The bummer-of-an-economy hit home with us a few weeks ago. My company issued pay cuts to all employees in an effort to ward off having to take more drastic cost-saving measures down the road. It’s obviously not news I wanted to hear, but I was certainly grateful that it wasn’t worse. When I told Sherry about it, we shared some moments of disbelief, anger, and worry. But over the following days we slowly embraced the reality of having to live on about $400 less per month.
You guys know that we’ve already adopted a pretty affordable lifestyle and pride ourselves on being able to live life to the fullest even when our wallets aren’t (Sherry gives me haircuts, we’re a one-car household, we eat in all the time, I brown bag my lunch, etc). But we’ve gotta be honest: four hundred beans seemed like a lot to cut out of our already no frills budget. We don’t have it 100% figured out yet, but I thought we’d let you in on how we’re planning to adjust so far.
1. Kick my iTunes habit: It’s small, but I can keep a few bucks in our bank account 99 cents at a time by being a bit less iTunes happy. Music is to me as shoes are to Sherry (yeah old school SAT-style analogy), so I’m trying to absorb my pay cut a bit by rediscovering my existing music collection, and turning to Internet radio and YouTube when I want to enjoy playlists of new music.
2. Pause my gym membership: I work out at the Richmond area YMCA, and primarily use it as a place to shower after a lunchtime run downtown. By simply shifting my runs to mornings or evenings I can shower at home, where it’s free. And since it won’t cost me to restart my membership, I won’t be penalized for taking a break. Though Sherry will have to do without my rippling muscles for a little while (please note the sarcasm).
3. Trim our vacation by a couple days: We’d saved up for a week-long road trip to Atlanta, Savannah and Charleston, but we decided to cut back a little by holding off on Charleston for next time. Shortening our little trip by 2 days put almost $250 back in our pocket in hotel fees alone. Plus, we can’t complain about the extra time that we spent relaxing in our own home sweet home instead.
4. Watch movies at home: Movies are probably second to my music obsession, so we try to allow ourselves a couple of trips to the theater each month. Instead I’m just going to practice patience this summer and rely on our Netflix subscription to satisfy my craving for cinema.
5. Cash in some credit card points: Sherry and I have gotten into the habit of using our credit cards to pay for just about everything. Not because it allowed us to buy things we can’t afford (we pay it off in full each month) but because it’s an easy way to track our spending. A few years of this habit later, we have wracked up quite a few points and have finally decided to trade them in for some bonus dinero.
6. Remember our refinance safety net: The great coincidence of all this is that my $400/month pay cut came just days after we refinanced, which reduced our monthly payment by – you guessed it – $400 per month. Maybe it’s all a big financial joke the universe is playing on us, but we’re still planning to have the last laugh. We hope to be able to continue to overpay our mortgage each month, but find comfort in the fact that we can reduce our monthly expenses by exactly $400 by letting that go if we encounter any unexpected expenses.
All in all, we’re pretty optimistic about everything. With Sherry having earned a variable freelancers income for over 3 years now, we’re well versed in adjusting our spending based on how much we’re bringing in each month. So ’til the economy gets better (knock on wood) we’ve got our noses to the grindstone and our hands out of the piggy bank. Have any of you guys felt the financial pinch especially hard lately? We know we’re certainly not the only ones with employment woes, so feel free to commiserate or, better yet, offer up some money saving tips or words of encouragement to the group.
And speaking of money saving tips, check out our other moolah-related posts which list a bunch of things that we do to keep cash in our wallets and smiles on our faces. Here’s the first one, the second, and the third. Happy saving to one and all.
Kelsey says
My husband works full time with the National Guard and was on revokable orders when they cut his position due to state budget cuts. For a month they were able to pay him out of a different pot of money, about $1,000 less a month, and we also had to pay for insurance $180 a month). He was able to get a permanent job the next month, but of course we had already met our medical deductible in the two months BOO! He was demoted a rank until he gets back from the training school (couldn’t get in until October). So we are living on $400 less a month also. We have cut back on our eating out substantially, examined our bills, switched insurance companies, sold unused treasures on Craigslist. Now that we are back on 100% covered insurance I am going to set aside the allowable insurance payments that I got used to paying anyway.
