About 8 years ago, Justin was laid off of work. We had a mortgage, tuition, a baby, and I wasn't working. For 3 years we were underemployed. Justin's paycheck covered the mortgage, car payment, and insurance; savings covered everything else we needed to live: food, utilities, clothes, etc. In April 2012 Justin graduated with his master's degree, began working as an engineer and we finally had room to breath again.
2017 we are still in the same house but have 3 more kids. Our financial situation has changed dramatically from 2009. We buckled down our spending during those lean years and we have ramped up our saving in the last two. By saving and not spending, we now put away nearly equal the amount of our mortgage each month. Our main goals are big house (me) and retiring (Justin) so save save save is our song right now.
Here are some things I do to save money to help us reach our goals sooner. Nothing earth shattering here and mostly common sense. All of these things combined make a big difference.
1. We refinanced to a 15-year mortgage. Our payment is higher but we pay less interest which means we will net more equity when we sell which will translate to a lower payment on our next house.
2. We own used cars and paid cash (11 and 17 years old)
3. Our cell phones are 5 years old and our computers were bought used.
4. We don't own smartphones thus no data plans.
5. We have the most basic cable plan (like 10 channels).
6. I plan our meals a week at a time based on what I have on hand then buy what's on sale and make my shopping list accordingly. I make big meals for Justin to eat the leftovers for lunch.
7. I go to the store as few times a month as possible. I keep running shopping lists for Macey's, Walmart, and Costco. If I run out something, I still try to wait at least a couple more days or a week before I go. Fewer shopping trips means I spend less overall on those "oh yeah, I need that" items.
8. We make pancakes, cookies, rolls, waffles, and lots of other things by scratch. I don't buy a lot of cookies, chips, or other snack foods. I rarely buy juice and soda, and never buy meals from the freezer section.
9. We eat a ton of eggs--like 3 dozen a week. I boil 12-17 eggs at a time for lunches and snacks.
10. I keep a list of price per unit of our frequently purchased items and compare and update the list often. Sometimes Costco is cheaper for cereal, sometimes a sale at Macey's beats it.
11. We don't go out to eat very often--usually one meal per month with the kids, one dinner out just the two of us. We order waters all around unless it's your birthday or our anniversary.
12. We try to eat at places where we have coupons that come in the mail or birthday clubs.
13. Half of our kids' wardrobes come from garage sales and the other half comes from clearance sales.
14. We love garage sales. You can find anything and everything for pennies on the dollar. Saturday mornings all summer long.
15. Erica and James wear Sarah and Henry's hand-me-downs. I've got totes and diaper boxes carefully labeled with sizes so every season I grab the next box for Erica and James. (Erica gets a new Easter dress, Christmas pjs and maybe a couple of new shirts each season if Sarah's clothes didn't survive Sarah.)
16. I sew, repair and alter clothes. I've got a beloved pair of jeans that I've patched the patches on. I've made skirts for Sarah out of my old sweaters, made aprons out of garage sale fabric. If a dress on sale is too big for Sarah, no problem, I just take it in.
17. I make my own laundry soap, dishwasher detergent, and floor cleaner. You can clean anything with a combination of vinegar, Borax, washing soda, kosher salt, and Dawn.
18. We get all our entertainment from the library. I don't buy books unless for gifts and we go to a movie only once a year, especially now that the dollar theater by us closed. We don't own video games.
19. I don't buy a lot of stuff. This can be the biggest money saver. I think long and hard about
everything I buy.
Stuff means I have to get after someone to clean it up or dust it or repair it or keep track of it or find a place for it. Who needs stuff? I love throwing things away but it's better to not spend money on it in the first place.
20. I have a few wish-lists on Amazon where I put ideas for Christmas and birthday gifts. It evolves based on price and what I think my kids and their cousins and friends will appreciate and get the most use out of. Cuts down on impulse gift shopping.
21. I cut everyone else's hair and get my own done only a few times a year. During those lean years, I colored my hair myself and got it cut only twice a year.
22. I don't redecorate very much or very often. I just barely replaced a 15-year-old lamp because the switch broke. It was a big deal for me. My kids' rooms aren't coordinated and cutely decorated (because kids don't care).
23. Parks and the mountains are our go-to destinations. Going to the zoo, bowling, and a baseball game once a year is a big deal.
24. I take my kids pictures instead of paying for school pictures.
25. I don't buy wrapping paper for birthday gifts. I reuse and reuse giftbags and wrap things in paper bags from the grocery store. The kids love to draw on the brown paper for each other.
25. Justin does all the maintenance on our cars and we fix everything we possibly can ourselves. Youtube can teach you how to fix anything. I fixed our dishwasher and refrigerator.
But most importantly, we do it together. Justin and I sit down and make a budget at the beginning of every month and give every dollar a purpose. And then we sit down again mid-month to talk about how things are going (Did the car repair cost more than we were expecting? Diapers were less than I thought, we can move the extra to that., etc) I look at it every week or so to see where I'm at. (I think Justin looks at it even more often than that.) We are both very aware of where our money is going at all times. It's just too big of a burden to put on one person. I could probably write an entire post about how we manage our money.
So there you have it. There are definitely more creative and extreme penny-pinching people out there but this works for us now in our lives. There are things we pay good money for like sheets, cookware, and winter coats. Those things matter to us and we scrimp in other places to make up for it. It's all about priorities and planning.