How can I cut monthly costs?

[SandrA9810]

Then the best thing to do is to tack up every receipt from every purchase. Ok, online tools are nice which tell you how much you spent in a particular area, but it doesn't pin point it.

Spent an extra $10 on snacks that really aren't needed? Online tools will say it's groceries, but at home it shouldn't count towards groceries but as extras or a treat.

If you have a $100 food budget each week, but it doesn't seem like it lasts as long as it should. Go through your receipts and highlight things that you really didn't need or doesn't get used fast enough. Sometimes coupons can hinder more than help, because it gives you an extra urge to purchase it. Only cut coupons of things you need. Don't cut the coupons for oreos, ice cream, soda, or potato chips, because your mind will think, well it's a special treat, you should get it this once because you have a coupon. Well that's a couple bucks you wouldn't have spent in the first place.

As for internet, AT&T is doing a pretty good promo on their hi-speed internet, one as low as $20 a month for up to 12 months, no contract. This is without cable and all the other junk.

Network tv isn't horrible, and I've actually only had cable once for a year. You might actually find yourself watching less and less of tv. As you don't have 300 channels to flip through mindlessly. It only takes about 20 minutes to channel surf network stations, vs the 3 hours to channel surf cable stations.

Huluplus and Netflix are nice to have, but regular Hulu offers a decent amount of shows.

As far as savings for various things, prioritize them, make an amount you want for it and then save for each one.

1. Emergency fund - $1,000
2. Car maintenance - tally up the amount of maintenance for the next 6 months. Get your car manual with recommended schedule, and then find out online how much those things can usually run. Also check about any recalls or warnings. Like my aunt is having to replace her transmission on her Honda Accord because they were faulty to begin with, so she knew the day would come.
3. Home repairs - $2,000 (I think it should be higher as you have to account for any damage possible by the tenants). You really don't need it for renting.
4. College funds - Make an acceptable goal that will hopefully earn you the most interest. Like getting a $1,000 CD or special savings account that yields higher interest for having a high amount.
5. Retirement funds

Once you saved the "base" go back to one and add some to it, then go down the list. Once your at comfortable level in each, start dividing equally every month.

 

[VAN]

Ok apparently my bringing up the problem with the house we own is a sticky point. We don't owe $80k on it...we would IF we could sell it. The housing market where we own the house is overfull with houses for sale that no one is buying and there is nothing "special" about our house to make it stand out for sale. Therefore, we're stuck renting it. The extra couple hundred we pay each month to make the mortgage isn't killing us.

I really think that we aren't budgeting for things properly (car repairs, groceries, gas, clothes, etc) and could use some help figuring out how to better plan for those things or put the right amount of money towards those things each month. We have long term financial plans and have savings and a 401k from DH's previous job, we have retirement, we have college plans for our kids. Its the proper budgeting of regularly occuring monthly expenses that I want to straighten out. Its not that we don't have enough money, its that I feel like it might be allocated poorly (and I do agree that the vacation is frivolous and I will think about that one more to determine if we really can afford the trip right now) each month and that I wish I had a strategy for improving the way we spend the money we have to spend every month (outside our normal bills like rent and mortgage, for example).

I am working on going back to work and when we get set up in Missouri I plan on tutoring in my spare time as much as possible. We really could use the money but I won't work at the expense of my children. They are only little once and they need a parent home with them (this is my belief and as long as we can afford for me to be home...until they're full time in school...then I will be home). I will work doing other things though, just no full time job for me right now.

We have one car loan, my student loans and the mortgage as our sole debt. We don't use credit cards except in emergencies and we pay those off right away so we don't carry debt.

Thank you for this post ... it is very refreshing on the "budget" boards for the OP to come back with comments that make us believe they have actually listened to the advice given.

Best of luck to you and your family. Believe me, if you choose to keep your WDW vacation but go on the cheapie plan, you may find that you end up with better memories than if you spent a fortune! My best vacation memories are those when we went on a shoestring and put the emphasis on just being together as a family.

Again, best of luck and thanks for your post.

 

[DawnM]

Ok, this is where a Dave Ramsey type plan would really help you.