Lauren says
Trust me, you’re not alone! My fiance and I both worked for the Bush Administration and as soon as our boss left we were canned like baked beans. Well at least my other half was, the Obama team kept me on through the transition. (I have been blessed to remain in my position and hope to for a while.)
Living on one wee salary in one of the most expensive cities in the U.S., Washington, DC has given us a big lesson in budgeting! Wahoo!
Here is what we do to make ends meet:
No cable- at all. The great thing about high-def tv is that you pick up on more channels with bunny ears. We have discovered that we end up watching less TV, read more, and stay more active without all those channels.
Shared internet- we live in an apartment and split wireless internet with a neighbor.
Eat at home but when we do go out we try to share an entree. We stock up on steel-cut oats for homemade oatmeal and lentils. Lentils are a great source of protein and super inexpensive.
Dye my own hair and take full advantage of our fancy gym membership by using their hair and body products (which are from my salon anyway!).
One car, like ya’ll, that we rarely drive and I ride the bike to work.
There are so many little things that you can do and when it all comes down to it I remember what my parents have always told me; “The happiest days of our life together was when we were young and poor.”
Laura C. says
Sorry to hear it!
When we rent movies, we’ll loan them to our neighbor to watch, and they do the same in return. Whoever borrows takes the movies back to the store.
Blockbuster sells previously viewed items for cheap. Also, if you rent something there, you can convert it to a sale – cheaper than buying it elsewhere (especially video games).
Switch to Vonage, or something similar. No long distance fees. Our cost for a phone line, fax line, and 2 additional virtual numbers equals $40 a month. (virtual numbers are set up to the same area code that our families live, so they don’t get hit with long distance charges either!)
Check out freecycle – lots of things can be found on there, and everything is free.
And my final one (as it relates to us now), formal & prom dresses & accessories – swap with friends instead of buying new!
Somer says
You guys are a true inspiration to a lot of us with your already frugal ways, and I know you will have no problems continuing on minus the extra cash.
I was let go from my job 2 years ago and at the time my fiance only had a part-time job that didn’t pay well…so we havd to pay the mortgage and bills on his salary…very rough but also very eye opening on the difference between need and want.
You have also inspired me to re-work our daily lives into making things more cost-efficient. I have started cooking meals for the week on the weekend and packaging them up, so we no longer have the excuse that it will take too long to cook something so lets pick up dinner. And I’ve become a coupon fanatic.
We also will only go to movies on week nights (the local AMC) due to it only being $5 per person instead of $10 per person on the weekend nights.
You guys will be fine…and if you need any help you have tons of loyal friends on here.
angie says
Sorry to hear :( I could totally relate. Our pay cut took place 2 months ago, and I’m still having a hard time adjusting to it. Most of us took 20% pay cut. It’s hard sometimes, but I tell myself daily that I need to thank my lucky stars that I wasn’t one of the many they decided to keep around.
The first thing we cut was our cable bills. The husband connects all our TVs to internet, so that’s how we watch TV now.
We used to go out to movies a lot. We signed up for Netflix and stay home instead. We’re looking into Redbox now, and will probably make the switch to Redbox soon. $1/movie sure beats $15/mth for 6 movies (we get 2 each week).
We also canceled our gym membership and stick to working out at home (we own a lot of workout DVDs for those days we didn’t feel like going to the gym). We also live in a community with fitness facilities, so that’s about $100 saving each month.
We’ve enjoyed going out to eat, mostly because I’m a horrible cook. We now utilize our Crockpot daily. Lots of great recipes online.
Sandra says
Time for more moodboards, right? :) I’ll be ordering one as soon as you have time again!
Lauren says
Speaking as someone who officially paid off ALL outstanding debt that I had AS OF TODAY (!!!!!), I found that one of the things that helped me the most was setting up a budget. I didn’t use any fancy-schmancy budgeting software to do it…just a simple spreadsheet in Excel did the trick. And I budgeted for every single thing I spent money on: rent, utilities, food, haircuts, prescriptions, gas, gym, netflix, etc… No expense was too mundane to be budgeted for. And you have to be honest with yourself and budget for what you REALLY think those bills will add up to (don’t say your electric bill will only be $150 when it’s been as high as $200 before). From there, once you have your expenses laid out, you can start slashing the things that you can really live without. And always make sure that you put some money directly into savings… One of my business school professors always said to “pay yourself first!” I had a bunch of medical debt that was in the tens of thousands of dollars, but because I was very careful and stuck to my budget, I paid it all off a year and a half early! :)
Erin Heilig says
Good for your guys- and great advice.
