New and need help

[JennaC]

My name is Jennifer. I'm married with 4 boys, 7, 5 twins, and almost 2. My husband and I make a decent living but spend way to much. Looking to cut back. I'll give you a basic breakdown and see where you can help.

Take home pay - me $2000 month, dh $2800 if he works 40hrs a week, which rarely happens, it's more along the lines of $2400.


Mortgage $1850 - this is a first (165k) and second (40k)
Car Payments $860 - this is two vehicles and a motorcycle
Electric - runs around 200-300 a month. my mom lives in an inlaw apt which is totally electric and we pay the bill although she has a seperate meter (she watches the kids so she lives rent/utility free)
cable- $95
phone $50
Food is at least $200 a week but usually around $250 and i go weekly
gas for Dh is $120 a week, I have a gas card from work
cigarettes $40 a week, dh only, bad habit he won't quit

I'm sure I'm missing some things, but that's the majority.

We didn't have any cc debt until just recently. I got one for DH to use for gas because he kept messing up the bank account with the debit card, and we (I) ran it up to $2500, I owe $1500 now. I also have a guitar center card that is $1300 but it's no interest for 14 months. I bought all the presents this year buy now pay later, no idea what I spent but over $1k.

I work 40 hours at least a week, so alot of time I have trouble with cooking thus we spend alot on convenience food and eating out. I have the weight to show it. I need to work on that.

My goals for this year are to pay off the cc's and buy now pay later bill. after that I'd love to start paying more towards the vehicles. we still have 2 years left on each, the balances are $12k and $10.

We have no emergency fund yet either.

any ideas or suggestions would be great.

[amykhar]

One thing that has helped us a lot was buying a chest freezer and stocking up on meats when they are on sale instead of just shopping each week for that week.

I have also learned to cook ahead on weekends so that weeknight meals take only a few minutes to throw together. This saves a lot for us.

Finally, packing lunch for me and DH helps a lot. I put it together (usually from leftovers) the night before. Doing this has helped with both my budget and my weight.

The food network has a show called Quick Fix Meals that is good for working moms like us. She stresses cooking ahead and using leftovers to make different meals during the week.

[ilovechocolate]

Welcome, Jenna!

Do you have a crockpot? If so, start using it. If not, get one. It will have most of your supper ready for your family when you get home. Crockpots save time and money and can help your eating habits.

[Ceashels]

Welcome!!!

Is there anyway to cut back on the cigs to $30 a week? He won't be giving them up, but he would be stretching them out a little longer. That would be an extra $40 per month available.

Do your boys go thru snacks? Baking cookies and sliced carrots instead of storebought snacks may save some extra on your grocery budget as well. Lots of things are freezable so you can bake one day and have treats for the month.

[ladykemma2]

how bare bones do you want to go? i recently went from a lush two income to an small but adequate teacher income post divorce.

what i did: I followed the advice here. unplugged everything that did not need to be plugged in. the electricity bill dropped, i kid you not, 100 dollars a month. I went back to a "word of wisdom" diet, fruits, grains, beans, and very little meat. I cut cable, dropped cell phone to minimum, am manic about turning off every single light except the room i am in.

Coupons did not work for me. Pantry shopping does. Ditto on the crockpot. I have only 50 dollars a week for spending money so I may NOT get fast food on the way home.

1000 dollars a month on groceries is insane. I think you can definitely conserve here.

[ladykemma2]

oh, yeah, i also did what the ladies said here and now clothes get hung up to dry. towels, and rags get thrown into the dryer.

[imforpeace]

I agree on the crock pot. It is a time saver! You can prepare the meal the night before, put in the pot before work and come home to a great meal. Make a salad and add some bread also.

I would also suggest a money journal. Write down every penny that you spend for one month. At the end of the month you can see where your money is going. Just make a column for each category: eating out, groceries, medical, cigs, kids, monthly bills, shopping, entertainment etc.
Then you can budget a bit for each category the next month. When you start your budget do not forget to include savings. Start small, maybe $25 a month, until you are comfortable with it. Then, you should be able to increase slowly.

Reading these forums or any book on frugal living will keep you on track. Try any title by Dave Ramsey or the book Your Money Or Your Life. {free from the library of course!}

Best of luck!

[Lorelei]

You've gotten good advice so far. I'd like to add turning down the heat a degree or two. It shouldn't make too much difference in comfort, but will help lower the electric bill.

If you don't already combine errands, start doing that to lower the gasoline expense. Every little bit helps.

