My husband and I are determined to get out of debt! We already have paid off our credit card debt - woohoo! We are now down to student loans, 2 car payments (we drive used cars, not new), and the house. Any suggestions on how to cut corners and really feel like we are making a difference? Our student loan debt is pretty high, so it feels like just adding an extra $50 per month is not really doing anything.
Also, I am looking for ways to save money. We already buy generic foods when possible and try to grow our own veggies. What other suggestions do you have for saving money, big or small?
Drink water. Don't buy soda.
Bring your coffee from home -- don't buy coffee at the coffee shop...
Bring your lunch to work.
Don't eat out.
Don't shop for clothes unless you really need them -- and then shop the clearance racks only.
Make a list of every penny you spend for a month. You'll see immediately where you can cut costs.
LBC
CLOTH DIAPER!!! Seriously! It is NOT what it used to be. No longer plastic pants, but cute colored diaper looking covers, diaper sprayers to clean the diapers instead of dunking and swishing.
If you start at birth you can save around $2,000 in two years worth of diapering. More if your child doesn't potty train till 3.
If you are potty training now, there are cloth trainers that actually work because the child can feel the wetness instead of wearing a more expensive diaper.
If you would like more information, you can PM me, or there are many sites to help you. I also have a blog you can visit to learn more
largebummies.blogspot.com
Start using reusable products. If you use a swiffer for mopping, get a Libman reusable mop where you can use your own cleaner and re-use the pads. Lots of savings there.
Un-paper towels. Look this one up. I can't explain it right with out making people more confused. But basically it's towels on a paper towel roll and you can use them like a paper towel, but you reuse them. So using more towels vs paper.
Look at things that you can re-use instead of throwing away, like butter tubs, rinse out a plastic bag and use it again. :D Happy savings!!
Be smart shoppers.... You don't have to use coupons to be smart shoppers!
Remember... You get what you pay for... Go cheap=cheap and you'll be re- purchasing whatever it is.
When you have a major purchase, buy the best you can afford at the present time.
Good for you... Stay out of debt, live below your means, pay yourself first
I second the Dave Ramsay advice.
Act as if you have NE income! Bang down the debt with the other income.
Cut everything to the bone.
Cut the cable, stop any delivery services (paper, mags--don't renew), food services.
Sometimes it takes an extra income (2nd job) for a year and ALL of that goes to the debt.
Shop your insurances, utilities, cable, phone, cell phones (get prepaid), angelfoodministries for monthly food boxes (no income requirements).
Coupons for stuff you use regularly, shop sales.
The number O. way to save money? Stay out of the stores and malls!
-If you still have cable, call your carrier and see if you can get a cheaper pkg (the most basic).
-Don't subscribe to magazines
-Don't buy books. Go to the library.
-Don't buy anything that is not on your shopping list and don't shop w/o eating first. You buy more when you're hungry.
-Save on gas by grouping your errand running around together.
-For a fun night in w/the kids, rent a $1 movie from Redbox kiosk (make pop corn).
-In our area we saved $ on our garbage p/u by getting the smaller can.
-In regards to your student loan, an extra $50/mo may not make a huge enough dent. Is there another bill you could put that extra $ towards that might make more of a difference?
-Do you have a gym membership? If so can you cancel it, freeze it or lower it?
-Make cheap meals that feed more of a crowd: spaghetti w/meat sauce, homemade pizza, huge salad w/bbq chicken on top, tacos etc.
-Congrats on paying off your c/c debt. Can you put down a little more $ a month on each of your car pmts?
-Some people cancel their home phone bills since they have their cell phones. Personally I am not a fan of that.
-Any extra spending you can cut back on (sports equip for kids' sports, buying mochas at Starbucks on the way to work, going out to lunch?)
-Sell any unused furniture on Craigslist, have a garage sale for the rest of your little trinkets, junk, recycle cans (or just don't buy sodas or bottle water)
-instead of buying bottled water, use an aluminum thermos
-avoid making any pmt late to avoid exhorbitant late fees
Buy the gallon size jug of vinegar and use that to clean with. I even use it instead of fabric softener (it works) and it is MUCH cheaper. You can use it instead to wipe mirrors, shower doors, tile floors, etc.
Also... don't use paper plates/cups. Wash regular ones instead.
And here's one:
Take all your change (ALL OF IT), and put it in a jar. Once a month, count it and deposit it at your bank. You'd be surprised how much it adds up to... pay cash at the grocery store. You'll always get back a few odd coins. Put them in the jar. Take out pizza once a month? The change goes in the jar. A fast food lunch 'cause you're in a hurry? Change goes in the bottom of your purse, to be emptied into the "jar". Have hubby do this too. You'll be surprised.
Evaluate what you're using a find a way to do without. There's a ton of stuff you can do without. Just an example...don't use ziplocs, use tupperware. Don't use paper, but cloth napkins. Use half the shampoo you think you need and your hair will get just as sudsy and clean...just cut back on things. It won't make a HUGE difference, but a small one, anyhow.
Take a Dave Ramsey class. You guys are already doing alot of the things he says but the Financial Peace class goes into insurance, investing etc. Lots of other things. It's well worth the $65! BTW...good for you guys! It's hard to turn your life around-good job!
Use FNA Financial Needs Analysis
Go for Biweekly plan on the mortgage.
Try Debt Roll that is great way to cit down on it.
Club your loans and pay them early on.
Eat home cooked food.
Delay any big ticket Item and slepp over for a week, To see if you really need it
You are thinking in right direction!
All The BEST
Check with a credit union to refi car loans and student loans. You do have to join the credit union to benefit from the lower rates and of course you might have already re-fi'd or be unable to refi for whatever reason(s).