Are you not checking your votes on BHG every minute or what??? ;) It is so close!!!
Darlene/OurCreative Life says
We use our AMEX membership reward points for free airfare. Our family of 4 is flying free to Orlando, FL to go to Disney World this summer. I find the free airfare is the best value for the points. Oh and we always pay credit cards off in FULL every month. We cancelled our NetFlix and just go to Red Box when we want a movie..it’s only $1. I find we watch less movies, because we only rent when we want to watch a movie that night…so we save probably at least $10-$12 per month vs. Net Flix.
Jenni says
Great post. Like you, my husband and I already lead quite a frugal life, so all those articles about cutting out Starbucks, bring your own lunch, eat at home, pay off the credit card every month, etc, etc….just make us laugh, because we’ve always done those things!
Like many though, our income took a several thousand dollar paycut this spring, so we’ve had to pinch the belt a bit tighter. You have some good suggestions for taking it a bit further. For us, contributing to our emergency fund was the first to go (though we had already built up a nice cushion). We eat out at most once a month, and then it’s usually cheap (and good) ethnic food. We also love our movies and music. For music, we have an emusic subscription. For movies, we have Netflix. And for those we just must see in the theater, we hit the matinee or buy discount Regal VIP tickets ($6 ea versus $9.75!). Also, we’ve almost cut out alcohol entirely, except for the occasional mixed drink or beer at home. Amazing how much it cut out of the budget, even though we’ve never been heavy drinkers. I don’t cut my husband’s hair, but I do groom the dog myself, so I guess that counts for something!
Elizabeth says
Like Sherry, my partner is a freelance contractor and his big bucks 3 yr contract just ended :( We had a good time on that contract & even bought a house, new car, had exotic holidays etc. How things have changed!
We now grocery shop once a week instead of every day for fresh produce. We buy meat & fish on sale & in bulk. I make one ‘big meal’ like a lasagne to feed us all week. We brown-bag our lunches, we don’t go out to eat v much anymore, and if we want to socialise, we join friends after they have eaten for drinks. I’ve also started carrying gin about in my hipflask to cut down on my gin & tonic bills when we go out (is that really bad?! – I think it is, i’m sorry!!!).
Ummm… i’ve stopped decorating a room every month & haven’t painted anything ‘for fun’ in 8 weeks. I sanded down & re-finished our tired old garden furniture instead of buying new. We are also using our bikes more and have just one car. We have stopped buying birthday gifts for all our friends children & instead I make cupcakes & take them over – no one has noticed the lack of gifts as the cupcakes seem to divert attention. I make things more in general now. I recently decorated my friends wedding cake instead of buying her a gift – cheap solution to a gift problem!
I’ve changed insurance companies for the car & the mortgage & the house. I now have better, cheaper insurance. I’ve got cheaper insurance for my cats too. We have insulated the loft to save on heat & are slowly replacing bulbs with energy efficient ones.
We have also started bartering our skills, so I help my friend (a florist) make wedding centrepieces & she in turn made me a beautiful bouquet for my sister-in-law last week – it was a $80 bouquet that I got for nothing, for just 2 hours work that I enjoyed! I also read all my papers online now – no more buying them daily.
Sami Jenkins says
A good place to get free books, music, dvds & magazines? The public library (yup, my library lets us take out mags 1 month and older). For music http://www.slacker.com or http://www.pandora.com let you set up your own ‘stations’ and play the music you select — pandora is especially good at suggesting new stuff based on your picks.
Jenn R. says
Sorry to hear about John’s pay cut. So far, we’ve both got our current jobs, but Sean’s having a tough time finding a job that doesn’t involve traveling every week (so we can start enjoying being married) without taking a huge salary cut.