We were in much the same situation 5 years ago, minus the house that we couldn't sell. We never carried credit card debt and we had student loans and a car loan. The car was WAY MORE than we would spend now on a car.

Something like this might be good to look at:

http://www.greenpath.com/university/calculators/budget-percent-calculator.htm

Sit down with your income and necessary spending amounts and play around with what you can do to come up with extra amounts to pay down the debt.

DR calls it "snowballing."

We took about 2.5 years to pay off our student loans and our car and save up 6 months' worth of living expenses in our emergency fund.

I can't tell you what a difference it has made in our lives. Having that security fund and knowing that we will never have another debt payment again if we can possibly help it is beyond freeing.

Dawn

Ok apparently my bringing up the problem with the house we own is a sticky point. We don't owe $80k on it...we would IF we could sell it. The housing market where we own the house is overfull with houses for sale that no one is buying and there is nothing "special" about our house to make it stand out for sale. Therefore, we're stuck renting it. The extra couple hundred we pay each month to make the mortgage isn't killing us.

I really think that we aren't budgeting for things properly (car repairs, groceries, gas, clothes, etc) and could use some help figuring out how to better plan for those things or put the right amount of money towards those things each month. We have long term financial plans and have savings and a 401k from DH's previous job, we have retirement, we have college plans for our kids. Its the proper budgeting of regularly occuring monthly expenses that I want to straighten out. Its not that we don't have enough money, its that I feel like it might be allocated poorly (and I do agree that the vacation is frivolous and I will think about that one more to determine if we really can afford the trip right now) each month and that I wish I had a strategy for improving the way we spend the money we have to spend every month (outside our normal bills like rent and mortgage, for example).

I am working on going back to work and when we get set up in Missouri I plan on tutoring in my spare time as much as possible. We really could use the money but I won't work at the expense of my children. They are only little once and they need a parent home with them (this is my belief and as long as we can afford for me to be home...until they're full time in school...then I will be home). I will work doing other things though, just no full time job for me right now.

We have one car loan, my student loans and the mortgage as our sole debt. We don't use credit cards except in emergencies and we pay those off right away so we don't carry debt.

 

[crisi]

Thank you for this post ... it is very refreshing on the "budget" boards for the OP to come back with comments that make us believe they have actually listened to the advice given.

Best of luck to you and your family. Believe me, if you choose to keep your WDW vacation but go on the cheapie plan, you may find that you end up with better memories than if you spent a fortune! My best vacation memories are those when we went on a shoestring and put the emphasis on just being together as a family.

Again, best of luck and thanks for your post.

And that she isn't as bad off as some people were jumping to. For her, the sky isn't falling. Nor is it even being propped up. It could just have a few more sunny blue days in it.

Disgirl, what I would do is a spending crash diet for three months - don't spend ANYTHING you don't need to. Pretend you are truly broke. Have a garage sale. Save everything you can. Do budget meals, shop second hand for your kids clothes (and you probably don't need anything until your tennis shoes and jeans actually get holes in them). Your biggest issue is that you don't have a comfortable cushion - get yourself a cushion.

Then, go back to spending, but less than you do now so that cushion grows over time - the idea is to never have a car loan again and be able to pay off that student loan. The three months of minimal spending should help you determine wants vs. needs and give you a pretty good idea of the corners that you can cut that no one will notice (and the things you really missed) That will change your cash flow situation.

(If she's renting points for BCV, she is going on the cheapy plan - its about as much for a BCV studio as for a value room, and no car rental like she'd have if she were off site).

 

[Marionnette]

(If she's renting points for BCV, she is going on the cheapy plan - its about as much for a BCV studio as for a value room, and no car rental like she'd have if she were off site).

Not unless she got those points super duper cheap!

A week in early Dec. in a studio at BCV is 107 points. Even at the bargain price of $10/pt. it would cost over $1000 for the week. The rack rate at an Allstar is $95-$105 per night plus tax. That would be just over $800. Plus there will probably be a discount available for that time of the year.

However, I do agree with the rest of your post. It's unusual for someone who has asked for help on this board to actually accept the sometimes brutal advice with grace. I'm really rooting for the OP to get it together and make a go of it.

