Turning over a new leaf...

[Katrinaquerida]

Ok. I'm ready to get serious. 

There is no reason I can't live on my salary (comfortably), except, we have a bunch of debt that is holding us back. Starting now, I'm going to try a "no spend" challenge and see how I do. I'm looking for encouragement and/ or ideas for debt reduction.

Short back story:

We built our own house 4 years ago. Cost too much, left us with big mortgage and cc debt but we love it and plan to stay forever. 

I'm a teacher, DH has a pretty low paying job, but he works too.

We have 3 kiddos, ages 7, 5, and 2. They are my favorite thing to spend $ on!

I've done all the reading (Your $ or Your Life, Dave Ramsey) and I believe debt free is the way to go. Just need the motivation and will power. 

Thanks!

[pitter_patter]

You can do it!

Here's what I did when I realized I need to overhaul my finances:

-review tax withholdings so you have more money per month (to go towards debt) and end up owing a tiny amount or getting a tiny amount back

-review your phone/cable/internet bills, shop around for better deals, call your current provider and ask for a reduction, think about canceling cable

-auto/home insurance, compare rates for a better deal

-meal plan and don't impulse shop at the grocery store

Money saving ideas related to kids:

-shop at thrift and consignment stores for kid stuff, Just Between Friends is a great one

-don't leave the house without a bottle of water and some snacks

-when people ask what your kids want for birthdays suggest paying for a lesson they are already doing (if applicable), or family memberships to a local zoo, museum, bounce house center, etc.

[eirual]

Before jumping right in to "No Spend" .... have you A) tracked your normal spending for a month and B) made a budget?

I know you mentioned you've read the "how to" but I'd suggest the above as a starting points if you haven't yet....if you already have, you may disregard this message!

It really does take getting fed up and angry with the vicious cycle to break free of it. I wish you all the best! Having solid financial goals will definitely help with the excess spending on the kids- it won't just be saying "no" and "depriving" them...it will be saying "I've got a better plan for this money, why don't we do _insert fun/cheap alternative here_ instead?!" and really empower both you and them to take control of the family spending and that amazing feeling seeps into all other areas of life once it happens.

Go get 'em tiger!!

[Justmee]

Yes, I'm working on tracking spending now and making a budget. Our "excuse" has been that I wasn't really working, we were taking help anyway, blah, blah, blah.

Starting Sept. 1 we plan to track spending and use that spending to make a budget we can stick to. We have enough to make it, just  have to figure out where it is all going! 

[ilovemygirl]

The idea of life hours in your $ or your life was the biggest motivator for me. Thinking about how many hours of my life it truly took to make the money I was wasting put a whole new perspective on things. It actually kind of traumatized me a little ... lol. I couldn't spend anything for months after really understanding that concept. It drove my dh nuts ;)

I definitely agree with the pp who said to buy things for the kids at consignment. I've found some amazing things for just a dollar or two that would have cost me twenty or thirty if I bought it new. I also second the advice of asking for exactly what you need/want as gifts from people you are close with. I figure out the couple of things dd desperately wants that I know will be hard to find used and ask siblings/close friends to get those for Xmas or her birthday. Then I ask parents for experiences, usually in the form of annual passes to the zoo or museum or money towards fun classes like a craft class dd wanted to take.

The cash envelope system as a whole never really worked out for me but I do highly recommend doing it for any problem areas. I put a specific amount of cash every month in an envelope for eating out and stuff for dd (my two weaknesses). When the cash is gone it's gone and I can't buy spend anything else in that category until the next month. It really makes me think before buying something because I worry that I will run out of cash and miss out on something extraordinary later on. 

Good luck creating and sticking to your budget!

[Katrinaquerida]

Thanks for the encouragement! I did track spending and make a budget. Its a little tricky since I dont get paid in the summer (gotta BUDGET you know!)

We end up with about $300 a month for gas and groceries, not counting extra income (stipends for advising, gifts, etc). So cutting costs is important. We dont have cable, and I'm planning to reduce our netfix to streaming only. Our electric bill is too high, so I am trying to turn things off more often. We use more when we are home for the summer. I should try to reduce insurance costs - thats a good idea! Thanks!

[pitter_patter]

Something that you probably have already considered but I thought I'd mention just in case is teaching SAT/ACT prep classes or proctoring the exam.  Tutoring is another quick cash generator, in some areas parents will pay big bucks for a tutor in the harder subjects like math, science, language.  Just an idea.

[Katrinaquerida]

Thanks, that's a good idea. 

I teach French, so I'm sure there would be an interest!