For music, check out Pandora. As long as you’re not choosy on exactly which songs play when, it’s a nice mix of music. You choose a song or artist, and it builds a playlist of similar music based on what others liked. Best of all, it’s free! And it’s available on some cell phones.
Baba says
Great post! Everyone is looking to save money these days and we are no exception. These are all great tip.
Robyn Chamberlain says
EVERYONE SHOULD DO THIS:
Recently, I called all of our service providers to make sure that we are paying the correct amount for services and to find out if there were any promotions that would save us money.
This is what happened:
Sprint Cell Phone – Monthly bill reduced from $150 to $114 due to a new plan that was developed after my husband and I got our family plan
* Savings of $36 a month
AT&T phone and internet- Monthly bill reduced from $60 per month to $44 per month since they were running a promotion. (no change to our phone or internet and the promotion is permanent)
* Savings of $16 per month
Comcast Cable – no saving money, BUT we got to have HBO for 6 months free due to a promotion they were running. I am calling tomorrow to have them take it off after the 6 months so we aren’t charged more.
Total Savings: $52 per month ($624 per year)
Everyone should do this – it takes an hour or two depending on how long you have to wait for an associate to become available, but it’s worth it! We lowered our bills (and got 6 months free of HBO!) for nothing more than a couple hours of time on the phone.
can I get a BOOYAH!?
YoungHouseLove says
Hey Robyn,
Here’s an old post where we did something very similar:
https://www.younghouselove.com/2009/01/three-phone-calls-590-saved/
Isn’t it amazing what a few phone calls can do?!
xo,
Sherry
Aimee says
I’m sorry to hear about your pay cut, but glad to see that you know how to adjust! I love your blog! I have a question for Sherry…I was reading about your ways to save, one being the fact that you are a one car household. That’s awesome if you can do it, we unfortunately cannot.
Sherry mentioned that she hasn’t driven since High School. Since you are a one car household now, is Sherry a prisoner at home all day, or does she take mass transit around Richmond, or ride her bike? How does Sherry get around all day?!
YoungHouseLove says
Oh Aimee, if only I had a moment where I wasn’t glued to my laptop all day! Then it would definitely make sense to ride my bike to grab a bite to eat or meet up with a friend for lunch. Sadly while John’s putting in his 8-6, I’m at home tied to the laptop writing posts, answering comments & email questions, whipping up design dilemmas, sending shop orders to the printer and organizing giveaways day in and day out. In fact, when John calls to say he’s on his way home I often think he means he’s coming home for lunch and then I glance at the clock and realize it’s 6:30 already. I don’t know where the time goes! Of course if I lived a life of leisure I’d definitely bike around, take walks for fun, and even beg my buddies to come grab me for lunch. I might even learn how to drive again so I could drive John to work and have the car for the day to go to HomeGoods, TJ Maxx, and Tarjay all day. Wouldn’t that be the life? Someday…
xoxo,
Sherry
Molly says
Wow, that’s incredible that it came after you refinanced your home- you call it a universe thing, I say God had his perfect timing for taking care of you guys!!
amy says
great post and sorry to hear about the pay cut.
we actually took off work today to go to Philly for a 3 day weekend, then we decided to save the money and just do stuff around richmond. today we went to the canal walk, then went to cary street to browse some cool shops and we actually ate lunch at one of your favorites… ny deli! just as fun and a lot cheaper!
Robyn Chamberlain says
Holy Cow Sherry – I was so pumped about me saving $54!! You guys saved $590! That for sure deserves a BOOYAH.
Great work.
~Robyn
Alysia says
Have you tried Pandora? I use it a work and I find new artists and listen to my favorite songs for free!
Sorry about the pay decrease. Everyone is feeling the heat. Hope things pick up!
Susan says
Hey John! WHAT A GREAT POST!!! This is happening all over our area as well. Companies are cutting salaries in an effort to preserve jobs. You have the correct attitude however in still being thankful for your job.. I commend you for this! Its amazing how simple little things add up over the course of weeks and months. You post is a wonderful example of this! Keep up the inspirations in this area!!!
Libby says
I have been unemployed for 6 months now. I am single and went from being an assistant vice president at about 8K a month to $0. Thankfully I lived somewhat frugally so 6 months hasn’t been bad, but the next 6 could get interesting.
What have I done?
