Fun Stuff > CHATTER

Making ends meet

(1/22) > >>

Elysiana:
We're finding ourselves in a huge bind with the baby on the way. Daycare alone is at least $400/month in this area. Ryan's company just got acquired, and while he gets a $0.50/hr increase, insurance is going to go up by about $250 - almost double what we're paying now. Essentially he's getting a paycut. We pretty much live paycheck-to-paycheck already because we have so many loans and neither of us makes more than $30k/year. It seems like every time we save a little bit, it goes into fixing a vehicle or some sort of emergency.

Things I'm thinking we can do to save money:
Cut back on food costs. We have a bad tendency to eat out a lot and buy prepackaged stuff (like those pasta bags).
Refinance our loans. I already did this once last year so I might be able to get another $100/mo by making lower payments but that's about it.
???

What are some things you guys have done to cut back on your cost of living or increase your net per month? Got any tips for me or, really, any of the forumites? Is there anything you've done to cut back that you're really proud of?

Joseph:
If there is any way in the world you can get by without driving, do it. Even the money saved on gas by cutting back can be pretty tremendous, and if you have two cars, but can really make do with just one, you can save a bunch on insurance that way. I don't know what your situation is, and maybe driving is necessary to some degree, but it does eat a lot of money.

Avoiding overuse of air-conditioning and heating can also be a pretty good way to save some. Not sure where you live though, so maybe that's not a big thing, but certainly in Montreal it's pretty easy to go overboard in the winter and end up with enormous heating bills.

Katherine:
I would recommend keeping a spending log for a while to see where your all of money actually goes and see if you can cut anything out, or at least cut back.  Grabbing breakfast or a coffee on the way in to work really adds up!

Cheaper food is definitely a good idea.  It is much cheaper to cook at home and there are websites with recipes geared specifically toward making cheap meals.  There are also websites where you can select and print coupons for things that you need/buy, etc.

Do you have any recurring monthly expenses that you can get rid of?  Netflix, gym membership, cable TV?

The Seldom Killer:
First thing I do to reduce outgoings is to review contracted costs. Gas, electric, phone, internet, water, etc. I'm not sure how it is the other side of the pond but the general good practice here is to check about once a year to make sure that you're getting the best deals. On top of that, spending to save is worth considering. We've got a massive legacy of poor house building in the UK and at the moment you can get your home insulated either free or at a massively discounted rate. Free CFL bulbs can be obtained pretty easily for free as well so on the whole it's pretty easy to knock down the energy consumption, which accounts for a large part of your household costs. On that front, the other thing to do is behavioural change. A lot of people trip up here because like anything else their in a habit and can take it negatively when they don't get it right. I can offer tips on ways to get this working for you as well.

Joseph is right about the car use. Again, check your insurance so that you're getting a good price for this and make sure you're aware of where sells petrol/deisel the cheapest, plan your regular journeys and drive efficiently (tips also available here). Carpooling, public transport, cycling, car clubs, loads of other ways to basically avoid getting in your own car will save money and if you can avoid the commute in one car, call the insurers and take commuting off the policy.

Food is a very easy saving. Start buying bulk for staples, like 5kg bags of rice, pasta etc. Remember that most supermarkets will discount around 5pm to 6pm and food can easily last well beyond sell by dates, display until dates, best before dates and even use by dates. Cook in bulk and make good use of your freezer. If you have a garden, a patio, a balcony or even a large, south facing window, you can start growing your own food and that is always cheaper, especially on things like salad items. Also look at buying cheaper cuts of meat. I still only buy free range meat of good quality, I just buy the bits that don't command a high price. I buy and portion whole chickens for about a third of the price you'd pay for a supermarket or butcher to do it. It gets a bit all consuming for a while but like anything it becomes second nature and slips into the background.

Avoid refinancing your loans now. Even as a non-parent I'm aware that babies can have sudden and unexpected costs, keep the refinancing option available until you really need it. Other than that, walk to your granny, chances are good she grew up in a time where you didn't have disposable nappies and all the gizmo's you have now and don't really need either.

My greatest saving, it's probably the library. I used to spend quite recklessly on books but can easily get by for a couple of months with none.

Barmymoo:
Disposable nappies are really a huge cost - I think we use between 6 and 10 a day on our 15 month old (ok she isn't mine but whatever) and the four year old is still in them at night. If you can get your head around resusable nappies, do it. They are not as gross as people think, it's not terrycloth and safety pins any more - if you'd like more information I've got tons of links but I try to keep my incredibly weird geekiness regarding babies I do not yet have a little under wraps.

I second the bulk-buying, and also if you have time bulk-cooking and planning meals in advance really helps you avoid pre-prepared stuff or grabbing something while you're out.

I have no idea what it is like where you are from, but I'd recommend asking around about daycare and finding out if there is any kind of finance available. In the UK you can get childcare free for children of certain ages if you go to an accredited provider, which is obviously a big saving.

Oh and I'm sure you don't need to be told this but there's no need to spend $800 on a pram/stroller/carrycot/superstar combo and three million toys. If anything, you're going to spend the next five years trying to stop your child from playing with your keys, your makeup, your soap bottles, the laundry detergent, empty cans, boxs, shoes etc. Assuming you have friends or family who are going to want to help out, you may not even need to buy very much at all.

Also eeeeeeeeeeeeeee I am excited about a forumite baby! Congratulations!

Navigation

[0] Message Index

[#] Next page