OP, if you're interested, I found a free iPhone app to keep track of your out-of-pocket spending. It's customizable and very easy to use when you're out and about. It can be very eye-opening to see where your cash is going! It's called Cashish and I've been using it for a couple of months now.

 

[malibuconlee]

Just wanted to say hello. From your posts it sounds like you are moving to Ft. Leonard Wood? We are here, have been since the end of January. Let me know if I can give any advice about the area. It's small and there aren't many options for shopping/dining/going out so that can be good and bad. Less things to spend money on, but more expensive because there aren't 3 grocery stores to watch sale papers for.

Good luck with your PCS!

 

[crisi]

Not unless she got those points super duper cheap!

A week in early Dec. in a studio at BCV is 107 points. Even at the bargain price of $10/pt. it would cost over $1000 for the week. The rack rate at an Allstar is $95-$105 per night plus tax. That would be just over $800. Plus there will probably be a discount available for that time of the year.

However, I do agree with the rest of your post. It's unusual for someone who has asked for help on this board to actually accept the sometimes brutal advice with grace. I'm really rooting for the OP to get it together and make a go of it.

OP, if you're interested, I found a free iPhone app to keep track of your out-of-pocket spending. It's customizable and very easy to use when you're out and about. It can be very eye-opening to see where your cash is going! It's called Cashish and I've been using it for a couple of months now.

That plus tax makes it almost a wash - 13% out at the All Stars - nothing for a DVC rental. Not quite, but its quite possible her budget can take that $100 difference.

And I think the OP does have it together and is making a go of it. She has no consumer debt. She just isn't quite comfortable because when something happens "out of budget" she feels like she is scrambling. They've even been able to take the hit of their house being worth less than they owe, HAVING to move, and renting it out at a loss, without incurring MORE debt. There is a big difference between that and "every month our credit card bill is $100 more because we don't have any scrambling room."

 

[PrincessSuzanne]

Just wanted to say hello. From your posts it sounds like you are moving to Ft. Leonard Wood? We are here, have been since the end of January. Let me know if I can give any advice about the area. It's small and there aren't many options for shopping/dining/going out so that can be good and bad. Less things to spend money on, but more expensive because there aren't 3 grocery stores to watch sale papers for.

Good luck with your PCS!

Ah, Ft. Lost in the Woods, as DH refers to it. I have never been there, but that is where DH went to Basic. May I ask is it that bad? I have always wondered if what he was telling me was true.

OP, sounds like you have it together pretty well.

I think in this circumstance you could still pull off the trip, if your DH is able to go. Have you checked out Shades of Green and the Military ticket package, both are really good. We stayed at Shades for the first time in April and I was impressed, getting a Deluxe room at a Value price and so close to the Magic Kingdom.

 

[minnie1928]

I just have a generic piece of advice...if you pay anyone on a regular basis (monthly, qtrly, etc) then call them to see if they can offer a better deal. This would work for cable, insurance, phones, etc. Don't be afraid to shop around for new insurance (car, life, etc.).

 

[hannahdrewmom]

Ok apparently my bringing up the problem with the house we own is a sticky point. We don't owe $80k on it...we would IF we could sell it. The housing market where we own the house is overfull with houses for sale that no one is buying and there is nothing "special" about our house to make it stand out for sale. Therefore, we're stuck renting it. The extra couple hundred we pay each month to make the mortgage isn't killing us.

You have made me feel so much better! I apologize for being so harsh... I really thought you were saying you were $80k behind on payments. I was trying to figure out how you still had a house at all

I think the fact that you are trying to cut back will go a long way. It is amazing what you can come up with when you look at what you are spending it on. For our family the biggest thing was the get rid of the credit cards. We payed them off every month.... BUT it was way to easy to just swipe that card. Then at the end of the month there were months that I . When we stopped using those and just paying cash life got much better. (The only thing we did have grace in using the card for was gas.... I would not get out of the car with 2 little ones to go into pay!)