I booted Comcast as soon as layoff rumors started swilling. The service was terrible anyway, why keep paying $68 a month for TV alone? A $14 antenna + Hulu or streaming network sites make up my TV now. I only miss Project Runway and Top Chef in real time.
I probably only watch 2-3 movies a month. Even Netflix felt indulgent so I found Redbox. $1 per night from the kiosk and they have a great selection. Frequent promotions for 1 free. Just be sure to return the movie the next day to avoid extra charges.
No gym anymore, but the local parks and my staircase are a great gym. Bonus is my dog loves it and I have lost 18 pounds that I never did on the treadmill.
Coupon Mom (dot com) is a great site. I dont clip coupons because they mostly tend to be for packaged things I dont use (other than TP, Paper Towels and drugstore items) but each week the sales circulars for all local grocery stores are put online in a database. I go to the site each Sunday, see what is on sale, make a shopping list (you can do it online then print) and buy + eat from the sales. Some weeks I may have avocado 3 or 4 times if they are on sale, but I have saved 1/3 or more from my grocery bill.
TJ Maxx has always been a great store, but with my weekdays free, I go on Tuesday or Wednesday when they get shipments. Found Tahari shoes for $19, Lily Pulitzer + Ralph Lauren dresses for $38 each. The good stuff is always gone or picked over on weekends. Dont need many clothes, but with the weight loss a few new things were in order.
chacha says
I tell ya, it’s hitting everyone. I was laid off in early February and managed to find a new job quickly for about the same pay but no benefits (contract job). So I jumped onto my husband’s health insurance. Two months later he gets laid off, but unfortunately his work experience is in construction. Not a single bite on his resume in over a month. He’s trying other industries but it’s really a bad job market. If unemployment ever kicks in (they are a mess here in California processing claims), we’ll be living on about 2K less per month. Right now it’s a 4K monthly deficit. It sucks. We are just eeking by and spending almost nothing.
Mrs. Money says
There are so many blogs out there about saving money. I read a lot of them, live frugally (make my own laundry detergent- no chemicals!!), hang dry all my laundry, etc. It really helps!
I have to say, Sherry you are adorable!
Aimee says
Sherry – HA! Maybe it’s better that you’re tied to your laptop all day without a car…or you may not be able to be so frugal with TJ Maxx and Tarjay nearby ;) Love you guys! This site rocks!
YoungHouseLove says
That’s exactly what John says. Everything happens for a reason, right?
xo,
s
Brent says
Wow, pay cuts, no fun. My company hasn’t cut our pay, but we are on a pay freeze at the moment (thankful for that at least). One good note about your $400 pay cut, if by $400 you mean $400 less “gross pay” (the pay you get before taxes), you might not have to tighten your belts for $400, but maybe say $350 +/- given that net pay is the part that really matters (the part after 401k, taxes, etc.).
I saw someone mentioned Pandora on here, if you haven’t tried it for music, I would suggest it (even along side some iTunes if you like). It’s a very cool website.
Blayne says
Wow! All of these posts are reminding me how lucky we are. My husband’s job announced that there will be no raises this year, and they laid off a couple people but fortunately not him. I have been looking for ways to stretch our budget, just because I am trying to build up an emergency savings fund in case one of us does end up unemployed. Most stories on this topic I have seen do not really apply to people who are already somewhat frugal (i.e. cutting out starbucks, etc) so thanks for coming up with some original ideas!
Bromeliad says
Sorry about the pay cut. Waaaaah. No fun!
Actually, John, I thought this blog WAS your full-time job.
Blayne says
I do have one tip of my own! As I peruse the internet I am always finding house items that I “have” to have. I add them to my Amazon wish list (you can add things from any site). For example, my next project is my office, so I put everything I want to put in the office on my Amazon wish list. That way I can kinda see how it all works together, plus I can ponder whether or not I really need it rather than making an impulse buy. Bonus – when my family asks what I want for my birthday, I point them to the list, which saves me even more money! Just be sure to delete thigns you decided aren’t going to work after all.
Nicole RJ says
I’ve recently rediscovered the public library. The Mr. and I are both big readers and love watching movies, but instead of heading to the bookstore every time I need a new read I now browse the library catalog and borrow for free! And it’s surprising how up-to-date the library can be with movies – and we have a whole week to watch them!
