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Monday, April 12, 2010

Savin' Money

"Live like no one else, so that later you can live like no one else." - Dave Ramsey


As you may know, Michael and I have been going through Dave Ramsey’s Financial Peace University. Seriously, most of you know because we talk about it ALL the time.  I used to be annoyed at the Dave Ramsey evangelists, and now we are them.  We are pretty driven to get out of debt pretty soon.  We will be out of debt except for our house on May 1st!

We’ve realized that while we’ve made some very wise financial decisions, many of them have been negated by the really stupid ones we’ve made.  We did well on the big stuff like buying a cheaper/smaller house with a 15 year mortgage, buying a car for cash (almost), living on a budget, etc.  But then, because we felt that earned the right because of our wise choices, we nickeled and dimed ourselves to death with a bunch of stupid purchases that seemed really necessary at the time, like: 2 new computer systems, music recording software and equipment, 2 different lawn services, expensive groceries, a grill we used about 4 times, a new TV, a bunch of unnecessary furniture, and I won’t even list all of the ridiculous baby stuff we bought that we never used or just used once or twice before we realized that they were totally pointless.  A common phrase we’ve been saying lately in reference to stuff we see around the house is, “Stupid purchase number --...”  All that money could have been going to pay off our debt, and we really should have been out of debt a long time ago and well on our way to having our house paid off.

So we’ve gotten pretty fired up and intense about it lately and have come up with a lot of new ways to save money.  Maybe you already do a lot of these things, but they’re new for us.  I'm open to more ideas, too!

  • I’ve been saving a ton on groceries by:
    • making a lot of stuff from scratch, including
      • whole wheat flour
      • whole wheat bread (my favorite - there’s nothing better)
      • yogurt
      • bread crumbs (granted I don’t use a ton of them)
      • beans
      • anything for which you could buy a mix (pancakes, cornbread, etc.)
      • not buying much processed
      • using fresh veggies and fruits instead of canned or jarred
      • no more chicken nuggets, chips, or granola bars - sorry kids
        • I do still buy Smucker’s Natural Peanut Butter and Simply Fruit Jelly.
    • potty training Levi (we're getting close, but he's not there yet)
    • shopping at ALDI and not Whole Foods :(
      • I really miss Whole Foods, and I can totally tell the difference between organic and conventional fruits and veggies, but the savings is pretty great.
      • What I can’t get at ALDI I get at Walmart Neighborhood Market.
    • getting our meat when it goes on sale at Tom Thumb and stocking up on it
  • We’ve sold a ton of stuff that we didn’t need anymore.  And trust me, it adds up!  You can get WAY more from selling on Craig’s List than you can at a garage sale.  So far we’ve sold:
    • a bass that needed electrical work with its hard case
    • a thing to record music on the computer
    • a dresser that wasn’t being used
    • a computer desk that we didn’t need anymore because we sold the...
    • computer
    • our GPS that was becoming unnecessary since we have iPhones
    • a changing table that I probably won’t need for the next kid since we change diapers pretty much anywhere 
    • a toddler bed that I may or may not want again for the next one, but I know I can find them cheap on Craig’s List if I do
    • a condenser microphone that Michael may have used once or twice to record on
    • the aforementioned grill
  • We canceled the lawn services.  One was for mowing, edging, etc., and the other was for fertilizing.  Turns out we have arms and legs and can do it ourselves.  Go figure. 
  • We’ve decided not to make any improvements on the house (that cost more than $100) until the house is paid off.  But when it’s paid off we’ll have the cash to do all that we want to do, like getting the floors refinished, retiling the kitchen, painting the outside, getting a sprinkler system, expanding the driveway, etc.  There’s no sense in going into debt over that stuff, though, because none of them are emergencies. 
  • I figured out how to save money on makeup and hair products in order to lower my monthly budget for that.  I mentioned that on Facebook a while back.   

Those are the major things that we’ve changed.  We’ve also done little things here and there, like getting the kids (well, Samuel at least) involved in the budgeting process.  He likes to help us type the numbers into the computer, and we explain what it all means to him.  He knows to stop asking for something when we tell him that it’s not in the budget.  We’ve also lowered the budgeted amounts for some of our categories in our budget, like allowances, clothing, etc.

I think the biggest change, though, is that we got fired up about it.  We couldn’t have done it if both of us weren’t on board and if we both weren't really riled up and bothered by our debt.  We needed to get mad at it enough to actually change our lives.  We have been SOOO happy in our marriage, family, and lives lately, too.  It’s crazy because we’re spending less money than we probably ever have, but we’re the happiest than we have ever been.  I love it.

7 comments :

  1. Very exciting! Also it's encouraging to see how this is affecting you guys! :)

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  2. Wonderful, Annie! I'm so happy for you guys.

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  3. I love this post. I'm glad it's bringing so much joy to your lives! And wow, for Samuel to stop asking for something because he knows what it means for it to not be in the budget. . . that is huge!

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  4. I love this blog. It's always nice to know that you're not alone in stuff like this. Debt effects so many of us and it's so much harder to work on getting out of debt than just struggling month to month and griping about it! Great job you guys!! Just think about the great example you're setting for your kiddos and how that will make a difference for them when they get out on their own.

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  5. Wow, indeed. This is awesome. John and I need to reread his books to get fired up again! It's like church you stop going (working the plan) and getting the teaching and fellowshiping you need as a christian and you end up all back slidden with little sins here and there until you're totally out of touch with God! Not that God is out of touch with you, you're just not tapping in. That probably doesn't make since, but it does in my head. Anyway, proud of you guys for going at this with gazelle like intensity. Keep up the good work!

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  6. Oh, and when John and I were working the plan, we were much happier as well. You just feel so much more fulfilled by what you have and you appreciate every little thing because you worked hard to pay cash for it.

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  7. Just started reading your blog and this is so great! I did the Dave Ramsey course too and its been wonderful. I agree that getting fired up is the first thing that needs to happen.
    -naveena

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