 

[Nayan]

I misunderstood as well so I apologize . I think putting your budget on a diet is the best way to save. Keeping a notebook and writing things down like a PP said is a great idea to see where you money goes every month and what you can cut out or reduce. Trust me, those little purchases, even at a buck or two add up quickly.

 

[malibuconlee]

Ah, Ft. Lost in the Woods, as DH refers to it. I have never been there, but that is where DH went to Basic. May I ask is it that bad? I have always wondered if what he was telling me was true.

OP, sounds like you have it together pretty well.

I think in this circumstance you could still pull off the trip, if your DH is able to go. Have you checked out Shades of Green and the Military ticket package, both are really good. We stayed at Shades for the first time in April and I was impressed, getting a Deluxe room at a Value price and so close to the Magic Kingdom.

Well, I was here 20 years ago when my high school boyfriend graduated basic training. Back when it was an open base. From what I remember the area around the base has changed a lot!

We were also in the area about 6 years ago deciding between here and Ft. Riley (my dh isn't military, but manages construction projects for the federal group of his company,). We went with Ft. Riley.

Now that we have moved here.... I would say my biggest complaint is healthcare. For any kind of specialist including OB/GYN I have to drive to Rolla or Lebanon. 25-35 miles away. Hospital or Urgent Care, same thing. I can deal with not having shopping close. We have a Super Wal-Mart, but the closest town with a mall, Target, Sams Club etc, is Springfield, which is an hour and 20 minutes from my house to the shopping area of town. There is a Target at the lake, but haven't made it up there yet even tho it is closer, there is no Sams or Kohls there. Frustrating, but not the end of the world. Amazon has become my friend and so has the UPS guy that delivers stuff I order! LOL

There is much more in this area with the base being here than there would be without it. The towns themselves are small. St. Robert and Waynesville run right into each other North of the base. They have about 2500 and 3500 people. It's definitely small town Missouri.

There is a gymnastics place in Waynesville, and the library puts on a decent story time. The Armed Forces YMCA puts on playtimes and things and is open to those of us that aren't military, which is nice.

I always say every move is what you make of it. You can move and decide to be miserable and you'll be just that, or you can decided to do what you can with what you've got!

Now I have heard some horror stories about the housing on post that needs to be remodeled.

 

[PrincessSuzanne]

Well, I was here 20 years ago when my high school boyfriend graduated basic training. Back when it was an open base. From what I remember the area around the base has changed a lot!

We were also in the area about 6 years ago deciding between here and Ft. Riley (my dh isn't military, but manages construction projects for the federal group of his company,). We went with Ft. Riley.

Now that we have moved here.... I would say my biggest complaint is healthcare. For any kind of specialist including OB/GYN I have to drive to Rolla or Lebanon. 25-35 miles away. Hospital or Urgent Care, same thing. I can deal with not having shopping close. We have a Super Wal-Mart, but the closest town with a mall, Target, Sams Club etc, is Springfield, which is an hour and 20 minutes from my house to the shopping area of town. There is a Target at the lake, but haven't made it up there yet even tho it is closer, there is no Sams or Kohls there. Frustrating, but not the end of the world. Amazon has become my friend and so has the UPS guy that delivers stuff I order! LOL

There is much more in this area with the base being here than there would be without it. The towns themselves are small. St. Robert and Waynesville run right into each other North of the base. They have about 2500 and 3500 people. It's definitely small town Missouri.

There is a gymnastics place in Waynesville, and the library puts on a decent story time. The Armed Forces YMCA puts on playtimes and things and is open to those of us that aren't military, which is nice.

I always say every move is what you make of it. You can move and decide to be miserable and you'll be just that, or you can decided to do what you can with what you've got!

Now I have heard some horror stories about the housing on post that needs to be remodeled.

Sounds too small for me. DH is in the Army Reserves, so we don't have to worry about PCSing, which I am thrilled about. I don't want to be in the big city, but I don't want to be that secluded.

He was there in Basic in 1998. I bet it has changed some since then. I am used to Ft. Benning and it is now getting larger everyday, literally.

