Guest post from Jason of Home Life Organized
I hope our story both encourages and gives you ideas of your own for budgeting and scaling back on expenses.
Between selling our second car, cutting the cord on cable, switching to a pay-as-you-go family phone plan, refinancing our house, and wiping out our credit card debt, my wife and I have learned how to effectively manage our budget and still be able to enjoy life without feeling like we’re giving anything up.
So why did we decide to make all of these changes? It was mostly a matter of circumstance for us.
My wife was pregnant and just laid off from her job. Although she tried to find other work, she wasn’t able to find anything through her pregnancy.
Once the baby came, we decided that she would stay at home with him. This meant that our take-home income was cut in half; we went from a dual-income couple, to a single-income family with a baby.
I already kept a monthly budget to track all of our regular bills, so I began with looking at what we were spending and where we could cut.
Here is how we ended up saving over $900 per month:
We Switched to One Car
We both leased cars and since my wife is home with the baby, she needed a car during the day. We are about 25 minutes from the train station that I take into work — so it’s definitely a sacrifice, but it was also a big savings for us. By switching to one car we saved on the car payment, car insurance, gas, and maintenance.
- Savings $400/ month.
We Cut the Cord on Cable
The cable bill was out of control at almost $200/month and we needed to do something about it. We decided to cut the cord on cable and use a combination of Roku, Aereo, Netflix, Amazon Prime, and our personal DVD collection for our TV watching. So far so good and we are still able to watch every show we used to.
- Savings $100/month.
We Switched Cell Phone Plans
Before we were married we each had our own service through different carriers. We ended up switching to a family plan through MetroPCS which included unlimited talk, text, and data so we haven’t missed a thing.
- Savings $70/month
We Refinanced Our House
We already had a great interest rate on our house, but we were paying PMI (private mortgage insurance). Through home improvements we had enough equity and just recently completed the refinance, got rid of PMI, and lowered our mortgage payment.
- Savings $120/month
We Paid Off Credit Card Debt
We just finished paying off our final credit card. We used the snowball method of paying off the lowest balance cards first and adding that extra amount to the next card.
- Savings $300/month
If you had to save $900 per month, could you do it? If so, how?
Jason Bazinet blogs at Home Life Organized. He’s happily married to Keri and father to his amazing son, Reid. He works full-time in marketing, and loves finding good deals, cooking healthful but convenient meals, and spending time with his family.photo source
Linda says
I read your blog often and always enjoy everyone’s input. My question is for those of us who are older and living on Social Security; any tips from others in this phase of life. We live in a modest home (950+ sf), have only one vehicle, pay off our credit card monthly but still find it challenging to budget for “those unexpected expenses”. I know we are not alone on this journey. May God bless each of you with his grace and peace.
Julia says
I’m glad this family found a way to save. However, I don’t think the average family spends 200 dollars on a TV bill to begin with. I cut my satellite off and we use Netflix and Amazon Prime. I can’t imagine spending 100 dollars on TV though if I’m trying to save money. You can get a satellite package for cheaper than that, and we’re unwilling to do even that.
Korilynn says
That is absolutely amazing! Congrats to you guys for being able to make such significant savings.
