Where to cut my budget?
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| Wed, 02-08-2006 - 6:46pm |
Okay, my family has switched our diet to entirely organic foods. This is fairly expensive, though I'm gradually getting the hang of shopping this way and finding the best prices on things (and we've almost eliminated meat from our diet, which helps).
But, I still need to find money in the budget to cover the difference between our food budget and what I actually end up spending now. So I'm hoping you all can help me come up with creative and/or radical ways to cut my expenses elsewhere to do this. All suggestions are welcome--even if I don't end up doing something, each idea will trigger additional ideas.
Okay, here's my current budget:
Monthly Income: $3136
Monthly Expenses:
Mortgage $1004
Groceries $245
Gasoline $215 (don't usually end up spending this much, and spend it on groceries instead--but I want a buffer against increasing gas prices)
Allowances $120 ($50 each for dh and me, $10 each for the kids, both under five)
Electric and gas $135 (I actually have been ending up spending a bit more than this lately, on average)
Internet $45 (no land line, so dial-up is not an option; both dh and I work from home at least occasionally so internet is important)
HOA dues $10
Date night for dh & I $45
Water $55 (another category where I usually actually spend a bit more on average--need to do something about this too)
Auto loan $313
Debt payments $520
Life insurance $45 (would like to buy a bit more insurance, so wouldn't hurt to raise this amount some)
Dental savings $10
Medical savings $10
Cell phones $39 (no land line, we use the cell phones instead)
Charity $180
Internet hosting $10 (dh and I each have a domain name we host; his is for fun, mine is for my business, though I haven't been using it much lately)
Auto insurance and misc auto expenses $135
I look eagerly forward to your suggestions!
Heather

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Ok, a little off-topic, but did you know that the people who own Trader Joe's are the same people who own Aldi? I just found that out recently, and I thought that that was very interesting.
-Sarah
Sarah
Mom to Gina & Tony
There are only a few things on your list that are eligible to be reduced. Groceries would be one, although $245/mo does not seem outrageous.
The easiest reduction would be the charity. The past several years as I have buckled down hard with my debt reduction, I have donated my TIME rather than my money. Often that is needed more desperately by charities anyway. Is this an option for you? $180 per month would be a lot of money to put elsewhere.
Date night, you got some good suggestions on how to trim that.
The kids' allowances would be another area to trim. Is this cash you hand to them to spend as they desire? Or is this for things FOR the kids, like new shoes, etc.?
Be very diligent (if you're not already) about turning things off - that might help with the electric.
Something that dh and I do when we go out is to share an entree or one of those multi appetizer platters. That keeps the cost way down - more so if we drink water and not soda or spirits.
Water - showers instead of baths. Bare minimum in the sink to wash dishes. It doesn't really take a lot and do a mass rinse instead of running it for all of them.
Electric make sure you turn everything off when not in use and check some things-they may pull power despite being off.
And a price book. I can't recommend these enough ...
maybe cut the allowance for you and dh and the kids in half for bit
Maybe cut the charity in half for a bit and to replace the monetary half donate time or items.
Call around and price auto insurance policies. You may find something for a little less money..
hth
Thank you, everyone, for your suggestions. Looks like my budget is already pretty lean, but there were some terrific ideas in here.
I haven't made any final decisions yet, but I think I'm going to do as some suggested and cut out the kids's allowances. We usually end up blowing it on stuff that could be covered under other categories anyway, and it's really not necessary. I buy treats with grocery money or whatever, or I share some of my allowance and let ds buy something at yard sales (a very cheap way to get "new" toys). So that's a good place to pull a few bucks, and that $20 may well be enough.
Of course, my price book when it is complete will be a huge help, and I can probably restrain myself further on "extras," like fresh milk (my kids love powdered milk, so why spend the extra on fresh? LOL Unfortunately, I'm not sure whether I can find organic dried milk... I'll have to check that out), cookies, crackers, cereal, etc. I don't buy a lot of those items anyway, but they sure add up, especially the organic varieties.
I don't think I'll cut dh's and my allowances, because I think dh would revolt, LOL. And I use mine for garden supplies and landscape needs (dh couldn't care less about the yard, so it falls on me to take care of and, since I enjoy it, I don't mind paying for it), so it would probably cost us more in the long run to cut that out (since a nice yard enhances property values, and our garden supplements our groceries).
