Our Savings

**Pepper** · 12-15-2005, 01:01 AM

I hate to admit it but my dh and I have absolutely nothing saved.

The saddest part about it is that my dh has a very good job and makes a very sizeable income, there is just the two of us. I do not work as my dh and I both believe that the woman is the maker of the home. Which I must say, I love doing. I wouldn't want it any other way. Not to say that any women who work are wrong, so please don't think I am implying that.

We got married in 1996, neither one of us went to college, so we have no student loan debts. We have never liked the idea of cc, so none there either. We have always paid for everything with cash. We do not own our home, we rent, which sometimes drives us crazy cause it's like that money is just being thrown away instead of going towards something that would be ours. Our car was bought from the car lot with cash, of course it was a very very used one. 1995 Dodge Neon. So we have no car payment and the gas mileage couldn't be better especially now with the price of gas! We have rather nice furnishings in our house, and some that are not so nice...haha!

We do not struggle to pay our bills, mainly because we both believe in not having something if you don't use it or need it. For instance, our cable is the most basic package you can get, and that is just a recent addage. We have no home telephone, just one prepaid cell phone. This is what shocked me the most though. My dh brings home over $2,000/mthly and our bills only total $550/mthly and $235/annually! When I wrote all that down I almost passed out. I mean yeah, I didn't figure in the groceries, toiletries, and gas, but my goodness, there is no way that cost's us over $1000/mthly.

I have no clue where the money is going. I mean we eat out on payday but we like mcdonalds, wendys and places like that, not into fancy restaurants. I am so clueless right now. I read some of ya'lls posts on here and think man I am lucky not to have cc's and so on. But then again I come right back to WHAT....where is the money?

I don't even have a clue how to start an EF, a savings. I do not have a budget really. I just go do what needs to be done and get what needs to be got. I have never really planned a menu and the thought of hanging my clothes up in the house to dry had never crossed my mind until I joined this group. I have put a few things I have learned on here into practice.

I think this is the first time I have actually realized that we aren't 18 anymore and that someday we will need an retirement. I thank God I didn't have to find out how important it is to have an EF, when the emergency came. We have been very lucky in that area!!

I guess what I am really trying to say is how do you even begin?

I've read about the envelopes, and that seems like a very good idea. Opening a savings account couldn't hurt either. In our guest room I have a bowl full of pennies, that might equal to $10, that is all the savings we have. How pathetic is this?

**dolphin** · 12-15-2005, 01:33 AM

Pepper you are at a great place right now! The beginning phase. There is so much information here on this website and so many members who can help you.

I think this is the first time I have actually realized that we aren't 18 anymore and that someday we will need an retirement

Good for you for figuring it out before you met with financial hardship. We are 50 years old and have no savings and nothing to fall back on and no retirement. If we had had savings to get us through our hardships we would not be in such financial trouble as we are now. Get it while you can!

First thing to do is start tracking your spending. Find out 'WHERE" the money is going. Then start from there.

Open up a free ING online savings account or a bank savings account and start having a set amount of your dh's check automatically deposited in there weekly. If you don't see it you don't miss it. If you put $100 a week in the account and find you need it after a month then atleast you have saved $400 and have the money for that need. It will get you on the track of saving.

As you see where you're money is going you may find there are things that you don't need like that book "on sale" at the grocery store or those really cute slacks that were "on sale". Start thinking "necessity". Is it a need or a want?. Can you get by with the cheaper brand of paper towels? Can you save gas by doing all of your shopping in one day?

I have bought 2 quilting magazines at Walmart in 2 years. Even though they are nice and have good patterns I'm still kicking myself for spending that $10.00 because I can get free patterns online or borrow from a friend and I have yet to make a quilt from one of those patterns.

Do you have crafts or hobbies that are expensive? My dh has an ultralight airplane and loves to fly but since we both lost our jobs 3 years ago and then me and ds had a car accident the next year, he hasn't been able to fly because he needed parts for the plane. He has just had to "put it aside" for now.

Your first step is to find out where the money is going and the go from there. Even if you can't get your dh on the frugal bandwagon you can do it yourself and could probably save lots of money and when you show him how well you did he will join in.

Good luck to you and please carry on these thoughts and get into frugal living before it is too late like we did. I can't even begin to tell you how miserable we have been trying to live paycheck to paycheck for the last few years.

**Puffy** · 12-15-2005, 06:49 AM

I envy you for being able to not have to work because taking care of the house is a very important part of family life. Money management is really part of that. While hubby is at work you need to make the most of the money he brings home. Do you have a garden, plan the meals, pack his lunch,watch the elec usage? just a few things that makes a difference. I applaud you for not having any cc debt, great move. Now is the time to start building your savings, especially if hubby got hurt and couldn't work, what would you do? The car isn't going to last forever, start planning ahead now. I use a piece of paper and pencil and track my bills every month. Car payments, mortgage, car insurance, cable, phone, everything is listed so I can SEE where the money is going and where I spent it that maybe I shouldn't have.

**pammy** · 12-15-2005, 08:56 AM

Howdy from a fellow Oklahoman.