Janie says
Hi Charity, I understand how you feel, we have no children at home now.. But even then just being husband and wife with our 2 dogs it still can become tough since only my husband is working, and I cannot work, which depresses me, and am now still waiting on my Disability after almost 3 years to be approved. I have worked all my life and we raised 3 children which are now married and on their own with their family and doing well, am proud of them. 3 years ago I had a bad fall at home while I was taking my 2 week vacation from work and am still feeling the pain which is chronic all over my body, needless to say it’s true what they say when you have an accident your economic situation really changes and if your not prepared can ruin you financially we had insurance but not a good one, because of this it has been very difficult and I went through a bad depression, I take alot of medication and see specialist and doctors…. We had to move because I had to resign from my position ( Human Resource ) I couldn’t walk or sit for even 15 minutes I was getting well paid and made more than my husband so our income dramatically dropped; and then my husband lost his job since the company he worked for began to lose contracts and also alot of workers lost thier jobs… We had to sell everything and moved to another state AZ. I was worried, scared, depressed you name it. But GOD is good, my husband got a good paying job and works very hard, alot of OT which has helped us. It’s just my husband working , we rent and it is pretty high for us, and I have looked for cheap rent, but it’s hard. I know how you feel, but I have found resources in our area, I have learned to be humble which there is nothing wrong with that, it was something I was not used to and was hard for me to accept since I was always a very strong person and held my own but I learned to appreciate everything and everyone. I have seen alot of people in need as well and made alot of freinds along the way, I budget as hard as I can, something that’s not easy but am taking better control, because of my medical condition I can’t work but I have learned to go to food banks, several of them….and they help us with alot of food, so the only thing I might end up buying in the end would maybe be a gallon of milk or eggs, this saves us about $300.00 a month, there is a free donation clothes store that we started to go to, everything 3 months, we are allowed pants, dresses, summer clothes,shoes, and these clothes are in mint condition, saving us maybe $100.00, there is a SRP here for electricity so am frugal and possibly put in $20.00 to maybe $30.00 a week which using this method with our card at least we are control of our electricity, since the light bill due to AC or heating during winter or summer in AZ. would run up to almost $200.00 a month, saving us around $120.00 a month, we have no cable, but I did buy an antenna that we saw on TV so we could get better reception, and we still get to watch movies and such, saving us $70.00 a month, we don’t go out for fast food, and when we do it’s maybe once a month, before we would spend around $120.00 a month, now its maybe $25.00 at the most saving $95.00, I color my own hair now haha! Covering my grays “) saving me $50.00 , now I spend at the most $8.00 cause I always get haircolor on sale. I have reached out to our church when things have been really tight. But I have learned to ask for help, one thing that was really hard for me, but I want to help my husband as much as I can, especially when he works so hard, and I don’t want him to stress out in these areas. I save at least $700.00 to $735.00 a month doing this, its hard, but we do it since we have rent, and 2 car payments , I would love to return one vehicle but only reason I hold on to it is because of my doctor appointment visits, otherwise I would say goodbye to it “)
There is help out there. I don’t qualify for any government help like food stamps etc. because they say my husband makes too much and its just the 2 of us, with no children at home, I can go on and on but its alright and GOD gives us strength but I do get frustrated because of this, I don’t abuse the system never liked doing that so I have to think outside the box and be creative in how to save, I don’t do errands unless its necessary to even save gas, thank goodness because of where we moved now my husband is driving alot closer to his work, even that we were spending $200.00 in gas money a month, now its been cut down to $20.00 weekly, which is $80.00 now a month. We are saving alot on expenses, like I said we really don’t go out, but we do live near a nice park and enjoy the basics now, like walking our dogs and there is a pond for fishing, or we will go fishing at the river and spend US time, made us alot closer and enjoying our time with each other, this was a good move for us, even though we learned how to be frugal and budget, God takes care of us thru the good and the bad, prayer has helped to make us to be strong and faithful, I know this isn’t going to be for long, but even when I finally get my disability, I think we will still be trying to save on our expenses and hopefully then will be saving some money for emergencies as well because this is something we are still trying to do. Charity I know this was very long, but I have learned to lean on God, everything else falls in place .. I hope this has been helpful, I know just writing this has been helpful for me, I am a different person now and very appreciative, it was hard for me to be an at home wife, but now I love to make home cook meals every day for my husband and doing the daily things to make our home our sanctuary. God bless!
Alex says
Good information, but it left me wondering, saving $900/mo made up for loosing a whole source of income, and extra expenses that came with the baby? Was the her income only ~$12k/yr?
Joyce says
I wonder if we could save $900! This might be a interesting experiment for our family.
We have only had one car since we got married 9 years ago. We have never had cable (or a TV, by choice). We have refinanced our house and also paying more than the monthly fee for our mortgage. Our credit cards are paid off every month.
I know we can save by doing better at meal planning, and we are planning on getting a clothes drying rack to minimize use of the dryer. I will have to look into switching cell phone plans.
I will have to take a look around to see where else we can save. 🙂
shannon says
Several others talked about car registration. I don’t know about other states, but where we live (Montana), if a car is over 11 years old, you can buy permanent tags and not have to register it every year. The permanent tag cost a little more than your yearly registration, but if it is a car you plan on keeping for a few years, worth checking into.