Elle R. says
Being a recent graduate and knowing that student loans will be kicking in sooner than later, I have already started to really take a hard look at my finances. Here’s a few of my tips:
1. Bring my lunch. We all know how much cheaper it is to bring than buy your lunch.
2. I share my internet bill with my fabulous neighbor. We split the bill 50/50 and it has worked perfectly- and saved me some money
3. Bulk shopping for the items I use all the time. It really has saved me money to buy meats in bulk at stores like BJ’s. I am able to divide the meats up and freeze them individually.
This is a great post. I know the economy will pick back up but I really hope that all of these good tips people are sharing and the habits we are creating to live in the economy we are in stay with us to help us be more aware of spending in the future, long after the economy picks back up.
cynthio says
Sorry to hear about the pay cut. The company I work for just recently issued lay offs/pay cuts. Thankfully, they kept me on payroll, but w/ the 25% decrease in my take home pay (amounting to approx. $400) my husband and I are going to have to learn to stop eating out so much and cook more at home (lots of our $$ goes to food). There goes the furniture shopping too. HOWEVER, I just scored an 8 dollar easy chair at Goodwill (Gotta <3 1/2 off Saturdays) that I plan to get reupholstered. Beats paying $300 for http://tinyurl.com/easychair or http://tinyurl.com/Ikeaeasychair
YoungHouseLove says
We just wanted to thank everyone again for their amazing support and their boundless suggestions for saving some much needed moolah. We’ve already started cutting our bills by canceling certain services and taking advantage of cheaper or even free entertainment so stay tuned for a post all about what we’re doing thanks to all the ideas above!
xoxo,
Sherry & John (& Burger too)
Cara says
I’ve been laid off twice, and my husband once. After that, we started our own business (much better!), but our old spending/saving habits have remained. We use coupons, catch store specials (we try to do both at the same time), eat at home, brown bag it for lunches and rarely buy clothing that isn’t either on sale or from TJMaxx, etc. I’ve also found some really nice things – such as toys- that were nearly new at garage sales. Good luck to you both- I know you’ll do fine. It’s just another challenge…
Ciera says
In terms of the music, if you don’t already have Spotify you should check it out. It’s like a free iTunes, only difference is you can’t move stuff onto an iPod but if you just want to listen to songs via your computer its ace….
Kristen says
All the cost savings ideas are awesome and I’m going to implement a few for my hubby & I starting today! Now Sherry how can I convience my hubby to let me give him haircuts?? He better stick to Great Clips unless he wants to look like Homer Simpson:)
We bought an energy star home and have saved almost $200/mo in the winter and $300/mo in the summer compared to the 800sf apt we lived in prior! (living in Houston we run the A/C all year round).
Other ways we have saved
1. bought an avacado tree ($3 for 2 in the grocery store is too much)
2. bought a lime tree, herb garden, and tomato plant
3. Library books instead of buying them at Borders
4. Changed insurance companies to reduce the policy amount
5. Change our own car air fliters (Jiffy Lube wants $25 a pop, when Walmart sells em for $7!!!
Just a thought – you guys could buy some Chickens and join a local “backyard chickens” club. Come on your backyard is plenty big for a chicken coop & you guys can get into a new renovation project! Plus the eggs are free and much healthier than store bought. It’s just an idea:)
renee says
I am a huge library supporter for books, CDs and DVDS. This week my local branch had a book sale, so I headed over. Didn’t find any books I just had to have (even at the awesome $1 price tag), however all the magazines were FREE, so I brought home at least 20 decorating mags!
Abbey says
I just got back from vacation last night and couldn’t wait to log on this morning to check your blog.
Great post! While my husband and I are still employed (Thank God!!!) we just had a discussion recently about really going through our budget and trimming the unnecessary spending that we do. I’ve always lived with a budget and can track my spending down to the last penny. My husband is another story (lol).
I work in the spirits industry and with consumers cutting back on going out to drink, it has been a tough 18 months for the industry with many companies laying off. We just got word that there would be no merit increases – which is fine with me – I’m grateful to still be employed!
