The first step in Dave Ramsey's plan is to build up a $1000 emergency fund as quickly as possible. It turns out that we have savings bonds Ryan has purchased for the kids that will cover the $1000 and are liquid enough to count.
So on to step 2 - pay off the debt. The plan is to do whatever it takes to take care of that as fast as possible. That means Pants will work more overtime. It means we will start selling some of the possessions we have that are weighing us down. It means stopping our 401k contributions for now until the debts are paid (we're paying the 401k in loans anyway and don't worry, jacking them back up is step 4). It means diverting every dollar to debt.
We have made a pact to stop eating out, one of our big expenses. I am culling the grocery ads and coupons so we can eat more cheaply. We're skipping the new iPhones we wanted and just getting replacement phones and a cheaper plan. We have canceled the extras like HBO. We are bringing lunch to work. Next week the project is to make sure I have coffee in the morning instead of buying it.
If you have any other ideas on how we can save money (making my own cleaners: check!), leave them in the comments. This is on project status, so I'm more than interested.
5 comments:
The best way for me to make sure I've got coffee in the am is to prep it the night before. When I used our coffee maker with the timer, then it was ready when I got up. Since I'm currently preferring our French press with hot water from the electric kettle, I prep it all the night before so all I have to do in the am is hit the on and pour when hot. Having it all ready might really help you make it happen.
I'd recommend taking a look in your pantry & freezer. I don't know if you're a horder like me, but I can often go a good week or two if necessary only buying absolute necessities like milk, diapers, etc. So maybe hit it hard by shopping from your pantry for this first while.
Also, I've had some luck selling stuff on Craig's List. A bit of a hassle, and people occasionally don't show, but hey, they come to you and give you money for stuff you don't want/need anymore. That's not a bad thing.
Defenately bring your own lunch and stop buying overpriced coffee (and bad coffee at that if it's Starbucks! I just hate that company and their coffee.) and other drinks. Bring them from home. If you have to have latte, you'd save a bunch of money just buying your own machine (can get a very good one for $50).
Stopping your 401k contributions sounds like a horrible idea. A book actually suggested that? I've always read you should never do that to get more money. Not only are you reducing some compound interest for retirement, you just increased your taxable income. Double whammy.
I don't know what your home size is or what you are currently spending on day care, but have you thought about an au pair program? Could save you some $. I know some of my co-workers have gone this route because day care is so crazy expensive.
How about joining the foreign service? =) Overseas free housing (even though it sometimes sucks), education allowance, and if you're in the right country, cheap domestic help. Next test is on Feb 7th and 14th.
What are you selling? I'm about 5 days from my first real paycheck in three years....
Stop going to Target. ;)
When you do have to go, go with a list and ONLY buy items on the list. Evaluate your cart before the checkout and take out the impulse items. Also, just because it's on sale, or a really good deal doesn't mean you need it. (I should get that stitched on a pillow or tattooed on my forehead or something...)
Sorry, I don't have much, I am here to learn.
Hi! Did you see my post on dried beans and frozen veggies to help cut costs (and chemicals)? I had some other stuff too, I'm just drawing a blank on what I said.
Do you have a programable thermostat? Mine saves me lots of most on heating and cooling costs. Of course the furnace is newer too. I'll be posting my home made cleaner recipes soon too.
Dropping health club memberships? (Not sure that you have any...) The Wii can help with some in the exercise department, we just got a Wii Fit and son has lost 6 pounds already. He likes the yoga exercises because they're easy. LOL. It also saves in the family entertainment budget.
Instead of renting movies, check them out from your local library. It's free and most libraries have a week long checkout period.
I also try not to go to the store if I don't need to. I can usually just go shopping a couple of times a month and I ALWAYS go with a list. Leave the kids (including husbands ;) ) at home since their treats often add quite a bit of "extras" onto the list.
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