couple purchases a home based on both of their incomes. A life insurance policy would provide mortgage protection. Even if the life insurance isn’t big enough to pay off the entire mortgage, the money will give the surviving partner time to figure out the best next step forward. Or, if you are supporting your partner through school, the life insurance proceeds will ensure that your partner can continue with his or her education. 3. You want to give your partner or spouse time to deal with their grief without worrying about finances. Think about how devastated your partner would be if you died. Money can’t bring you back, but it can provide a cushion for your partner. 4. You want to have money set aside for funerals, especially if you would like a burial. According to the National Funeral Directors Association, the average cost of a funeral was $6,650 in 2009. This cost does not include cemetery or headstones. If you want to be buried, a plot of land can cost up to tens of thousands of dollars. The cost of cremation is lower at $1,000, according to the National Cremation Research Council. 5. You are able to buy affordable term life insurance. Typically, a $25,000-$250,000 term life insurance is very affordable for young healthy folks. Many companies also offer free or discounted life insurance coverage. A life insurance policy will hopefully be something a young person never has to use (knock on wood!), but it does provide protection—and should provide comfort—to loved ones in case of an unexpected tragedy.

Well Heeled is a guest blogger from WellHeeledBlog. In exchange for sharing this content, the Allstate Community has compensated her via cash payment.

Spruce Up Your Apartment on a Budget

Lindsey — Thu, 01 Dec 2011 22:59:34 +0000

Since starting my first full-time job, all I want to do at the end of the day is relax on my couch and enjoy the peace of my apartment. But when I moved into my own place earlier this year, my surroundings felt anything but serene: The walls were bare and my furniture was a hodgepodge of hand-me-downs from my parents and former roommates. It felt more like my old dorm room than a home. While this didn’t stop me from enjoying frequent dates with my DVR, there was no denying that my place needed some sprucing up.

By spending the past few months on a decorating mission, I managed to turn my small city apartment into an urban oasis—and stayed within my limited budget. If you’re looking to makeover your place without spending a fortune, here are some tricks I learned about decorating on a dime: Secondhand furniture first I started by scouring the websites of all the major furniture retailers, but it didn’t take me long to realize there was no way I could spend $100 on one chair when I needed four! Then I began rummaging around the thrift stores in my area. Behind dozens of ancient artifacts were several hidden gems that just needed a little work. With a good cleaning and some durable spray paint, these pieces fit perfectly into my décor—and provided fun pops of color in my otherwise boring space. I wouldn’t suggest buying everything for your place at a thrift store, however. Shelving units and dining room sets are often in great shape, but buying a used bed and couch could land you a few unwelcome roommates (yes, I’m talking about bed bugs). If you’re in the market for a couch, start by asking family members and friends if they have any items you can take off their hands—and remember that a good couch cover can do wonders. Function over form During one of my many thrift store trips, I fell in love with a must-have vintage side table. I couldn’t get over its adorable flower-print pattern and asymmetrical style. I knew I should stay practical, so I ended up taking a traditional white table home and threw a floral fabric on top of it. It was the perfect compromise and I’ll be able to use that table in many apartments—and decorating schemes—to come. Fabric can be a cheap, easy way to spice up any piece of furniture. If there’s one thing you choose to splurge on, I’d suggest it to be your bed. I bought a new mattress from a big box retail store and paired it with a slightly used bed frame I found on Craigslist. Now, my only problem is that I don’t want to get out of my comfy bed in the morning! When choosing your bed, or whatever item you decide to splurge on, make sure it’s traditional enough to stay in style for years to come. Remember, if there’s something valuable in your apartment, you’ll definitely want to consider renter’s insurance to ensure it could be replaced in the event of a theft, fire or similar disaster. DIY décor During my search for cheap accessories, I would wander around home stores and think, “I could make that for less!” So, that’s exactly what I did. Adding a fresh coat of paint and colorful knobs gave my old bookcases and end tables a total facelift. I also searched through a bunch of decorating blogs and magazines—they give great tips for creating budget-friendly wall hangings, pillows, artwork and whatever else you think will add some life to your place. Living on a budget doesn’t have to be boring. By figuring out your decorating priorities and staying true to your personal style, you can create an inviting space of your own at a fraction of the cost.