 

[Glenn]

Other things to think of; cut electrical usage by unplugging what youre not using, lots of items draw power just sitting there. Microwaves ( do you need the clock) clocks ( had a friend that had 3 in 1 room), TV (if you have several do they all have to be plugged in all the time). More a Missouri idea than in washington, close the drapes on the sunnyside of the house to cut AC. When a bulb burns out use 1 of the new low energy ones.
Coupons; good to use but sometimes hard to get. team up with friends and others to share the ones you dont use.
Disney vacation; go over your plans to see if you doing cheap, mod or delux. Use military discounts & lodging, if snacks are needed think of one of the shopping services instead of buying in the parks, breakfast in room, skip dining with princes instead see them in the park. I can see how a good get away can help your family but it can be kept simple. How about giving us your vacation plans to get ideas to save money there too.

 

[JB2K]

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...

Note for all: Try Monoprice for your HDMI cord needs -- way, way less expensive than the big retailers...

 

[crisi]

Other things to think of; cut electrical usage by unplugging what youre not using, lots of items draw power just sitting there. Microwaves ( do you need the clock) clocks ( had a friend that had 3 in 1 room), TV (if you have several do they all have to be plugged in all the time). More a Missouri idea than in washington, close the drapes on the sunnyside of the house to cut AC. When a bulb burns out use 1 of the new low energy ones.

We cut our electricity and heating bill by 10% just doing the stupid stuff - turning off lights instead of leaving them on. Putting a blanket on the water heater. Turning the thermostat up a notch in Summer and down a notch in Winter.

 

[edk35]

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.

I agree!!

 

[maleficentmom]

DisGirl,

How "desperate" are you? There is a big difference between "I want to cut my monthly bills because I don't feel like we save enough/we waste too much money - but our only debt is this mortgage we are upside down in and we are paying all our bills" and "I want to cut my monthly bills, we are about $50 short a month and I know there is a lot of waste" and "I want to cut my monthly bills - we are way short every month and every month we have hundreds more in debt, we are losing ground fast."

Do your cars have loans on them? Do you hold a paying job or is your husband the sole source of income?

Because "we both work and aren't really having a hard time paying our bills, but I really feel like we waste money and I need to save up enough to get out from under this upside down house" is a "keep your Disney trip, go to Starbucks once a week, dine out only once a week" answer. And "every month we see ourselves further and further in debt, there are loans on the cars, we are both working and I've cut everywhere I can" is "sell the cars and cancel the trip."

And "my husband is the only income" is "bring in some income of your own - if that is walking dogs while your child is in preschool or taking a Saturday shift at WalMart" you have an opportunity to add income - which is often easier when you don't have an income than cutting expenses.

I am earning a bit extra by subbing as a teacher at a friend of mine's daycare,I can take my kid with me sometimes as long as the kid/teacher ratio isn't full.I also do paperwork for the flu shot clinics during flu season through a medical work/temp agency.I didn't even interview for these jobs,it was just word of mouth talking with friends that landed me these.A little extra might help you out.(also think garage sale and ebay)

 

[Disneyliscious]

You want to be a stay at home mom and I respect that (I was one too). But did I read correctly that you are putting your child in pre-school? I'm not seeing the link there. Isnt the point of being a SaHM so you can be with your child all day, versus them being at a pre-school? Not being mean, just was wondering if I read something wrong.

 

[Sunnywho]

For phones, we use OOMA which has a handset and answering machine like a regular landline phone but uses the internet so it is free. Voice quality is excellent now that we got the OOMA handset to go with it (voice quality wasn't as good with the one we had before). So that is free when I'm calling from the house. Now I just purchased a prepaid tracphone smartphone for $99 that has airtime for a year and triples minutes whenever I have to buy them. Between those two, it is much cheaper than either the monthly cell phone bill or a monthly landline bill that we used to have.

We were paying for satellite but lowered the expense by going with netflix ($10 with a dedicated computer hooked up to the tv so we can watch on our regular setup) and having just local channels for $15/month from the satellite, since we still have a year left on that contract. The contract had been at $40 for the first year but jumped to $55 for the second for Top 100.

We are trying to cut expenses so I appreciate everyone's suggestions throughout this thread.