I was exactly where you were a few months ago. Lemme first say, Congratulations!! Realizing what you have is a major step! Pretty terrifying, too. It's like being woke up after sleeping in this consumerism/no savings world. Don't know about you, but I just didn't know any different. Who in this day and age really has savings, at least around where I live and run with. Not even my parents have any savings. Just a few short generations ago not saving for things was unheard of, it was their way of life. I envy that time.

Where to start? It's pretty overwhelming. Do you like to read?

I'd recommend Dave Ramsey's Total Money Makeover. You can skip some steps even cause you have no cc's (which is a huge thing, congrats on that) and pay cash for things. I've read everything I can get my hands on about saving, lol. So many books out there! (Complete Tightwad Gazette is gold, Your Money or Your Life, Complete Cheapskate Monthly, The Wealthy Barber, The Millionaire Nextdoor, Miserly Mom's, are just a few, there's lots out there)

Me, personally, this is what I'd do:
~Figure out where your money IS going. A lot of little things really do add up.
~Figure out what your goals are. Hard to save and be frugal if you have no reason, ya know? Saving for a downpayment on a home is a goal, and a very worthwhile smart thing to do, IMHO.
~Get an Emergency Fund in place. Things happen. Once this is in place you can be working towards your goals, instead of spending on things that arise (and they always do seem to happen).
~Pay yourself first. 10% is what they recommend. I'd have NEVER thought we could do this, but we are and I'm truly not missing it. And your lucky cause you're young, you'll be better off starting early.

I love the envelope system, it's working wonderfully for us. I deposit only enough to cover bills and put up the checkbook (which I would spend freely from in the past, I couldn't really SEE the money going). Dh and I both get spending money, and I think this truly does help keep you on track. Just keep trying different ideas until you find the things that work for you. Read here often.

We're a one-income family here, too. Dh makes a good living, and I feel it is my 'job' to make that money go as far as possible. I find it a great challenge.

I do not believe I'd be able to do as much as I am now if I were working. (I applaud all the ladies here who are able to do it all *bows*) Most people only realize what you have after they've gotten in deep, count yourself lucky. Right now, with no children and good income coming in, is a golden time for you to really make things happen. Wish I had been so smart.

Best of luck!

**Early Bird** · 12-15-2005, 09:48 AM

Originally posted by Pepper
My dh brings home over $2,000/mthly and our bills only total $550/mthly and $235/annually! I didn't figure in the groceries, toiletries, and gas, but my goodness, there is no way that cost's us over $1000/mthly.

********************************

I'm very sleepy, so if I sound brusque, it isn't intended.

********************

It sounds to me like you're not counting some of your bills. (And I think you left off a digit or two on the annual bills. Or else I'm reading it wrong.)

Did you remember these things in your monthly bills:

* car insurance
* medical co-pays
* renter's insurance
* cell phone; internet service; etc.
* gifts
* mad money
* subscriptions -- magazines, professional societies, etc.
* memberships -- gym, pool, YMCA, country club?
* vet care, if you have pets
* vacation spending
* DH's must-have tools and gadgets.
* charitable contributions.

These are the kinds of little things that can eat away at your take-home.

For example, a neighbor of mine had joined the country club where we used to live. First, there was the membership fee. Then the charges for USING the facilities (especially the golf course). THEN there was an additional requirement to spend at least $40/month in their restaurant -- or else that would be added to the dues. It adds up fast!

And, as others have said, I'd start by tracking where the money is going.

After that, I'd get a handle on the expense with the most 'leakage.' For example, if you find that you're spending $500/month on quick runs to the grocery store and walmart, I'd budget $400 -- and put the other $100 into savings.

The hardest part will be getting your DH to agree. If he's already in that mindset, then you are going to have no trouble winning your battle.

**ironmaiden** · 12-15-2005, 11:31 AM

In some countries it is the woman's responsibility to "keep" the money her husband makes. So if the family is broke or in debt, it is her fault as one of her household duties is managing the money. And when you think of it, as part of her "duties" she writes the checks to pay the bills, buys the furniture, groceries, stuff for the kids etc. She spends most of the discretionary household income and thus has the decision making power in the house.

By the way as to having never working outside the house, you run a serious financial risk to both your future individually and to your future as a couple. If he ever can't work - laid off, disabled - you lack the necessary skills to pick up the slack. And if you ever got divorced, your standard of living would plummet as you never prepared yourself to support yourself. I got a long lecture by professors in college about the economics of not working and going straight to raising a family. About how important it was for women to start a career even if they left it to raise kids. As they would always have that "insurance" of skills to help themselves and their families in the future. How after divorce, dad's standard of living goes up and mom and the kids goes way, way down.

**alabamagirl** · 12-15-2005, 11:39 AM

Lots of ideas hear - I'll just add that even starting small is a start. Make savings a game. Join the EF challenge on the forum. Save ALL your loose change and DEPOSIT it into a savings account. Even if you do choose to work outside the home, you could search this forum for supplemental income ideas such as mystery shopping, surveys, etc. to bring in a little money devoted strictly to an EF.

