Living on a budget

  So I was browsing twitter this weekend and came across this wonderful article, at first I was like blah whatever, she probably just clip coupons and stuff well i do that too, but then I started reading and it was way more indepth than that! after reading each paragraph i fell more and more in love with this girl it was like she knew my life and spending habits, now although I won’t be following this to a tee I will definitely apply some of her homemade remedies as well as some of her penny pinching tips!

LOL anywho here goes:

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Blissful and Domestic;  Alright today’s topic is Oh yes ladies and gents you did not read wrong. I am 100% serious. My family of 4 lives on about $14,000 a year. We are not in debt, and own our home and both our cars. Want to know how we do this all and still save money? Well I am going to share some tips that have helped us along the way. I promise that if you just try some of these tips and tricks I will share today, you will notice a HUGE, GIGANTIC, TREMENDOUS difference in your spending habits and the balance in your checking account will no longer create stressed frown lines.

Make a Budget

You will be filled with nothing, but smiles knowing you are doing alright in the finance department. Ready or not, let’s get started. First off I have to say we were not always savy with money. We were pretty smart Hubby was smart with money. His parents had taught him well. My poor hubby had no idea what hit him when he married a woman who was absolutely NOT savy with money. I had never had to pay a bill before. I had quite a learning curve to catch up on. We got by, on a military salary and were doing ok. We lived pay check to pay check, but still put a little bit away for a rainy day. We had no credit cards. Rush forward a few years. Hubby was serving a second deployment in Iraq. I had a horrible time taking over the finances. I would cry everyday on the phone to him. I couldn’t do it. I couldn’t keep track of everything. Bills were constantly late and I would over draft our account like nobody’s business. This was seriously the worst ever. Hubby would call from Iraq everyday to find out what was going on with the finances. It was bad. I went shopping to give me something to do with my littles. Target and I were BFF’s. Their clearance section and I were even tighter. I would tell myself it was on sale or marked down, so really I was saving money. BIG FAT WRONG! Just cause it is on sale, does not mean you need it. Finally that sweet hubby of mine had a very serious conversation with me. He asked me if I wanted to buy a house someday, which I did. He reminded me of our goal to pay cash for a house. The way things were going, it wasn’t going to happen. He told me he understood I was sad, but shopping was not the way to deal with him being gone. He told me about a book he had heard of. He really wanted me to read it. It was called America’s Cheapest Family Gets You Right on the Money: Your Guide to Living Better, Spending Less, and Cashing in on Your Dreams . I requested it from the library and when it came I read it cover to cover. I can honestly say that next to the Bible and Book of Mormon, no other book has made such an impact on my life. It taught so many things I had not learned in my 25 years (at the time). This book gives amazing examples of how the Economides family lived on less and always within their means. Below are the simple changes we have made over the years since that day so many years ago. Today I am going to share how we changed our lives by living within our means. I promise that if you incorporate some of these tips, into your life, your family will be happier and less stressful. Your marriage will be better. Remember the things couple fight most about is finances. Why not do yourself a favor and get it together. Less stress in a marriage means it is a happier one. I know mine surely is! Make a Budget Oh my heck this is the.most.important.ever! Set a budget. If you are married, sit down with your spouse and do it together. It should be something you both take part in. If you are single, then make one with just yourself. Literally make a list of every bill you pay in a month. Electric, water, gas, trash, cable, groceries, gas for the cars, insurance, etc. These are all bills that need to be budgeted. Do not include “extra” things like dates, movie trips, shopping trips, etc. These are not necessities. These I will talk about in another section. Now once you add up all of your bills for the month, compare it to the amount of money you have coming in each month. This will tell you right away if you have enough money to cover the basics of life. Again trips to Target and Dates are not things you need to live.

They are bonuses if you have money. DO NOT include them in this area. Now if you have money left over, then you have a little play room. Budget in a date night or two for the month. Everything must be budgeted. From family outings, to toiletries to clothes purchases.It must be budgeted.That is key folks. Remember all those trips to McDonald’s add up. If they are not in your budget, than you do not have money for it. If you do not have money left after comparing your bills to your income, then you need to reevaluate your spending.

