I've been planning on writing this post for quite some time now, it just took me a while to actually run the numbers.
I can't believe I was able to cut over $10,000 per year in expenses - that's crazy, insane, just wild!
I knew my expenses were too high, but I truly had no idea exactly how high they were....because I didn't have a budget. Oh sure, I had attempted to put together a budget from time to time, but it wasn't detailed enough to really see where the problems were.
My savings was dwindling month after month, but I was able to pay my bills so I was ok, right?
WRONG!
If month after month my expenses were more than my income, eventually I would no longer be able to pay my bills....and I would hit rock bottom.
Something had to change.
I started by opening an Excel spread sheet and listing every single monthly expense I had.
Fortunately, I use online banking so it was fairly simple - I just had to run a report from my online banking to see what recurring expenses I had.
Then I added the yearly expenses and additional costs (vet bills and medicine, dog food/treats, cosmetics, paper products, Christmas and birthdays....you get the picture) to that list, and came up with a staggering dollar amount.
When I compared my income to the list of expenses I was short over $10,000 per year.
WHAT???????
Something had to change. Immediately.
I started looking at where I could cut costs, and cut them hard.
The first thing to go was my routine hair appointment, which I had been doing every 6 weeks for years. I had to break up with Chrissy (my hairdresser.) That was tough, but meant a savings of nearly $1000.00/year straight off the bat. I am not going to stop coloring my hair (those darned greys!) but I'll do it myself and save a ton of money.
Next, all the credit cards had to be paid off completely....and stay that way. It was tough, but it's done.
Next to go? My Weight Watchers subscription, and Pandora subscription. It might not seem like much per month, but over the course of a year that's another $325.00 saved. I'll stick with Amazon Prime's music, since there's no way I'm giving up my Amazon Prime!
After that, I contacted my cell phone company and cut down my service. That savings of $50/month comes to $600.00/year. I'll take it.
I did the same with Dish TV - why was I paying for all these channels I never even watch? I cut $60/month off my bill for a yearly savings of $720.00. I'd love to get rid of Dish completely, and just stream TV, but until we get better internet in our area that's unfortunately not an option.
I still wasn't done....I bought Bee so I could cut my own grass, and saved $45 per cut. If you figure 5 months of spring/summer, cutting the grass once a week, that's a minimum of 20 cuts per year....and a savings of $900.00. Sometimes you have to spend money to save money.
Next I started seriously researching solar energy. I had always wanted to go solar, and had started the research more than once....but this time I was serious. You can read all about that journey in this post. By going solar, I will save another $600.00/year, and more as the rates of electricity continue to rise....and that's the savings while I'm paying off the solar loan! When I'm done with that payment, my savings per year will increase to about $1500.00/year!
I cut my grocery budget from $100.00/week to $200.00/month. That's another $2800.00/year savings. I make that budget go farther by shopping the sales and using coupons whenever possible. On top of that, I have started shopping on the first Tuesday of the month using Sweetie's store card so I get his senior discount - that's another 6% off the grocery bill!
I also use apps like Saving Star and Ebates to save even more, wherever possible. I ordered my contacts for the year through Coastal this year when they were offering 12% cash back through Ebates and they were CHEAPER than when I order them through my doctor using my insurance! Did I mention how much I love Ebates? I have to date received $1,131.29 cash back from Ebates - not too shabby!
I even refinanced my mortgage to get a lower interest rate. Every little bit helps!
I also stopped buying books....I got a library card and now I read all the books I want for free!
Do you see how these little changes all add up to BIG savings?
If you take the time to put together a detailed budget, you'd be surprised to see all the places you could cut back and save some money.
What are your best budgeting/frugal living tips?
