Q: You really should consider posting about how you two budget and save for your purchases and DIY. I’m constantly amazed at how you seem to never charge anything and how you consistently mention saving up for things. Now just tell us how you do it!! What about making the decision to replace something that still works? Is that a hard call for you guys? I never know when to live with something, replace it with something semi-cheap for the interim or save up for the big thing I actually want and go right to buying that instead of putting money towards a placeholder while I save. I’d love to know more about how you know when to save and when to splurge and how you live such a debt free life full of projects and home makeovers! -Barbara
A: First and foremost, John and I are super lucky to each come from families with famously frugal dads. So we both learned all about saving up for things, paying off our entire credit card balance, and never buying anything that we can’t afford on the day that we buy it. Of course it takes a decent amount of discipline (and it means that we’re constantly walking away from great deals & lovely things), but if we can’t afford them they’re not such good deals after all. So to honor our dads, we thought we’d post embarrassing old photos of them. Notice John’s dad’s tie- it was a Father’s Day gift John made using puffy paint… proof that paint doesn’t always make something better.
It’s funny because a lot of our stuff falls into the “simple and affordable” category (our dining table was around $150 from Target and we have a $25 thrift store chair in our den and a $30 consignment shop coffee table in the living room). So that really helps us keep money in the bank. We don’t believe in buying chintzy low-quality stuff to save a quick buck, but if there’s a chunky wood dining table at target.com with good reviews for a third as much as the one on potterybarn.com, we’re likely to go for the thrifty Tar-jay version (we’ve had our current dining table over three years and haven’t had one complaint yet).
But although we usually shop around for the best deal (and read reviews to be sure we’re not seduced by a lemon), every once in a while we do fall in love with the notion of something pricey and save for it like crazy (like our plush organic mattress or the new 2009 Altima that we saved for over the course of the past few years and then paid for in full on the day we drove it off the lot). But more on that a bit later. Basically, the key to our financial approach really is just to hold out for sales, use coupons, shop around, and aim for affordable items to mostly fill our home- and then devote a sliver of our savings to spendy stuff here or there (so we don’t feel totally deprived but also don’t drain all that money that we saved up overnight either).
Oh and living in Richmond helps! The cost of living is waaaay lower than it was in Manhattan, so years of dealing with those insanely inflated expenses makes it seem a lot easier to cut costs and save money here (since our mortgage is half of what we used to pay to rent two tiny NYC apartments). Our house was also completely affordable since it was a total fixer-upper (as in: less than 200K, you guys have seen the befores!). So we knew we could afford to put money towards fixing it up since we didn’t spend it all up front by purchasing a newly renovated casa to come home to (and since our monthly mortgage payment is a lot lower than it would have been for an already gorgeous new home in the area).
We also try to be frugal in other ways like by sharing a car, getting books from the library, making our own bagged lunches, and DIYing whatever we can (from tiling to haircuts) instead of paying an expert (you’ll see some links to other how-we-save-money posts at the bottom of this one). It’s not always glamorous, but the old a-penny-saved-is-a-penny-earned adage really rings true to us. So instead of making lots of money and spending it just as quickly, we choose to do what we love- aka: blogging- but live comfortably on less with a few simple switcheroos like haircuts at home and one dollar spaghetti dinners.
As for what we do when it comes to replacing something that works but still bothers us (like a functional old fridge that’s big and yellowed and probably not terribly energy efficient) we just save our pennies up if it truly makes us cringe. Once we have enough to actually afford a new one without putting it on a credit card that we won’t be able to pay off right away (which makes us feel so guilty that we wouldn’t enjoy the spurge) we go for it. Oh and we always sell the working thing that we’ll be replacing on Craigslist so we don’t send it off to a landfill. Plus then we get a bit of money for it (which we can mentally put towards our upgraded version, so it feels even more affordable in the long run).
We’ve learned that in our case it’s never smart to buy something cheap for the interim just to tide us over because we end up hating the fact that we spent money on something that’s just a placeholder for the real thing that we want (and we would rather have waited and put our money towards the forever-item instead of some temporary solution). This is a personal thing though, so if replacing your cringeworthy chandelier with a $50 version from Home Depot will help tide you over while you save for the $250 beauty that you’ll love forever, then it might be the best approach for you. Just think about what makes you happy and what you can honestly afford and try to weigh the pros and cons to come up with a plan that feels right for your situation.
We also always talk a lot before taking on a major room makeover to be sure that we’re both on the same page about how much we’ll spend. For example, after a lot of chatting and number crunching we guessed that we’d spend 3-5K on the bathroom remodel- and were totally surprised when we got it done for $1800 by doing all the labor ourselves and hunting down some amazing deals. So in the case of the big bathroom reno, we saved our pennies until we had 5K sitting there in our high yield savings account and ended up super happy to just spend the 1800- which meant we could move on to our nursery makeover with extra funds already on hand… which is always a bonus!