I love the ideas of cheaper evenings out, and I'll run those by dh. Again, though, we've deprived ourselves for so long that these small luxuries feel important, especially to him, and we REALLY enjoy going out twice a month. We don't pay for babysitting--we have neighbors that I exchange sitting with, so the $25 is purely for drinks and/or food or whatever we decide to do.
I think we can be more careful with water and power. In summer, I'll go back to line drying my clothes, and we're starting to wash dishes by hand more often, which saves on water too.
As for the charity question, well, I would like to *raise* that amount to 10% of our gross income, but I'm having a hard time getting there until our debt is paid off. It's not a religious or obligatory thing. It's just a part of my deep, core understanding of the universe. I am so incredibly blessed, and giving is a way that I express my gratitude. It's a way to keep the flow going. I feel the more that I let good things flow from my life into the lives of others, the more room there is for flow back into my life. Besides, more than anything else we do, giving makes me feel rich. :)
Thanks again for all the terrific feedback. I'm mulling over another idea tangentially related to this, which I'll post in a new thread.
Thanks and blessings,
Heather
Thanks, cherfer! I could refinance my car, but that would mean it would take longer to pay off, and I want it paid off asap, lol.
I'm not actually *hurting* for money. We've got an emergency fund in place, we're paying $840 a month to debt (if you count the car loan, but not the mortgage--add $1000 a month to that if you count the mortgage), we live in a really fine house, we eat all organic foods, and we take an annual vacation (all in cash). I paid for a trip to Cali on sudden notice with cash, and we have $1500 set aside to celebrate our anniversary with this year. We paid for Christmas in cash. Etc. So reducing our charity spending would just be a way to subsidize a more expensive lifestyle, which in my opinion is not a good reason to reduce our giving.
I do appreciate the feedback, though, and the idea for the car. If we were having trouble meeting our obligations, I would definitely look into refinancing. All I'm really looking for is a way to increase my grocery spending, to make buying organic feel like less of a burden. But we can manage even without cuts.
Thanks so much for the feedback!
Blessings,
Heather
LOL!!! :)
I'm on this board because I wasn't always in such great shape. This board is one of the reasons I am doing as well as I am today! And I'm not going to quit something that works so well! LOL
Many already know my story, but in brief, three years ago we were more than $30k in debt with an annual income of about $28k. We were *not* meeting our obligations. We moved to a cheap apartment, I got a night job waiting tables, we refinanced my car (which is why I'm still paying on it, lol--but it's also why it wasn't sold or repossessed), sold a bunch of stuff, and started living VERY cheaply.
This board has provided incredible support over the past three years, and I am so grateful for everything. It's the first place I come when I have a financial choice to make, and I rely on all you fine folks so much for your valuable input.
I will probably still be here in ten years when we have a hefty trust fund and money coming out our ears! LOLOL I'll be asking for advice on what to do with the several hundred thousand dollars in interest I'm earning each month, and what I should do with all my spare time! (Hee hee)
Thanks everyone,
Heather
I've started a rudimentary price book. How do you have yours organized?
It's kind of become a little game or weekly challenge to beat the last paid price--lol. My life is soooo boring, huh?
I play that game too!
Mine is organized by type of food--a page for dairy, a page for meat, a page for produce, etc.
Then each row is for a separate item (pasta sauce, cauliflower, ground beef, hot dogs, etc.). There are several columns, each divided into sub-columns. Each column is divided into date, price, unit, store. I keep a calculator handy and divide everything into the same unit--usually ounces or pounds, but sometimes servings or some other unit. That makes it easier to compare across the board. Stores have their own abbreviations: HT for Harris Teeter, HE for Home Economist, FM for farmer's market, etc. I only record a price if it is lower than the previous lowest price paid.
I also have a separate column for notes. Each row actually takes up three rows--under the column for date, price, unit, and store, I record whether the price was a sale price or regular. Then there is a blank row before the next item, in case I need to record any additional information, and for ease of reading.
The date helps me keep track of patterns in sale prices. Some items go on sale on a regular basis (like monthly or every other month or so), and some items go on sale seasonally. Other items are on sale only rarely. Knowing this helps me decide how much to buy when it *is* on sale, and also when to check for sales on that item. I can also record if I got the price with a coupon, though I only rarely use coupons.
The price book is absolutely invaluable, and I am hoping it will help me stay more comfortably within my food budget once it is complete. (fingers crossed).
Heather
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