Heather@MyMothermode says
We have also managed to save by cutting out most of the expenses mentioned. A note of caution: if possible, try making changes one at a time. While some have been easy for us, such as the TV satellite (we found all we needed with the antenna and internet), others have required a lot of work on the homefront. Keeping up the garden plot and other foods growing in the landscaping, couponing, making gifts and cards, making repairs, cloth diapering, cooking from scratch, and so on – especially with one or more babies to care for- can be non-stop work! Right now, having only (business paid) cell phones with poor signal means I am trying to make calls while away from home. To ease the transitions and make lasting changes, setting a new goal or habit each month could help.
Roxanne says
My heart goes out to some of you ladies. I remember the lean years earlier in our marriage where I would wrack my brain trying to figure out what else to cut. ….Thinking….Hmmm…maybe I could eliminate onions in our beans and rice?….
This post may not be for you. If you are a careful and frugal person, you may already be maximizing your resources to the fullest. Take comfort in the roof over your head and food on the table and laughter from your children. Don’t feel guilty or like you are doing something wrong if you can’t find anything to cut out of your budget.
I do believe there is a time and place to accept that you have done the best you can with your budget and trust God to provide. Crystal never intended for this site to be a competition for who can be the most miserly or to discourage anyone.
Also, there are dozens of posts and examples on how to make extra income. I know for me, it was more useful for me to focus on taking surveys or trying to sell items on ebay when I felt like our budget was a skeleton. If you are only going to make a $5 or $10 difference in a month, I felt more emotional satisfaction from spending that time trying to increase income than decreasing (much needed) expenses.
Jenny says
Excellent point, Roxanne. I guess this is my philosophy, although I hadn’t put it into coherent thoughts or words like you did. On those days when it’s a little overwhelming that there isn’t anything left to cut and we’re as bare bones as possible while still keeping the basics, I do tend to look for those little things to do that will add up to at least a few dollars over the course of a month (MyPoints, Swagbucks, etc). Something that always encourages me also is skimming one of my frugal books off the bookshelf or researching something that interests me (dairy goats right now). Some days or weeks or months can seem like an endless struggle financially, so any positive action/thought I can come up with helps at least a little!
Charity says
Very encouraging comment! Thank you Roxanne! (I posted a reply to Brandy last night, but I don’t see it. 🙁 )
Crystal Paine says
Rats! It looks like the comment didn’t come through because it’s not in pending or spam. 🙁 I’m so sorry it got eaten up somewhere in cyberspace!
Sara says
We just removed PMI but didn’t have to refi to do it. The bank just sent out an appraiser to make sure our loan to value ratio was sufficient to drop it. We had a great interest rate, and didn’t want to lose it with a refi. We only paid $400 for an appraisal fee, but we are saving $100 a month!
Happy Healthy and Wealthy Girl says
I switch my insurance every 2-3 years and it saves lots of money. This year I was very surprised. So shop around and it can save it.
Julie @ Logger's Wife says
I do this too. Our car insurance kept creeping up. We were paying $100 a month. Now we are back down to $70.
Brandy @ The Prudent Homemaker says
It’s important to call on homeowner’s insurance, too. I found out a few weeks ago that our homeowner’s insurance was going up $500 a year! I had been planning on calling that week anyway, as it had been a couple of years. I called our insurance agent, who found us a better plan that covered more, had a lower deductible, and cost less than our previous plan. I saved $657 this year because I changed it!
Laura J. says
We didn’t have to cut our budget out of necessity, but we have cut it in order to pay off our mortgage faster. I’m a stay at home mom to our two kids, so I have some extra time to coupon and try to only shop once or twice a week. I also try not to go out and about too often either so we can save on gas. We actually added a car so that we could save on gas (we save about $150-200 on gas each month because we were previously driving an old suburban that was a gas guzzler. We kept it for big trips and for days when I need a car while my husband is at work).
Another thing that has helped us save money is switching from Verizon to Page Plus Wireless. We get all the same features for $75 less each month and we don’t have a contract!
One area I wish we could cut back on is cable tv but my husband loves sports and wants all the bells and whistles. We have people over to watch live games a lot too, so that’s one area in the budget that I am not able to cut.
jen says
We just went through the Dave Ramsey Financial Peace course and my husband was all about cutting expenses. We had a $140 Verizon bill for our 2 cell phones and finally dropped verizon to try another company a friend had but that ended up not working because it used sprint towers and we couldn’t get service at our house (we had dropped our home phone), then after i posted something on fb asking for suggestions, a friend mentioned Page Plus! I had never heard of them but we went to the closest store and talked to the guy and we were able to use our old iPhones from verizon –and Page Plus uses Verizon towers!! so now our bill is $66!