So for those of us that are still employed these money saving tips really do come in handy and help soften the blow (even if just a little bit) if and when tragedy strikes! And if nothing else, it’s great to see how you can still survive with less. Thanks again for the great post!
Alison says
Great list!! I too was asked to “volunteer a 5% pay cut” (in Canada they can’t take it away, we need to volunteer). Hubby and I went in cashed in our spare change yesterday .. $389.00!!. Was a great surprise. We were also planning on a road trip as our vacay, but we had to scale that back to a home-cation. Buying a new house (we’ve spent our first 3 nights here) we’ve decided to invest in our home a take occasional FREE day trips.
Jaime says
Great post… all three of them actually.
I am doing the Dave Ramsey plan and will be debt free before we purchase our first house.
I think, now – more than ever – people need to step back and take charge of their lives and finances!!
SoBella Creations says
We have been feeling the crunch for a while. DH and I decided to move our family to Florida. He took a $10,000 a year pay cut. Our house cost more. And we have tuition for our daughter’s school.
So we have tried to cut out things that we want.
Sorry about the pay cut.
Sierra Nething says
Thanks to everyone who suggested Redbox. From all of your recommendations, I signed up and got 2 free codes emailed to me. I just went and picked up my 2 free movies. I also just came across a website insideredbox.com that tells you a bunch of free movie codes you can use. Check it out.
Also, check out books by David Bach. They have all kinds of easy money saving ideas like the ones everyone is talking about here. My favorite books he’s written… The Automatic Millionaire, The Automatic Millionaire Homeowner edition, Fight For Your Money, and Smart Couples Finish Rich.
JM says
I was so pumped to try Pandora after reading everyone’s comments and of course, my work blocks the site. I really wanted something to jam out to during the workday!
Devin says
I was laid off from my job about 3 weeks ago this Thursday and tho it hasn’t been long that I’ve been out of a job, I can definitely feel the stress and pressure of not having my income coming in. Even tho we’ll be just fine living off of my husbands income alone, it’s still scary not having my little cushion for play money. Hopefully something will pop up soon tho and I’ll be back in the working industry *crosses fingers!!!*. But for us, instead of going out to eat, we’re having more family dinners (ie w/our parents or friends) or going to the lake and having little bon fires w/friends where we just have hot dogs and brats. We’ll also just go play some badminton in the backyard and get some GREAT exercise w/out spending a dime!! :)
KatyW says
Sooo sorry to hear about this pay cut for you, Youngsters. Major suckage.
These are such tough times and people can become very despondent about it all. Not to be a Debbie Downer, but I’m sure you’ve also heard there’s been a corresponding rise in the number of suicides since the economy fell.
Thank you for helping us think about ways to cut back and spend less, and do it chic-ly (is that a word?) and w/ a sense of humor.
Tough times don’t last..tough people do. This has been our mantra since we had a severe business downturn several months ago. We ended up losing the business, our income, and mucho dinero w/ it. But you know, I’m so pleased to say that my husband and I have grown closer as a couple during all this & we are so much more appreciative of EVERYTHING now than we used to be. Our kids are too.
Thanks for everything Sherry & John.
Smooches, Katy
Antonia says
I don’t know whether you’re aware of it or not and whether it’d be something that interests you, but perhaps a programme such as ClipInc (http://www.tobit.com/clipinc/) might be a good “solution” to you having to cut back on iTunes. Essentially, the programme records internet radio, tags the songs and then you can save them on your hard drive. What I like about the programme is that it’s easy, free and entirely legal.
Amanda says
Getting a pay cut is definitely not fun to deal with!! However, that’s $400 less per month that is getting taxed! So, the difference in your net monthly pay may not be quite as large as you are expecting. I like to take negative situations and bring out the positives, if you can’t tell. ;)
Either way, it seems like you have some really great ideas on cutting back.
Sherrie says
My husband and I are all about life on less. We just recently left our “by all appearances wonderful jobs,” that we did like and believe in, to pursue more time for ourselves, each other, and also what we love. Even before that point though, being that we are remodeling, we did without what some people couldn’t live without. We like life simple.
