It is no secret that the majority of marital problems in our nation today is either directly or indirectly related to finances. I recently read that a staggering 80% of people getting a divorce listed financial problems as the main cause in the breakdown of their marriage. I also read an article in our local area where a couple was so financially strapped that they attempted to rob a bank and then turned themselves in before going out the door. By doing this, they figured they would go to jail for a couple of years where they would have food, medical attention, and everything they need. Then by the time they got out, they would be able to draw medicare benefits, social security, etc. It's very sad.
The thing is, there are ways to live on less! I know because I've been doing it for the last year myself. While it hasn't always been easy, I've found that once again I am happier (most of the time) and this new direction is just one more stepping stone on my journey to simply living.
For the next few blogs, I want to share what I have learned and experienced in relation to money. The way I see it, if there is just one thing learned that helps make another's life a little easier, then it is well worth it. Why not challenge yourself to see if there are ways you can save money also! Take this next week and learn about yourself and your spending habits. You just may be surprised at what you find.Below you will find the first step we took in taking control of our finances.
Reviewing your bills --
The first week, we made a list of all bills that we pay each and every month. This does not include random expenses such as eating out or entertainment. It does however, include groceries and gas for the car, because those are necessities.
Once the list was complete, we looked at each bill individually and evaluated whether or not there were any changes that could be made to reduce those expenses. Scrutinize each one closely and do some research, you will find ways to spend less!
Here are some examples of the changes we made:
Cell phone bill - Review your plan from time to time. Maybe you do not need so many minutes each month and can choose one that is less expensive. I had no idea that my place of employment actually offers a discount with the major cell phone providers. I now receive a 22% discount each month off of my base plan with Verizon. If you work for a fairly large employer, ask if they have any discounts. I also learned that you could get a discount with Sprint if you belong to a credit union. So it pays to do a little research.
Electric bill - We had already replaced most of our bulbs with energy efficient ones and are pretty conscientious about turning off lights when not in use. So trimming much more off of our bill probably wasn't going to be likely. I was concerned however about this summer. Sometimes when it is very hot, our electric bill can be as much as $400.00 a month. This would be a difficult blow to our now limited income. Again, I did some research and learned that we could do budget billing and pay the same amount each month. I now pay $225 a month all the time, which is in my affordable range. I also learned that in Illinois at least, I can choose my electric provider. I was not aware that there were other companies and intend to research into this further for a possible better rate.
Car insurance - We reviewed our policies. There were some things on there that I didn't need so much of and other things that I could bump up the deductible on slightly to get a lower rate. We even looked at other companies, which do have significant differences in prices.
Student loans - Unfortunately, I have more of these than I would like and have been paying on three of them. I learned that I was able to consolidate those loans into one payment with a lower interest rate and will actually have them paid off sooner.
Groceries - This was probably one of the biggest shocks! We had budgeted for $560.00 a month and thought we were doing well with it. Boy was I wrong! I pulled up all of the debits for a couple of months and learned that not only were we spending our $560 but also an additional $500 more each month! How could this possibly be? It seems we made frequent "stop in" trips to the store to get one thing or another, and often came home with much more. To solve this problem, we went to the envelope system. Each pay day my husband puts $280.00 into an envelope to last for two weeks. When it's gone, it's gone. Doing this made us look at things we were buying. Instead of buying 5 bags of chips, I buy one for example. We discovered that some off-brands are just as good as name brands. We don't make quick stops at Walmart unless it is just absolutely necessary. Finally, no matter how tempting it may be, there is NO use of debit cards unless it is discussed and agreed on ahead of time for a specific purpose.
Gas - Another shocking experience. Once again, we discovered that we were spending way more than we thought. Living about ten minutes from town, we never really gave it a second thought to run in and get a movie or do something frivolous. Now, we also use the envelope system for this as well. Each pay day we are given a certain amount and that is the limit. Knowing I have to go back and forth to work, I am much more aware of what is going in and out of my tank. I no longer routinely take unneeded trips to town. I may still go get a movie, but will do it on a day in which I already have to be there for something else. Occasionally something unexpected does come up where we do need more gas than usual because we are going out of town or we decide to take an outing. In that case, the additional money comes from our "blow fund" which I will talk about in a different post.
These are just a few examples of what we found. When added up, these simple changes made a big difference in our wallet. Since then, I keep my eyes and ears open for other tips and review all of our bills every few months to see if there may be some new options. Never assume it always has to stay the same.
--- I would love to hear what you learn about yourself this week! Also be sure and let me know if you discover some new tips of your own that may help others save on those dreaded bills too!
See you next time!
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