Cutting Back

[polyhymnia]

For the first time ever, I can't pay my credit card bill in full. This is not quite the desperate crisis it seems, I am not flat broke, but I went on vacation for 2 weeks and forgot to fill out my timecard at work (it was due the friday in the middle of vacation) so I missed a paycheck. I don't have enough in savings to cover it because just before vacation I moved a bunch of money into a high-rate 1-year CD (whoops.. but I wanted to lock in a really good rate and I finally had enough for the minimum). I was able to borrow money from my boyfriend to pay the bill and can pay him back w/my next paycheck (next Friday - paid every 2 weeks) but ideally I would have been fine to pay the bill WITHOUT last week's paycheck.

So, it's time to start cutting back on "extras". I was going to just stop spending money on anything nonessential until November - ie only buy groceries and gas. But, I *really* need a new pair of work shoes. I have known this for 2 months but was hoping to make it to the Thanksgiving sales. Unfortunately this morning one of my shoes broke so the situation is kind of desperate. Thank goodness we were just given Casual Days next week - so I have until Monday the 8th to get new shoes. I have been deciding between a pair of suede slip ons and a pair of leather backed clogs, both from LL Bean. I know my size, I know I like them (I had a pair of the slip ons before and loved them), I get free shipping and I have a $10 gift coupon to put toward the purchase. given my money situation, the suede slip ons would be the best because they are only about $40 - but I really prefer the leather backed clogs, and think they are more professional. unfortunately they are about $70. Normally I wouldn't think twice about the extra $30 but of course that is what has got me into trouble in the first place

So, help me learn - how do you decide when it is worth spending a bit more for something "better" or "more appropriate", and when it is not? How do I stop justifying everything? ("Oh, it's only $5"... "for $3 more, I get 4x as much"... etc) Are there any better resources for inexpensive business casual shoes that are appropriate for long walks (I walk to/from work)? Did I mention I HATE shoe shopping violently with a passion?

I guess I am just looking for some input/advice on how to start being more financially responsible. I'd love to bump my savings up from 15% per month to 30% per month by the end of the year...

[wombatclay]

I would probably go to a good thrift store or Payless/Shoe Warehouse type store to find a pair of serviceable work shoes in the 10-15 dollar range. That would remove any "time pressure" from the shoe purchase and help with your current money crunch. If you can afford the more expensive shoes in a paycheck or two that's great! But once you have a solid pair of shoes you may find that there are other things that are more pressing. We rarely buy "new" but our local thrift stores often have gently used shoes from brands like LLBean, Naturalizer, Thom McCann, Naot, Rockport, etc so it's worth looking...

In general, if the money is available I'll spend extra on items I plan to wear/use extensively for at least a year. For example, maybe decide that you can afford X amount for shoes in a single year. Let's go with the 70 dollars you mentioned. If your budget for shoes is 70 dollars you can get the clogs and trust they'll last the full year, or you can purchase 3 pairs of the ~20 dollar "no name" shoes, or go the thrift store route and get 5 or 6 pairs of gently used shoes during the year.

DH and I actually do this with shoes... he likes to get a really sturdy pair and wear them into the ground while I like to buy second hand and have more style options.

But putting a "per year" cap on items is one easy way to start economizing.

Good luck! I'm sure lots of mamas will have ideas for you!

[polyhymnia]

I don't even know where local thrift stores are, how terrible is that? There's a goodwill drop-off trailer at the local park and ride so I know there is one somewhere, I looked for it once where I thought it was but couldn't find it. But the area I am in offers high-end "resort shopping destination" type shopping geared toward wealthy people. Unfortunately I don't really get out of this area very often, and not at all during midweek. I went to what I thought was a shoe store like Payless once and it was still really expensive (like $50-100 for a pair of shoes).

This is a really dumb question, but how can I find thrift shops? I am sure they must exist somewhere I can get to.. but I haven't got time or energy to just randomly drive around looking Where I used to live the Goodwill was really great, I got a ton of work clothes for under $25 when I started working. I haven't bought shoes since January 2006 so I am not doing too badly in that respect (might explain why my shoes are falling apart though ), but now I will need new running shoes by Christmas too

How do you decide what to set as a cap per year? I am working on my 2008 budget right now and really trying to eliminate most of my "Misc" category but trying to be realistic and I just have NO IDEA how much is reasonable to spend on things.

