Reducing Household Expenses

[PhiloMed]

I know this has been discussed to some degree in various threads and I reviewed those I could find for ideas, but I’m looking for more ideas for practical and direct ways to reduce household expenses.

It looks like our family will be growing come next spring, and I’m having terrible anxiety over our finances.

DH and I both have well-paying jobs. However, we dug ourselves into a debt hole in the last 3 years while living in another state for my training. It paid off and I now have a great job as does he. We just finished paying off our debt (including the one financed car we have), but the hole is basically just barely covered over and we’re tapping down the dirt.

Mortgage: We have a mortgage, but for the amount and location of our home our mortgage is quite modest and we have far more equity in it than we owe on it.

Childcare: This is by far our biggest expense and currently takes up about 80% of my take-home pay. I see this increasing with the addition of another child but to what extent I do not know. Our childcare provider moved from the other state with us and is living in a house owned by a family member of mine for a highly reduced (50% of typical for the area) rent. We also just gave her a substantial raise when she moved. If we increase her pay as much as we did when our 2nd child was born, her pay will be 95% of what I take home.

Leaving my job is not an option. My healthcare benefits alone more than make up for how tight things are. DH’s job would provide us with benefits for just over $2K/month and mine is a fraction of that. He works for a small start-up and I work for a multinational corporation. There are perks including a 401K and a pension. Also, if DH ever lost his job (Which happened twice in the last two years) we would really be up a creek. So when I say the babysitter takes him x% of my take-home, I’m including what I pour into my 401K, paying for benefits, flex account and dependent care account. I get quite a bit of bang for my pre-tax dollar.

Despite everything seeming sunny, money is tight every month with very little, if any wiggle room.

-We spend about $150/week on food, not including our 1x weekly pizza run which the kids really enjoy. We eat breakfast at home and I pack lunch for DH and I so we aren’t adding up food expenses at work. We also make our own coffee and rarely buy coffee at work.
Has anyone had luck with emailing or writing to their favorite companies and asking for coupons? I scour the newspapers, backs of labels and anything else for coupons. From a spreadsheet I’ve made, I know that the best prices are at our local wholesale club even for things like milk and eggs.

-How have you kept tabs on heating and cooling bills? Our bills really vary with a high electric bill during the hottest of the summer months and then a very high gas bill for the winter.

-I’m going to take an inventory of my credit card to see if I have any recurring expenses for things that I can eliminate. Any tips on hidden expenses I might not notice right away?

-I’m going to need maternity clothes and I’m dreading this expense. I last purchased a major wardrobe upgrade before starting my new job and it just pains me to think of buying a new temporary wardrobe. I gave away all my old maternity clothes so I’m starting from scratch.

On the bright side, we still have strollers, high chair, PnP, a girl and a boy set of clothes, crib sheets, cloth diapers, toys and an assortment of other things a baby needs to start off life in our home.

 

[pensmama87]

As far as utility bills go, our gas and electric companies have an option to enroll in “budget billing” so the expenses are more spread out. We don’t do it now because they even out (our electric bill is highest in the summer when the gas bill is lowest, and then reverse that in the winter.) I do, however, make projections in the budget based on the previous year’s usage, then add a bit of wiggle room.

I don’t know if this is the case everywhere but in my state we have the option to shop around for the best price on utilities as well, so I check twice a year or so to make sure we’re getting the lowest rate available. There can be a lot of variation.

 

[PhiloMed]

Oh how I wish we could shop around. Not here. One electric company. One gas company. One cable/internet company.

Thanks for the information on the budget billing, though. We have this offered to us, but because, like you, we spend more on electric in the summer and gas in the winter it seems to even out in the end.

I’m thinking about leaving some parts of the house a little cooler for the winer to see if that reduces the bills.

I’ve become my father. I run around the house turning lights off and grumbling about the cost of electricity. I still don’t know if having a lamp on in one room when nobody is in it actually increases our electric bill by any significant amount.

 

[HouseArrest]

Is it possible for either or both of you to negotiate for a raise?

