How My Family of Four Saves $500 Every Month
It's a fact you probably know all too well: Many middle-class, educated, professional people are finding it difficult to make ends meet. My husband Mike and I are part of this group.
Beyond the basic bills that come with home ownership, having children adds numerous expenses to our budget. We are a one-income family (I am a teacher and he is a stay-at-home dad), which makes stretching a dollar even more challenging. Currently, we are financially comfortable, though getting to this point has taken a lot of hard work and effort. Here's what we've learned:
1. Claim less than the maximum amount of allowances on your W-2.
This way, we are nearly guaranteed a refund. While yes, I am basically giving Uncle Sam an interest-free loan, we don't often have a significant sum of money for big purchases, and with children's activities, a large chunk of cash is sometimes needed to avoid racking up more credit card debt. This year, I paid for my daughter's $670 camp, our $450 CSA share, the $180 balance of all-star cheerleading tuition, a $180 toddler music class, and a two-day trip to the Rock and Roll Hall of Fame with our tax refund. And we had money left over to get ahead on bills.
Savings: $100-$150 in credit card interest per month
2. Choose what to buy organic.
Buying everything organic, while ideal, isn't affordable. So, we choose what we're going to buy organic. Milk: yes. Meat: yes. Certain fruits and veggies: yes. Spices? No. Same with avocados, since the skin isn't edible. A little research in this area goes a long way.
Savings: around $80 per month
3. Invest in Community Supported Agriculture.
Community supported agriculture farm shares are a great way to support your neighborhood farmer, force yourself to cook healthy meals, and teach kids where food comes from. Every Saturday morning from May through November, we pick up a variety of fresh, just-harvested produce and it only costs $450 for the year. Additionally, we don't have to buy produce at the supermarket during this time, which saves us money on grocery bills.
Savings: around $80 per month
4. Use 0% balance transfer credit card deals.
To keep from paying ridiculous interest rates on our credit cards, we transfer balances to cards that offer periods of 0% interest. After our last transfer (done over the phone in 10 minutes), our credit card bills went down $60.
Savings: $60 per month
5. Scrutinize your cell phone bill.
After making any changes to your cell phone plan, closely examine your next bill. I didn't and unfortunately learned months later that we were paying $29.99 each month for insurance. I did some research and switched to the $16 coverage. I also eliminated a $10/month data charge on a never-used tablet. Additionally, beware of "free stuff." My "free tablet with upgrade" carries a $10/month charge for data, with a two-year contract. This is something that Mr. Salesman "accidentally" didn't say when I was offered the "free tablet." Ugh.
Savings: $24 per month
6. Make breakfast and lunch. Don't buy 'em.
Mornings can be hectic with kids, even with my husband's help. I used to get in the car, call the bagel place, and pick up breakfast on my 45-minute drive to work. What seems like "just $5 a day," ended up being about $100 per month. Instead, we invested in a good coffeemaker, my favorite flavored coffee, and breakfast and lunch staples in the fridge for my workday meals, which cost half as much as buying them.
Savings: $50 per month
7. Join online parenting groups.
On social media sites, buy/sell/trade groups offer cheap secondhand clothes, shoes, and toys, and I have sold as well as bought. One time, a woman I met in a Mommy group announced her garage sale online and I hit the toy jackpot for my princess-obsessed then 3-year-old. I bought everything princess-themed that she was selling, spent a whopping $30, and my daughter had a very happy birthday.
Savings/Income: $20-$100 per month
8. Sell stuff online.
Paying $10 for a pair of baby shoes isn't much, but sell five pairs and you've got half of a student loan payment. I also sell teacher resources I created; there are sites for all kinds of specialty sellers. Online auctioning and selling is easy, quick, and sometimes even fun.
Income: $50-$100 per month
In the end, we realized that communication is priceless. Whenever either of us makes a purchase, we let the other know. This is crucial if you have a joint bank account. Mike will text me if he is unexpectedly asked for, say, a $10 team gift donation at our daughter's cheer practice, and I'll mark that on my checkbook spreadsheet right away. It's a team effort. Also, just because the paycheck bears my name does not make the money mine. We both have important jobs and the money is both of ours. Always.
Grand total savings: $444-$624 per month