[littlehoneybee]

Look in the phone book under Thrift or Consignment and you should find the stores you need.

[wombatclay]

You can also do a web search... some larger thrift groups have websites (salvation army, st vincent de paul, goodwill). But the phonebook is your best bet as littlehoneybee pointed out. Oh, and check out http://www.thethriftshopper.com/ it probably has info for your region/city. I plugged in Seattle and got 4 pages of stores with their locations and hours so there should be something near you.

And thrift stores in wealthier areas are great! So often the items will be near new or new and high quality to boot.

Different discount shoe stores will vary in price/styles offered of course, but Payless usually hovers around 20 dollars no matter where in the country we've lived. They have a website but for any discount shoe I'd suggest shopping in person since quality/fit is less uniform (btw I'm just using payless as an example, not suggesting them as a "great" store or anything like that).

[polyhymnia]

Originally Posted by littlehoneybee

Look in the phone book under Thrift or Consignment and you should find the stores you need.

We don't have a phone book (a major downside of not having a landline!) and I never have any luck with regular google searches I think I don't use the right words. I usually put in my city name and then "thrift shop", I'll try Consignment and see what I can get, thanks

[polyhymnia]

Originally Posted by wombatclay

You can also do a web search... some larger thrift groups have websites (salvation army, st vincent de paul, goodwill). But the phonebook is your best bet as littlehoneybee pointed out. Oh, and check out http://www.thethriftshopper.com/ it probably has info for your region/city. I plugged in Seattle and got 4 pages of stores with their locations and hours so there should be something near you.

And thrift stores in wealthier areas are great! So often the items will be near new or new and high quality to boot.

Different discount shoe stores will vary in price/styles offered of course, but Payless usually hovers around 20 dollars no matter where in the country we've lived. They have a website but for any discount shoe I'd suggest shopping in person since quality/fit is less uniform (btw I'm just using payless as an example, not suggesting them as a "great" store or anything like that).

Thanks! That website looks really great. There are loads of stores in Seattle but I never get into the city it is such a pain. I joke that I never leave the little 8-block-radius area where I live & work but really it's true, and sad. There's not a whole lot here except upscale food and shopping and hotels We have a fancy mall, JC Penney is as downscale as we get here. I know there are cheaper shops not that far away (for example I know there is a Target about 15-20 minutes away) but I just never get to those areas I need to explore more I think.

MTA: OK, I looked at that link, and I think I know what I did wrong looking for the Goodwill last year so I will try it again. It's about 15 minutes away and near where I will be next Wednesday for a meeting so I'll try then. There is one other charity shop listed near me (without going into seattle proper - nightmare after work!), which I guess I've walked past loads of times?? Anyway I'll go look for that after work today Thanks!

[phathui5]

You could join the No Spend challenge threads here and put what you save in the bank.

[polyhymnia]

I will look into that, problem is that I do have to buy gas every ~3 weeks and groceries too (about once a week), so I have to spend money. I wonder if I buy a gift card just once at the start of the month and then use that if it counts as "no spend"? I'll look at the thread thanks

[FillingMyQuiver]

Originally Posted by crayolaab

I will look into that, problem is that I do have to buy gas every ~3 weeks and groceries too (about once a week), so I have to spend money. I wonder if I buy a gift card just once at the start of the month and then use that if it counts as "no spend"? I'll look at the thread thanks

Groceries and gas don't really count in the No Spend thread b/c they're necessities.

As far as shoes go, we tend to buy quality and wear them out til there's really nothing left, I don't agree w/ buying "used" shoes (if you can avoid it) b/c feet are so important. We have a friend of the family who is a podiatrist and he's made it VERY clear to us that buying *new* shoes is important b/c the footbed of the shoes form to your feet. Honestly, you can mess up your feet buying shoes that are shaped like someone else's feet. I think this is even MORE important when you're looking at buying shoes you will wear day in and day out at work.

Okay, so cutting expenses... well, I think a BIG thing you need to do is ask yourself before you buy something if it's a NEED or a WANT. Wants can be put on hold. Let's take your shoes for instance, if you had acceptable pairs at home that would work for you, then I would say the new shoes would be a want. However, if you work a job where you are on your feet all day and you wear the same shoes every day, then I would determine that new shoes are a need.

