How Do I STOP Spending Money!?!?!

I just hung up the phone after having a gut wrenching conversation with my daughter. She is earnestly seeking solutions to battle the hold that the allure of credit holds over her life. "It's so convenient", "I intend to pay it off before the bill arrives", "I'm using someone else's money for a short while". The list goes on and on and she gets deeper and deeper in debt. She knows that this thinking never works because she's paid her cards off in the past and committed to never using them again, yet here she is once again. (By the way, I asked her permission to share this conversation because, she too, is working hard to change her habits.)


This next blog will be in two parts because Larry said I talk too much! OK, he didn't really say that but the tips we are about to provide is a lengthy list and we're hoping you'll digest each of the ideas and see if there are one or more that you can do today! Will you do us a favor and share whether or not you have committed to trying one of these ideas? You can use the comments box below or email us at catpawnderings@gmail.com. Thank you!


Some of you have asked for specifics on what we did to cut our costs by 75%. While the lists are not inclusive, they will provide a good idea as to where we started.  You may look at this list and say, 'Not for me!' And you'll be right.  If you can't, don't, or won't change, neither will your finances.  Remember the definition of crazy: "Doing the same things and expecting different results." 


PART ONE - Cutting Costs

Cell Phone
We had always been on a family plan with our provider and when I reviewed what it covered, there were numerous advantages we did not use. Therefore, we changed to lowest plan possible. Most carriers do not charge to change your plan provided you stay within the original term of contract. 

Savings: $20.00/month

Home Phone
We haven't had a land line phone for years now. However, we were still paying for a digital plan through one of the VOIP (voice over internet) providers. While this was only $24 a month, it was still something we could eliminate by moving to Skype. We now pay $2.95/month and we can call anywhere in the world for free. To this date, we haven't dropped a call and no one has complained that they can't hear us. It's a great deal! There are several providers like Skype, we just happened to have chosen them. 

Savings: $21/month

Cable TV
TV has become not only a babysitter for many kids, but it has also become the drug of choice for many adults. Larry and I were in the group of addicted watchers and decided that this would be something that would benefit us on all levels by limiting our options. Therefore, we went to lowest plan possible - most of the shows we watch are on the major networks anyway so this wasn't too much of an adjustment. Plus, we have decided to fill our TV time with walking or bike riding time - healthier mentally and physically 

Savings: $40.00/month

Gasoline
We had started sharing a car when we moved to Bend. We didn't want (or need) the extra car payment and we wanted to see if we could make telecommuting work. I'm happy to say that while I was working, it worked flawlessly. Now that I'm home, it's even easier. We've now decided that if the destination is within a 2 mile radius of our home, we will walk or ride our bikes. This has been huge. We used to fill up three times a month. We make it on about 1.5 tanks a month now. 

Also, when you read about my grocery expenses, you'll learn that we've started shopping at Fred Meyer where they offer a .10 off per gallon per $100 that you spend. This provides us with the discounted fill-ups per month. Outstanding! Also, public transportation is huge in most cities and is structured so that you can conduct your life without much interference. Give it a try! 

Savings: $120/month

Utilities
By moving in to a smaller house all of our utilities have gone down - less heat, less water, less irrigating outside, etc. Additionally, I contacted all of our public utility companies and asked if they provided monthly billing based on prior year averages. Good news! This not only lowered my monthly amount but allows me to budget for these expenses monthly. 

Savings: $10/month

Medical Bills
If your employer offers the section 125 cafeteria plans - you can elect to contribute a percentage of your income to a (HSA) health spending account. Then, when you have medical expenses (or medical-related expenses) you can reimburse yourself with tax free dollars. This was a life saver for us with my unexpected bills. The money was put aside throughout the year and there for us to use. REMINDER: You must use all of these dollars in a calendar year or you lose them. Plan carefully. 

Savings: $65/month

Personal Expenses
This is one area that I fought long and hard but now that we've been doing it, I get much more enjoyment now than I ever did previously. So, before you cry out like I did, "I deserve some 'me' time" consider a couple of the simple things you can do. For example, I learned how to cut Larry's hair and now give him his regular trims. He learned how to do my pedicures. We now spend more time together - taking care of each other and we save money doing it! 

Savings: $55/month

We hope that you have found one or more things that you are willing to try in order to start the process of living with less. I'll post Part II soon. We look forward to hearing from you!