Daisy says
Dave Ramsey gives great advice for getting finances under control. Be careful with refinancing because it may save you from a monthly PMI but it usually costs between $4-6k to do it. That expense is rolled into your loan so you are just taking on more debt rather than lessening it. Just something to be aware of.
emily says
If you are paying that much to refinance (4-6k), then you should look at other providers. We’ve never paid more than $250 to refinance.
Daisy says
Good to know.
Vanessa says
We just refinanced to eliminate our PMI and we only had to pay $600 out of pocket. So I fully agree with Emily and shop around.
Brandy @ The Prudent Homemaker says
If you lower your loan rate by more than 1%, it should still work out financially in your favor.
Daisy says
Yep
Megan says
Our lender let us get a new appraisal to eliminate PMI instead of completely refinancing.
Jessica says
If you’re doing as much driving with one car as with two, I don’t see how that decreases fuel usage or maintenance needs. Also, if the wife is dropping off and picking up the husband from the train station, 25 minutes each way = 100 minutes of driving. That’s double the time and mileage than if he was driving himself.
Brandy @ The Prudent Homemaker says
It would decrease registration and insurance on a second car.
Often, having one car often makes you more conscious of combining trips and shopping less often. Instead of several small trips whenever, because you have a second car, you’re more likely to shop once a week or less.
Ruth says
It all depends on where you live. For us, having a 2nd car makes much more sense than having just one vehicle. We live in a remote rural area. We lived with just one vehicle for years.
Our one vehicle (a 2004 Toyota Sienna which we purchased for $10,500.00) was getting run into the ground. We were essentially paying for 2 vehicles while only driving one.
The other point about sticking to one vehicle is that if you have more than 2 kids, the one family vehicle is generally not very fuel efficient. Our 2nd vehicle is a Honda Civic which averages about 36 MPG. The savings on my husband’s work commute help balance the cost of having a 2nd vehicle. We also try to use the 2nd car whenever we’re not taking our whole family somewhere.
Having a 2nd vehicle should help us to prolong the life of our primary vehicle. We were putting nearly 24,000 miles per year on the one vehicle before getting the 2nd one.
I agree, though, that for people who live in town or in the city, having only one car often makes sense.
jennifer says
Are they still leasing the other car?
Charity says
I think this is a greatly written article, however, it was a bit discouraging to see that none of this would help us at all. We have one car, no car payment. We have no cable. We have no cell phones. We rent our home. We have no credit cards. We are struggling to keep our heads above water, although we spend no money on extras (we have to be very creative to afford the essentials). Although this has been our financial situation for our entire marriage it is sometimes discouraging to feel there is no light at the end of the tunnel. The Lord definitely provides, and I’m not discounting that in any way. He is good! It always seems there is a way I can make something last a little longer, or cut something out, and I have to be constantly looking for ways to do such. I feel as wife, and helpmeet to my husband that is what I should be doing. We have five small children and another on the way. Sometimes I feel discouraged not to be able to afford any frills or extras for them. I usually see all of this as a challenge, and try to be creative, but as money has become tighter over the last few months I am becoming more discouraged. I feel bad for my husband to come home to a meal of beans (once again) or breakfast for supper (sans meat of course) after a long, hard days work. No one complains, and we are truly thankful for our food, but that is the one area that I find I can cut back on the easiest, yet it leaves us having the same things for meals over and over. I guess in a nutshell, it is discouraging to struggle for years and years on end with no relief in sight.
Brandy @ The Prudent Homemaker says
Charity,
I understand your struggle of years of financial tightness. I also understand it being tighter when it’s already amazingly tight. Like you, we have one car, no payment; I don’t have a cell phone, we don’t have cable or credit card debt.
I agree that there is always something to cut, even when you think there is nothing else. Recently I have cut our utilities even more–in spite of ever-increasing rates. We’ve made changes that have helped us. Here are some of the things we’ve done; perhaps there is something more there that you can do:
http://theprudenthomemakerblog.blogspot.com/2014/02/cutting-expenses-when-you-think-you.html
Our budget has been $100 a month for 9 people for several years; I have 4 1/2 months of menus and recipes that may help you mix up your meal plan a bit. Not sure if you’re buying beans in bulk, but I pay .65 a pound by buying mine in a 25 pound bag. I also buy oats that way (under $15 for a 25 pound bag).
