Since our income is limited though, we have to be smart, watchful and prepared. That means having a budget and doing everything in our power to stick to it. Obviously life has a way of throwing a few curve balls, so we do our very best to prepare for those. It's purely by God's grace and miraculous blessing that, even after nearly 5 months of unemployment, we have yet to use our emergency savings.
I thought I'd share some of the ways that we keep expenses low. I know, I know. There are probably thousands of similar articles out there, and for the most part, they all say the same thing. I think my list is somewhat different in that I haven't found any other article that touts the same ways of saving money. Most of us don't like to be frugal "to the extreme", but check out the "extreme tips" if you'd really like to make a dent in your spending. It's a long list, but I guarantee that you'll find something worthwhile and practical for your family. Enjoy!
Groceries: I employ many techniques to keep our grocery bill down, but first I want to mention that double couponing is not available at any store in our area...that I have found...so the articles I've read that offer that as the only saving mechanism are worthless to me. I think these methods are much more practical.
- Menu planning: Each week before shopping, I look at our calendar for the week ahead and plan each meal. Then I make the shopping list based on that menu, and I stick to that list. If you plan your weekly menu in the middle of the grocery store, you're. :) Extreme Tip: Plan your menu based only on what's either on hand or what's on sale that week at the store.
- Leave the kids at home: If you're able, leave your kids at home or do the shopping when they're otherwise occupied. The only exception to this rule is if you are a parent to a child under 1 year. If your child is older, I don't need to explain why this rule is essential.
- Do an inventory: Always do a quick scan of the items you have on hand, so that you know exactly what you need. How many times have you had two or three bottles of one spice in your cupboard? Also take note of what you'll run out of before the next shopping trip in order to avoid a mid-week dash to the store. How many times have you gone to Target or Wal-Mart intending to buy only a couple of items, and you walked out $50 poorer?
- Buy generic: Believe it or not, generic brands have come a long way since I was a kid. Used to be that you'd never consider buying the no-name brand unless you were desperate. That really isn't the case anymore. With the exception of a few items, I buy the store brand for everything we consume. You will save a ton!
- Know your prices: Pay attention to what things cost otherwise you'll end up a victim of a supposed "sale" item. For example last month, I needed to buy some canned goods. Since I almost always buy the store brand, I am guilty of not always paying attention. That day, I did...and thank God! As it turned out, the store brand was about 20% more than the name brand that week. And because I had a coupon for that name brand, I saved even more than if I'd just mindlessly purchased the store brand. Extreme Tip: Create a price book, so there is no doubt whenever you ask yourself, "Is this a good deal?" I confess that I have not created a price book myself, but since we tend to buy the exact same items every week, I have a decent idea what stuff costs, when an item has gone up or when an item is a steal.
- Nix the soda, prepared foods and junk food: All the sugary drinks and pre-cut, pre-packaged, pre-cooked foods are hitting your bottom line much harder than you realize. Extreme Tip: Make a spreadsheet to track the various major categories of food items...dairy, produce, meat, junk food. Then use your receipts to plug in the numbers and do this for a month or two to see exactly how much you're spending on all those unhealthy and pricey items. I think you'll be surprised.
Clothes
- Create your own style: Who exactly decides what is "in" or "out" during the clothes season? We, the people? Hardly!! The fashion industry does. Do you think they might be motivated by greed to tell you that shirt is "so last year"? Have you ever walked into a trendy clothing store and wondered what was this designer smoking?? If you insist on wearing "trendy" styles, then I suggest you develop your own trend. I have a relative who frequently shops discount stores and thrift shops. She is always dressed in the cutest way, which is unique and much less costly than if she shopped at the mall. If you can avoid "trendy" and go for "classic", you'll be much better off in the long run. You can mix & match pieces as you acquire them, and you can wear them for years if they are well cared for.
- Never pay retail: Buy only from the clearance racks...no matter where you shop. The best time to find awesome deals is when clothes for the next season are on display. Let's face it. Unless you're planning to lose or gain a ton of weight, what you buy now for next winter will probably fit just fine. With kids, it can be tricky, but it is doable. Pay attention to dimensions not just size. Find a good consignment store in your area. Many accept only like-new items and sell at significantly lower prices. Many times the items are truly brand-new. Extreme Tip: Shop at thrift stores (Goodwill, Salvation Army, etc.) and garage sales. Yes, you will find a lot of junk, but in the midst of that junk will be a rare jewel. When I find those items, I am walking cloud nine for days. Knowing that I paid only $2 for an item when it originally cost $50 makes me food good.
Transportation: How much money you save in this area depends on where you live. If you're in the middle of a bustling metropolitan area, then mostly likely public transportation, bicycles and walking are good alternatives to driving. If you're like me and live in a much less "bustling" area, then you have to be intentional about your car usage. Plan trips accordingly. Kill two or three birds with one stone!