This is such a helpful post! I'm going back and taking a few notes. Some of these things we've already done but there are some I need to bite the bullet and do, for example renewing my very old library card. My shelves are mostly full anyway of books I want to keep so it's time to go back to the library, something that used to be a highlight of my week. And now there's the convenience of ordering them online and having them ready for pickup. I'm pretty good at the grocery shopping game and a whiz now at eating from the pantry and freezer for weeks on end except for perishables. And I plan my meals from specials being run but I've never checked into apps for the grocery store so must do that. And it's rare that we eat a meal out. A year ago I gave up my every other month trip downtown to an upscale hair salon that with tip wiped out a $100 bill--honestly, that kind of killed me as they pampered me so much and it was a great haircut--and found a perfectly fine local salon that charges me $20 and I haven't even been there in a year. Pony tail, anyone? This downsized home's utilities are super reasonable but oh my, those credit cards. Bravo to you for that! Now I'm focusing on eliminating as many recurring charges as possible--buying hand cream at the store instead of those tubes on amazon I loved with mud from the Dead Sea, for example.
ReplyDeleteYour garden must be a wonderful way to avoid too many trips to the grocery store. And no matter what your costs are in growing all those wonderful vegetables, you're getting better health benefits from gardening than a membership at the gym would give you. Please continue to pass on these saving tips to us, they do motivate me!
Hi Dewena! Oh yes, giving up my hairdresser was tough....but necessary. I do save a ton of money from growing a lot of my own food during the summer months, but that still leaves a long winter where nothing is growing! Of course I stuff the freezer when I can, so that helps a lot also. Sadly, we had two freezers just recently that died on us, one at Sweetie's house and one at mine, so we lost a ton of food. I think I lost 15 containers of home grown/made bolognese sauce from Sweetie's freezer plus a turkey....and I lost a ham and a bunch of other stuff from mine. I have a fridge/freezer downstairs (that's the one I lost the food from) and the freezer is really awful - it's really only ok for freezing bread. The fridge is fine but oh how I hate that freezer!
DeleteThat's terrible to have lost that much food that you had put up, all those hours to produce it and then prepare it to freeze! I think you deserve a new big freezer next summer, with some of that money you've saved, right?
DeleteIt was awful, Dewena, I was really upset - that was Sweetie's freezer. I have a big stand up one in my garage! You're right, I should look into a different freezer for downstairs and just sell that one on Craigs list or something.
DeleteDebbie, My gosh, I always thought you were the saving genius when it came to food. You grow so much of your own and make stews, soups and broths galore. Freezing almost anything. :):) I like how you ran your new budget , cutting corners here and there. I know when we see the spread sheets of income and out go...it's shocking. Proud of you , don't forget to show your daughters....so they get a good foot hold using budgets. Blessings, xoxo, Susie
ReplyDeleteYou're right, Susie, I do all of that....which certainly helps! However, I had to learn to rein in my grocery bill regardless - sticking to my list, avoiding impulse buys! My older daughter is a genius at living on a tight budget, my younger daughter has no clue. She'll learn some day when she moves out!
DeleteI always like to read tips on saving money. I usually find one way to cut back each year. I, too, wish we could drop DirecTV and stream but we are very rural, also. Thanks for the tips.
ReplyDeleteSo I am guessing you have the same problems with slow internet, Judi? It's incredibly frustrating, isn't it?
DeleteHaving had a cleaning service for over 25 years I still make all my own. I buy the kirkland or Foca brand detergent and add 1-2 bars of shredded Fels naptha or Zote to it. I only use 2-3 TBSP to each load and I have hard water.If I need to I'll add bleach(whites)to sterilize and 1/2 vinegar in rinse water to neutralize the bleach. I use very little paper products, mostly cotton towels or microfiber. I make my own dog cookies/treats,my dogs also eat homemade food ( under vet care) which helps with their allergies, cook from scratch and shop at our upscale thrift store for clothing. We could afford to spend but choose not to. My husband will retire next year at 58 and we'll only have a small mortgage left, even after we move. It wasn't easy but so worth it all in the end. You're doing great! Patti Ann
ReplyDeleteYou are a pure genius at keeping costs down, Patti Ann! I have never tried making my dogs treats, I must give that a go. They go through so many of them with 3 dogs, that would surely be a way to save a bit more! Thank you for your tips!