I have to run now, but I hope I gave you a jumping off point.

[polyhymnia]

Originally Posted by FillingMyQuiver

Groceries and gas don't really count in the No Spend thread b/c they're necessities.

As far as shoes go, we tend to buy quality and wear them out til there's really nothing left, I don't agree w/ buying "used" shoes (if you can avoid it) b/c feet are so important. We have a friend of the family who is a podiatrist and he's made it VERY clear to us that buying *new* shoes is important b/c the footbed of the shoes form to your feet. Honestly, you can mess up your feet buying shoes that are shaped like someone else's feet. I think this is even MORE important when you're looking at buying shoes you will wear day in and day out at work.

Okay, so cutting expenses... well, I think a BIG thing you need to do is ask yourself before you buy something if it's a NEED or a WANT. Wants can be put on hold. Let's take your shoes for instance, if you had acceptable pairs at home that would work for you, then I would say the new shoes would be a want. However, if you work a job where you are on your feet all day and you wear the same shoes every day, then I would determine that new shoes are a need.

I have to run now, but I hope I gave you a jumping off point.

Thanks. I think part of my problem is that I've spent so long buying "wants" (because I could) - knitting supplies, scrapbooking stuff, vacation, gifts for people, doing co-ops and swaps and other fun things here - that right now, when I've decided to stop buying extras, I'm hit with wants that might be needs but I'm having a hard time being objective. Example: I've got to shell out $300 to register for an exam I want to take. if I don't take this exam I don't get a raise/promotion in the future, but I really don't want to spend the money now. But I know it will be worth it in the end. it just feels wrong. Now, I need new shoes for work - I *could* keep wearing these but I have had to duct tape one together :

Anyway I'll check out the thrift shop I found nearby on the link above and see what it has to offer. I know the Goodwill I used to go to back home had brand new stuff a lot from Timberland and LL Bean so maybe the shops here will have something similar. If I can't find them I think I'll get the cheaper shoe from LL Bean - I think it will be fine for work and I know they are comfortable.

[jlutgendorf]

Honestly, for shoes, I wouldn't go budget unless I had to, especially if you do a lot of walking, moving around throughout the day. Your feet can really affect the rest of your body and a good shoe is never a bad thing. (now I'm biased here though as I have insanely high arches and have almost crippled myself by wearing cheap shoes.)

For other things, you just have to think: do I NEED this? (ie: will I die without it?). Yes, you need food, but no, you don't need to eat out every day. You need gas (to get you to work to earn $$ to buy food) but you don't need to drive a gas guzzling car. You need somewhere to live, but you don't need a mansion. etc. etc. blah blah blah.

For things like your exam, I don't think there's *one* way to determine if that's a superflous expense. Is the cost and time of the exam worth the potential promotion and raise? Are you at least 51% sure that the exam will lead to promotion/raise? And however you answer it, for or against, I don't think either would be wrong, yk?

So maybe for a month, you try to buy only your NEEDS. see how that feels and how much you save and then go from there. If you like it and find you're comfortable living that way, then keep going (and tell us about the $$ you save so we can all get inspired!).

It is hard though. I'm always telling myself I NEED that coke at the grocery store, or a cookie from the bakery after a stressfull day of work. (damn you cookies!)

~Julia

[polyhymnia]

Originally Posted by jlutgendorf

Honestly, for shoes, I wouldn't go budget unless I had to, especially if you do a lot of walking, moving around throughout the day. Your feet can really affect the rest of your body and a good shoe is never a bad thing. (now I'm biased here though as I have insanely high arches and have almost crippled myself by wearing cheap shoes.)

For other things, you just have to think: do I NEED this? (ie: will I die without it?). Yes, you need food, but no, you don't need to eat out every day. You need gas (to get you to work to earn $$ to buy food) but you don't need to drive a gas guzzling car. You need somewhere to live, but you don't need a mansion. etc. etc. blah blah blah.

For things like your exam, I don't think there's *one* way to determine if that's a superflous expense. Is the cost and time of the exam worth the potential promotion and raise? Are you at least 51% sure that the exam will lead to promotion/raise? And however you answer it, for or against, I don't think either would be wrong, yk?