We actually find that we overestimate things a lot more often than we go over our budget- which we’re very thankful for- but we still like to save up all the money and make sure it’s in the bank just in case we don’t come in under budget (it would be super stressful if we only saved two thirds of what we needed for a project just because we assumed we were overestimating again). Oh and there’s a bonus to having our renovation dollars in the bank before we start. We’ve found that it takes a lot of stress and anxiety out of the equation, so the project is a lot more fun.
Take the nursery makeover for example, we went into it thinking that we’d spend around $1500 since we needed totally new furniture and accessories (like a crib, mattress, dresser, chair, ottoman, rug, curtains, chandelier, lamp, art, etc). But thanks to some deal hunting we’ve actually done everything from scoring a $20 thrift store chair and a $20 Craigslist dresser to hunting down a clearance rug and chandelier- which makes us confident that we’ll get ‘er done without reaching or exceeding our budget. Who knows, we might just come in substantially under if we’re lucky. It really does pay to spend the time pounding the pavement for the best deals and trolling places like Craigslist for solid well made furniture that you can refinish (a lot of which is much better quality than the cheap stuff that companies churn out today). See how the Craigslist dresser below turned out after we made it over with some stain, some paint, and some elbow grease.
All told, we probably spend between five and ten percent of our total income on home improvements (not bad considering that we’re pretty much constantly painting something or pulling up at Home Depot). But that’s just a rough approximation and it’s a really personal thing so each family should look at their bank account and their house to figure out what budget and home improvement priorities are the most important to them. Plus it’s kind of our job now (since I’m a full time home blogger we need to constantly take on projects to sustain our site). So because it’s such a high priority in our life, we go out of our way to save a lot of money in other areas, like by having just one car that’s fully paid off.
We drove a ten year old Maxima for four years with over 170,000 miles on it until we could save enough cash to fully pay for a safer-for-the-baby 2009 Altima, which we did a few months ago (yeah, that was a fun day). So making sacrifices and cutting costs in other areas has allowed us to save money which we use to pay things off completely (instead of continually laying out cash each month for a car payment or a credit card bill that we just can’t squash). And of course we do save a bundle on the transportation front by making the decision to be a one car household, so we can save all the money that might otherwise go towards purchasing, insuring and gassing up a second car.
We know the way that we save and pay things off is rare. And we know that there are probably people reading this post who have no idea how on earth two people like us could save up for renos before we do them or pay off a new car the day they drive it off the lot (hint: it’s not because we make a lot of money- in fact by national averages we fall way below the average income level, even in our area). So we’ll share this factoid about our spending habits. We’re insanely frugal in many areas where other “normal” people are not. A nice meal out for us is a once monthly trip to Chipotle. We probably spend about $10 a month on clothing (combined, and some months it’s zero). In fact I’ve spent less than $20 on my entire maternity wardrobe (thanks to generous friends and family members who have passed their leftovers my way). We’ve even begun to make our own cleaning products to save more money in that area and we already mentioned that we give each other haircuts instead of paying a professional.
So before you think it’s totally impossible to save a few hundred dollars a month towards some big reno goal or some dream furnishings that you’ve had your eye on, consider whether you can cut anything out at all (from that Starbucks coffee to that monthly haircut). And if you want to save even more, try going a whole month without buying clothing or going out to eat. All of a sudden you’ll see that it’s not that hard to save money once you really decide to make a major change. Heck, you can even downgrade from two cars to one (and start carpooling or riding your bike). Or you can even sell your expensive vehicle for something a bit older with more miles on it (trading car glamour for house glamour isn’t a foreign concept to us since we drove our last car into the ground and sold it to Carmax with nearly 200,000 miles on it when we finally had enough saved up to replace it).
In general our advice is just never to spend beyond your means and to take the time to save for items and projects that are truly important to you… instead of frittering away funds by grabbing a bunch of cheap accessories (but they’re on sale!) that you don’t need every time you walk into a store. Resist the urge! Really, if we don’t have the money in savings that we’re talking about spending then we just don’t spend it. Instead we use paint and other items that we already have around the house for some free mini makeovers to tide us over. And we’re always sure to take our time hunting down the best deals while our savings account grows (even doing things like hosting a garage sale or selling unnecessary items on Craigslist to make money to put towards our latest goal). And it seems to work for us- so we certainly hope that it does for you guys as well. Happy saving (and smart spending) to you and yours!
Oh and we’d love to hear how you save your pennies (any envelope system peeps out there?) or how you live well on less income. Share and share alike!
Pssst- To learn more about how we pinch pennies here at Casa Petersik check out our Save It series (read Part 1 here, Part 2 here, and Part 3 here) and find even more money saving ideas right here. Oh and this post about living with less (along with this one and this one) might help too.