Say No to Cable

Do you really have to have cable TV? Can you do a lesser insurance on the car to save money? These are all things you can do to save money. The main thing is to set a budget and stick to it. No matter what! Say No to Cable Just because cable sounds fun, doesn’t mean you need it. Do you really watch all those channels you currently are paying for each month? Most people spend over $100 for cable TV and for the internet. Yes most cable companies do a little package deal and say you are saving money, but remember it is NOT saving money if you do not use it. We do not have cable. We have a small antenna to pick up basic channels for free, like FOX and PBS. For all of our other viewing needs we use Netflix. They have a good selection of plans, starting as low as $7.99 per month, with no contracts. You can cancel or put your account on hold any time you want. You can even try them out for free! We pay about $14.99 per month and get one movie out at a time and unlimited viewing on our PSP. They have a separate kids section full of current TV shows. Wizards of Waverly Place, ANT Farm, Yo Gabba Gabba….and The Office, Burn Notice, Downton Abbey, Vampire Diaries, Army Wives, etc for the hubbs and me.. Seriously they have everything. We are able to find things from every genre and ratings for movies and TV shows are all listed for us. They are also always adding new titles. We never have a problem finding something to watch and enjoy together as a family or a couple. Saving money on your cable was essential. Remember why pay for something you don’t use and only have to channel surf on? Not worth it folks! We do have internet through our cable provider and only pay about $35 per month.

Pay Cash

Pay Cash Paying cash for everything means you will spend less. Going grocery shopping with a debit or credit card can sometimes make you feel like it is ok if you go over your budget a little bit. No worries you have your card right? Wrong. When you use cash you have to stay within your set budget because that is all you have the dinero to pay for. I do this when I go grocery shopping. We budget $400 per month. This is $300 for normal groceries and we use the extra $100 to stock up on sales and food storage. Once that $400 is gone….. it is gone. There are no extra shopping trips made because there is no more money. I make every single penny count when I go grocery shopping. I also shop once a month, which makes a HUGE difference. The more you go to the store in a month, the more you will spend. Way to many trips for impulse purchases, which can add up real fast.

 Buy Second Hand

Buy Second Hand I was not always a thrifty shopper, but I have learned. We find so many amazing things at thrift stores. Most of my home has been bought at thrift stores. I love to find clothes for my whole family there. I can usually find name brand things for my whole family! We love it!! I actually give my kids money and tell them to pick out their own shirts. My son loves it! His shirts are only $1, so he gets to pick out a bunch for each school year. We have found Hurley, Quicksilver brands, just to name a few at thrift stores. Once you start thrifting, you can’t stop. My children grow so fast. Thrifting helps us stay within our budget. Remember that B word is key to the whole enchilada. Set a budget and stay within it. I also make a ton of our clothes.  We also purchased our rice cooker and breadmaker at a thrift store for $7 each. They are both going strong and saving us money. Home baked bread is the best! Here are some recipes.

Go Homemade

Go Homemade For real folks! Going homemade has saved us tons and tons of money. From clothes to food. We go homemade as much as we can. We make our own laundry detergent. It works great and is way cheaper than the store bought stuff. It smells better too! I make our own bread, cook meals at home each night. I also have ready made mixes I use as well. I either make or thrift our clothes. We do the same with furniture or “things” for our house. If it isn’t made by me or thrifted, we don’t have it.

Watch Your Miles

Watch Your Miles Gas is crazy expensive right now! Well really has been for the past few years and it doesn’t seem to be getting any better. We watch our miles. We only fill our tanks up no more than twice a month. We shoot for once a month. We combine errands when we go out, so we aren’t wasting our gas. We also limit our across town trips. When we visit family in another city, we make the most out of it. We know we don’t get to drive and visit family often, so when we do we cherish it. We don’t go just for an hour, we stay and visit and even run errands that may be close to where we have family. We try to remember that when the gas is gone…it is gone. We really think about places we need to travel in the month and factor that into how much gas we have left. Trips for fun things that may take up a lot of gas, are spaced out. Moderation is the key. Really think about what you are using your gas on. Is it really worth it? Also check your tire pressure. When tires are filled correctly, you can make your tank go further for you.