 

[pensmama87]

Also as far as couponing goes, by far I’ve found the best savings on toiletries. If you have CVS near you, you can get most personal care items free or almost free. The other stores (RiteAid, Walgreens) have similar programs but I find CVS’s coupon and rewards programs to be the most generous.

Many couponing websites have tutorials on “the drugstore game.”

 

[maryjk]

-I’m going to need maternity clothes and I’m dreading this expense. I last purchased a major wardrobe upgrade before starting my new job and it just pains me to think of buying a new temporary wardrobe. I gave away all my old maternity clothes so I’m starting from scratch.

Look to women that just had a baby. Especially if they aren’t planning on more children. You gave away yours, they might be willing to at least lend you theirs. Also look for second hand stores, yard sales and consignment.

On the bright side, we still have strollers, high chair, PnP, a girl and a boy set of clothes, crib sheets, cloth diapers, toys and an assortment of other things a baby needs to start off life in our home.

Again, look for second hand or someone that might be willing to share, if you find that you need something else.

A car seat is a must, and I would hesitate to get one second hand, but everything else? I would go for it.

I am looking at the baby stuff in our house right now, and other than the car seat/stroller that was a gift and the swing, also a gift, everything is second hand.

 

[PhiloMed]

Is it possible for either or both of you to negotiate for a raise?

We both just started our jobs in mid-July so it would be a bit early for this.

We both get holiday bonuses which we didn’t mentally account for in our budgeting, with the intent of seeing what we get (since it will be pro rated for starting mid-year) and allocating that toward whatever we saw fit at that time. I am so very glad we did this now. Come December we will be having some found money.

How have you with 3 kids managed with the car situation? We have a small sedan that really won’t fit 3 car seats and a mid-size SUV that has an option for 3rd row seating but then I can’t really get much in the way of groceries or anything like that in the back. We have only used the 3rd row when we are going out with (adult) friends, but it otherwise is in the basement. We are considering getting a newer but used large SUV but this will mean another car payment.

 

[PhiloMed]

A car seat is a must, and I would hesitate to get one second hand, but everything else? I would go for it.

I am looking at the baby stuff in our house right now, and other than the car seat/stroller that was a gift and the swing, also a gift, everything is second hand.

I feel the same way about car seats, though I wouldn’t hesitate to pass on my current #2’s car seat to #3 as long as it has not reached its expiration date.

Great reminder on the second hand stores, though. We have several consignment stores in the area that I can hit up. I am quite content with just a few pairs of maternity dress pants and some blouses that I wear over and over for work. I buy almost all the kids clothes from eBay in bulk lots or from the kids consignment store. Toys also.

I guess I have been pretty economical, come to think of it.

 

[HouseArrest]

I couldn’t tell exactly from the original post how long you had been at the job, it looked like it could have been longer, but yeah July - too soon. I suppose on the bright side, though, you probably will only be getting increases down the road and will only be in this tight situation until you get some years at work under your belt.

If you managed to dig yourself out of debt since then, though, isn’t the extra cash used to do that going to be free now? Or do you mean to say it is now rolled into the budget?

As far as the car goes, will one child be in a booster seat soon? They make narrow car seats and booster seats (more the booster seats that is why I asked) that are designed to fit three in a row. I have done it for years, but it was awhile ago. I am not sure what exactly is available now. The best bet is to go to the store with the car and try to install.

It sounds like this is not an option since your babysitter relocated with you, but a day care center would probably be less expensive than private child care.

Good luck and hang in there. I think with your prudent spending and watchful eye you’ll be able to make those once in awhile lucky breaks and windfalls work for you. The Christmas bonus idea was smart.

 

[Simca]

I know when I was really desperate, and was watching every single penny, I would use a cheap dish washing soap for dishes, laundry, a bathroom cleaner, and a floor cleaner.

Cleaning products really add up, and the dish washing soap worked just as well for everything. It sounds cheapy, but the money you save could buy bread, eggs, milk, and probably more… You can’t eat cleaning products.

 

[peter26]

Have a look at this article: moneysavingexpert.com/family/money-help

It is UK-geared, but many of the general principles would probably work for you.

