How can I cut monthly costs?

[DisGirl819]

We are in desperate need of cutting our monthly costs and we don't know where to start.
We are going to try going without cable tv, where can we watch tv? If we do netflix and stream shows, how can we hook up a computer to watch it on the tv? We have macs if that matters.
I also drive a hybrid and get about 45 mpg. DH drives a beast of an SUV though but he doesn't drive far and we use my car for all of our errands to save on gas.

Our monthly bills include: mortgage (for house we rent out), rent (for house we live in...we're military so we live 2000 miles from the house we own), cell phones (can't switch from sprint without heavy contract fees...and we have smart phones so I dont even know if we can downgrade the plan), DD's preschool (thinking of just doing homeschool there to save $$ though), gas, groceries, my car loan and savings accounts.

Any advice or ideas on how we can cut out more expenses?

 

[mum4jenn]

Go to the slowest speed on internet service. Shop around for car insurance...if you have AAA you can save a BUNDLE going through them.

 

[Shanna-like-Banana]

Please tell me you have USAA

Our rates are very reasonable, we have multiple insurances through them, and we have 1 simple monthly auto deduction.

 

[Lisa loves Pooh]

I am not the best at budget advice--I cater to my inner child too much making too many wants 'needs'.


But the best tip that I have read--instead of looking where to cut, start from scratch.

Build your budget from the ground up, hitting all you needs first in order of importance.

So:

Shelter: Mortgage/Rent plus insurance, power, water, gas bills (if things are VERY tight--the utilities and basic food would come first plus what is needed to keep your car--but it will cause you to get behind in rent/mortgage payments. )

Food: Basic groceries--no eating out here unless there is a logistics issue that prevents that. In that case, economize on the restaurant choices and your menu selections. (But only when eating out is essentially mandatory.)

Transportation: Car payment (if it applies), gas, and insurance and the needed maintenance (i.e. oil changes)

Clothing: NEEDED clothing--and only when it is needed. If you have good thrift stores, thrift temporarily and clearance otherwise.

Then see what you have left.

Next is minimum debt payments, I think.

Then go through the rest of your expenses. Rank them and then put in what you want/need until you have no more room in your budget.


Beyond that, I really don't know--but that has helped us to prioritize things and where to draw the proverbial line in our budget. When I didn't know what to cut, this process made it easier to know what is important.

(For interest rates/debt/savings considerations--I yield to other DISers who know much more than I)

 

[groovygirl927]

Have you looked into Head Start for preschool. (it is a free federally funded preschool) I know some military families qualify (it will depend on size of family and income-where I work I know they don't use your housing allowance as part of your income)

my cousin has been saving a lot using coupons (even without them being doubled-they don't do that here) She finds a lot of her coupons online for items she uses regularly.

Good Luck

 

[cluvsdisney]

One of the best ways to start looking for places to cut is by writing down what you spend - every cent. It's surprising how much little things add up and will show you where you can cut to save.

Newspaper & magazine subscriptions are less expensive then picking them up at the newsstand or just read the news online. Evaluate other subscriptions - cable, gym, netflix, data/text plans, etc. Use the library for books & movies.

Meal planning based on weekly sales circulars. Buy in bulk when things are on sale. Meats can be frozen in portions. Check warehouse stores for better deals. I use a lot of their health & beauty stuff.

Use up what you have. What's in your pantry & freezer? Even when I think I don't have anything to eat - there's always something. It's just not what I want to eat. The same goes for lotions, soaps and cleaning supplies. I have plenty of these items that I have been using for weeks.

I noticed a drop in the electric bill when I started to monitor the temp in the fridge combined with turning the computer off every night. Adjust your thermostat.

If you have any consumer debt, call them to see if they would be willing to reduce the interest rates.


The other option is to find ways to make more money:

sell items you don't need/want on ebay or craigs list.

work OT

Get a second job

ask for a raise

Is there anything you &/or DH are good at that can earn money on the side?

 

[Meetmeinmontauk]

DBF & I use e-mealz.com for our dinners each week. It gives you a list of grocery stores & what is on sale & then makes a menu for you. It's $5 a month.
Also, I coupon like crazy. I sell the high value items I get for really cheap/free on eBay.

 

[Disneyliscious]

Why cut cable to only add on the bill of NetFlix? Just watch regular TV. There are plenty of free channels now, and THIStv offers movies all day. You also have CBS, NBC, ABC, FOX, WB, and more. No need to pay for TV at all. TV is not a necessity.

I havent had cable in 15 years and haven't regretted a day of it since.

 

[Nayan]

I see you have a mortgage AND rent a place. Is there any way you can up the rent at your home to pay for the rent where you live now? I also see you have one (two?) trips coming up. If you are in severe dire straights can you cancel the trip and if you own DVC maybe rent points?

