How are you cutting costs?

[delighted.mama]

Hi, just thought I'd see how some of you may be cutting costs in this economy. DH's hours have been cut, which in turn, relates to less pay. I have taken on a couple of extra consulting and teaching projects (thankfully) to supplement my regular part time job, but we can still feel the crunch. Right now I feel like I spend most of my time running from one job to another, without the monetary gain, just to keep us afloat. It is exhausting! Just thing morning DH and I had a big blowout about, you guessed it, finances. He wants to take the kids out of their activities (primarily gymnastics) as a way to save money. I took my DD2 out of it because she just isn't into it and it is expensive. DD1, almost 8, loves it and would be heartbroken. Of course, as my DH points out, if we lose the roof over our head, she'll be more than heartbroken. We're not at that point, thankfully, but things are really tight. I'm not the best with planning a budget but I have gone out of my way to increase my take-home pay and help out with finances. IWe are looking at other ways to save....less food, eating out, etc. Overall, I just feel overwhelmed! And Cranky! It probably doesn't help that our littlest guy, DS, is 8 months old and the constant night nursing is draining and exhausting me.

I've thought of breaking into the retirement fund, small as it is, to get some to tide us over and alleviate the day to day stress. With winter coming, we don't know if DH's company is going to have enough contracts for all the people to work and it is stresing me out, big time.

So, in these tough times, how are some of you cutting expenses?

Thanks!

Libby

[*MamaJen*]

I wouldn't take my child out of extra-curricular activities that they enjoyed unless things were really dire. I think that is so important to kids. My parents always encouraged my interests and I really appreciate that they did.
I would, however, take a good look at my budget and really see where money is going. I'm utter crap at writing things down, but I use my debit card for just about everything and I can just look at my online bank statements.
A big money suck is buying meals out. That's one place where a little planning can save a ton of money. Things like meal planning at the start of the week, and cooking extra so you have leftovers for work lunch, can save a ton of money.
Also, if his hours have been cut, can he get a part time job for those hours? Even if it's not in his field, it can bring in money. What are your fields?
Would you be better in a full time job? If you're running from consulting gig to consulting gig, maybe you'd be better off in a single position.

[Dena]

When dh got laid off, I looked at where I was spending money, and I found, to my surprise, that the little things REALLY added up. A dollar here for a toy at the dollar store. Two dollars there for a snack at Target. A latte. Lunch out because I wanted to keep running errands or I was just too tired to think about going home for it. Take out. That cute outfit on clearance at Target that dd didn't really need but it was only $4.88 so who could resist. Not the $20 at a time expenses, either, but the $2 to $10 expenses. Once I cut all of those out, I was amazed at how much less money we spent.

Now, I never go to the grocery store without a list. I plan meals a week in advance, and we usualy stick to the plan. I have found nice, yummy, simple dinners that I can be guaranteed I will make. Also, dh helps a LOT with the cooking. We make extra and freeze it so on tired nights there is something to just thaw and eat. We don't eat meat every night, and do a lot of cooking with beans (dried) and rice (bought at Costco or in bulk on sale). I also keep some extra easy stuff on hand - a bag of tortellini and a jar of tomato sauce, a package of sausages and a box of cous cous, a couple of cans of tune and a box of soup, etc. A little more than our usual meals, but much cheaper than eating out. I also buy meat on sale in quantity and freeze it (and we buy only vegetarian fed, free range, hormone and antibiotic free meats).

What I don't do, though, is clip coupons (not many out there for the foods we eat) or run myself ragged shopping sales at six different stores every week. I watch for sales on meat, and otherwise shop at Trader Joe's because I have found that overall they have the best quality for the best price (except for meat). I am sure that if we ate a lot of cheap non-organic foods bought in bulk at big box supermarkets we could save more money, but for us it is worth it to spend a little more on groceries, skip eating out, and feel better.

And I just don't go shopping. I don't go to the mall or to Target or even to the resale store, unless there is something I absolutely need, and I think twice about buying anything else.

It also helps that we don't smoke and are not big drinkers (well, me not at all right now, though I more than make up for that with all the food I eat ), both of which are costly. We don't buy soda, chips, or much junk food at all. We tend to make cookies or just not eat them, and eat popcorn instead of chips or other snacks. It is all little things, but it all adds up in the end.

Good luck! And hopefully your dh will be back to work full time soon!

[sweetest]

When my hours were cut back at my previous job we cut way back
Meal planning is a major way to save $$$$. I plan out the weeks meals on Saturday morning and make my list - its a little "me" time as well, I get to look through cookbooks while sipping coffee During the weekend I pre-cook some things, like chicken, to make meal prep fast on weeknights. It also helps to have yummy stuff to bring for lunch.