Aileen aka Miss Tightwad says
Thank you for writing this! I have not always been frugal, in fact by 21 I was over $10k in debt. I’m working it down now and I save a TON of money couponing (which according to my computer isn’t a real word). I blog all about it at http://www.misstightwad.com. Honestly, being in debt brought out the best in me and I wouldn’t take it back (even though I’m still paying it off at 23). Now I am a frugal, couponing, yard saling crazy person. Your blog is going to be such an inspiration when my boyfriend and I purchase our first home. Living in southern CA, it’s going to be a task finding one that we can afford, but if I can go from a 21 year old with 10k in debt to a 23 or 24 year old home owner with no debt, it’ll totally be worth it! Thanks again!
Christine says
Envelope system, FTW! I don’t know how we would live if it weren’t for the cash system. We do a lot of the same stuff you do: one car, fully paid on the day we bought it; super cheap, older home with regular, paid-for renovations; rarely buying anything new… Plus we have 3 little kids (whose clothing sizes change regularly, darn it), so we find ourselves saving money in the most amazing places. I do LOTS of garage sales for clothing, home items, even cleaning products (which we mostly make at our home, too!), and my friends and I swap kids’ clothing, depending on seasons and sizes.
You gave great advice, and you sound like you have your heads on your shoulders! It makes me confident that we WILL get our crumbly old house updated in time, with patience and savings. :)
Christa says
Super cute daddy and me photos!!
Sugar Cookie says
Hi, Sherry! Thanks for the truly inspirational post! Just out of curiosity, do you and/or John have any student loans? My husband and I have two paid off cars, no credit card debt, and very affordable monthly rent, but his student loans from law school are almost equivalent to a mortgage, making it difficult for us to save. We’ve consolidated, lowering our payments, and incorporated the expenses into our budgets, but it’s still hard. We follow many of the same rules as you – if we can’t afford it, we don’t buy it. But I just thought that if you had student loans, you could give me some perspective on how you and John handle them.
YoungHouseLove says
Hey Sugar Cookie,
I actually paid my way through college (it was a state school) by working consistently from 16 years of age on. John had some help from his parents (he also went to a state school, but UVA is a tad more expensive than FIT was for me) but paid for all his books and housing & food once he moved off campus (he also worked from a young age- even younger than 16 as he was a paper boy with his dad at 10 years old!). These choices really helped us avoid student loans. Sorry we can’t be of more help in that area!
xo,
s
Katie says
I’m always trying to be more frugal. My husband and I put together a budget on Sunday and we’re going to do our best to stick to it. For me, it’s super important that the budget is reasonable and that I feel like I can achieve it from the beginning. It can be a little challenging, but if it feels impossible I know that I’ll pay no attention whatsoever to the budget.
My husband, 8-month old daughter, and I live in a 700 square foot apartment. There’s one bedroom and some loft space. My husband works from home. The loft space is his office, baby’s sleeping area and I have a desk up there too. Sometimes things can feel really cramped, but when I think of the money we’re saving it all feels better.
We invested in a good quality stroller that should last through all our children. So unlike some of my friends, I have one stroller while they have at least two.
I make almost all of our meals. And I try to plan and shop ahead. I find that when I’m going to the grocery store to pick up a couple things I always pick up more than that.
Kristin says
Thank you so much for posting this! We read your blog daily and I was just thinking yesterday that I wanted to email you about posting money tips for projects and savings accounts. We are in the middle of our own bathroom renovation and it seems like we have to pick either money for home renovations or money to put away for the future.
Your tips are great! And it make us feel like we’re not alone.
Thanks!
Kristin & Mike
Christy R. says
I have to give you huge kudos for your post and lifestyle. So often we are encouraged to live outside of our means or making impulse purchases to “feel good”. I really applaud your choice to go against the grain. I think if more people lived with a similar mentality, our economy wouldn’t be the way it is.
Thank you for encouraging us that we can still enjoy life by making a few smart choices.
Courtney says
We are devoted followers of the envelope system. It is definitely an emotional thing to hand your cash to someone as opposed to your debit/credit card so you’re less likely to do it that often.
Maureen says
Sherry & John–
You guys are an inspriation. I love your approach to money! My fiance and I are getting married in August and we’re going down to one car. Knowing you guys can do it (and happily!) makes me feel great about our decision! Looking forward to hearing how you guys stay on top of things once the Beanette arrives (Lord knows you will!).
Heaven B. says
One thing that works for me, and might work well for you in the future is bartering. My husband is a landscaper, and we barter landscaping services for lots of things in our community.