Also, if you’re not already, you may like watching Hulu.com for free (not Hulu Plus). You may already do that, but if you don’t, I thought I would mention it. My husband and I watch several shows that way online.
Jenn in Indiana says
Yes, Charity, please look at The Prudent Homemaker online. Her website and blog are life changers. You come away with hope, new ideas, and a new attitude. Be sure to read her family’s story. Also every week, she hosts a “Frugal Accomplishments” post, I know that I have taken away so many ideas for saving money and making things stretch.
Hope this helps and God Bless you, I will say some prayers for you.
Sarah L says
I don’t usually reply to things, but I saw yours… google for the BLOG, of The Prudent Homemaker She was in a similar situation, but she’s been able to make the most amazing life for her family. her SITE has recpies for amazing, incredibly cheap meals, but her blog is what I love to read, seeing the gifts she’s made for her children, or, the things she did to save even more money. Things like repouposing an item (taking a broken necklace, and making it into bookmarks, or earings for her daughters, that sort of thing) The simple, elegant decorations for her childrens birthdays are amazing too. Shes an incredible inspiration
Sarah L says
LOL!! I saw just one minuite sooner than my post…a link to her blog… really…you ought to go there!
Jenni/Life from the Roof says
I can empathize! We have a 4th child on the way and it feels like (no, it really is this way) we’ve always been on a budget since we got married. One thing I have been grateful for is that our kids have never known anything different, and they actually like beans and rice (which is what we had for dinner tonight :)) and get excited about it. And when I wish there were things we could change about our house, my son will walk around and say how big it is. He saw a drawing I had made of how I would change the kitchen, and said that he liked our kitchen the way it was (vintage 1950’s).
I have been trying to look at what we do have lately – so many tools and supplies to make things ourselves, a backyard for a garden (we are fortunate to rent from my in-laws, so it’s easier to get permission), a great library system, etc. But it is really hard, especially when you have little ones and have another one on the way.
Charity says
I agree! There’s something about knowing that God is entrusting a new life to your care that is just plain scary. I know the majority of pregnant women are all giddy about maternity clothes, and baby showers, and doosy-ing up a room for the baby, and buying cutesy clothes and outfits for baby, and it isn’t that any of that is wrong. I’ve just never been able to be giddy about all that. To me it is just such a huge responsibility, that all the cutesy stuff is the last thing on my mind. This will be our sixth baby and it will be wearing the same little sleepers I bought for 10¢ at thrift stores when I was expecting our first baby (I only purchased gender neutral things when I was expecting our first that way they could be worn by each child God blessed us with). And I love seeing my babies wearing the things that each of their siblings have worn. 🙂
Christa says
I think you are doing an amazing job teaching your children not to be entitled. I commend y’all for being so frugal. Your littles won’t remember all the little frilly things, but they will remember how much you love them and spent time with them. How hard mom and dad worked to give them everything they got. Those are lessons they will carry with them for a lifetime. You are instilling good work ethic and money handling abilities that are far more important than any piece of clothing. I think you would like the book 1,000 Gifts by Ann VosKamp. She is wonderful and it is a fresh change in perspective. You can also follow her on Facebook or her blog. Good luck and God Bless Y’all!
susie says
I understand how you feel.. We used to live near family in Nor AZ and I love it there. My husband wanted to provide more so he told me we need to move to Gillette WY. When we got here it was awful, I was PG and very emotional. However, God has provided us with a great income, lots of hunting (3 elk last year!) and we have made friends and found a church like at home. They are hiring again here. Most of the jobs are operators for open pit coal mines and oil. Lars is a mechanic . I don’t know what your situation is, but sometimes we have to look other places. Good luck with everything, I know how busy life is with a big family, we have 6.
Veronica medina says
I get what you just posted, I come from a family of 8 an income of 24ayear how my parents did it it’s amazing. An I hope to God you guys get a break, an get blessed in many ways, p.s my parents always had a veg, garden it help,
Nora at Simple, Easy, Frugal says
I feel for you Charity. I only have one child and although I’ve always made ends meet, there were definitely some very lean times. It can be scary. With the added responsibility of children it can be overwhelming and discouraging not knowing if needs will be met.