So maybe for a month, you try to buy only your NEEDS. see how that feels and how much you save and then go from there. If you like it and find you're comfortable living that way, then keep going (and tell us about the $$ you save so we can all get inspired!).

It is hard though. I'm always telling myself I NEED that coke at the grocery store, or a cookie from the bakery after a stressfull day of work. (damn you cookies!)

~Julia

Oh yeah, the special bagel or muffin gets me every time (But I DESERVE it! :P)

I have a desk job, so I'm not really on my feet all day, but I do walk to/from work (10 minutes each way - not bad). I'm more concerned with keeping my feet DRY cause it's about to get all rainy and wet and drivers are so not considerate of people walking on the sidewalks around here.

As for the exam.. well, it's something I'm really struggling with, cause it'll be my 2nd try (didn't pass the first time I took it). If I pass, I am guaranteed a bonus/raise & if I pass this and one more I'm guaranteed a promotion. It's make-or-break time in my mind though cause I'm only giving myself 3 tries before I give up.... and do I really want to have one of those tries be THIS november? But if i keep putting it off I'll never make a decision one way or another so I'd rather get it out of the way, yk?

[happy_wife_&_mama]

I agree with buying "good" shoes. Not the kind of expensive shoes where you pay a lot of money for the brand, but well made, will take care of your feet kind of shoes. If spending the extra $30 for the ones you really like is making you feel iffy, you could see if you can cut out $30 somewhere else in your spending for this paycheck/month to offset the extra $30. Or you could take a good hard look at which shoes would go with more outfits so you can get more out of them.

And IMO I would go for the test if I was pretty certain that it would mean a payraise, promotion. Those $300 will be made up for and then some with the extra $$$ you'll be making.

[Free Thinker]

Well, I think that you are confusing wants and needs. If you do have enough money I would definately buy new shoes. They are in investment IMO, they get you where you need to go (like tires for a car), they can hurt your feet if you get a bad pair, and if you get a good pair they should last quite a while. Now, I am not a big shoe person, I only have a handful of shoes, I don't keep them to wear w/ different clothes, ect. I get good ones and they last a long time. I also think your test is a need. You need to do whatever you can to get a promotion and raise. That furthers your career and is an investment in your future. If I had to I think I'd even borrow or use the CC for the test as long as you could pay it off in a reasonable amount of time. There is nothing wrong w/ spending money *if* you have it and if it's a good investment. There is also nothing wrong w/ splurging at times for something extra special, you just need to make sure you are living within your means and saving for the future.

[beachmouse]

I've had some very good luck with Clarks for shoes that I'd call dressy but not necessarily dress. (leather loafers with a heel, short boots sort of thing) $40-$50 at the outlet mall or shoe discount store, and I've gotten 4-5 years out of the pairs I've had and they cushion my feet almost as well as they did when I bought them. They laugh at a 10-20 minute walk to work or around work and tell me to bring on a bigger challenge..

Every pair of shoes I've bought from Payless or Pick a Pair sorts of places has looked awful within a month.

[normajean]

If you are feeling you have to justify a purchase, then its probably not a real need.

Shoes are a need, where you buy them & for how much is not need based. Decide how much you can afford, in your current situation, and find some shoes. Maybe right now, you can afford $30. So $30 is your budget, period. Not $31.07, not $30 plus tax, $30 total. Shop around and you can find some good shoes for $30. Maybe you can only afford $5 right now. So shop around and find some $5 shoes that you can make do with until you can afford some quality shoes that will last. But again, if $5 is your max, its $5, not $6 or $7. Maybe having your old shoes fixed is cheaper than new shoes...

I think its great you are saving 15% each month! Kudos!

[mumkenna&lucas]

Originally Posted by phathui5

You could join the No Spend challenge threads here and put what you save in the bank.

Yep, I agree!! It has helped me ALOT! I have become more accountable on what I spend and where. And I second guess myself before I buy anything!!

[polyhymnia]

Thanks everyone. Yes, I have a very hard time with "need" versus "want" ... or rather, I am very good at justifying why I "deserve" things I want

I agree that shoes are a need but I guess I am struggling with how much to spend on this need.

I will join the no spend thread for October that is a great idea!