You'd be suprised how much you can get for FREE using rebates, coupons, and free samples.

Let us know how you do and - WELCOME!

Debbie

**Valerie in WA** · 12-15-2005, 12:46 PM

I think you've already gotten some great 'beginner's advice.' So I just want to emphasize that you should write down every penny you spend! Do that for a month. During that month, you should also think of all the things that come up at irregular intervals and jot them down. Then have another at things. We'd be happy to help.

**my4littlebuffaloes** · 12-15-2005, 04:10 PM

Hi, I have some questions. Does the $535 each month include your rent? Do you want to own a home? Some people don't and that is ok. But if you do, you need to plan. Do you want to have kids? If so, you need to plan for that as well. Do you only have 1 car? That is fine, but if I remember correctly it is 10 years old right? You need to plan for that too.

The first step is to track your spending - every penny of it. Then develop a plan. First you need an emergency fund - emergencies do happen and they will, it is just a matter of time. What would happen if your dh got hurt and gotten work for awhile? Then figure out what you want to save for. Retirement is necessary, but a more immediate need would be if you want to have kids. Or buy a house. And you have to have a car fund, you will have to replace the car at some point, so start saving for it now. It looks as if you are in a pretty good place as far as your bills, way to go! Now you have to get motivated about your future, which it appears you are getting there too. Good luck!

Jennifer

**Pepper** · 12-15-2005, 05:47 PM

Okay, the $535 covers our rent, electric, cable/internet, and water. The $235 annually covers our tags and insurance. Our healthcare comes out of dh pay before we see it, and I am only using from what he brings home.

No I did not include groceries, which is always under $50/wkly. Gas, $20/wkly. I give Dh $30/wkly for work.

I have always used coupons. Alot of our meat comes from hunting, and we have never even had to buy ammo, it seems to be an easy gift for others to get for him!

When we do eat out, I can't remember a time it was over $15.

But, I can say that dh and I both have enough clothes to last us the rest of our lifetimes if we never bought again. I also have a number of purses, shoes, coats, and jackets.

Mind you I do not pay full price for anything. I am known to my family as the Clearance Queen!! But, I am coming to the realization that just because it is clearanced to $2, $3, $4, does not mean that I need it. We really do get a lot of wants around here....wow, I had never even realized that before!

Dh is on board with me about our savings and after posting last night we got to talking and we were both thinking the same things, but unsure as to what to do or how to do it!

As for preparing myself for the future, I am. I am making sure that I can take care of my husband, our home, (now) our finances. I have never once in the time I have been married wondered what I should do so I could be prepared for the day my husband divorced me! Yes, I know it happens to some, okay most, but not to everybody. We were both raised the same way. The man is the provider for his home. We are both very old fashioned. We even joke that we should have been born in a different time period!!

I am going to start in Jan. writing down every penny we spend. Then in Feb, I am going to implement the envelopes and whatever else we decide to do.

Alot of the advice on here I never even thought of and I appreciate it very much. Sometimes when you hear something you're like, yeah, I can do that. You feel pretty stupid for not realizing it on your own.....LOL!

Thank you to all for the advice!

**alabamagirl** · 12-15-2005, 06:55 PM

You are so welcome! I'm going to recommit myself to writing down my spending beginning January 1. I also am going to try and motivate myself by writing my daily savings in a pocket calendar - you know --- the rebates, loose change, eating in instead of a meal out, coupons, etc.

**Pepper** · 12-15-2005, 10:18 PM

I have sat here tonight thinking and googling all kinds of stuff, well anyways, I think that when I use any coupons, I will take that amount saved and put it into a special jar and use that for those moments when I "think" I need something!

**Shell** · 12-15-2005, 10:57 PM

You know Pepper, I used to feel the same way. But, I really started to read books on saving money and being frugal and finally started to "get it." I now always pay off my credit cards or just don't use them at all. Then I started to pay myself first which is how I started doing the Emergency Fund Challenge. Wow! I started to save money. I couldn't believe it!

1. I pay myself first!
2. I don't have an atm card to this account so I'm not tempted to spend it
2. I lock it up once it hits a certain size

Once I started to pay myself first I noticed a big difference in my savings account.

**SHOPGIRL** · 12-16-2005, 09:42 PM

Does your dh have a life insurance policy? What if he was injured at work? Worst case scenerio, what if he wasn't able to work? Would you be able to get a job and pay your bills? Sometimes things happen that are beyond our control...just something to think about.

**staceyy** · 12-16-2005, 10:49 PM

I would recommend enrolling in dh's 401k first if his company offers one. Payroll deductions make saving effortless and after a bit you don't even notice the money being gone. I would also start saving your change (all of your change not just your pennies). I would then graduate to saving all one dollar bills that touch your hand. I am a mortgage banker by trade and know that almost everyone can afford a mortgage nowadays regardless of credit. You can even have filed for bankrupcy. Most areas offer first time homebuyer programs where you need zero or very little money down. Your local bank or mortgage company can give you more information. Hope this helps!