Sometimes you have to reach out and ask for help. Sometimes we can’t do it all on our own. There comes a time in all of our lives where we simply can’t do everything on our own. I think it’s one of the big life lessons.
I do agree that looking for sources of added income is probably your best bet.
Wishing you the best Charity!
Laurie says
Hi Charity: I am a single mom of 2 daughters by choice, We have had lean times too. Like another poster mentioned let your needs be known, Apply for food stamps. I know so many people are so against that sometimes b/c of their values in life,but that is truly why there are programs out there for families like yours. Do you belong to a church? Go to the food bank and get groceries. You and your husband are hard working people and you deserve it. Is there any way that your husband could earn more money? Does he have a college degree? Do you have any skills that you could use for bringing in some extra income? Could you work in the evenings or on the weekends to earn extra income? Can you afford to shop at garage sales for kids clothes? There are many people in your community that would be willing to give their kids clothes away for free if they know there are families in need. do you cloth diaper? Do you make your own homemade laundry detergent? Do you line dry all your clothes? I have had to become much more frugal over the past 5years with growing kids,more expensive activities etc. Do you use your local library? There are millions of ideas on Pintrest for free creative ideas for kids activities you can do at home. Free coloring pages and preschool pages etc. Do you have an Aldis where you live? Best store ever and huge money saver. You can also donate that car to a homeless shelter and get the tax write off and not have to go through the hassle of selling it. I wish you all the best of luck. Please read the Prudent Homemaker. Brandy is one amazing woman.
Diane says
Hi Charity, I have been thinking about your post since I first read it. I would like to suggest a few ways you can increase your income while at home. The first is Swagbucks, my husband and I each have a Swagbucks account. Our goal each month is $50.00 each. It isn’t difficult if you have someone to show you how. It is easier if you have a smart phone. I pay 23.00/month for my smart phone service. I would be happy to tutor you by email if you are interested in learning how to maximize Swagbucks. Last year Crystal had a series of post from people on how Swagbucks helped their budget.
Second if you have a Kmart nearby I would join Shop your Way Rewards, they currently are offering an online matching game, Kmart Fun in the Sun Sweepstakes. Through May 26 you can earn up to 1000 points per day until you max out at 5000 points. This would be $5.00. Also, around 9am EST during the week Sears and Kmart release points on their home page. You can do both stores once each week. You are looking for a yellow and orange banner on the far right side of the page that says LocalAd Points Giveaway. First you sign into your Shop Your Way Rewards account, then click on the banner. The points vary from day to day but I am able to earn around $3.00 a week. The points are available to use on the following Sunday, They are only good for 1 week. The points can be spent at either Sears or Kmart. Since Sears doesn’t sell food I would use them at Kmart. These points could be a small but useful addition to your food budget. In last Sunday’s paper Kmart had a coupon for a $25.00 gift card for a transferred prescription valid until sometime in July. You can not use this if you use medicare or medicaid. I would check any scripts through GoodRX and see if you have an inexpensive one that you could transfer. In April I won $10.00 in points from a contest Sears had where everyone who entered would receive at least $5.00 in points. Using those points has led to my earning $48.00 in free merchandise credit and a gift card for an Rx transfer in just the last 30 days.
Third if you have a smart phone, I would sign up for either Ibotta or Checkout51. Both give you money back on items your are buying anyway. I use Checkout51. What I like about it is easy to use and isn’t store specific. If apples are listed I can purchase them from any store. Every week there seems to be at least one or two basic items like milk, bread, fruit or a veggie listed. I expect to earn $20.00 every 4-6 months.
While none of these suggestions are large sums they could help you to afford some additional food and maybe a few presents for your children. I hope I have helped in some small way.
Amanda H says
Charity, i feel discouraged too reading articles about ways to save money when i’m already working so hard to make the best of what we have! I’ve had postpartum depression ever since my first sweet baby (and two subsequent kids very close together, accidentally 🙂 ), which doesn’t help! So i have no uber-wise advice…but i do have girls clothes in size 18-months to 2T that i want to get rid of, if you happen to have had a girl and she hasn’t outgrown that size yet!