I second seeing if your hubbly will cut back on the cigarettes. Has he ever looked at how much he spends per year on them? Maybe that figure will help him cut down. For his health alone, I'm sure you'd love for him to quit, but maybe financially shocking him is the way to get him to at least smoke less.

[AmyBoz]

Just wanted to say "hi" and welcome! You've gotten some great advice here! Keep us updated!

[HappyMama]

Welcome to the Village ! You have gotten some great advice.

[Jskell911]

Another idea on the cigs.... We roll our own. The simple machine is about $8. Then a bag with enough tobacco to last a week is about $7 and the tubes are $3 for a cartons worth. That's only $10 a week! Big savings.

Also, on the grocery shopping...

Are you buying a lot of convenience foods? If so, those can get very expensive. See if you can mix some powdered milk half and half with store bought. Shop the day old bread for 1/2 the price and freeze extra loaves. Check out the cooking area in the Village. There are wonderful frugal recipes and make ahead meal ideas in there.

Good luck!

[mmy2grls]

Heres an idea that may save a little on cig habit. Most cig companies have a mailing list where you can recieve coupons, a little savings

If you lack time in cooking how about when you do cook make an extra meal to eat at a later date

[changed4life]

Hi and welcome, Jennifer!
You've definitely come to the right place for support. All the ladies here are very helpful and have great ideas for saving money. I've gotten many good tips and insights on finances myself.

Anyway, I noticed that your monthly income doesn't cover your expenses and that you're in the negative by at least $250 or more. You said there may even be more monthly expenses that you didn't list. This can easily create a problem if you find you reach for the card to pay for things or even bills, hence, create a credit card balance that you don't want.

For starters, you might want to cut down your grocery bill (do you have children?) because I bet you can shave at least $200 a month from that. We have a family of 4 and do it on about $400-450.

Go over your food budget with a fine-toothed comb and really eliminate the extras that aren't necessary. If you buy a lot of snacks and packaged foods, that's where you will spend most of your money. Try making snacks like banana muffins or homemade treats or just grab a piece of fruit (healthier anyway).

Also, you've got two car payments that are high. Any chance you can eliminate one by selling a car and buying a used one. It could free up hundreds a month.

Peruse this whole site and definitely stop by and read about Dave Ramsey. Getting his books will give you great insight and offer so much help about starting an emergency fund and paying off and debt. He'll also show you how to change your whole mindset about money.

Good luck and enjoy your stay!

[cottageliving]

Welcome
A few things I noticed that have not already been addressed:

You need to stop buying any more 'things'. You have recently purchased $1300 in music equipment and over $1,000 for Christmas gifts while your income is less than expenses.

Not sure what your car/motorcycle insurance cost is, but you may want to sell the motorcycle. DH can always get another one after your cars are paid off. Or, if you live in a warm climate, can he keep the cycle and sell his car? That would save ins PLUS the car payment.

I agree about the crock pot/slow cooker. Are the 5yr old twins in school? If so, then you can prepare the ingredients at night and your mom can put in the crockpot in the morning. If she's got the 3 youngest all day, then you can start the pot in the morning. It will be a pain in the beginning, but will become part of your routine quickly enough. You will all have a healthy dinner.

Do you pack small bags of chips, etc for school lunches? If so, then buy big bags of what the kids eat and pack a handful in ziplocs. Amazing and easy savings. You can get a huge bag of chips, etc for about $2.50...

There are so many small changes you can make in your grocery and elec budgets that will help you break even.

Keep reading the ideas on the site -- you'll learn AND be inspired to make changes.

Keep us posted - we're here for you!!

[JennaC]

Ok on the car payments. We both drive 70miles each way to work. We work different shifts so no car pooling. He has to have a truck for work. I have to have either a van or SUV because of the kids. I have an SUV because I really need 4 wheel drive. I cannot change jobs, I have been at my current position for 11 years and have a very stable position. DH can't really find a job where we are either, no market for it, so we travel. I don't pay for my gas my company does. As for the motorcycle, It only cost 3K to begin with and it's almost paid for. The insurance is only $100 a year. Our car insurance is $1200 a year for full coverage on both. my company is letting me use a company car in the next few weeks, and I can change mine to different coverage and reduce it a bit.

I do get bonuses quarterly so my salary is higher than it appears. they usually average $10k a year.

My mom only has the baby during the day, the older 3 boys are in school. I have a crock pot although I rarely use it. DH doesn't care for things out of them.

I also attend school full time although I did drop back to only 2 classes this semester. This should give me a little more time to cook and stuff. My company pays my tuition and books, so I don't have to worry about that.

Thanks for the tips, I've been looking around and found alot of helpful information.