Things We Don't Spend Money On

Note: One purpose I have in keeping this blog is to share ideas with others who may be looking to save money.  This list is in no way to tell you how I think you should (or shouldn't) spend your money!  Just wanted to give some ideas that work for us.

Things we don’t spend money on:

1)  Cable/Satellite.  We have a regular old antenna/digital converter box combo that works just fine for us--we get the major network stations and we figure it will keep us from watching too much TV.  Recently, we also joined Netflix and are able to stream movies and TV shows through our Nintendo Wii.  It is every bit as good as having cable with the selection they have, plus it’s available anytime!  And for $10 per month (compared to at least $40 or $50 around here for the most basic cable), a great value.

2) Toothpaste/deodorant/shampoo/etc.  These are usually free, or just a few cents.  I play ‘the drugstore game’ to get these free most of the time.  Sometimes it means buying 4 or 5 at a time, but if they’re free, does it matter?  It keeps us from paying full price when we actually need them.

 3) Coffee and tea.  We get these for free because I work at a certain name-brand coffee shop.  I get a free pound of coffee or box of tea every week.  I know this is something that’s specific to us and won’t help everyone else, but it really has saved us a lot of money!  I also have a single cup Keurig brewer, so I do occasionally buy a package of K-Cups.  They’re really expensive, though, so I plan on getting a reusable K-Cup filter to put my free coffee in.

 4) Credit card interest.  This past year, we were able to eliminate all credit cards and all credit card debt between the two of us.  It is so liberating, and I highly recommend doing everything you can to maintain a cash-only lifestyle.  Student loans and a car payment are enough for us to deal with, and credit cards just open up another can of worms.  I don’t like ‘em!

5)  Disposable diapers.  I know cloth diapers aren’t for everyone, but if you’re a parent of young children and REALLY want to save money, give it a serious thought.  More on our cloth diapering experience later, but in short, we spent about $350 on everything we needed to keep Liam in cloth diapers until he potty-trains.  If an average disposable diaper is around $0.20 (this is usually on sale and/or with coupons) and he uses an average of 8 diapers a day (that’s being generous), that totals about $1,500 for two and a half years of diapering.  For ONE child.  We spent $350, and can use them for more than one child!  Enough said.

6) Summertime fresh vegetables.  We have our own garden, and are able to raise enough veggies to eat, plus enough to can/freeze for later in the year.  Nothing like getting organic produce for free!

7)  A home phone line.  For us, this would be totally and completely useless.  We both relied exclusively on our cell phones before we were married, so it only seemed natural to keep it that way.  Plus it’s another monthly bill we don’t have to deal with.

 8) Takeout pizza.  We love pizza around here, enough to have it once a week for dinner.  Except, we don’t buy it.  I make it at home, using my bread machine to make the dough and making the sauce from scratch (ahead of time, and stored in the freezer).  The prep time is a fraction of what we’d wait to have it delivered, and it’s so good, and healthier too.  And when it costs around $4 for two 8-cut pizzas (which provide lunch for the next day too, plus usually a snack!), I certainly don’t miss paying 4 or 5 times that much.  We also occasionally have a frozen pizza.

9)  Newspaper subscriptions.  We read the news online, and I usually buy a Sunday paper to get the coupons (which pays for itself, most of the time.)

10) (Most) Prepared/Convenience Foods.  Any way you look at it, convenience items cost more and make your grocery bill higher.  I make big batches of homemade meatballs and freeze them, then I always have something to pull out for a quick meal and can prepare them in a variety of ways.  I store canned salsa from our garden (though this past year, it didn't last very long!  we like salsa) and freeze homemade marinara sauce.  Lots of times, I use Penzey's French Vinaigrette seasoning mix to make our own salad dressing.  Even cutting back on just one or two prepared items each week will save money.

Hopefully this will give one or two of you an idea for saving a little money!

Envelope System, Revised

I'm guessing that most of you out there who actively maintain a tight budget have heard of Dave Ramsey.  If you haven't, you should check him out...his money management tips and advice are phenomenal, and he has some strategies that are very easy to follow.  One of those is not a new concept--the cash envelope system.  It's so simple, and isn't rocket science--lots of people have followed this system for years before Dave was ever around.  For a long time, I was not very good at sticking to a budget.  I started this system about a year and a half ago (when we got married), and it makes managing money ridiculously simple as long as you are diligent. 

We recently sold my car and are now a one-vehicle family, which has given our month-to-month budget a lot of breathing room.  We now have a jump-start on building up the savings towards a house, and additionally it frees up my income to save more per month as well.  As a result, I have re-worked our envelope system since our monthly needs have changed with the elimination of one car.  Here's my envelopes-hopefully I can inspire one or two people to take a critical look at how their money is being spent!

-Groceries.  I used to budget $35 per week for groceries, including household items and toiletries.  That may seem really low, but I've really gotten the hang of couponing to get things for free, plus I now know all the most reasonable prices for things, and which stores to get them.  I'm upping this amount to $40 per week because we'd like to buy more fresh produce (as opposed to frozen).  This means the grocery envelope will have $160 at the beginning of the month, and when it's gone, it's gone!

-Eating out/Date night.  This is something we'd like to do more of.  We usually only eat out 1 or 2 times per month unless we go out with extended family.  I'd personally like to make this 1 time per week, because that means less dishes for me :)

-Clothes.  Not sure how this will go yet, because I've never had an envelope for this before.  Hopefully it will eliminate the blow of buying new clothes only twice or 3 times a year, and also impulse clearance-rack purchases.

-Gifts.  Self-explanatory, plus I will be adding more to this starting in July for Christmas purchases.

-Fun!  Movies, music, going out for coffee or ice cream, etc.  I also tend to make lots of trips to JoAnn fabrics...so I'm putting those expenses in this category too, since it's a hobby.

-Stock-ups/Deals.  This is a much-needed envelope for me.  So many times I see a great deal or see something we could really use on super-clearance, but I don't have room in the budget for it.  This will allow for these purchases...plus garage sale season is coming up!

-Doctor visits/medicine.  To cover our co-pay at unexpected visits/checkups plus any needed medicine.  Just last week Rob had a nasty sinus infection  that wound up costing $60 between the visit and the prescriptions.

-New camera.  Eventually, I'd like to buy a snazzy new camera.  I'm just starting to get into photography (lots, LOTS to learn!) and am borrowing a camera from my mom to get my feet wet.  Any extra money, including rebates and gift money, goes in here (separate from savings).

So that's a lengthy list, but there it is.  I'll keep you posted as far as how it's going--wish me luck!