Here’s the 30 second version:

• Switch to cheaper providers where you can. Different cable provider? Mobile phone provider? Home or car insurance?
• Switch to cheaper products, especially cleaning/household items.
• It varies by where you are, but check out if you can get any state support with childcare costs.
• Any ways to boost your income?
• If all else fails, try the “demotivator” moneysavingexpert.com/shopping/demotivator/

Good luck!

 

[Arizona_Fat_Gir]

It doesn’t sound as if you expect help from family, and I admire you for that. I have already been “borrowed from” and let me tell you it did not help in the least. They just went ahead to spend more and finally file for bankruptcy.

They could never afford to pay back the “loan” I gave them.

 

[CradleJourney]

We both just started our jobs in mid-July so it would be a bit early for this.

We both get holiday bonuses which we didn’t mentally account for in our budgeting, with the intent of seeing what we get (since it will be pro rated for starting mid-year) and allocating that toward whatever we saw fit at that time. I am so very glad we did this now. Come December we will be having some found money.

How have you with 3 kids managed with the car situation? We have a small sedan that really won’t fit 3 car seats and a mid-size SUV that has an option for 3rd row seating but then I can’t really get much in the way of groceries or anything like that in the back. We have only used the 3rd row when we are going out with (adult) friends, but it otherwise is in the basement. We are considering getting a newer but used large SUV but this will mean another car payment.

Are your vehicles paid off? Something to look at. Also, as mom of six (spread out), I’ve still found the used minivan (paid in cash) to be the best investment ever for our family. Have it as one vehicle to haul the kids, and a second fuel efficient car for runs to the grocery/work/etc. (We have two for each of us to work, but for all the other trips we split it that way.)

My personal biggest suggestion as someone who’s been stuck in budget deficit land forever smile - realize that everything short of basic food, utilities, mortgage and insurance is optional. Seriously. Now, starting from that point of view, you can decide what is needed most by you, your spouse and your kids, but it’s a limited pie and it’s** your **choice. Personally, for example, I don’t do haircuts. I do a cheap $14 trim twice a year. That’s it - my budget is $28 a year for hair. I have a friend who doesn’t even do that, and another friend who’s appointments every 4 weeks runs approx. $45-$65. For her, the $600 a year for hair is an absolute necessity, while it’s a total waste in the opinion of my other friend - neither is “right” or “wrong” - just different.

That’s the kind of thing I mean - to make it work, you’re probably going to have to go against what you normally think of as “necessary” - but make sure you use your priorities and not those of someone else.

For the longest time, we went without cell phones, until they became necessary for our situation, then we got the phones, but did away with pizza night. It was hard at first, but now we’re use to it and don’t miss it.

Some of my friends keep their thermostat set at 65 degrees and enjoy streaming movies. We have a 17yr old non-digital tv with free antena/converter but have the temp set for 74. shrug

The big thing is to talk it over with your spouse, list what you two consider the absolute minimum for survival, then go up from there.

 

[Convert_in_99]

I will be following with interest!

 

[Peregrinans]

Here´s a few hints to cut down on expenses:

Put a bucket in your shower. When you shower the bucket will fill up. Then use that water to flush toilet.

Fill up a liter bottle with water and place it inside toilet tank. This will reduce the amount of water you use every flush.

In a spray bottle mix water and vinegar, I use 2 parts vinegar with one part water, to make good, cheap, window cleaner.

Walk…many times we use the car when we could walk. This is not only good exercise it saves on gas.

 

[nodito]

We are considering getting a newer but used large SUV but this will mean another car payment.

No! Don’t do it! You’re out of debt - don’t buy another car until you can pay cash. Seriously.

If three car seats will fit in the SUV, keep it and just do grocery shopping on the weekend when one parent can stay home with the kids or during school hours when you have fewer children to cart around. Or clean out the car well so there are only essentials (a diaper bag, for example), and then you have floor space in front of the car seats as well.

Re: maternity clothes, you can get a lot of them second hand, either for free or inexpensively. We have a consignment shop called Kid to Kid here, I just bought four pairs of maternity jeans for about $15 total. Or if you go on ebay you can bid on entire wardrobes. Ask around - friends may have friends who would be glad to give up maternity clothes. If you belong to a MOMS club or know someone who does, e-mail the group and ask if any MOMS have extra clothes they’d be willing to part with.

