I have never posted about money issues, but since it is a relevant subject in our lives I thought that I would give it a go. We make a great living, don’t get me wrong. We make well above the National median for income, we own our own house, two cars and a bunch of crap we don’t need. I am very good about purchasing items on sale, highly discounted and I am a huge coupon clipper. But I have this problem that usually leaves me with zero to no money left as soon as I get paid. I pay my bills right away, you know, the utilities, student loan, car payment, my consolidation bill, and I am usually left with a hefty sum for groceries and personal spending. My problem is I never save. I never have, and honestly I don’t know how. Payton successfully has a savings account, with money in it I mind you while her proud Mama has nothing. Jim and I set a budget a while ago, did we stick with it? NO. I am horrible. Our lives are changing and we need to figure out how to save, well, we know how it’s just, “how will Melissa put money away?’
I am always amazed by those who successfully save, but how do you do it? We have plans to move out of our house sooner than we expected, we need something bigger, and in a better neighborhood. We love Poway, I actually love our neighbors except for the ones immediately on our left. There is some sneaky business going on, teens coming and going, strangers knocking on our door and the constant torment that their “untz, untz, untz” sound causes my pup. I guess this is a random post, but what I am asking is, how do you do it? I need to learn self-control. My dear hubby is placing me on a strict budget so we can save over $5k by the Fall, it seems so daunting, I know we can do it, because it always works out.
Here are three things I need to improve on:
- One weekly Target trip vs. daily or every other day. That damn store I tell you! There is something I always think I need. Problem #1
- Go the route my Sister does and have the hubby do the grocery shopping. This is by far my favorite thing to do and I thank my parents. I love making my list and going up each aisle. It’s sick. Because I am such a foodie it would probably be a great idea to send a non-foodie to the store.
- Eat lunch at home more often. I love going to lunch with P, but now that she is eating normal lunch I tend to spend anywhere from $13-$19 per outing. I am a sucker for Panera, Champagne bakery, etc. I guess making lunch at home would be better on my wallet.
Well…we are really good at saving AND spending- haha! We, from the beginning, have always lived “below” our means. C automatically takes out and pretty good percentage of his paycheck for investment portfolio+retirement/401K. We have auto-save from our checking accounts to savings accounts (you can tell them how much to take out…it doesn’t have to be the base minimum in order to have free checking! haha!). We don’t really have a budget, and never have- but we save first so what’s left we don’t have to worry about spending, or, rather, not spending. When we get lump sums of money, we typically pay off something big- hence why our cars have been paid off for years (even mine, the newer one). If you are maxed out with “normal” living expenses, you have to realize that its actually not affordable. If your paycheck is spent before you get it, adjustments need to be made. Since you love cooking and food so much- you should def. eat lunches in. That will save a ton of money right there! You can do it! Plus, your cooking is probably way better than anything Panera sells! Also, decide that ANY extra income beyond what you take in now will go to X account. Etsy sales, cupcake sales, etc.- its amazing how small amounts add up. =)
I don’t have much advice – I’m a horrible saver, but I saw Poway and got really excited!
My other half started work a few weeks ago in Poway and I’ll be moving down from San Francisco in June. I’m so excited for warmer weather and new adventures and would love any recommendations you may have!
I am not much help on ideas for how to save upmoney because like my husband tells me.. We both wouldn’t even have to work if Target just went out of business. Ugh. I am horrible. So I ask you this. Once you get the hang of it for awhile… any chance you wouldn’t mind sharing how you did it? 🙂
Since you pay your bills right away, decide what amount you want your ‘savings bill’ to be. Transfer that amount into savings when you pay everything else and spend the rest guilt free.
thanks ladies! I always transfer x into Payton’s account so I should just do the same. The good thing for her savings account is that all of my Etsy sales go into her savings account. 🙂
@Kimmie, are you guys going to move here? There are a lot of options but since you don’t have kids I totally recommend the 4S Ranch area. There are a ton of condos/town homes that are reasonable for rent, to buy is another option in this down.
I will share my journey, don’t worry! I guess first things first, get my own savings account instead of sharing my kiddos!
Since we’ve moved and I haven’t been working, we’ve had to make some adjustments and start both saving more and spending less. We still have trouble sticking to our budget (grocery shopping and eating out are our weaknesses too!), but what has worked the best so far is just making separate budgets for each category (groceries, eating out, Target runs, etc) and trying really hard to stick to it. Taking out the cash amount for certain categories like eating out works well, because then you can easily track how much you spent and how much is left. Adam and I also each get a set amount for ourselves to spend however we want…and when its gone, its gone.
I was never good at saving until Mady was born, but because of her hearing issues we always have to have a large sum in our savings account just in case she ever decides to chuck her hearing aids in the toilet and we have to get new ones. So in that way we’ve almost been forced to save, but its worked to get us a healthy sum built up for emergencies.
And I agree with Janelle – if you automatically transfer a set amount into savings each month first, you can work within a budget and not worry about putting more aside.
