As owners of a transmission and repair shop in Eufaula, Bridget and Chris Downum, say they know the importance of keeping a budget.

“Because of our shop, we need to know how much money we’re going to spend on food and other things,” Bridget Downum said while she and her husband bought groceries Monday afternoon at Save-A-Lot in Muskogee.

However, keeping and sticking to a budget is not as easy as it used to be, Downum said.

“With two kids and one on the way, our budget changes a lot,” she said. “We’re just trying to get more for our money.”

Fluctuating gas and food prices aren’t making things easier for the Downums or other area families to maintain a budget, but experts agree that keeping a budget is just as important as ever.

Margo Mitchell, president of Consumer Credit Counseling, said people must remember to prioritize fixed expenses when planning their budgets.

“First thing you need to budget for is your landlord or mortgage company, then plan for your car expenses (payments) and utilities,” Mitchell said. “Other expenses are flexible, where you can make adjustments.”

Jon Kolb, an agent with State Farm Insurance, said, “First, people should write down their budgets.”

“Decide what is discretionary and what is mandatory,” he said. “And you need to eliminate credit card debt, either eliminate it or limit it.”

Remember to include insurance costs in your budget and visit with your agent about what changes you have made in the past year, Kolb said.

Mitchell suggested tracking down all their money transactions over a week, “even when we go to the automatic teller machine.”

That way, people know how much money is spent on incidental or unnecessary items, she said.

Robert Hall, manager of the Save-A-Lot, 2105 N. York St., suggested shopping around and looking at ads to help decide where and when to buy certain groceries.

He said he sees more people buying large volumes of food rather than just coming in for an item or two.

Hall said he has noticed a slow decline in milk prices and expects food costs to go down over the next few months “if gas prices stay down.”

The U.S. Bureau of Labor Statistics showed the average price of milk in Oklahoma dropped from $4.20 per gallon in Nov. 2007 to $3.95 in Nov. 2008. However, the bureau showed overall price increases in most other food areas for the same period. For example, bread prices rose by more than 16 percent from Nov. 2007 to Nov. 2008.

Downum said she tries to buy items all at once, especially when they are on sale.

“We try to get food a month ahead,” she said. “It’s more expensive to buy every week than it is to buy in bulk.”

Yet, she said she finds herself buying incidental groceries almost every day.

“I have two teenagers,” she said.

Downum said she comes to Muskogee from Eufaula once a week to go to her OB/GYN. She said she takes advantage of these visits by shopping at Save-A-Lot.

“We don’t do a whole bunch of splurging anymore,” she said. “With gas prices down, even if it saves $10, it’s worth it.”

Gas prices aren’t staying down, though.

Chuck Mai, spokesman for AAA Oklahoma, said the state average price of gasoline in the pump rose by eight cents in the past six days to $1.58 per gallon.

“It really depends on the price of crude oil going up to $40 per barrel based on concern in the Middle East,” he said.

Mai said the best way to budget gasoline or travel costs is to “expect the worst and hope for the best.”

“It’s always good to overestimate what you think you’ll be paying for,” he said.



Reach Cathy Spaulding at 918-684-2928 or Click Here to Send Email