Ok, you want to save money and tighten your budget, but where do you begin? Lots of people know they need help, but where do you start? Here are some ideas to get you started:
Set Goals-What is it you want to achieve? It may be something simple, like not living paycheck to paycheck, which would mean you are working towards having money in your savings and checking accounts. In that case, you will need to cut some of your spending and put it in the bank as a cushion. What if you are spending more than you earn? Then your goal would be to avoid accumulating more debt and get out of the debt you have. You also need to cut expenses. Take a hard look at your bank balances, your bills and your spending habits.
Discuss your goals-especially with your spouse, kids are optional. You may find that your spouse is feeling the same way and you can make a team effort. Or you may encounter resistance, which means you will have to set the example until your other half gets a clue about money. The key is not to criticize or make money the issue. Set the example and be the leader.
Don’t make excuses– to yourself or your family. “We can’t afford that right now” or “that’s too expensive”. NEVER make excuses or apologize for your thriftiness. This creates an atmosphere of oppression, making your family feel as if you are “poor” and they have to suffer through until a windfall of money arrives, when they can party again! I know this one from experience. After a few years of very tight penny pinching, my husband got a better job (before we bought our first home) and we “partied” with our credit cards. We then spent the next year paying that debt off before we could buy our first home.
Expect some resistance to change-from others in your life, especially benefactors of your past spending habits. Again, don’t make apologies, just set the example and try not to “convert” these people overnight. Setting a good example and having a good attitude are subtle but powerful ways to retrain those spendaholic spouses, children and friends. Let them see your strategies in action and “overhear” some of your successes. Actions do speak louder than words. Don’t get discouraged by the pooh-poohing of these people either. Change is not easy and takes time.
Avoid getting into more debt-Put a freeze on spending-literally! If credit cards are a problem for you, cut them up or freeze them in a big block of ice. The best strategy of course is to cancel your credit cards and pay off those debts!
Track your spending– with a small notebook. Write down EVERYTHING you spend for 3 months, from the groceries for the month to the candy bar from the vending machine. You need to learn your spending habits. You may be shocked to find out how much you are spending on nickel and dime stuff!
Research-Get your hands on as every frugal book you can and take notes! Not every idea will work for you. Use the ones that you feel the most comfortable with and challenge yourself to try some new things too. Raid that library and if you find some books that are keepers, invest in them. There are some really great books out there, I am preparing a list of my favorites. The very best resource I have found is any one of the Tightwad Gazette books. Click here to see the review.
Find your frugal comfort zone– by testing your limits and finding where you are comfortable. You may find that there are some things that you do not mind giving up- so why are you paying for them? Gather up all of your bills, expenditures, and that “spending notebook” you set up to track your spending habits. Take a hard look at what you are spending. Cut everything back as much as you possibly can. Test those limits!!!If you find you have cut back so far that it is uncomfortable, add a small amount back in. You use this strategy for anything! Cut your grocery bill and see how low you can go without sacrificing quality, you may be surprised! Do this around the house and see how little you can do the job for. How much dishwashing liquid do you really need? How much shampoo? Do this with the big things too- how much house do you need? How much electricity do you really need to use- can you find ways conserve energy and still be comfortable? A free energy audit from you local electric and gas company will give you some ideas.
Learn new strategies and techniques for saving money-develop an attitude of eager learning. Learn to do-it-yourself. You can save a lot of money, find a hidden talent, and save money on entertainment! Also try out bartering and negotiating, you may be glad that you did.
Cross the gender gap-Try untraditional skills as well. Just because you are a woman does not mean you can’t learn to be handy with power tools. Take a look at our uimfc bulletin board, many of the ladies on here know their way around the tool shed! The same goes for you men! You can learn how to become wonderful chefs! Most of the greatest chefs in the world ARE men! So get in that kitchen and learn your way around!
Learn to say no-to things that add expense-of time or money- to your life but do not add quality. You can still volunteer and help out in the causes you feel are important, but you don’t have to be part of all of them. If you have many interests or like to help in multiple charities, rotate them or cut back so you can do a little of each. And don’t forget to use those new skills you are working on!
Share your experiences with others-This will help you stay on track and reinforce your new frugal lifestyle. This is such an important aspect of frugality that I have started a page called “Form a local tightwad group” and also have multiple bulletin boards. Share your ideas, struggles, successes and questions. We want to hear them! We are there for you! You can do this!
“The best strategy of course is to cancel your credit cards and pay off those debts!” – while I wholeheartedly agree with paying off debts, canceling credit cards could negatively affect your credit score. You lose any negotiating leverage with the card issuer if you run into tough(er) times. I hate to see anyone without some available credit if a crisis occurs.
Welcome to Frugal Foodie Moms, Selena! Glad you’re here!