How to Deal with an Uncooperative Landlord

Lindsey — Wed, 19 Oct 2011 14:03:07 +0000

When I moved into my first apartment after college, I was thrilled about finally having my own place. What I didn’t count on was the family of mice that would also make a home in my cozy space. Despite living with rodent roommates for more than six months, my landlord didn’t seem to care much about helping me resolve the situation. Needless to say, the second my lease was up, I bid those furry ‘friends’ adieu.

Now, I have a great landlord and a solid living situation, but I sure learned a few lessons along the way. If you’re looking to protect your rights and your property from the pitfalls of a ‘bad’ landlord, here are some things to consider:

Lease signing and security deposits

Once you sign a lease, your landlord may request a security deposit to cover any damages made when you’re renting. While this amount can be costly—often equal to your first month’s rent—your state may have legal limits to what you can be charged. If your deposit amount seems outrageous, read through your state’s tenant laws to prevent yourself from being scammed. Also, take care to document all minor scratches, scuffs and stains present on move-in day. The last thing you want is to be charged for damage that wasn’t your fault.

Asking for repairs

It can be annoying when your landlord ignores requests for small repairs or is slow to recognize there’s a problem. As a renter you shouldn’t have to deal with a leaky faucet that keeps you up at night or a torn screen that invites creepy crawlers inside, but in most cases, you can’t withhold rent when minor details like these aren’t fixed. If initial attempts to get your landlord’s attention don’t succeed, try these steps to address the issue:

Write it down: A written request given to your landlord can be a great reminder and provides an opportunity for you to give a detailed description of the problem(s) you’re having.

Emphasize that the issue might get worse: Explain to your landlord that a leaky faucet could turn the sink into a full-on waterfall, or that the hole in your wooden steps could be the culprit if someone takes a spill. Be explicit about how problems like broken locks or burned-out lights could put you and other tenants at risk.

Take action if written attempts are ignored: According to legal website www.nolo.com, there are different ways to proceed when your landlord just won’t listen. Consider mediation, where a trained mediator will meet with you and your landlord to discuss the situation and help you come to a compromise about fixing the issue.

Take it to court: If worse comes to worst, suing your landlord in small claims court can lead to a settlement. If you can prove that unaddressed problems decreased the value of your unit, a judge may award you the difference between what you’ve been paying in rent and the amount the unit’s actually worth.

Preparing for the worst

Most state and local laws require landlords to maintain a safe living environment for their tenants, including taking care of certain repairs. Still, it’s better to prepare for the unexpected when your landlord-tenant relationship is a little shaky. Check out renters insurance to find out how your personal items can be covered if you’re suddenly displaced due to theft, fire, vandalism or water damage. And best of all, these policies often start at a small rate, so you can stay protected—and still afford your student loan payments.

Is Insurance Really Necessary?

Brendan — Tue, 26 Jul 2011 14:48:37 +0000

When you are young and single, the last thing you probably think about is insurance. From car and health insurance to home or renter’s insurance, monthly premiums can add up quickly and seem unnecessary if you perceive that you are not benefiting from owning insurance. Recently, I overheard a conversation between two graduating college seniors. They were talking about whether or not they needed insurance at all because all the extra coverage seemed unnecessary. But when it comes down to it, there are certain types of insurance coverage that are absolutely necessary, even if you are on a tight budget. Even if you don’t make any claims under the coverage, the extra security insurance can provide, just in case of an emergency, is well worth the money you pay. Here are three types of insurance that recent college graduates definitely should not live without:

1. Health Insurance

With Obama’s recently passed Health Care Reform Bill; you may be covered under your parents’ group health insurance plan until you are 26. Although you are probably at the peak of your health at 26, health insurance is one of the most important investments you can make. Even if you’ve got an impenetrable immune system, an out-of-the blue visit to the emergency room or the X-Ray office can cost thousands (and potentially hundreds of thousands) of dollars. And you certainly don’t want to learn the hard way about the retail price of certain prescription medication. Often times, you can get health insurance through your employer to help keep your costs down.

