We hear it all the time now on tv and the radio..... "people are losing jobs, losing their houses, we are in a recession maybe even a depression..."
Ross and I personally haven't been effected by this. Ross' job isn't exactly in jeopardy.
With all the talk though about Americans spending less to save because everyone is scared all of the sudden it has caused me to look at our own financial state and see how we could save a few dollars here and there for a rainy day or just to build up more of an emergency fund.
Up until recently Americans saved -.5 percent a month! Which means people overall were spending more than they made! I am glad people are waking up and taking more control of themselves and their finances.
Okay back to how this affects our family. We want to make sure we are saving maximum amount of money each more for liquid savings and for our retirement fund. So we have been exploring ways to save more money.
One way we are doing this is by driving to the Air Force base 30 minutes away twice a month to buy groceries. I have always shopped at the commissary.I would usually do the majority of the shopping once a week. I would plan menus, but then I would still be going back to the local grocery store a few times a week for something. Well, the more times I went to the store the more money I spent! I would walk away with more things than what was on my list.
So, now I only shop 2 times a month. I go with 2 weeks worth of menu planning and I stock up for 2 weeks with the exception of a few fresh fruits and veggies and I will once a week at the local store so that we have good fresh fruits.
We also recently bought our own espresso machine to make coffee at home! This will pay for itself very quickly!
We are also using the cash envelope system. We take out a certain amount of cash for groceries, entertainment, clothes, and personal supplies (example- haircuts, diapers, preschool, etc). When the money is gone, it is gone.
I was recently listening to Dave Ramsey (Financial Peace University) . go to daveramsey.com
He is a Christian financial guru. He said something that stuck w/ me. He said that when you are making a budget don't look at your tithe/giving and your savings money as something to fit into your budget. Both of these items are a given. Act like they aren't even part of your income. I learned a long time ago that we can't afford not to tithe and give, so that hasn't been the problem, but putting money into savings each month had become a lower priority. If you look at that money as part of your budget it will start to slip lower on the list as a priority. That is why you should automatically get it put into your savings account. If you get auto draft then your work should be able to put a designated amount into your savings.
I have also enjoyed watch Suze Orman's tv show. I don't agree with everything she says. She likes to slip in political views sometimes, but overall she is super smart when it comes to investing and budgets. I love the segment on the show called "Can I afford it?. Check out her show. http://www.suzeorman.com/ On the "Can I afford it" segment people call in and say they want to buy something and then they explain their financial state. They say their balances and debts and then Suze denies them or approves them for the item they want to splurge on. It is quite entertaining to see how much debt or savings people have.
Okay, so my question to you is this. Since the recession has your family changed your spending habits? If so, how are you doing that? I would love to get more ideas of ways to cut back in our spending!
I need to get on a soapbox before I close..... no matter how tough times are financially.... NEVER STOP GIVING! Our money is NOT our money... it is God's money!
5 comments:
The first time we met with our financial advisor to set up our budget he asked us what we could "comfortably" spend on groceries for a week... I told him $100. He thought I was crazy and that it wasn't possible... Well, of course that made me want to go UNDER $100 and just SHOW HIM!! Do you know that most weeks I don't go over $80 (just groceries). I find that if I plan it out... and don't buy anything, besides what is on my list... I can do it just fine! I think planning is key!!!
I have been doing the total money makeover for a few months. I found that running out of our money the first week of the month got old. We were stuck home the last three weeks of the month. I have begun to really think what is the priority. For instance, I would rather go out with a group of my girlfriends, then buy a new pair of shoes. The other thing I had to do, is realize that sometimes I have a weakness for spending. Sometimes it is easier to just skip going to the mall, that way I don't feel tempted. I save my mall excursions for when I am feeling strong!
We haven't been "hit" by the resession as far as Josh's job being in jeopardy--but as far as things costing more in general we have FOR SURE taken a good hard look at where our finances are going! It sucks SO bad after pay day to drizzle down to just about NOTHING left.
One thing we really looked at was the "fun" stuff: Starbucks, cell phone plans, cable plans...we don't really go out so that wasn't the issue, but hitting Wendy's after FOS was a weekly stop!!
For the first time ever in our seven years of marriage we sat down and started the ground work for a budget being in place! I always took such a back seat which made it really easy to "not believe" Josh when he said we were running low--which made it easy to spend whenever I wanted. ;)
I could go on and on...BUT I wanted to just say that you're doing everything (and beyond) what you should be doing! My friend Jodi and her husband do the cash envelopes and it rocked their worlds/marriage/family!
Meal planning is HUGE, for me anyway. It's a fun game to see what I can make that is different using similar ingredients! So fun! We still find ourselves going to get fresh veggies/fruits at least once or twice a week!!
I have also taken a good hard look at those random trips to Oly--mostly b/c I would spend extra $$ just being out--coffee, lunch, other junk--so we now pack lunches/snacks in our little cooler which has helped SO much! We try to share more too--going and getting a HUGE drink to fill up three sippys and share between Josh and I!
Could this be the longest comment EVER?!
Looks like I need to blog about this same subject!! ;)
xoxo
We have been eating out of our freezers and cupboards and coming up with some great recipes.. I challenge your dad with 5 ingredients out of our supplies (I pick them out in the morning) and see what he comes up with. Has been great.. There are alot of great free things to do anywhere you live, to get your exercise or use your local library for story time, or church, or parks for social time with your family. I think in this economical time it will only bring families closer together and they can learn they can live and survive without alot of the things they have been use to. Play board games and pop pop corn, or have a picnic inside if the weather isn't good. Romance your marriage, remember when it didn't cost alot of money to go on a special date with your honey. .Just spending time with him was the date. Kids are happy if parents are happy...mom
http://wibelfamily.blogspot.com/2009/03/freebies-cheap-entertainment.html
I'm going to add this blog to my list of blogs I watch...check it often, I hear she's amazing at saving money!
Also, my mom's comment to all of this was that "recession calls out sin, which then reveals God, and in turn shows us His mercy, grace, love and helps us work for His glory!!"
xoxo
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