DeleteGirl, you and I have done similar things! I did a more brief post a few weeks ago with some of the same points. I watched a video about retirement that said we should practice living on the amount we will live on in retirement. My husband is 60 and I'm 55. We definitely spend too freely and need to reign it in. It's so much easier little bits at a time.
ReplyDeleteI'm really working on the grocery store part. My pantry and freezer are full! I just get what's on sale each week. Sure does save that way!
I admire your commitment. Keep us posted because sharing inspires and motivates others.
Thanks, Stacey!! I am trying to limit myself to shopping once per month, but shopping the weekly sales is also a great idea. I'm going to try to do more than one 'no spend' months after the holidays....that will help as well!
DeleteThat is wonderful! Our grocery bill is out of sight. I need to start making a list and sticking to it.
ReplyDeleteThat was a huge problem for me, Penny - living on a mountain top, our groceries are higher in price anyway....but when I weigh the time/cost of traveling an hour round trip to go to a larger store, I decided my time is worth more. I save by ordering whatever I can online from Walmart (free delivery) and sticking to my market for the other items. Even at that, I could easily spend $200/week if I let myself! Having a list and sticking to it is the key.
DeleteGood for you. I did the same thing a couple years ago and really cut back on expenses too. It is surprising how to money just seems to dwindle away without you even knowing where.
ReplyDeleteSo true, Marty! It really just seems to slip through the cracks if you don't keep a close eye on spending!
DeleteWow, You are amazing. You are right, everything really does add up.I am inspired to do the same. Thanks for the "push" (grin)
ReplyDeleteIt's amazing how much it added up, Bonnie - when I kept plugging those numbers into my budget spreadsheet it was incredible to see how all those little changes kept chipping away at the yearly overage!
DeleteThat is so great that you were able to cut so much out. I have my own small shop where the income is mine to spend on my needs and wants so it doesn't stress the main household income. If I didn't have that I would be completely gray, naked, no makeup and no fun!!
ReplyDeleteThat's smart, AnnMarie! I have started selling on Poshmark, and of course any money I make on blogging helps, but it's so minimal! I'd like to have a little side gig for extra money but when would I have the time? I shop the sales for my makeup and stock up when there's a great sale (no way I'm going without that!) I'm doing my own hair color now, which isn't ideal, but I'm not ready to go grey yet either! Haircuts will now be limited to when I really need them, not every 6 weeks. I'll just keep on plugging away, what else can I do?
DeleteCongratulations!! That is a huge savings and kudos to you for making the decision to cut back and save. I have always written out a budget sheet for each month. I grew up with a Depression Era momma who taught us well ~ no debt. It also helps that neither my husband nor I subscribe to the bigger, better, more lifestyle. What doesn't help? College. Even with their scholarships it's still pricey, but so far we're paying it all as they go. Fingers crossed we can keep it up!
ReplyDeleteYou are so lucky your mom taught you how to handle money, Kim - we didn't talk about money in my house for some reason. I'm trying to teach my daughter, and hopefully she'll have a good handle on it by the time she moves out. Good for you paying for college as they go....my daughter's student loans are the reason I need to budget like I do! They are killing me slowly!
DeleteYou're definitely right. Sometimes you have to spend money to save money. I have never colored my hair to cover the gray. It's not all gray yet. I go to Supercuts for a hair cutnand it's about $15 after the tip. I'm very chintzy about buying checks. I have all my bills taken out of my bank account except for my rent, because they don't do it that way. And my groomer for Charlie. I go get cash for her. Sometimes I'll go in the bank, the few times I need to do this, and use one of their checks instead of mine. Don't think I've ordered checks in about 6 years!
ReplyDeleteBrenda
I don't think I've ordered checks in about 7 or 8 years either Brenda - I pay all my bills online. I think out of that box of checks I still have 80% of the checks still - how crazy is that?