2. Renter’s Insurance

While homeowners insurance should be a given if you own your own home, most renters overlook the significance of renter’s insurance. Contrary to popular belief, your belongings are not covered under your landlord’s insurance policy. Renter’s insurance can be extremely affordable and may even cover items stolen out of your car. Unfortunately, many people often underestimate the value of their belongings. From your computer and television to all of your clothes, the value of the things in your apartment could possibly be in the thousands. Renter's insurance can help protect your personal belongings in your apartment from theft, fire or other unfortunate situations. If you also have a car, you may even get a discount by getting both policies form the same company.

3. Auto Insurance

Auto insurance is not only required by law in many states, but it is also a good investment to protect yourself from many of the costs of damages when you are in an accident. If you live in an area with high rates of vandalism or car theft, it’s also a good idea to purchase comprehensive insurance which can provide coverage when your car is damaged by a storm, vandalism, or fire note caused by collision. And the good news is, you don’t need to skimp on car insurance to cut costs. Most insurance companies offer discounts if you take an approved defensive driving course, if you bundle your renter’s or home and car insurance policies and if your car has certain safety features, so be sure to ask about them when talking to your agent.* *Certain insurance coverages are subject to deductibles, or the amount of money you agree to pay out-of-pocket (on your own, without the insurer’s help) when you make a claim.

KathyD is a guest blogger. In exchange for sharing this content, GoodHandsCommunity.org has compensated her via cash payment.

Ready to Compete at the Corporate Level?

goodhandsgiveback — Tue, 31 May 2011 20:29:29 +0000

I have had a few contracting opportunities lately where the suppliers have dropped out of the bidding process. Suppliers work long and hard to get the opportunity to compete but when faced with the demands of competing at the corporate level, it is disappointing when suppliers determine they are not ready, especially after the request for proposal process has begun. No matter the reason for withdrawing from the bid, this will impact the supplier not only for this opportunity but most likely future bids.

So before you consider approaching a corporation about doing business, there are a few questions you need to ask yourself:

Are you on point?

Do the products or services you offer really fit the needs of this corporation? Before you make contact, do some research and be prepared with a pitch that will effectively explain how you can support that corporation. Don’t contact a corporation just because they have a supplier diversity program and you hope you will be a fit.

What is your core capability?

In your zeal to win business with a corporation, don’t overstate your capabilities. No supplier can do it all and I am very wary when I encounter a supplier who answers yes to every question I pose when it comes to their competence and proficiency. If you are invited to bid based on an overstatement, it will be a disappointing outcome for everyone involved.

Are you financially ready?

Corporations will research the financial stability of your firm. Are you ready to demonstrate that you have the necessary financial strength to support the service and insurance demands corporations require? If the corporation wants to expand their business with you, do you have the financial backing to grow?

Who is the incumbent?

Who currently supplies the corporation with the goods or services you offer, and what makes your firm better? Is your pricing competitive and your service on par? While your status as a certified diverse supplier is valued, bids are awarded based on price and service.

Is second tier a better path?

Not all relationships with corporations need to be direct. Second tier provides another avenue that can bring you business. If you are not yet ready to compete at the corporate level, second tier may serve you well.

Intra-Council Business Relationships

Before pursuing corporate activity, you may want to consider establishing a track record with other members of your local council. Your local council is your business partner and its members are potential clients, too. Look for opportunities to collaborate by strategically aligning your businesses, buy and sell to each other and where appropriate consider partnerships.

But no matter the size of the company you are looking to do business with, a few general rules apply: be patient, be ready to build a relationship, and be ready with the right products and services.

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