Jerilyn says
After we sold our second car, we were able to save $700 a month. We got out of debt, got our emergency fund funded and then bought another car. It was the best choice but it was hard on our family because we were the ones at home without a car (me and my three sons). But now that we own two cars without debt (again)- it is much more affordable.
Amy says
Great work!! PMI was killing us, too. Fortunately, when we refinanced about 18 months ago, our house value had increased and we were able to get rid of it and cash in on lower rates!
Becky says
I wish I could give up my car, but alas, I live to far to walk to work and to stores. I don’t have a husband so no second car either. LOL
Lauren @ Mommy's Getting Strong says
We also dropped cable about 3 years ago, and I can’t imagine ever paying for it again! We watch all our favorite shoes on Netflix and Hulu, and don’t have to watch commercials! Plus we save over $75 a month! It is a win-win all around.
Jenni/Life from the Roof says
At this point I don’t think we could save $900 a month if we had to, because our current budget is less than $2000/month, and almost all of it goes to food, rent, utilities, phones, health/auto insurance, tithe, and paying for our one reliable car payment. But I do think that it’s good to think about what you could save, even if it’s not $900 – every dollar matters!
For us, we are planning on re-negotiating our cell phone contract soon and selling our second (paid-for) unreliable car so that we don’t have to pay insurance on it anymore. This should save us $30/month, which doesn’t sound like much, but it’s $30 we could use somewhere else! We are also trying to be careful with what we spend on groceries to save what we can.
Brandy @ The Prudent Homemaker says
It’s not only insurance, but it’s also the cost of registering your car. I know all areas are different (some states are only $30 a year) but in my state, registering your vehicle costs several hundred dollars a year. The newer the car, the higher the amount. We’ve had cars that were $435 a year to register.
Not only that, but you won’t have the cost of repairs on a second car.
I think you may save more than $30 a month by switching to one car. Plus, by having one car, you’re more likely to combine trips when you go out.
We’ve been a one-car family for 9 years. My husband figured it saved us $250 a month in license, gas, and registration.
Jenni/Life from the Roof says
We actually just re-registered our older car, but only because it was less than $60 for the whole year (it was a 92 model), and we didn’t want to be rushed into selling it because of a lack of registration (if someone had wanted to test-drive it, it probably wouldn’t have been legal). But yes, we would like to not have to pay that again :).
Kim M says
If you have a 2 year registration, and you get rid or sell your 2nd car before the end of the first year, you will most likely be able to get part of that registrationfee back. We sold my old car with only 1 month left on the first year, and the DMV (in NY state) issued a refund for $27.. not much, but like you said, its a little extra!
Lauren says
Thanks for commenting this — I was all excited to read this post, but everything he mentioned is something we’ve already done, or is not applicable to us. We’re at about a $2000/mo budget as well. Encouraging to hear of others doing it too!
When we sold our second car, we put the $40/mo we were paying for insurance on it (we still had the car insured through my father-in-law in Wisconsin since Florida car insurance is RIDICULOUS!) into a a monthly savings account to pay for car repairs for our now single car. After 3 months of that ($120 saved) the battery died. Guess how much AAA charged to come out and replace it? $123. Thankful we’ve been saving!
Jenni/Life from the Roof says
That’s a very wise thing to do – a lot of people would have just spent the money. We do have a couple of other needs that we could fund with the money, and reading this reminds me that we should designate one so that the money doesn’t just disappear :).
Susan says
To help with groceries try couponing. Basically matching a coupon with a circular ad sale – the savings do add up. If your grocery store doubles coupons it is even more money saved.
Sandy M. says
You have done terrific for a young couple. Congratulations! We gave up our second car 13 years ago and have not missed it. We decided that if we absolutely needed a 2nd car at some point, we would just rent it for the days we needed it. That is much cheaper than paying to own a second car. In those 13 years, we haven’t needed one yet.
Jennifer says
Great, informative post, thanks! We dropped our satellite tv last year and it’s been so great. We have Neflix and Hulu Plus and don’t miss “regular tv” at all.
It just makes me sick to think of all the money we spent on it over the years. However, we’ve only had high speed internet for a couple years (we’re in a rural area) so it wouldn’t have been possible a lot earlier.
Simple, Easy, Frugal says
I CAN’T WAIT to get rid of my PMI! I’m hoping to do it within the next three months. Housing prices are just now really climbing in our area which will be good for my appraisal!
Congrats on that, and the new baby. 🙂