It helps to have cash only for "impulse buys" - that makes the $20 bill your wallet go much further if you have to pay cash for the cup of coffee rather than use a debit card. I switched from double lattes ( over $4) to the house drip ( close to $1) and no goodies to go with it when we went out for coffee. Bring your own cup and its even cheaper!

Of course, there is always setting the thermostat lower and wearing a sweater, turing off lights, washing only full loads of laundry tips that Im sure most of us do anyway. When we were going through a similar situation we didnt have a TV ( no cable bill), NEVER went to movies, didnt have magazine subscriptions, basically all of the things you are supposed to cut back on we didnt have anyway. Somehow we cut back and were breaking even at half my salary. ( Im not saying it didnt stink, but it was doable)

I know its hard

[jenneology]

We've had to cut our grocery bill down which as a by-product means limiting how often we do take-out or eat out (and this week was killer on that!). Its sad to admit, but we've cut down our grocery costs substantially by switching to Winco. I am trying not to think of the social implications of their prices are, because right now we need that savings in our monthly budget.

My next thought is to call my cell phone carrier and see if we can get an improved deal. We've been faithful customers for more than 5 years, and I've heard sometimes those attempts are successful.

[Alyantavid]

My is only working part time now and going to school. So we obviously have a limited budget.

I plan a month of meals in advance, shop sales mainly and use coupons. I normally shop at a small grocery store here in town instead of driving 20 minutes to the bigger stores. Last night we did a little comparision shopping and found that our little store totally beats the big stores on price. So I shop there once a week and stock up when things are on sale. Then I plan from what I have in the house.

We don't buy anything. Ever. No lunches out, I live close enough to go home, no coffees, no eating out period. We can't anyways really because of allergies, which also means I make most meals from scratch. I spend most Sunday mornings in the kitchen making things we can eat all week.

Dh does help out alot at home since he's there more so that helps my stress level immensely. We have no cable tv, no long distance on our phone (we do have it on our cell phones, but it's free). We have Netflix, but get all other books or movies at the library. We rarely go out, but when we do, it's to a friend's house so the kids can play and adults can just hang out or we have a couple over for games or something. We did recently take the kids out to the movies, but it was a discount movie and cost us $6 total.

[griffin2004]

Libby,
People have different feelings about Dave Ramsey, but one point of his that makes a lot of sense to me is that you have to look at both the income (are you making enough?) and the spending (are you spending too much?) sides. One side, the other, or occasionally both can be the source of financial problems.

Although it can be a pita exercise, getting a realistic idea of your spending is really Step #1. Once you're aware of all the holes in the dike, you can prioritize and start plugging them.

I challenged myself to get super creative. For instance, can I raise my insurance deductibles and save some $$ on the premiums? Can I increase my withholding to increase my take home? Am I on the cheapest phone/internet plan? No spending category is sacred!

[Dena]

Originally Posted by Alyantavid

We have no cable tv, no long distance on our phone (we do have it on our cell phones, but it's free). We have Netflix, but get all other books or movies at the library. We rarely go out, but when we do, it's to a friend's house so the kids can play and adults can just hang out or we have a couple over for games or something. We did recently take the kids out to the movies, but it was a discount movie and cost us $6 total.

Those are some great money savers I had forgotten about! We have free long distance and unlimited minutes on weekends on our cell phones, so I make any and all long distance calls then - otherwise I email. We also have Netflix, which dh's parents give us each year for a Christmas gift, and any other movies or books come from the library. I have been pleased and amazed at the variety at our local library - and most of the books I have checked out I would not read again anyway, so I figure it is "greener" too. We also have a zoo membership that my mom gives us for Christmas every year, so that is another great free activity. Oh, and check out whether museums around you have free days - ours are free every third Thursday, and the Children's Museum is free every first Friday. If we go, we go those days.

You can also check out your local library for free entertainment - ours has an amazing array of family activities. I took dd1 to a Fancy Nancy party there last spring, complete with art projects, a fashion show, and refreshments! It was pretty cool, and totally free! They also have family movies, concerts - and this summer a petting zoo one day!

ETA: I also get almost all the kids clothes second hand or a season/year ahead on clearance, and I shop Goodwill or second hand stores for a lot of my stuff too, unless it is an outfit I need for business. Ebay and Craigslist are also great sources for clothing and equipment bargains.

[rivkah]

This may seem surprising--but we saved money when we quit going to Costco. things seem like they are cheaper, but you end up with massive quantities of mostly crap you don't need.

[delighted.mama]

Hi ladies, thanks for all the wonderful and practical advice! It seems that the food budget is a big factor to consider. We've been through this before, and I created a budget for us for food. Then, we slipped back into getting a meal here and there, a latte, an iced coffee,ice cream, etc. Plus, when I am running from work to get the kids and then take them to an activity, it is just so much easier to grab something on the go. I need to start re-thinking and planning that better. I'm not the best with planning this stuff.