Organize: This is an area we struggle with at our house; it is totally chaotic right now, and I can never find what I need. At any one time, I probably have 5 million pens, half a dozen nail clippers and/or four rolls of packing tape...somewhere. Central organized spaces and containers will definitely impact your budget because you find items when they're needed. Sometimes you save just a few bucks, but other times you might save ten times that amount. Extreme Tip: Go through every nook and cranny of your house and get real honest with yourself. Discard, sell or donate about 10-20% of the items you touch...or more. The less stuff you have in your house, the less likely it is to be disorganized.
Household Cleaners: This is one area where I say do not buy generic unless you find a brand that works for you. Many of the cleaners at the dollar stores are so watered down that you end up using twice as much to get the job done. That's definitely the opposite of keeping expenses down even when the bottle of cleaner costs only $1. Find what works for you and stick with it, but always keep an eye open for sales and/or coupons....when you can multiple the savings and stock up at the same time. Extreme Tip: Make your own! Many cleaning products on the shelves today are nothing more than a few common ingredients and water. That's it?! I can do that myself at home and save a ton. In fact, I plan to try out several "recipes" next year. Also use microfiber clothes and old rags to clean with instead of paper towels.
Cut the Cable: You heard me. Get rid of the satellite or cable service. How many times have you wished for more hours in the day? And how many hours do you waste watching television? Hey, I'm not judging! I'm guilty of watching too much myself. But with the exception of some much needed rest, do I really need to watch as much as I do? What's wrong with reading a book, playing with my kids or talking to my hubby? There are tons of things we could do to replace the amount of time we spend watching TV. If you have to have certain programs, why not find out if you can watch that program free on the Internet? My favorite service is Hulu.com. They don't have everything on their menu, but they do have tons of options for viewing. We also pay $9 for Netflix, which allows us to watch thousands of movies and TV programs on our computer. If you're a sports fan, some of these options may not be possible. Watch the big game at a friend's house or visit the local pub.
Activity planning: Each week or each month...whatever works for you...check with local resources to see what's going on in your community. Schedule what you'd like to do or simply make a list. The next time someone says, "What are we going to do today?" you have a list handy. Better still, you can budget throughout the month for any high-priced activities instead of paying for it out of one paycheck. Extreme Tip: Search for only free or low-cost activities.
Utilities: Obviously keep the thermostat low in the winter and high in the summer...and turn off unused lights. Extreme Tip: Lower/Raise the thermostat to whatever number you are comfortable with. Then lower/raise it another two degrees. It will affect your monthly bill, and your body will acclimate to the new temperature within a short amount of time.
Short-Term Savings: Hubby & I don't have the luxury of saving for long-term needs like a new car or retirement...at least not until he's employed again. But we do save for infrequent expenses throughout the year, which has helped us in a number of ways. For example, we save for Christmas all year long. Instead of trying to raise a few hundred dollars at once...or worse instead of charging everything in the hopes of paying it off...we have the cash available to us when we need it. That helps us set a Christmas budget too, so that we don't overspend. We also save a little every month for car insurance premiums. Because we're able to pay each premium in one lump sum, we save even more because the insurance company gives us a 20% discount! You could apply this philosophy to that new gadget you're dying to buy. Instead of buying it immediately with credit, why not save for a few months until you can pay cash?
Pay with Cash: Speaking of which, re-train yourself to use only or primarily cash. This can be tricky if cash tends to disappear without a trace too easily...as is the case at our house. We use the checkbook. I'm sure merchants hate us for it, but that's too bad. Why not a debit card, you ask? Because studies have shown that folks mentally view a debit card as a credit card and will overspend by as much as 25%. There is a reason McDonald's and other fast-food joints started by taking debit cards and now credit cards. They know you'll buy more! I would much rather see the average shopper use a debit card over a credit card though because your bottom line is affected immediately...not down the line.
Finally...WATCH YOUR BUDGET: No matter what, you must track your spending. Creating a budget and following it throughout the month will help save you money. One look at much you've spent at Target (ouch!), and you might have second thoughts about making that next "quick trip" to get bread. If you start the month with a budget...aka self-imposed spending limits...you may also be able to train your brain not to spend more than you have.And that's really what it comes down to folks. There is no magic formula for things like getting out of debt and building wealth. You absolutely have to spend less than you bring in. Where finances are concerned, you must adopt a business-like mentality. No business I know of will survive very long by spending more than earns. Why should the family operate any differently? These tips are designed to help you save a few extra bucks every month. What you do with those extra bucks is up to you, but let me be the first to encourage you to be wise with them. No one (including the government) has ever spent their way to prosperity. Pay off what you owe. Save what you can. And be wise with how you spend what you spend.
No matter what happens to our economy, that formula will guarantee that you have financial success in the long run. And we know that the one who wins the race is the one who has the endurance & tenacity to finish it strong. Good luck!
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