01 - Bacon and Banking

Budgeting For Bacon

One of financial planning’s basic commandments is: Lead a frugal life. But in this inaugural episode of Budgeting for Bacon, Host Kate Delamare offers a different path – one that balances smart money management with quality of life. She shows us how it’s possible to get in control of our finances while still savoring life’s pleasures. Like bacon!

Kate breaks down some important numbers, including what it costs annually to add a little extra bacon to a daily burger, and how it’s possible to make up that $361 expense without working longer hours or cutting back drastically elsewhere. She explains important banking basics, including the concepts of APY (annual percentage yield) and compound interest.

It’s a great day for saving money, says Kate, who offers fantastic resources (none of them paid sponsors) to help us identify bank or credit union that best fits our needs. If we’re willing to do a little legwork, we don’t have to leave interest savings on the table or wrestle with onerous minimum balances! BONUS: The episode wraps up with some important grocery store insight that every bacon-lover will want to hear.

Budgeting for Bacon teaches us how to be smarter with our money so we always have enough to live with joy! Kate believes you can – and should – still have your bacon!

You can learn more about this podcast by visiting www.budgetingforbacon.com. Join Kate next time as she explores Spicy Ramen & Risk.

KEY TOPICS:

FAST FACTS

00:53 – A bit about the history of bacon and the curing process, which dates back to 3,000 years ago in China.

01:44 – Kate explains some of the variances in style and cut between Canadian, U.S. and U.K. bacon.

02:15 – Where did the phrase “Bring home the bacon” originate anyway?

03:40 – A few interesting stats about bacon consumption and what it costs Americans each year. It’s more than you might guess!

BACON & BANKING BASICS

06:15 – Why are groceries such an important element when it comes to household budgeting? Kate shares insights about the interconnectedness between food and finance. Covid19 impacts, social occasions, workplaces – money decisions related to food are inevitable. It’s the universal necessity, and a constant.

08:48 – About fast food, that American tradition, and the premium you’ll pay to add bacon. That one meal a day with the bacon up-charge can quickly add up to an additional $361 extra per year. Is it worth the trade-off to allocate your paycheck this way? There’s an alternative and Kate shares what it is. (HINT: Have you compared banks lately?)

• Different banks have different ways of paying interest.
• High-yield accounts pay more than the national average of about .06-.07%.
• Do your homework to figure out how to avoid minimum balance fees.
• Consumers need to be alert to developments in banking, including online banking options with no minimum balances at all.

14:51 – Kate breaks down the APY – Annual Percentage Yield – and what it means to YOU. Banks calculate this differently and it can significantly impact the bottom line on your interest.

15:40 – A bit about the concept of Compound Interest.

17:16 – Check out some math that highlights the tremendous impact choosing the right bank – with the right APY – can have when it comes to maximizing savings.

18:52 – Kate shares the names of a few financial institutions (none of which are podcast sponsors) that offer favorable APYs.

20:03 – The difference between savings and money market accounts (not to be confused with money market funds, which are different). MMAs generally offer better interest rates, but also higher minimum balance or credit rating requirements. Some have limited monthly transactions, but they are still a great option for long-term growth.

22:08 – Kate explains the FDIC (Federal Deposit Insurance Corporation) and the protections it provides bank accounts. Credit unions – an excellent option – offer similar protections under NCUA (National Credit Union Administration).

24:17 – Figuring out where your minimum balance should realistically be and choosing a savings account accordingly. You don’t need a huge balance to get a good deal for your money.

26:00 – For listeners with up to $25,000, Kate recommends OneFinance, which is currently offering a 1% APY. Their website also offers a great budgeting tool (link below).

28:30 – Working towards that bacon money, you can actually make up that $361 bacon premium on your fast-food burger just by parking your money with a bank that optimizes savings and minimizes fees.

GROCERY STORE TIPS

29:53 – Some significant differences in curing processes will impact the quality of your bacon. Some brands inject extra sodium nitrate to cut corners, a practice known as “pumping.” Others use a fake smoke-flavored agent to simulate taste and color.

30:22 – When brands deploy “pumping,” the FDA requires them to disclose it in their ingredient list (often under the aliases sodium ascorbate or sodium erythorbate).

30:44 – Two examples are Oscar Meyer’s Naturally Hardwood Smoked and Hormel’s Black Label Brown Sugar Thick Cut. They sound fancy but aren’t necessarily the top of the line. Buyer beware when it comes to getting the best quality at the best price point!

ABOUT KATE:

Kate is passionate about all things personal finance and the many ways in which money intersects with quality of life. She’s also a pet-lover and travel writer who reveres the written word. She believes that each brand has a unique message and ability to impact lives. With a primary focus on web content, particularly blog posts and articles, Kate is dedicated to helping businesses share their stories. She also assists small businesses and non-profits with proofreading and editing existing content.

CONTACTS FOR KATE:

• (Website): https://www.budgetingforbacon.com
• (Facebook): https://www.facebook.com/TheKateDelamare/
• (Twitter): https://twitter.com/KateDelamare
• (Email): [e-mail]

FURTHER RESOURCES:

• Free APY Calculator
  https://www.axosbank.com/Tools/Calculators/APY-Calculator
• Savings rate examples and resources:
• https://www.navyfederal.org/checking-savings/savings/savings-resources/savings-rates.html
• https://www.cnbc.com/select/best-high-yield-savings-accounts/
• https://www.cnbc.com/2019/05/31/you-can-make-25-times-as-much-interest-on-savings-with-wealthfront.html
• https://www.nerdwallet.com/rates/banking/savings-accounts?origin_impression_id=19522b22-cd33-4dc7-b639-59f2d1569c42
• Current recommendation:
  https://www.onefinance.com/pockets/