Personally, I don’t like using credit for emergencies. It’s always gotten me into trouble, and seems to take forever to dig out of. I’ve had much better results with an emergency fund that’s set aside in our savings account, like Dave Ramsey recommends in his “7 Baby Steps”. I have not had a credit card for years and enjoy NOT having that temptation to use one. My husband has been laid off twice in the past year, and we’ve found the emergency fund has helped a lot. So have a lot of other frugal strategies that I document here and on Frugal Moms².
We’ll have to agree to disagree re: credit card for available credit (when the emergency fund won’t cover it). I’m more of a Suze Orman fan than Dave Ramsey but to each her own.
That’s ok. Anyone who knows the difference between Suze Orman and Dave Ramsey is ok in my book! 🙂
Bought the daughters Young, Fabulous, and Broke though they were not broke and never have been (even after they graduated from college). Older daughter was telling me about her “24 month emergency fund”. I said “24 months??!!’. She had somehow turned 8 months into 24 months lol..
Selena, I haven’t read anything by his daughter. I love The Total Money Makeover though. I used the Baby Steps to pay off over $30,000. Took several years, and in that time had many life changes. I’ve been working on a detailed post about it on my other site, Frugal Moms², which focuses more on frugal living.
I also just posted an article on 5 Frugal Books Worth Reading (and Re-reading) here. These are my favs. Feel free to post some of your frugal/financial favorites too! Sounds like you’ve read quite a few!
Kim 🙂
Clarification – I bought my daughters (I refer to them as “the daughter”) Young, Fabulous, and Broke by Suze Orman. Sorry if I made it sound like the book was by Dave Ramsey’s daughter.
Ironically I had just started re-read Complete Tightwad Gazette when I came across your new sites.
That’s on my list to re-read too I’d love to start a frugal read a long in the near future.
How many girls do you have? I’ve got five boys. Missed the whole girl thing, but certainly tried!
Two girls for me, both out of college (no debt for them or us). Both had money in the bank when they graduated and are now living on their own.
That’s awesome, Selena! What a great way for them to start their adult lives- debt free! Way to go!
Unlike the recent articles re: Millennials who are doing “well”, we aren’t rich. We saved when the kids were young. Our vacations were inexpensive and both daughters realize that this also allowed us to pay for college. The kids did do their part – good grades, AP classes, and scholarships but it still cost money. However we paid for *no* overseas studies (girls worked and paid their own way). Spring break trips were OUT, even if paid for by the daughters. If they had money for that, they had money to contribute to college expenses!
Both daughters were in college at the same time (one semester) at the start of the recession. One of our incomes went away due to the housing bust, it still has not recovered.
I realize times have changed from when my kids were young, times are harder. The middle class is under assault. It is even more important these days to make sure every dollar spent is spent wisely.
That’s awesome, Selena, and always great when you see your long term efforts pay off. I have one son who started college but quickly found he could do what he wanted online without the degree, and is now making more money than I do. He talks about going back some day, but I’m not sure he will. He works with internet startups and helps them organize their fundraising efforts so they can get ready to launch. He’s great at what he does, and in high demand.
My second son is in the Marines. We tried to talk him out of it, but that’s what he wanted to do. He’ll have a full scholarship waiting for him from the State of Illinois plus the GI Bill. He’s very intent on going to college when he gets out in two years,
Son #3 is most likely going to a trade school. He’s smart but having trouble focusing in school. He does better with hands on things and has high functioning autism. He’s unique, and it may take him longer to find that unique place in the world where he’s meant to be.
My other two haven’t even started school yet! Life is crazy. And I agree about times being harder these days. Prices are higher for everything, wages are stagnant. So much is being outsourced. It’s more important than ever to be frugal, and yet, so many people still don’t get it. The last eight years for me personally have been very tumultuous. Those are two of the reasons I brought my site back, to share and help others through the crazy times we’re living in. I also got tired of people’s eyes glazing over when I excitedly told them about my latest frugal conquest or how excited I was about saving towards a goal. It’s good to be back and talk to other people who are like-minded! 🙂
I have mixed emotions about the “piece of paper”. I know some employers are hades bent on you having the “piece of paper” . I’ve worked with a lot of people in IT who do not have “papers”. However I know that it can be the difference between the job or not getting it. This was one of the reasons I encouraged my daughters to get a degree. I saw enough divorced women with minor children in my family to make the decision that I’d be able to support me and my kids. I saw that back in the 70s and I think that is even more important today.
You teach your kids life skills – budgeting, shopping, cooking, insurance etc. but you have to let go. And it isn’t easy. It sounds callous but IMHO, you have to raise your kids to NOT need you. At some point in time, you aren’t going to be around.
I agree! The best leaders, and the best parents, are working themselves out of a job by training up their replacements. 🙂