The grocery bill looks good. If you do want to cut out the pizza run, you could replace it with “Make your own pizza” night, which kids also enjoy, or start a new tradition like “popcorn movie night” after a cheap Friday meal of tuna and tomato soup.

Regarding childcare, why not have a conversation with your provider? Tell her you’d like to be able to increase her pay as much as you did with your second, but that you can’t afford it. Would she continue to work for a smaller raise? She what she says. It is harder having three kids, but not three times as hard as having one.

Congratulations on your pregnancy!

 

[jmcrae]

Pile the kids into a big stroller and walk when you can - leave the car at home. You would be amazed at how much you save on gas, simply by walking to church, walking to the store when you’re only picking up a few things, etc.

When driving, make more than one stop per trip, and run several errands at once. This also saves on gas.

How badly do you need cable TV - do you really watch it that much, with three kids in the house? If it’s less than five hours a month, you’re actually paying more to watch one TV show than you would to go to the movies, get popcorn, and supper out. Maybe cancel the cable TV. You can still get news and weather, as well as sports and other entertainment on your internet connection.

Do you use your land line? Most people today have cell phones, and they’re expensive enough. Get rid of the land line if no one’s using it very much.

Cut your kids’ hair at home. You can get an inexpensive hair salon kit in the beauty department at the drug store, and their hair will look just as good as if you take them out to have it done.

 

[jmcrae]

It doesn’t sound as if you expect help from family, and I admire you for that. I have already been “borrowed from” and let me tell you it did not help in the least. They just went ahead to spend more and finally file for bankruptcy.

They could never afford to pay back the “loan” I gave them.

I also learned that lesson the hard way. Never, ever lend money to anyone, ever. They simply never pay it back.

I have learned to offer people rides to the homeless shelter in lieu of cash, and it’s startling how quickly they find their feet and become self-reliant again.

 

[TK421]

Digitize where you put your finances.

• Switch to an online bank for a checking account that still earns interest. Ally, MyCBB, etc. I use MyCBB.
• Sign up for a cash back credit card (advice here taken with grain of salt: financially smart only if you’re good at paying it. It works for me since I just use it the same way I use a debit card and it has never gotten me in trouble). I use Citi Double Cashback (1% cashback upon purchase, 1% cashback when you pay it: 2% total)
• Sign up for a high yield online savings account. I use a Barclays Dream Account. ~0.97 APY, +2.5% interest if you consistently make a deposit every month for 6 months, and an additional +2.5% interest if you don’t make any withdraws for 6 months. Any money that you can save, keep it in something like that.
• Shop at stores that offer special weekly deals and habituate yourself to it. Stores such as CVS will save you more money than somewhere like Wal Mart if you follow their fliers.

If you do spend money on beverages, buy powdered forms instead of actual juice or tea. There are powdered forms out there that still give you your vitamin C; look at the labels.

Teach yourself a variety recipes that incorporate starches into the meal: rice, pasta, potatoes, bread. I’m slightly elitist when it comes to my meals, so if I don’t have variety at my fingertips I end up neglecting my starches. Maybe it’s just me. Starches are incredibly cheap.

Habituate yourself to looking at the caloric value of what you buy. If they offer little calories per dollar, it’s not a good deal, assuming it’s not junk food. Some cereal-based snacks will offer more calories than others (more calories isn’t a bad thing; just depends where those calories are coming from).

Serious question: ask yourself if you really depend on cable or satellite TV. Otherwise, keep internet, buy a Roku or an Amazon Fire, and use a Netflix subscription.

In case you do, don’t bath/shower twice a day. Unless you work in a sewer, this is an eccentric and pointless practice. It’s not even necessarily good for you.

 

[pensmama87]

Ooo, another potential big cost savings is mobile phone. We switched to prepaid a few years ago, then switched providers again a couple months ago because we found a cheaper deal. Right now we have Republic Wireless and pay $45/month for two smartphones. If my husband didn’t need cell data for work (and could just use WiFi), we’d pay $25/month. (He does get most of that reimbursed by work which is nice.)