Amanda says
What a fabulous post! I try to be smart with my money but there are always things that get me. (Hello, going out to eat for EVERY MEAL while my kitchen was being remodeled.) This month I am trying something new. I don’t want to do the envelope system because I’m afraid to carry that much cash, but I did make a simple list that I keep in my wallet, with categories and their limits. I’m going to try really hard to write down every purchase I make, whether it’s in the “Grocery” or “Going out to eat” category. I know it’s going to take a lot of discipline, but I have got to start keeping track! Plus, I want to continue to use my rewards card for purchases (don’t worry, I pay it off in full each month).
caitlin says
I LOVE this post. I too have new old house that needs work. Some cheap, some $$$ (like kitchen reno. sigh) I honestly do not want to do any of it until we have a good chunk saved for it first… not even looking into it in fact. Fortunately I live in a low-cost city (Pittsburgh) and I got the tax credit for the place… but I bought a house under $100K so I can’t stretch the credit that far!
As a person with a frugal dad, I commend you! Dad gave everyone in my family the book The Millionaire Next Door for Christmas, and it really is about things like: forget a fancy car, dont buy lunch at work all the time, and be careful about investments and pay off credit card debt. We tease dad all the time, but he is a smart guy and has a great house and big family and savings for retirement.
So anyway… thanks for this empowering post!
Kara says
thanks for this post!! I consider my husband and myself to be pretty frugal… we are debt-free (except for our mortgage) and manage our budget weekly online at mint.com, but we can always stand for improvement… especially in the areas you mentioned: eating out, coffee, etc! it’s also really easy to buy into the mentality that we “deserve” to have dinners out, buy nice clothes, or be able to travel frequently… sometimes it seems like everyone else can afford to do so! :) thanks for sharing how you two live so frugally, it was so encouraging to me!
Kelsey Cafferky says
Thanks so much for this post guys! It really helps to read about people being frugal and saving! My husband and I are recently on the Dave Ramsay system and we’ve started to look at our money in a whole new way. We’ve even started an emergency fund and have a nice chunk of money in savings for the FIRST time in our marriage. Whenever we used to get extra money we thought about what we’d want to buy and then go buy it. Usually it was electronics or video games systems. Those days are long gone now since we have a toddler and another kid on the way and we’ve realized that quality of life doesn’t mean quantity of items! Thanks for the reminder!
caitlin says
Oh and a question that you may have answered once…
How do you both sit down and discuss what you are doing, how, and how much? We just started discussing that about the kitchen…. how to approach saving with differing salaries (we dont have a joint acct yet and my partner is unemployed til June), and paying for things together. I guess this is much easier if both your names are on the deed, which isn’t the case with us yet.
YoungHouseLove says
Hey Caitlin,
Well, we just sit down and discuss what we want to do and how much we want to spend. Communication is everything! In fact at least once a month we’ll talk about how much money we’ve made and what our bills are for the month and how much we think we can save (transferring that money to our high yield savings account is always the best part). Just try to talk things through and map out where you are and where you want to be and what you have to do to get there. Good luck!
xo,
s
Claire says
This post has made me so happy and hopeful for the future. Your post as well as the many comments has proven that there are people who are spending responsibly and living within their means! Yay! My husband and I just had a budget heart to heart last night and we have to cut back this next month big time! This was a great reminder that with a little bit of work – it can happen!
Sara says
Ebay/Craigslist, if you have something of value, sell it on one of those sites, it’s better than having it take up space, TRUST ME, it’s worth the time and energy
Quit smoking – you know how much money cigs are these days?! It’s not worth it…
Fast food/Restuarants once and a while – because you can always cook dinner at home and save loads of money
I give Sherry and John mad props because I could never give up my seasonal shopping sprees (I love fashion), my professional haircut (I doubt my significant other can cut a bob as good as my hairstylist lol) or my personal car, I love my Sentra, I will not sell it or share a car, BUT it is my backup plan if, knock on wood, I did ever get laid off and couldn’t afford it anymore, then I’d be happy to sell it!
Court@BeautyFullyUsed says
This is an awesome and inspiring post. It’s so easy to get caught up in what others have or seem to have, but to know there are folks who make sacrifices and still have a full life is wonderful. Thanks for sharing!
Emma says
Seriously, this was an AMAZING post. I struggle with budgeting so much and I always wondered how you two managed to do all these projects and still maintain some sort of financial freedom. I’m 25 and just got married and moved into our first home, so I want everything I see and it’s a huge struggle for me. Thank you so much for bringing me back down to earth.
Amber says
thank you so much for this! Hubby and I were just sitting down to come up with a few new things to help save money, and this is a great article for us to start the process!! THANKS!!!
Katie says
This was a great post – thanks for sharing! Like Gord, I too am interested to read the creative ways you find to save/renovate once kiddos come into the picture. That’s not to say it isn’t possible – totally is & in fact, we have found ourselves planning other kinds of house projects & saving for those: like, kid-friendly room re-do’s that might include a woven chest that functions as a coffee table in our living room, yet hides toys our toddlers play with. ;) Or, planning a playscape or treehouse in the backyard. For smaller decor items now that more of our budget goes towards our growing family, I try to come in under on our grocery budget to put a little aside for something that otherwise would not fit into our monthly financial picture. And, if there’s something I really want to save up for that’s maybe more than $20-$50, in a few weeks-to-a-month-or-so & I can usually “create” the funds out of saving on groceries/meals. Great job you two, love the blog & your transparency!!