DeleteThis is a great post and what a savings. You go girl with this. I need to sit down after the holidays and make that a good resolution for the new year. Making a budget and sticking to it. My problem is more that I am way to generous with my kids. I tend to help them way too much with money and getting things for them. So I am going to try and cut back there. I think if we all took a little time to just see what we are spending and figure ways to cut each thing each month down the savings do add up.
ReplyDeleteHappy Weekend.
Hugs,
Kris
That's exactly it, Kris, I think it's hard to realize where it's all going if we don't take the time to sit down and track every single penny! I want to help my kids, but I don't want to end up losing my house because of it - there's only so much I can do and then they need to stand on their own two feet!
DeleteCook at home - it's cheaper and healthier. Pack your own lunch. Eating out is a budget killer. Skip the expensive Starbucks coffee drinks and make your own at home. Ditch the gym membership - get outside and walk or hike instead. Have one or two "no buy" months a year and don't buy anything new - and I mean nothing! Do your own yardwork. Do your own mani pedis. Groom your dog yourself. Get Woolite and Dryel and skip the drycleaner. Get rid of cable and use a streaming service. Cut your grocery bill down - buy seasonal produce, eat less meat, buy store brands, use coupons. Negotiate all our bills. Shop for cheaper insurance premiums. Cut back on holiday spending - we all have more than enough stuff already. Make a realistic budget and stick to it no matter what.
ReplyDeleteYou are a budgeting rockstar, Connie! I admit, I do all of the things you listed (now!) except using a streaming service - I have tried but our internet is far too slow, it spends too much time buffering and drives me insane. I've done 'no spend' months in the past, but usually only one....this year I'm going to try to do maybe 3 no spend months for the year!
DeleteDebbie, I've enjoyed your blog for awhile now....keep writing. It's hard to believe how quickly things add up but once we're aware of where our money is going, we can make the necessary changes....all for the good!! Wishing you much success!
ReplyDeleteThank you! Yes it's amazing how all those little monthly expenditures really add up...$20 here, $20 there, before you know it you're spending an additional couple of thousand per year!
DeleteWe did a lot of these very same things so that my husband could retire at age 62. We paid off our house, drive older vehicles and keep them well serviced, got rid of cable TV and instead purchased Netflix, and I stopped regular manicures and pedicures, get fewer haircuts, and no hair coloring. In the summertime we eat as much as we can from our garden, we dine out less, stay home more, etc. So many ways for a person to cut back if they truly want to.
ReplyDeleteGood for you, sounds like you know just what to do to keep the budget on track! I'm not ready to give up on hair coloring yet....but that $10 box of hair color is far more economical than the $110 I paid the hairdresser, that's for sure!
DeleteGood for you for cutting back on so many things to save money! I am very lucky that I have a wonderful young lady that cuts and colors my hair very inexpensively. I only get my hair colored (and usually, not even completely - I can get away with highlights and/or lowlights) every 3-4 months. Between colors and cuts, I only pay about $350/year. I know!
ReplyDeleteWe only have two credit cards: a Visa card, which we've had for about 30 years and a Kohls card. We don't carry balances on either. A long time ago when our boys were little and we barely had two dimes to rub together, unfortunately we had to charge so many necessities on our Visa card...diapers, food, doctor bills, car repairs. Our financial situation is so much better now.
We still use old smartphones - we're three models behind now and we don't care! They've been paid off for 1-1/2 years. We're not upgrading until we absolutely have to.
We got rid of our cable over a year ago and now just stream Netflix and Hulu. I know that's not an option for you right now with your limited internet access up on the mountain.
I love eBates! I have that on my laptop browser. Never heard of Savings Star. Will look at that one. Check out the Fetch Rewards app. All you have to do is scan your grocery receipt (or any receipt with food items on it) and you get 25 points for each receipt. Depending on what products you buy, you can get hundreds of points from one receipt. Also, if you use your Fetch Rewards referral code and someone else joins using your code, you both get bonus points! My referral code is HP2UE. I'd really appreciate you using that if you join. Anyway, build up your points and use them to buy any number of e-gift cards that are listed...practically every store and restaurant, etc that you can think of. I use my points for Amazon.