 No Credit

No Credit Say no to charging it. This is such a biggie folks! Our Philosophy, when it comes to credit cards, is that they should be for emergencies. They are there when you need them. If you do have to use them, pay them off as soon as you can. Don’t let that interest build up, if it doesn’t have too. I know some people use credit cards to build credit. I totally understand this.We did that in the beginning of our marriage, but we paid everything off each month. If you don’t have the cash to pay for that shirt or dinner date, than you shouldn’t be charging it. Make sense? Do you have credit card debt now? Well you can totally get out of it. Every summer our credit cards are used. Hubby is a full-time student, so in the summer things are tight. We use our 2 credit cards for bills and then pay it off as soon as possible. We add our credit card payments into our budget and keep it there until it is paid off. Budget in a payment for your credit cards each month. If you get a little extra money during the month, pay off those cards. Keep paying them down.Eventually you will pay it off and have a little extra money each month to play with. This is the best! Once you have paid off your credit card, keep it clear. If you have a hard time controlling yourself around that plastic beauty, then leave it home. Don’t allow yourself to carry it. Take some control over your fiances. I personally couldn’t handle a credit card when we first got married. When that baby got in my hands, I would suddenly have the need to spend. Eventually I cut it up and told my hubby I couldn’t handle it. I had to admit I had a problem and deal with it. Now I still do not hold a credit card. I prefer to let hubby have them. I can control myself, but hate the temptation. I leave my cards at home. I know I have ti if something happened, but I don’t allow myself to carry it in my wallet. Know your limits folks. Research Take an interest in your family and their finances. Want to make things better?

Research

Research. I research all the time. Knowledge is power! I google, blog, read, etc. The library has an amazing selection of books on everything. Finances, cooking, sewing, decorating on a budget, etc. So much you can learn here. I am always interested in how people save money. I ask my friends, search through blogs, etc. There is so much stuff out there. So many tips and tricks to learn. Don’t stop searching for ways that will helps your family this year. It may seem like work at first, but I promise it will become second nature to you. Set Goals Set goals! My hubby and I always set goals together. Our dream was to pay cash for a house and we did it. We bought our house for $30,000 and paid cash. It took us 7 years to save it, but oh boy was it worth it! When we bought our cars we also had to go into debt, but paid them off as soon as we could. My hubby came into the marriage with his truck. He still owed $8,000. Once we had the money, we paid it off. Now we own it and that cars is still running great. Four years ago we bought a van. We had saved $10,000 for the down payment. We paid that and then 1 year later we had paid off the $12,000 left on it. We set a goal to pay it off and did it! It felt great! (we did all this before he got out of the military and when my hubby actually had an income. Now that income is gone. We are down to $14,000. We are able to make it on that income work for us because we paid off the cars years ago when we actually had money. Make sense?) We always talk about our future. We make plans and dream together. THis is such a fun part of our relationship now. We love fixing up our house together and thinking of the next project we want top start and save up for. It may take longer, but I have the patience for it. Set a Goal with your hubby and decided where you want to be financially this year, next year, 5 years from now. Write the goals down and talk of them often. This is a great way to see if you are own the right track to achieving that goal. Decide Today Enough said right? It is though! Decide today how you want to live. Make the choice now and commit. We committed to a thrifty lifestyle and we stuck with it and have been so blessed for it. Don’t try to do every tip I shared with you here right away. Baby steps. Think of a baby…Would you feed a baby steak? No, of course not. You start with milk, then oatmeal, then soft food. You move up to steak. This is the same way. Pick something simple. Decide you will not charge anything this month, or you will stick to a grocery budget. I promise that those small changes will make a HUGE impact on your budget and finances. Decide now how you want to live and do it! I promise you will be a happier person when you are free from the strains money can cause.

You can find more helpful tips by visiting BlissfulandDomestic.com

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1 Comment (+add yours?)

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    Jan 29, 2013 @ 10:25:20

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