Tana says
Thank you for this post. I too was lucky to be raised by very frugal parents and learned good money habits from them. I personally know others whose parents weren’t so thrifty and have gotten themselves into loads and loads of crippling debt.
One thing I love about your blog is that you do things on a budget. Sometimes I’ll read a magazine or blog where they spared no expense on renovating or decorating, and it isn’t nearly as fun or inspiring to read. Sure, anyone can have an awesome living room when you’ve spent $75k on the furnishings.
One thing I want to bring up is how I grocery shop. We have three kids, so we keep a lot of food on hand in the house. However, I rarely pay “full” price for any of it. When things go on sale at the store, be it pasta, canned goods, cheese, etc, I stock up (I’ll freeze the perishables if appropriate). When things go on major sale, I stock up BIG time (chicken breasts for $.99). This way I always have a stock of groceries on hand that was all purchased on sale. This also has other benefits – peace of mind having food in the house should a natural disaster occur, or should a family calamity occur (job loss, sickness, etc). It also cuts down on trips to the grocery store because you’re out one specific item. Also, I cook large quantities of food with the intent to freeze some for later, thus cutting back on eating out on busy nights.
Lorie says
That tie is priceless. And you just blew my theory that paint could make anything better. Maybe it is just spray paint that can make anything better! ;D
Dana says
Two words… Dave Ramsey! I love seeing that you two paid cash for your car. My husband and I are only 26 and agreed before our wedding to do things Dave’s way. We have been saving for months and are about to trade his old car (a 2000 with 170k+ miles) for a 2009 vehicle and pay CASH! It’s such a great feeling! We also pay for everything in cash or with our debit card. This lifestyle is going to so great for our future, it’s such a thrill. My husband was recently laid-off and we can still afford to take this step because we have a plan for our finances. So much so that we’re not even dipping into our emergency fund during his unemployment. Sure, we hope things turn around quickly but we’re doing just fine in the meantime. I highly recommend this lifestyle to anyone. It’s not always easy, but it’s SO worth it.
Way to go guys, you’re an inspiration to many!
Kate says
Love these types of posts and reading everyone’s comments too. I grew up thrifty and have always been a hard worker (work hard, play hard). My husband and I aren’t doing as well as you two but your posts are inspiring and I hope we’re at that point in the next couple years (we are a couple years younger).
I could type a lot about what we do to save money, but I’ll only put what I think hasn’t been mentioned and might actually save people money. For our cell phones, we share a plan that has the least amount of minutes and pay $5 each per month for 300 texts. We don’t even get close to using that many minutes (b/c of Sprint-to-Sprint and free nights and weekends) or texts. We save just on texts $10 a month by not having unlimited texting. That’s $120 (really more once it’s taxed!) a year just because we don’t text more than 300 times a month!
For everything else you mentioned, we’re pretty much right there with you, just a couple years behind! :)
Lesley H says
S U P E R post! I’ve also often wondered how you do all you do. I recently went through a huge downsize to buy my first place and unfortunately we don’t have Richmond prices (as in 215K for my 700 square foot townhome!). It’s totally reinforced to me it’s not our “stuff” that makes us happy so having less is no hardship. One thing I’m really enjoying is changing my accessories around -it’s like an updated home every few weeks. Fun and FREE! Thanks for all the tips. I’ll be incorporating them into my lifestyle!
Erin says
Great post!!!
My biggest way to save is to “make it automatic” as David Bach says over and over in his book “Automatic Millionaire”. I have 10% of my income automatically taken out of my paycheck and put into my 401K. And I have money automatically deducted from my checking account every payday into a high yield savings. As I get used to that amount coming out, I increase it by $10 every so often.
I chose to buy a tiny (950 sq ft) fixer upper home well below what I could afford (which also reduces my utility costs and need for too much decor). I no longer use credit cards and paid them off, paid off my car and am working towards what you did, paying cash for my next one! But mine is only 6 years old so I have awhile before she needs to be traded…hopefully. :-)
I also live fairly frugal, although not as much as I aspire to (I’m still building up to it, LOL). I just keep reminding myself what Dave Ramsey says “If you live like no one else now, you can live like no one else later.” Or something like that. ;-)
Katie says
I’ve seen a lot of people talking about how the ‘envelope system’ saved them a ton of money. What is it and how does it work?? I mean, I get that it’s paying cash for things, but what are the envelopes for and what are the logistics of this?