We have done some things that are helpful: We don't have cable and only use Netflix. In fact, we don't even have basic television and we cut out all the extras on our home phone. Most of our calls are on the cell phone and I keep the home phone primarily for faxes.

This week we also looked into cutting down on some extra payments we were making, such as for mortgage and IRA's, etc. We also switched cell phone plans and were able to save that way. Just reducing some of that really added up.

Finally, I think we need to see exactly how much we will be bringing in and adjust our lifestyle. I think that is the hardest part, not because we live lavishly, but because it will affect the few extras we do have....such as activities for the kids, going to the movies occassionally, etc. I guess it needs to be done. What really bites is that we don't have expensive cars (DH's car is a real clunker), take expensive trips, buy fancy clothes or anything. Despite that, however, I think we may be living outside of our current means.

I guess part of me feels kind of resentful because for two people who are educated and relatively intelligent (and we have student loans to prove it!!) we seem to be struggling all the time. Naturally, having 3 kids now has strained our budget. Me working PT affects it as well. I know that I can make triple what I am making now if I go to a private firm (as an attorney) but that will seriously affect our quality of life. Unfortunately, my earning capacity is greater than DH's. He's with the union and their pay structure is set and limited. I don't plan on doing this forever, just maybe another 2 years until ds1 is a little older (he's 8 months old now). The more I look into it, the more I think that I will have to increase my hours to contribute to the family coffer, just to get us out of debt, it nothing else. Kind of depressing! I guess that fancy car and vacation are going to have to wait!!

Thanks for commiserating with me!

[Dena]

Oh, Mama, I can TOTALLY relate to what you are saying. I am also an attorney, and DH is an accountant, and it is hard when our friends are out going to movies, taking nice trips, etc. And here we are, not even buying coffee out.

BUT, I have to remind myself that our friends, most of them, either don't have children or have one child, and the ones with kids are usually up to their eyeballs in debt for those fancy vacations and evenings out, and we are just not willing to go there. It does help to think of it as a choice - we chose to have a third pregnancy (and, as it turned out, four kids...), we choose not to go into debt for a vacation, I choose to work part time so I can have time with my kids while they are small, knowing I will never ever get this time back, and there will be lots of time when they are bigger to work more hours, have fancy vacations, and have evenings out just dh and I.

As for meals out on the go, I am bad about that too. Something that helps is putting together a snack pack of shelf stable stuff to keep in the car - trail mix, protein bars, juice boxes, etc. It is not a meal substitute, but tides everyone over until we can get home. And then I try to have some "convenience foods" waiting at home. Trader Joe's has some great sausages that are quick and yummy, both kids love Gardenburgers, and they are SO easy, and we usually have some leftovers in our freezer for quick meals. Just knowing I can make dinner quickly encourages me to go home and do it. And I also remind myself what is really in fast food, which is further encouragement to eat at home.

You mentioned student loans - have you applied for the payment reduction program for those yet? A few years back I put mine on a 25-year payment plan. Yes, it is a hell of a long time to be paying for school, but the interest is only 5% or so, and it reduced my loan payments from $1000 per month to a much more manageable $368. Also, you might look into hardship deferrals. We have done that before. We hated to do it, because the interest gets capitalized into the principle of the loan, but desperate times...

Good luck, mama. Remember it is not going to be like this forever. The economy will improve, and so will our dhs' incomes.

[shayinme]

Well thanks to my consulting business dropping pretty much to nothing, so I only have my pt director position at a small non-profit (not great pay) and dh losing several clients. We had to make the painful decision to take our dd out of ft daycare. She is 4 and we had planned to keep here there until she starts school next year but for almost a year our budget was tight and combined with the fact my eldest child is a HS senior, we needed more cash flow.

So she went from 9-5 daycare and is now in a traditional 3 morning a week preschool, its a huge money saver but it only works because of the work dh & I do. We both have busy times of the month but dh's office is in our house and I can do a great deal of my work at home. I only go in the office about 6 hours a week and for meetings so it allows us to work around each other's schedules.

Even adding dance lessons for dd (she needs activity and lots of it) we are still saving quite a bit.

Obviously changing childcare plans may not work for everyone since if you have schedules that are not flexible or require you be on site you need childcare. I am fortunate that I actually can bring my dd to work but i try not to since when she comes with me, its hard for me to get things done. What would be an hour or so in the office could easily be doubled. LOL

Like everyone else I am watching the small purchases, like the later afternoon Starbux run since those do add up. Also relying more on cash and definitely shopping with a list. We already live frugally since we have only one car, paid for...we scaled down cable a couple of years ago. I would pull the plug but for days when I have deadlines I admit Noggin is a lifesaver and again the $60 we pay for cable even with dance lessons and ps cost still save alot compared to ft daycare.

For me the best way to avoid spending is to avoid mindless trips to the store, meaning I plan everything.

Shay