Monday, January 3, 2011
I cannot believe the holidays are already over and we have entered 2011. But I truly love the way the new year makes me feel, especially this year. Being pregnant is playing a role in my organization, clean freak, money saving self this January I am sure, but I plan to use this motivation to our advantage and get some things in order. With a baby due in May, and medical expenses already being paid monthly, Aaron and I decided to take a critical look at our finances.
I just recently read Dave Ramsey's Total Money Makeover and it really added to my motivation to save more money and focus on our debt even more. All of our debt is in student loans. We don't have credit cards and our cars are paid for. With that said, we cannot be as radical as most people with debt since to make a difference in our financial situation, we will have to make changes in the everyday way we live and thus our debt reduction will be a bit slower paced than others.
A lot of the blogs I read are written by those who are/were working towards getting out of debt and blogged about their process and progress. Aaron mentioned I should try doing the same. I think one of the ways we are going to me most successful with the changes we are going to make will be for me to write it all down, document our progress (to keep me motivated), and to create a place where I can receive and share tips on saving money and keeping ourselves entertained on a budget. (That's going to be the hard part!)
So here is the plan we have put together:
1. Eat at home/take lunch to work. Period. Aaron and I did include a set amount in our budget for eating out, but just because we have it budgeted doesn't mean we have to spend it all. The overall goal is to come in under budget in as many areas as possible. We actually signed up for the E-Mealz weekly plan (www.e-mealz.com) and started using it this week. We are still unsure if this is going to work for us since we ended up spending much more than we usually do, but I think we just need to give it some time to figure out what works for us.
2. Use coupons for everyday necessities. We all need shampoo, laundry detergent, and cleaning supplies. I feel like this is one area where we can save the most money. It will take some time and dedication to search out deals and coupons, but I think it will be worth it.
3. Planning activities at home. One way we plan on curbing the desire to go out all the time when we get bored is to be very deliberate about planning special activities at home. We already have a budget for "date night" which is on Friday nights. We will also be including at lest one, possibly two, movie nights per week. This will be a great way to utilize out Netflix account. Aaron and I will also be including game nights. We have a couple of two player games and just purchased Monopoly for $10 with some Christmas money. Having these activities pre-planned with hopefully help us resist the urge to go out and spend an extra $20-$30 every time we get restless.
4. Search out free events in the city. There is always something happening in Asheville and there are several free publications that advertise monthly events. In addition to the movie and game nights at home, we will be searching out free events happening around the area so we get out of the house regularly.
These are the main areas we plan to save some money, pay down some debt, and get ready for the little one on the way. Just so it is said, we realize we could have additional savings per month if we lowered our rent cost. Currently it is still under what Dave Ramsey suggests to pay per month, but we know we could find something cheaper and are locked into a contract through May. Since the baby is due in May, if we do decide to move we will probably go month to month until July and move then to give us some time to adjust to having a baby in the house. It will be a tough decision to make since we absolutely love living here, but we have to do what is best for us overall.
I am in the process of looking for tips that work for others as far as saving money, cheap dinners, activities to do at home, etc. So, what works for your family? What are your financial plans for 2011? I would greatly appreciate you sharing how your family works with a budget and tips on staying within those boundaries.
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5 comments:
Audrey,
Good post. About 12 years ago Brenda and I decided to get out of debt. We did the Dave Ramsey "snowball" thing and put a serious whoop on our debt. This year we are doing a second round to pay off our share of the school debt and the loss I took with the cabinet shop closing.
Your approach is great and it motivates me t o see what you are planning.
Here are a few of my thoughts:
Credit cards are evil, even if you pay them off monthly there is always the temptation to overspend. If you have one, watch it like it's a thief ... because it is.
Brenda and I made the debt reduction a bit of a game. We set goals and rewarded ourselves when we met them.
Don't get overwhelmed. You know how you eat an Elephant? One bite at a time!
Good luck you guys! I know that you will do fantastic!
Audrey,
Great post! Since we are a teacher and teacher assistant we definitely live on a budget. To pay for Grad school things had to get a bit tighter. The only "luxury" we have is internet. I called last week and said I needed a better rate and they dropped me from $42 to $15 a month! Try just calling places to ask. It might be worth it!
I also shop a few different places. Grocery Outlet can have some good deals. Aldi is awesome, as well as Amazing Savings for produce. There is a place out in Brevard that sells everything for 60 cents a pound if you are willing to drive out (I don't make that trip any longer since I don't work at Mills River). I also signed up for all the email lists of our favorite restaurants and now I get BOGO and money off coupons in my email. This morning we both ate at Chic-Fila for free!!
In terms of fun things to do, this one is a bit more difficult. We look at the newspaper Take 5 section to see what is going on.
The best advice my grandfather gave me (and he has done WELL with what he has) was to pay yourself first. In our case, we tithe first, and then put a designated amount in savings. Then we just have to live on what is left! Good luck!!
Lauren
This is GREAT, Audrey! You and Aaron are awesome for learning how to cut back and save NOW...instead of years down the road.
Don't know if you have started buying diapers yet, but if you haven't, you should! Clip coupons and search out the sales at different stores. I found LUVS on sale at Harris Teeter this week for $5.99/jumbo pack! I had a $1 off coupon, so they were $4.99. That's a GREAT deal on diapers. I know people will prob buy them for you, but you will go through them fast. Start stocking up now and save the receipts. That way, if you need to exchange them for a diff. size later, it's easier. Do the same thing with wipes.
Also, it's not too early to start thinking about making your own baby food. Find some sites online that talk about it and get your tools together that you'll use (food processor, blender or whatever). Baby will start eating this around 5 or 6 months old! It is SO much cheaper than jar baby food, not to mention healthier.
I have tons of tips on saving $$ with kiddos if you're ever interested! We were POOR when Jake was born, and now we are money-saving freaks at our house! :)
Susanna
Thank you for all the posts!
Billy-
I totally agree that credit cards are evil. I just cannot justify having one when we can afford to pay for everything we would put on the card in "cash." (We use a debit card for most of our purchases, but the money has to be in the account for it to work.)
I would be interested to hear with what kinds of things you rewarded yourselves. I feel my brain would think of all the other things I could be using that money for. I get the justification though. It should keep me motivated, not discourage me!
Lauren-
Thanks for the idea of calling the internet company and talking to them about lowering the payments. I guess I have been too scared to do that type of thing, but it doesn't hurt to ask! And I think I might give Aldi a try for produce. I have heard their produce is great and it might make the meal plan we have started work better for us.
Susanna-
Starting to buy diapers now is a great idea! I have actually been thinking about which route I am going to take: cloth diapers/disposable diapers. I think I will probably do a combo of cloth at home and disposable when out. And I have read a little bit about making your own baby food. It just makes a lot of sense and you know what is being put into the food.
I would LOVE to hear your money saving tips for kids. We are already planning on going to the Wee Trade consignment sale in February to stock up on items for the summer. We are making a list and sticking to it!
Hey Audrey! I love the plans. We have also followed Dave Ramsey. He is great. We are currently saving up for a house. That is our big goal for the year!
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