YoungHouseLove says
Hey Katie,
Just google “the envelope system” for more info. It basically encourages people to set budgets for certain areas in their life (food, entertainment, etc) and put cash in envelopes that are labeled as such. Once the money in the envelopes is gone for the month, it’s gone. So it can help people to use their money wisely and spread out their spending across a month to meet their goals. Hope it helps!
xo,
s
Lorie says
I have always liked your blog, but the fact that you are so thrifty about it and don’t go into debt is really REALLY impressive. Keep up the great work.
Shannon says
Do you know what makes this world go around…people paying others for their services, products and even writings/thoughts (ie. your blog). There are experts in many fields of interest and there are craftsman for every trade. These experts and craftsman aren’t multi-disciplined- they’re qualified, educated, and experienced individuals in one area. What I don’t like about this post is your lack of respect for educated and experienced professionals. To think that you can just DIY everything shows a lack of respect for the talents of others. You don’t pay trained/educated designers or contractors to do your house work and that bothers me, everyone doesn’t understand good design nor do they have the skills and experience to accomplish large renovations, but you blow that off like “oh well…all it took was a little x, y, or z”. Imagine if Jon worked in an IT department but the boss of the company decided he didn’t need an IT guy, he would “do it himself”. Imagine if you were a veterinarian but people stopped bringing their animals in for care because they can “take care of their dog themselves”. Imagine that company (who got rid of the IT dept) scrambling when one thing went wrong that they didn’t know about, Imagine that animal when a problems turns from bad to worse…
This might be a bit unfair to post, because ultimately you’re just trying to make a living. But what if we all said “I don’t need to read a blog, I can ‘do it myself'” Your site would lack readership and would be unsuccessful. People come here for your ability to write about your renovations, they don’t come to you for a haircut, so why are you cutting hair?
YoungHouseLove says
Hey Shannon,
I’m not sure where you got the idea that we never pay experts and contractors (in fact we mention hiring them all the time for electrical work to plumbing projects and even refinishing our floors or reglazing our tub). We even share those people’s contact info in each of those posts so other locals can use the pros that we rely on in their own home if need be. We just believe in doing what we can do ourselves and hiring the best experts for the job when we can’t. And of course we love supporting local shops, small businesses and buying homemade items (three things we also mention quite regularly around here) so although we’re not paying pros to cut our hair we’re still buying food at the farmer’s market and the grocery store and hiring experts to service our HVAC or seal our driveway. Hope it helps!
xo,
s
Tana says
Whoa Shannon! I think you need to read the blog more! They’ve hired lots of experts – for their floors, kitchen, patio, etc.
Taylor says
Sounds like Shannon@1:44 is taking some of her own stuff out on you unfairly!
As others have said, you two just seem to be so balanced- willing to try new things or work a little harder to save money and learn new skills, but still willing to reach out for help when you need it (even your readers when your drain was clogged, for example). You are going to be wonderful parents!
KimB says
loved this article. i felt like 2 worlds collided since i love your blog, and i also love the “get rich slowly” blog. even though i didn’t know all these things about you guys before, it’s nice to find we have so much in common! i have a super frugal dad too, who drove every car he owned into the ground, and always taught me to pay off my credit card in full. i just moved to a little cottage, and i hope to eventually buy your “design advice” some day, once we settle in. it’s only around 600 sq ft for 2 people, so it’s a challenge! =D keep up the awesome blog. glad you guys are keepin it real.
J says
Great post! I used to live like that when I was saving up for my house, but the trips to Home Depot and never-ending to-do list have set me back somewhat. Thanks for the inspiration to cut back again.
I have a question about your savings – it seems like at any time, you’re saving for multiple things at once. Do you somehow designate your savings for things, i.e. this portion is for the car, this portion is for the bathroom, etc., or is it just one big pool that you take from when needed? I have trouble with this part. I’m “saving for a new roof” but all that means is trying to put more money in savings without actually having any of it set aside for the roof. Thanks for any insight!
YoungHouseLove says
Hey J,
Good question! We have one big high yield savings account where we filter all of our monthly savings, but when we’re saving for two things (like a bathroom reno and a new car) we always know how much money we need for both projects so we just figure out which one is a priority and mentally delegate more towards that goal out of the total amount of moolah that we have. And if neither of them take precedence over the other we just split the pot towards each one until we’ve accomplished enough to complete one goal (for example it took way longer to save for our car than any house reno). Hope it helps!
xo,
s
chelsea says
Thanks for your ideas! Believe it or not my husband have the same ideals as you guys – when we went to go buy a house our credit scores were not great because we had no history since we believe in buying for everything in cash… but it hasn’t stopped us!
One thing we have found that we lOVE is a website called mint.com. I first found them when it was still in beta three years ago and have used them ever since! First, it’s completely FREE. They’ll pull all your accounts together, keep track of all your expenses, and you can watch everything in one place. They make money by offering suggestions of ways to save money (this credit card, this savings account, etc.) We are happy with what we have so we ignore that part, but it has made budgeting so much easier and happier around our place!