The ONLY thing that has helped me save was I set up a savings account that I cannot easily access with bi-weekly direct deposit. Every payday it auto-deducts $ to an ING Orange account (love them btw). It works for me because it’s no effort on my part. If the $ isn’t in my checking account I don’t spend it 🙂
Also it takes 2-3 business days for me to get $ from the ING account so I have to REALLY need it and plan to spend from it. Good Luck!
We have become pretty good at saving, and once you get going, it’s exciting to see it add up! Here’s what we do:
-like previous posters have said, have a set amount deducted from each paycheck and directly deposited into savings. We never even know it’s missing because we never see it!
– pay your bills and pay yourself (in savings), and then calculate how much money you have left over. Divide that up by the number of weeks you have until your next payday. This becomes a weekly “allowance” for groceries, gas, shopping, beauty, dining out, etc. To make sure you stick to that “allowance”, pull put cash for the week. If you run out of cash, you’ve met your weekly max.
-we plan our menu for the week (breakfast, lunch, dinner) on Sundays, and do all the shopping that day. I used to love going to the store everyday, but I spent so much money every time! Planning it out early and sticking to the list has saved so much $$!
-We also cut back on eating out. We generally cook 6 days a week, and Janelle’s right, you’re food is probably so much tastier and cheaper than anything else you could buy! Of course, don’t deprive yourself of occasional splurges or things you love- I cannot cut out my coffee habit- just save in other areas so you can enjoy those special treats.
– a final suggestion: check out Mint.com. It’s a free budgeting site that breaks down your monthly spending into categories, so you can see where your money is actually going. It’s quite eye opening!
Good luck!
we live in our means! Meaning if we can’t pay cash, we don’t buy it. This is AFTER all the bills are paid, kids college fund contribution, and a % into savings. We don’t use credits cards to buy items that we can’t pay for at the end of the month. We don’t use store cards either. Easy way to spend and not be away until the bills show up a month later. We bought a house less then we qualified for and our cars are humble (pilot and elantra). We were able to save an extra 10k last yr by being aware of our spending.
Thanks ladies. We are trying to get our (my) spending on track so I can possibly be a SAHM. Crossing my fingers and toes. Plus, there is way more incentive to get it on track so this wish can come to fruition.
It will be easy, I just needed to write it down, because then I can go back and look at it. Our money on meals would be so much easier if I didn’t work opposite Jim. I usually purchase food for the baby’s meals and then 1-3 meals for us depending on our schedule. The rest Jim is on his own unless I can pre-make his meal. I tend to eat at work so that is 100% covered, the plus side of working in a restaurant. I have cut back my coffee budget already, it was an outstanding amount so that has given me some extra cash already.
Tomorrow I am going to open up my savings account. Checking one thing off of my list! woo-hoo! I think I can, I think I can, I think. . . I. . .caaaaan!
We’ve had to adjust and one of the things we’ve done is to have a joint account, then a husband account, wife account and savings account..We pay the husband/wife account as well as the savings account as if it were a bill.
We dont have a strict budget because this allows us to know what “fun” money we have.
Also, except once a month is starbucks the rest of the time my keurig has already paid for itself
One day a week now I cook all of our meals for the week and we only permit ourself to go out once maybe twice a week…Picnics in the park can be just a memorable…
I know you can do it !!!
Melissa –
Some months I am better then others, and lately not so good. I get in this “spring” mood where all I want to do is buy. Naughty I tell you. And Target… it is satan.
One thing that has helped me, little as it is, I take out “x” amount every week, or month… whatever works and I have the cash in my pocket. Then every Friday, or once a week I will go out to lunch and not feel too guilty about it… or I pack the kids a lunch and then buy mine. I know – mean, but they have no idea.
I also cut back on Television channels, or tell them I am “leaving” and they will usually give me whatever promotion is going on instead of the 80$ more I was paying… and for 6 months. Hey whatever works.
There is this online site that is called: http://www.mvelopes.com/
it helps budget… and if you like to make lists and grocery shop then this might be up your alley as well.
Good luck… I hate budgeting. Serious!!
xoxo
The New York Times has a special “Money Through the Ages” section on its website you might find helpful, too.
http://topics.nytimes.com/your-money/money-through-the-ages/index.html?ref=your-money
Melissa,
Great idea on the bank account for youself. Its a great idea.
Tip#1: dont have a debit card for the savings account thought…it defeats the purpose 🙂
Tip#2: Im in love with TARGET as well…i swear their home decor section is straight out of a magazine lol… but give yourself one day to get something a week, but only reward youself if you’ve ‘been good’
Also please follow me. I jsut started my blog and i would really love it!!! I watch out for your new posts everyday 🙂
GOODLUCK
-Mari
I’m right there with ya, hon! Mike and I are both very impulsive spenders, and so yeah…the paycheck (yes, singular…) is already spent before it arrives. It’s rough. I, like you, am a huge coupon clipper. And a foodie. I love to cook, so groceries are a huge part of our spending. Since I don’t have any money to buy clothes or other fun stuff, I use grocery shopping as my outlet. Honestly, I have no advice for you, other than try not to eat out so often! I’ve been trying to splurge lately so I can see my friends and go out to lunch, but we really can’t afford it most of the time.
So…hang in there. Do the best you can, and follow some of the advice the other girls have. I need to do the same!
Wishing you the best of luck!