Ugh, I can't stop buying books. I still do that and don't see stopping anytime soon. ;-) I do get most of my novels from the library and a lot of others from library book sales or used book stores. But I do buy a lot of non-fiction. However, I do buy mostly used from private sellers on Amazon. It's not often that I buy a new book.
Thank you for sharing all your tips!
I haven't stopped buying books completely, Melanie, and I'm not sure I could....cookbooks are my nemesis. However, I do try to buy them used, like you! I'm going to check out that Fetch Rewards app - I never heard of that, and yes of course I'll use your code!! Same as you with the smartphone, there's no way I'm trading this one in unless I absolutely have to.
DeleteI think that is awesome Debbie! We have always worked within a budget. Some months are a little over, some are a little under, so it always works out! And I agree with you, getting rid of every little bit we can helps. I stopped paying for coloring my hair years ago and do my own. Also, we dropped cable and have streaming Netflix and Hulu...love it so much better! Love and hugs!
ReplyDeleteOh how I wish I could get rid of Dish Network, Benita - it drives me crazy to pay so much to sit on my butt and watch tv! But our internet is so ridiculously slow up here there's no way. One of the only negatives of living where I live!
DeleteDebbie, I really admire you. You are one smart cookie. Yes, I have always kept a spreadsheet budget in Excel, and even have old copies from yrs ago. I gave my model to each of my girls. I would also keep my own formulas for tax liability within the spreadsheet so that I could squeeze every last cent into my net pay but still not owe at year end. It was a math problem for me, always counting, always finding ways to save money, much as you have.
ReplyDeleteMy husband and I still are fairly frugal, practising many of those same cost-saving methods. And we still keep a budget, with the new tax formulas in it, maximizing retirement. :)
I applaud you!
That's so smart, Rita! You are truly the smart cookie, not me! Is there a link where I could find that tax liability formula? I'd love to do the same!
DeleteWe have already cut back here to the bare minimum. We cut our cable down to just the basic, cut our grocery bill back while at the same time stopped going out to dinner 3 times a week to just once a week. We havent had new furniture in over 15 years. We had too for the fact I pay 550.00 a month for heath insurance and my husband pays 600.00 a month. We are insurance poor. The house phone is going next then I guess we will have to start selling our blood. Hahah just kidding but yea there is a lot of things people can cut back on if they want to sacrifice. Great post.
ReplyDeleteLisa, that is seriously insane - that's just nuts! Sounds like you need a different job that covers your health insurance or at least pays towards it!!
DeleteDebbie- this is such an inspiring post.
ReplyDeleteI want to hear more!
Why don't we all talk about this more? You have hit upon a service to us all.
I am currently re-evaluating everything and I realized I have let things get too loosey goosey.
I am too am cancelling sirius radio, reducing our cell phone charges, getting rid of unnecessary cable channels, and creating an automatic savings draft for yearly property taxes.
You are so inspiring!
Please write more.
My mother had the best budgeting advice ever!
"Stay out of stores."
Ha, Laura, your mom's advice wouldn't work well now, though, with all the online shopping we do!! I will definitely try to include more posts like this - I posted one today about saving money on beauty products, hopefully people will find some inspiration there as well!
DeleteDebbie, I'm Pinning this wonderful post to spend more time with next week. I'd love to do solar, but I don't have roof facing the right direction.
ReplyDeleteThis is literally my favorite post you have ever written and it is so inspiring ! Please keep content like this coming, and update us on your 2019 financial goals! Any no spend month like you did last year? Love your blog!
ReplyDeleteP.S: my tip is to go through your old books, and enter them into Amazons buy books back program, where you can sell your old books to Amazon. They will send you a free shipping label and put the money right into your Amazon account! Nice way to de clutter and get some great cash for books you're not reading!
ReplyDelete