KimB says
P.S. I like the “Dad and me” pictures. You guys are so cute!
Sheila Gustafson says
I am so thrilled to read this post. You two have done something that is both inspiring and courageous, by sharing with great eloquence your personal financial plan. My husband and I are retired…most people would call us senior citizens but we live active, vigorous lives and our friends might think we are living beyond our means because we travel extensively, take on big home improvement projects (mostly do-it-yourself), and enjoy going to the theatre and concerts quite often. However, we aren’t living beyond our means! We do all the things you are doing, and still live way, way better than those who buy impulsively and have to live with regret when the bills come flying in. We don’t spend money if we haven’t saved it up, and we communicate constantly about our goals and how we’re going to accomplish them.
Because your blog is respected and widely read by young people, I believe this post and your candor will inspire many readers to evaluate their lifestyle, and see that it is possible to live a rich life without getting mired in debt. I commend you both and wish you well as you continue preparing for the new little baby and your blog-life together!
LauraC says
Not a whole lot extra to say that hasn’t already been said, but maybe it’s ok just to echo. I was taught to save by example by my parents and my husband wasn’t. He said my family was the only one he knew who bought cars with cash, and I told him his was the only family I knew that didn’t. ;=) Anyway, we do have two vehicles, the same ones we had when we got married over five years ago, and they are both paid off. My Corolla is getting old (’96), but we’re not planning to replace it for another two years. Our savings account for it took a big hit with the market crash and we’re waiting to get that back up to speed.
Another great thing is our Visa – we pay it monthly, earn 1% a year and every March get a nice check back. Of course we could save it, but it’s an REI refund, so we use it for fun things or sometimes need/wants. My husband bikes to work most days and needed a waterproof jacket and pants to help protect him. So he was able to use our refund to get some nice quality things, along with some other bike-cleaning gear. Which I consider kinda necessary as his bike saves us lots of gas $$. But a couple years ago, I splurged and got a really nice jogging stroller with it. Totally worth it! And it’s so nice that not a penny comes from our bank account!
We can still do better, but in Jan we tried the cash/envelope system for food and dining out and cut our Visa bill in half!!! I was kinda shocked.
Tracy says
Have you ever heard of Dave Ramsey??? You are living like no one else, so later, you can live like no one else!
I’m a fan and follower of his and hubby and I have been living like the both of you for a few years now and it sure is liberating to be debt free, especially in todays economy!
I’ve been following your blog for a while now. You provide so much inspiration for design and decor that you brighten my day when I see your new posts – THANK YOU!!!
YoungHouseLove says
Hey Tracy,
We actually have heard of him (and many of our readers are highly recommending him as well) so we’ll have to learn more about his methods. Thanks for the tip!
xo,
s
luckyjayne says
This is a great post! You should be awarded for encouraging people to save. We are envelope system people. It works very well for us!
We are celebrating our 10th anniversary this year and originally we talked about taking a trip. After some discussion we realized that what would really thrill us is to renovate our kitchen. We are saving every “non-budgeted” cent and are on target to start next month. We have purchased some items already (as the fund grew and I hunted sales/deals). I will send pictures when we are finished – as your work has been a huge inspiration!
Oh, I had to read this part twice, ” This is a personal thing though, so if replacing your cringeworthy chandelier with a $50 version from Home Depot will help tide you over while you save for the $250 beauty that you’ll love forever, then it might be the best approach for you.” because I was just about to settle on some temporary Home Depot $50 pendants to hold me over till I could get the ones we really love from Restoration Hardware. You inspired me to hold out and keep saving! Thanks!
Brittany says
It’s so nice to read about other young couples that are frugal and also to see so many others on here that like Dave Ramsey’s way of thinking. My husband and I are both 23 and bought a house half a year ago. I was lucky enough that I have no student loans from school (I am the only one of my friends) and our only debt stems from the house. Our plan is to pay if off by the time we are 26. Great post, I really enjoyed it!
Holly G says
LOVE the picture of Mr. Petersik! He is amazing! Emily still makes fun of me that I don’t call him Tom : ) John – the tie is great!
Lisa says
Good post! Both my husband I and I live below our means, and in the most expensive city in Canada it’s not always easy. We are self-employed as graphic designers and for peace of mind we always make sure we have 6-8 months of a rainy day fund set aside. We have our bills on auto-pay as well as our retirement savings. We also follow the save for the good-stuff mantra. We just recently replaced our reliable but old 1995 Honda Accord for a 2007 Honda Odyssey we are just loving, and we are free to love it as it will be paid off fully within the year.
I have always been a planner and as I get older I feel like I am constantly reaping the rewards. No splurge is going to feel as good to me as peace of mind, knowing my family is taken care of.
Keep up the good work!
