Dh and I are going thru it now - we're almost done with the course. We've both enjoyed it a lot and have learned quite a bit. I was hoping someone might be able to help me determine what I am missing in our budget....b/c I can't seem to find ways of saving the 15% that he recommends.

First, let me give some background. I am currently a SAHM, children are 27 mo and 8 mo. Before children, I worked and we were pretty frugal, we lived in a "fixer upper" and paid up to more than double our house payment every month as well as doing remodeling. We now live in a bigger and nicer "fixer upper". We worked hard and made sure that I could stay home with our kids because that is a high value for us. We paid off our Christian College Student Loans $40k for me alone. And we ALWAYS pay our credit cards off every mo. We only use them for gas and home improvement stuff now....

So the only debt we have is our house. We have 3 vehicles - one was given to us by the in laws - so that we would have more room for the carseats. We have a 94 Tempo that dh drives to work everyday b/c it gets the best mileage. I drive the minivan when necessary. We are driving the car until it dies and quite honestly it could happen anytime - so getting rid of another vehicle doesn't seem like a good option for us. We owe nothing on any of the 3 vehicles.

We got rid of satellite last month. We have a modest $40 a mo eating out budget - for date nights etc. I have been trying to cook more from scratch, stockpiling with coupons (still working on perfecting this), and freezing things for later. If we rent videos it is from the library for a quarter a piece. We are saving $350/ a month in order to pay cash for our next vehicle (to replace minivan or dh's pickup truck).

I am just having trouble determining how we can do another 15% for retirement!! What am I missing? I know that when the kids get out of diapers it will help - but not THAT much!

Please help me see what I obviously can't.

Thanks.
Rachel

Could you reduce the car savings in order to put more money into retirement? Even if you can't do 15 percent it would be a start. Is there a way at work that he can put the money into something like a deferred compensation or matching funds plan?

The only other thing I can think of is for you to work part time when he watches the children, or if you can do a small home-based business like taking care of other children in your home.

Congrats on being so frugal!

Hmm-- I posted a reply but don't see it.

I suggested perhaps you could work part time when DH is home watching the children. All of that money could be thrown into retirement savings. You could also try a small, home-based business like taking care of another child in your home.

Perhaps also part of the car savings money could go towards retirement? If DH has a tax deferred compensation fund at work the $$ can add up quickly.

Can you change your car insurance from full coverage to liability only? Would that even help? I know that when we no longer had a car payment and we switched to liability only it helped us out a great deal financially. Just a thought.... Good luck!

Dh does have a 403B, and his employer matches up to "X" %. (I don't remember - maybe 3%?) so we have that much going in to get the matching. But he recommends that when you are at Step 4 you should be able to save 15%. We worked hard so that our debt would be gone so that I could be a stay at home mom. Right now, there isn't extra $$. Any extra jobs that DH and I may get the money is already designated for redoing our current home and/or yearly expenses (property taxes, car insurance etc).

I guess what it is - is that I feel like I am missing something. Like if I could magically pull out the "utilities" or whatever from our Cash Management Plan that we could be saving. I just don't see how. :)

In the video or workbook, he states that someone making my DH's salary should be able to save the 15% and we just don't see it.

Thanks for your help.

Rachel

I am scheduled for Financial Peace University orientation on August 30th and my class starts in September. Did you find this really helpful in living the principles in the book? I hope that I haven't wasted my money....$150 was a lot to spend on this course, but if it helps further me out of debt, than I am ALL for it!

Part of the course is dividing up into small groups after the video. If you have a really good small group leader then it will be very beneficial. I struggle with our leader. When I have tried to ask the above question, she doesn't ask me for any info just assumes that I am spending too much on Clothes or eating out etc.

They also will help you set up your budget and make sure that you are doing it. etc. Good accountability.

Rachel