I would encourage you to check out the latest happenings in Congress regarding credit card legislation. The Fed just made it so that people who have wracked up debt on their cards cannot have their interest rates raised. WHich means that forces credit card companies to hike the rates for people who pay off their balances monthly. B/c of this the lucrative incentive programs are likely to be dismissed, also. CC companies are going to have to find other ways to make money than off the people locked into debt, and this will prob be through the fiscally responsible.
sadie says
I cut back on iTunes with Pandora.com and mixpod.com. Great alternatives! I love Pandora and it plays on my computer at work all day. Good luck!
caroline says
A big thank you to John & Sherry and to all of the commenters here for these helpful suggestions. We’ve been tightening our belts here because of my husband’s salary cut and my lack of luck on the job market. We’ve managed to save through phone calls to our car/home insurance, cell phone provider, and the cable company. What’s infuriating to me, though, is the constant stream of notifications we’re getting in the mail from our credit card companies letting us know that they’re jacking up our rates to completely ridiculous levels. So far, no luck talking them down, and we’ve only canceled one because we don’t want to decrease our available credit too harshly (to keep our debt-to-credit ratio nice and low). We always pay on time, so I guess the companies are getting their increases in before the credit card reforms that have been signed into law take effect. Re. Sherrie’s comment just above, people who have racked up debt will definitely see their interest rates go up – just not on their existing debt. I think the reforms are a really good thing, I just wish they could have been implemented more quickly so the companies couldn’t do all the pre-implementation maneuvering. There’s a helpful article on the coming changes on CNN here: http://tinyurl.com/kp2m84
And now that I’ve rambled on forever, one way I’m saving is to actually collect the MyCokeRewards points that come in every package of soda. I’ve cut back on soda but I really, really like it, and just by entering those rewards codes I’ve been able to get coupons and a bunch of free magazine subscriptions.
Also related to my soda issue (yikes!), here in CA we pay the CRV, a 5 cent charge on just about every beverage container (so for a 12-pack of soda, that’s an additional 60 cents). I keep my cans (crushing them to save space), as well as glass and plastic with CRV values, and take them monthly to a recycling center for cash back.
Samantha says
That’s great you have a YMCA membership. I went and looked at joining there (I actually work in the building next to it, connected with a bridge) and loved that they had a month to month plan that you could cancel at any time, and I could go during lunch! However, amfam offered a better deal, and more equipment, even if I can’t cancel it anytime!
We live on very little as well. We’re 23/22 y/o’s that don’t make much money to begin with, but we made for darn sure that we can live on one income, period. And we also made sure that our one income to live off of was the lower of the two. That way no matter who loses a job, we can still cover everything! We bought our first house when we were 21/20 and he was still in college, so I was supporting the both of us. That’s what sparked the one income idea!
We too eat at home every night, and rely on netflix for movies. We don’t have cable, but a must have was HS internet so we can watch TV shows online for free. We also don’t have central a/c. Our house is 56 years old, but it’s only 864 sf, so one window unit and 2 ceiling fans cool the whole house. Our propane + electricity bill comes up to a mere $100-150/month to heat/cool the air and water, and to provide electricity. The central a/c controlled house cost across the street topped over $200/month.
I don’t feel like we miss anything at all. Eating out is fattening, and watching movies in a theatre is annoying when you have people talking on cell phones and babies crying. I can even go to the bathroom when I want! ;) We use the power of CC’s as well, and pay them in full every month to get points. Also, with our debit card, we choose “credit” at the stores to earn even more free points. Usually we cash in for Starbucks gift cards and use that as a treat at Barnes and Noble and read magazines for free. To our friends, we sound completely lame. But we’re not the ones looking for roommates to cover our bills, or having to cut down on our chosen lifestyle. Our big thing is roadtrips, so we take a ton of them. A tank of gas costs as much as one meal out, and we can make a day out of that cost, not just an hour for a meal!
I’m so sorry to hear about your paycut, but I hope things are better by now. We’re having major cuts at work as I type. It’s scary, but even more unsettling is that we get 5 minutes to vacate the building with all our belongings. My poor cube is so boring now just waiting!
YoungHouseLove says
Samantha, you inspire us. All of you do! Thanks so much for all the awesome ideas. Life really is sweeter when it’s simplified and pared down.
xoxo,
s (& j)