Nancy says
What great money tips. We are pretty frugal ourselves. We use the “envelope” system each week by putting the same amount in an envelope and that is our money for groceries, gas, eating out.. whatever we can do before the money runs out:) Also, we are lucky enough to get a pretty good chunk of change back at tax time so we always plan a house project with part of our return money and bank the rest. We are knee deep in redoing out kitchen as we speak.. our friends can’t believe how little it is costing us (and how great it looks!).. with a lot of shopping around and elbow grease it is amazing what you can accomplish!
I have one more thing.. I just discovered your blog recently.. and I LOVE it.. and I have a non-money related question.. How big is your living room? We have a similar ranch set up and I love how you made it a combo living/dining room. Sorry if this isn’t where I should ask this.. this is my first time EVER blogging! :)
YoungHouseLove says
Hey Nancy,
So glad you found our blog! Our living room is about 21′ long by 12′ wide. Hope it helps!
xo,
s
{The Classy Woman} says
Awesome post and question from Barbara. I could relate to many things you mentioned. I grew up with a frugal saver (mom) and a spendthrift (dad) which allowed me to see both sides of the fence. I am more frugal for sure and now that I’m married we too share one car. We drove a ’96 accord for 2 years together and then finally got a 2006 vehicle that has all of the bells and whistles-it really makes you appreciate it that much more!
I am a huge coupon queen, the kind that combines sales with manufacturer and store coupons to get some items for free, pennies or a steep discount. It really takes an extra 20 minutes planning before each trip but well worth it. We are able to use the grocery money we save for one great vacation every year which I think is a must.
My hubby doesn’t get excited about house projects, his mindset is, if you want to do it, it’s fine by me but you fund it. He is pretty content with a lot of our hand-me-down furniture, me not-so-much. LOL. So, I’ve painted and lived with many pieces and have done things like sold other items we don’t need anymore on craigslist to make extra money or most recently I had a yard sale and made a few hundred dollars and I don’t miss ANYTHING we sold! That is going towards my re-decorating fund and a little for a daytrip date getaway. :)
I have had some debt in the past and lived the high life and have also seen the other side of frugal living and being debt free. The truth is that a few hours/days of fun doesn’t justify the years of debt/interest you accumulate in the longrun. The stress isn’t worth it. We’ve opted for paying cash as we did with our car too, love having a paid off car! I use my debit check card instead of a credit card and while the bank account dwindles it’s nice to know you don’t owe anybody anything.
You two continue to impress me. I love your frugal, eco-friendly, fun ways and your great style. Thanks for being you and setting such a great example for so many, especially at such a young age! :)
Nichole@40daysof says
We do the envelope system at our house and try to follow most of Dave Ramsey’s teachings about money. And I have to reluctantly admit, when we do what he teaches, things go better. :) As my husband’s career took off, we became poster children for: “you can spend more than you make, no matter what you make”. Finding the envelope system, etc…has enabled us to become more mature about money and less child like. I love reading your tips for frugality.
Michelle says
I grew up with a super frugal father too! :) It’s made dealing with finances so much easier as an adult, I am very thankful he cared enough to teach us about it even when we were very young. At the time I was growing up my parents used the envelope system! :) So very early on I learned that if we wanted pizza we had to check the meals out envelope first, and if there wasn’t any money we had to accept the “no, we’ll have to wait till next month” :) Great philosophy to live by and envelopes work great for trying to train yourself to live much simpler! Thanks for the post, its encouraging to see other people succeed at being frugal too!
vee says
Great write up! thanks for sharing some fabulous information
Letty says
Such an inspiring post! Like another reader mentioned, it can be a bit depressing when you feel like you are so far from a debt-free existence– but I’m on my way! And it is inspiring just the same to see two young and fun people living such great lives and doing so responsibly!
So here are my two cents on the subject: I do what I guess can be called “an electronic envelope system.” I try to pay for everything only with cash now, but I still want to continue to build my credit and earn credit card points, so what I’ve done is to allot X amount of money (i.e., what’s left over after I pay all my hard expenses, e.g., rent, phone bill, etc.) for my spending on all other things, such as groceries, gas, dining out. And then I monitor it online. I know what my max number is, so I make sure not to go over. Obviously, not having a tangible envelope to look at and see getting empty isn’t the same, but it works for me and helps me feel like I’m continuing to build my credit, while being responsible. I also watch my account like a hawk, so I stay pretty up to speed with when I need to stop.
I have to admit, though, that I honestly don’t know how you visit so many fun stores and meet such great designers and fellow bloggers and still manage to control your spending urges! I want to be like you when I grow up :)
Miranda says
I love this post. Our friends look at my husband and me like we’re aliens when we mention we don’t use credit cards, buy only what we can afford, contribute to 401k, have savings accounts, etc. Like you, we bought a house that hasn’t been touched since it was built in 1957, are slowly renovating as we save for the improvements and we’re doing it all ourselves. Personally, I think living without a truckload of debt is pretty cool. Thanks for your hard work. I get a ton of inspiration from your blog.