 

[DawnM]

Well, if you really want to get heavy handed with cutting bills, get yourself a copy of Dave Ramsey's Total Money Makeover.

I can tell you right now what he will say though......you are in over your head because of several things you have already mentioned:

You have a car loan on a very expensive car (hybrid.)
You have a mortgage where you don't even live and if your rent doesn't cover 100% of the expenses, you need to sell.
Your child doesn't need preschool unless you are working full time.
Your cell plans are way too expensive if you have smart phones, cheaper to pay the cancellation fee in the long run than to keep them.
Dump cable
Dump any extras, eating out, etc...

I am not saying I agree with all of the above, just saying what most financial gurus will tell you. What I would do immediately is:

Get a cheaper car/sell the one with the loan
Downgrade your cell plan
Lower your cable or get rid of it
Look at ANY holes in your budget (eating out, high groceries Target trips, etc)
Take my child out of preschool and look for free options, playdates, coop type preschool, head start, etc.... (unless you work, but it sounds like you don't)
Cut the grocery/toiletries bill by learning to coupon OR by making everything from scratch.
CUT THAT DISNEY VACATION!!!!!!!!!!!!!!!!!

 

[JaymeC]

Why cut cable to only add on the bill of NetFlix? Just watch regular TV. There are plenty of free channels now, and THIStv offers movies all day. You also have CBS, NBC, ABC, FOX, WB, and more. No need to pay for TV at all. TV is not a necessity.

I havent had cable in 15 years and haven't regretted a day of it since.

Just my two cents, but netflix costs us roughly $12/month. Even the cheapest cable option would be $30, and that's only the very basic channels. Regular cable would be $50-60 or so. Not everyone lives in an area where they can get tv by antenna. So netflix would be a significant savings with more selection imo than cable tv offers. TV is not a necessity, but it can be worth it for the entertainment value.

 

[crisi]

I am not the best at budget advice--I cater to my inner child too much making too many wants 'needs'.


But the best tip that I have read--instead of looking where to cut, start from scratch.

Build your budget from the ground up, hitting all you needs first in order of importance.

So:

Shelter: Mortgage/Rent plus insurance, power, water, gas bills (if things are VERY tight--the utilities and basic food would come first plus what is needed to keep your car--but it will cause you to get behind in rent/mortgage payments. )

Food: Basic groceries--no eating out here unless there is a logistics issue that prevents that. In that case, economize on the restaurant choices and your menu selections. (But only when eating out is essentially mandatory.)

Transportation: Car payment (if it applies), gas, and insurance and the needed maintenance (i.e. oil changes)

Clothing: NEEDED clothing--and only when it is needed. If you have good thrift stores, thrift temporarily and clearance otherwise.

Then see what you have left.

Next is minimum debt payments, I think.

Then go through the rest of your expenses. Rank them and then put in what you want/need until you have no more room in your budget.


Beyond that, I really don't know--but that has helped us to prioritize things and where to draw the proverbial line in our budget. When I didn't know what to cut, this process made it easier to know what is important.

(For interest rates/debt/savings considerations--I yield to other DISers who know much more than I)

I like this approach a lot.

For the TV, you can stream through a Wii/XBox or PS3 - if you don't have those, I'd recommend getting a Roku (www.roku.com). You'll spend a little, but not much.

 

[Marionnette]

Just my two cents, but netflix costs us roughly $12/month. Even the cheapest cable option would be $30, and that's only the very basic channels. Regular cable would be $50-60 or so. Not everyone lives in an area where they can get tv by antenna. So netflix would be a significant savings with more selection imo than cable tv offers. TV is not a necessity, but it can be worth it for the entertainment value.

Yes, but often when you drop cable, your internet service goes up as a result of unbundling those services. And you need the internet to stream Netflix. Once you consider that cost increase, you might not be saving a whole lot of money.

I'm not saying that it's not a good idea, just that all the implications need to be fully considered before making the leap.

 

[wide awake]

Since you're military please tell me you use the commissary...also, have you looked into base housing? I know the rules have changed a lot since we did this, it isn't the fabulous deal it used to be, but you would probably save some money. The smart phones? Why? It sounds like you're at home, or maybe working parttime at most. If DH needed a smart phone they'd issue him one. My DH is retired military, he uses a regular cell. I have a Blackberry because I really need it for my job. I hated having to go there though. I still have the cheapest plan I can get by w/ though. Disney trip...did you get a great deal? If not have you thought about SOG? Cable...I don't watch TV so don't understand the need for that but we do have it for DH and DS. The car...if you're upside down you're stuck. Preschool...homeschool is fine for a three yr old...for older students too, but I wouldn't dream of paying for preschool if I was at home unless I had money to burn. The house you own which you're renting out...are you upside down? Do you plan to live there again? Is the market appreciating? Does the mortgage cover expenses? You may want to consider selling it.