Barter
Michelle Singletary, Gail Vaz-Oxlade and Lynnette Khalfani-Cox all offer excellent financial advice.
No cable. Buy a Roku box and channel lots of channels for free, even news, and get tons of Netflix movies streamed for about $10/month.
After may years we though we couldn't live without cell phones, but my husband was traveling internationally and the Blackberry bills were insane, so we suspended his and went back to a normal cell for me. It was actually easy to cope without his phone, so we shut it off and cut my phone down to minimum minutes, and now we just pass it off to which ever one of us needs it more. I KNOW, we thought we wouldnt' manage either, but it's fine! That alone saved over $100/month on our basic bill which is land line, cells and internet.
Watch the electricity and water usage in your home, and budget your trips wisely to save gas. Don't shop for fun. Eat out rarely at cheap places. It all adds up to HUNDREDS in savings. We did it ALL in a crisis a few years ago and never went back to spending. It feels so good!
I used to watch tons of TV shows, and now, even with unlimited movies available, I never even have time to watch any. I SOOOOO don't miss TV EVER.
We shop at Aldi for a lot of foods and that saves us tons of money. For produce and meat items go to a mexican produce store. Cut the cable and cell phones. If you need some sort of a cell look into the cheapest pre-paid plan you can find and just use it when needed. Otherwise, get a home phone line that is just a basic line without any minutes - it's around $10 per month. Don't make phone calls and instead ask your family to call you at home. Pretty much everyone else has cell phones so they're paying for the minutes whether they call you or you call them, so they're usually happy to call you if you explain that you're trying to do this to stay on a budget. Prepare all your own foods and don't eat out or get take out. No coffee or donut runs or anything else "small" like that. We found that the small $1-$4 or $5 purchases where actually our biggest expense - you don't think it's that big of a deal, but if you do that four or five days a week it really adds up! GL!
We, too, are working on our debt following the principles of Dave Ramsey's Total Money Makeover. I seriously think his book saved our lives! (or at least our home, cars, credit rating, etc). We're still a long way from having our credit cards gone, but we're getting there.
Take every available penny you have, including whatever your minimum payments used to be paid into your credit cards each month. And put that into the LOWEST balance item first--every month. If you could afford the minimums on the credit cards, you'll still have that amount to continue paying into the rest of your debt--pay the minimum payments on everything else. Once that one is paid off, take that whole monthly amount and put it into the next-lowest balance item. And so on. So, it's not like when you get one paid off, you can say "Hey, I have an extra $100 to spend this month!" Nope. That $100 per month goes into the next debt item.
Cost-cutting:
*We trimmed out cable budget by going down 2 levels (as a TV watcher, there are some things I just didn't want to do without!)
*I called the phone company and got into a different plan, cutting our bill in half
*We stick to an all-cash grocery trip and I only take the amount of money that I budgeted for within the shopping list. Therefore, if it's not on the list, it doesn't get bought. I've forced myself to meal plan for this. Cut our grocery bills in half since we were only getting stuff we needed and throwing out less waste.
*Turned the house AC up to 78 during the day and 75 at night. Cut at least $50 out of the monthly bill during the spring/summer months. Turned the heat colder during the winter to 66-68 degrees, cutting at least $50 per month out of the fall/winter bill.
*I buy lots of generic
*Shop at Aldi! The frozen meat comes from Butterball (or is it Tyson? It used to be one, but then switched to the other). The cheese is 100% cheese, the fruit is usually ok, the canned soups and broths are a-ok, etc.
*I've gone through the house and picked out some items that we either never used or just won't use and I sold them on ebay
*I have a master budget for everything. Every bill, every insurance premium, every gift purchase. Each paycheck, I squirrel away my budgeted amount into each category so that there are no surprises later (like "oh shoot, the car insurance is due and we don't have the money!"). For those things that are wants (dining out) vs needs (car insurance), if there isn't enough money in that category's envelope, we don't do it!
All of these cost-savings add up! Then take the savings straight into the debt repayment! So, then it's not just $50 per month that you're able to add. It might be $200, $400 or even more PER MONTH!!
For paying off your house, you will have to make sure you understand the tax implications of not having a mortgage. Unfortunately, the government likes for us to be in debt up to our eyeballs and they'll reward us with tax breaks for mortgages and mortgage interest. As long as you know what the impact will be and you're able to plan accordingly, I say go for it!!
Good luck to you!! It takes time, patience and the cooperation of your significant other to make it all come together. It won't happen overnight, but it will eventually happen.
A couple small things, I can think of since youve got some good suggestions already. If you have a garage door with an opener. Dont use it unless you have to get the car in and out. I park in the driveway instead, and go up my sidewalk and unlock the front door with a key instead of using electricity to open the door. Not a lot in power savings, but its better than not, and wont wear out the door opener as fast. Also, when you run the dishwasher, only put the soap in the compartment that closes instead of both. Let the water rinse them during the first wash cycle and the let the soap wash them in the 2nd wash cycle. They still get clean and it saves half the soap. If you use dryer sheets, tear them in half. Twice as many uses, and they work fine. They also dont leave such a tacky feel to clothes by using too much. And dont use softeners on loads of towels. They absorb better after a shower or bath without.
I see you got a LOT of great tips! There is one that I know has worked for many people, it sounds silly, it really does, and you might not see immediate changes, but over time it will make a difference. With your home loan, and pretty much any loan you are paying off, round it up to the nearest dollar when you make the payments. I knew someone who actually paid off their house seven years early, just by rounding up the ending 49 cents of their payment to a full dollar. I had short term loans (like a 5 year loan) paid off several months early, by adding a few dollars to it every month. Nothing major, just 2 or 3 dollars.
OH! and I LOVE the change jar idea!! I think I might take that one for myself!