 

[minnie1928]

Just my two cents, but netflix costs us roughly $12/month. Even the cheapest cable option would be $30, and that's only the very basic channels. Regular cable would be $50-60 or so. Not everyone lives in an area where they can get tv by antenna. So netflix would be a significant savings with more selection imo than cable tv offers. TV is not a necessity, but it can be worth it for the entertainment value.

I originally read that post and thought the same thing, that cable is more. However, I think the poster was saying that the OP could stream the network shows from NBC, Fox, etc. and drop Netflix all together.

 

[descovy]

We play our laptop to the TV by using a $25 HDMI cord... found at Target (Best Buy will try to sell you a $100 monster cable... not necessary)

If your TV is older it may take a different plug though...

 

[VAN]

Well, if you really want to get heavy handed with cutting bills, get yourself a copy of Dave Ramsey's Total Money Makeover.

I can tell you right now what he will say though......you are in over your head because of several things you have already mentioned:

You have a car loan on a very expensive car (hybrid.)
You have a mortgage where you don't even live and if your rent doesn't cover 100% of the expenses, you need to sell.
Your child doesn't need preschool unless you are working full time.
Your cell plans are way too expensive if you have smart phones, cheaper to pay the cancellation fee in the long run than to keep them.
Dump cable
Dump any extras, eating out, etc...

I am not saying I agree with all of the above, just saying what most financial gurus will tell you. What I would do immediately is:

Get a cheaper car/sell the one with the loan
Downgrade your cell plan
Lower your cable or get rid of it
Look at ANY holes in your budget (eating out, high groceries Target trips, etc)
Take my child out of preschool and look for free options, playdates, coop type preschool, head start, etc.... (unless you work, but it sounds like you don't)
Cut the grocery/toiletries bill by learning to coupon OR by making everything from scratch.
CUT THAT DISNEY VACATION!!!!!!!!!!!!!!!!!

I have to agree with Dawn on this one. If you are struggling to make ends meet, I'd have to say the WDW vacation would be the first thing to cut out!

 

[DawnM]

Just so you know for future purchases, Amazon.com sells them for about $10. I just ordered one for our Roku box as the one we had isn't working anymore.

It has high reviews, so hopefully it will be a decent one.

Dawn

We play our laptop to the TV by using a $25 HDMI cord... found at Target (Best Buy will try to sell you a $100 monster cable... not necessary)

If your TV is older it may take a different plug though...

 

[Marionnette]

We are in desperate need of cutting our monthly costs and we don't know where to start.
We are going to try going without cable tv, where can we watch tv? If we do netflix and stream shows, how can we hook up a computer to watch it on the tv? We have macs if that matters.
I also drive a hybrid and get about 45 mpg. DH drives a beast of an SUV though but he doesn't drive far and we use my car for all of our errands to save on gas.

Our monthly bills include: mortgage (for house we rent out), rent (for house we live in...we're military so we live 2000 miles from the house we own), cell phones (can't switch from sprint without heavy contract fees...and we have smart phones so I dont even know if we can downgrade the plan), DD's preschool (thinking of just doing homeschool there to save $$ though), gas, groceries, my car loan and savings accounts.

Any advice or ideas on how we can cut out more expenses?

You're getting a lot of good advice but you really need to have a jumping off point.

Take a breath. Sit down and list your expenses. Start with the ones you pay every month. Then add the things that you might only pay one, two or four times a year like car insurance and annual registrations or dues. You don't need to do it in a single sitting. Keep a notepad on the kitchen counter and add reminders when they occur to you.

Go through your debit card, ATM and credit card statements to see how you are spending your cash.

• Are you withdrawing $20 at an ATM here and there several times a week? What kind of ATM fees are you racking up by doing that?
• Are you swiping the credit or debit card at the drive thru or convenience store for small purchases even when you have the cash in your pocket to pay for it?
• Are you paying credit cards late and getting dinged with late fees? Are you carrying a balance? Did you know that if you aren't paying your credit card off in full each month, you should pay as much as you can as soon as you can rather than waiting until its due date to pay the minimum? You can save on interest charges if you do.

Keep a small notebook in your handbag and pocket to track where the cash is going. Or use an app on your smartphone to track your spending. How many times have you reached in your wallet only to find that there was less in there than you thought and you have no idea where the rest went? I know that I have. Keep all your receipts if you don't think that you'll be able to write things down at the very moment of purchase.

Once you have a handle on where your money is going, you can make a plan on how to adjust your spending. You may not have to cut cable completely. Or your vacation may not be in danger. But you won't know until you are aware of where your cash is flowing.

 

[DisGirl819]

Please tell me you have USAA

Our rates are very reasonable, we have multiple insurances through them, and we have 1 simple monthly auto deduction.

We do all our banking through USAA, except for our mortgage. We save a ton of money by going through them.