Money Saving Mom®

Guest post from Rachel

As someone who is fairly organized, occasionally even bordering on obsessive-compulsive, I had always just assumed that my grasp on budgeting and keeping track of my finances was fairly solid.

I’ve seen numerous friends and relatives struggle with spending outside of their means, but this has never felt like a struggle to me or my family. We don’t go on vacation particularly often, and when we do, it’s after finding a good deal on Groupon or the like; we don’t eat out except for special occasions; we don’t buy expensive clothing.

But I’ve found that it’s so easy to delude ourselves into thinking that if we aren’t spending on big things, then we aren’t overspending on small things either. However, this could not be further from the truth!

How could it be that I, the woman who spends hours researching hotels and airfare to find the best possible price, could be so lax about my spending in other, smaller, day-to-day areas?

The answer is simply: it just doesn’t seem worth it at the time.

In the moment, spending $3 or $4 on a cup of coffee seems like a small splurge to make, a small price to pay, for living in the moment. But a bit of careful planning would actually demonstrate how easy it is to get in the habit of letting these small charges grow and grow until they are no longer so small.

I’ve read countless articles on this topic over the years, all with the same message of how cutting corners here and there can yield large savings in the long run. I just never found it applicable to my own life until I spent one week where I wrote down literally every purchase I made.

$27 filling up gas

$78 on groceries

$7 for the café bill with my friend

$13 thanks to the bookshop next to the café 🙂

None of these sound unreasonable just yet… right?

Until I really stopped to think about it, none of my purchases sounded outlandish. What’s a few dollars in the big scheme of things, really?

But slowly, small realizations started creeping in on me. That $13 book is something I could have just as easily taken out of the library if I had been patient enough to reserve it instead of feeling the need to start reading it right then and there.

The $78 grocery shopping would have been cheaper if I’d been willing to go across town to the slightly less expensive, but slightly more crowded, supermarket.

I continued writing down each purchase, both the large and the small, and began noticing more trends in my own spending.

Becoming more aware of these little habits has helped me cut down on so many unnecessary expenses… even if it only saves me a few dollars each week, that really adds up over the course of a year.

I’ve continued to write down each purchase as I make it, which really forces me to stop and think about whether what I’m buying is absolutely necessary; and if it is, if I’m buying it at this particular shop due to its price or merely due to convenience.

The best news is – with all the money I’ve saved over the past year, we’re now looking to book another mini-vacation over winter break! Looks like it’s time to scour Groupon for the latest travel deals.

And you can bet that I’ll keep writing our purchases down even on vacation! Once you get in the good habit of writing everything down, it’s not something you want to break! Plus, it makes you really appreciate those things you do choose to spend your hard-earned cash on all the more.

Rachel teaches third graders, and in her spare time she enjoys writing, practicing yoga, and spending time with her loved ones; one day she will perfect the art of doing all three at the same time. Rachel calls the Midwest home, where she aims to live as naturally as possible.

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Guest post from Carly of Happy The Home

Like me, I’m sure many of you would love a $1,000 shopping spree to your favorite clothing store. Truth be told, some of us would be happy to spend $50 or $100! But for most of us, we can’t spend a lot of money on a whole new wardrobe at the drop of a hat.

A few months ago, I began trying to simplify things in my life and home in an effort to spend more time doing things that are important to me. I wanted more time for Bible study, so I get up earlier. I wanted less laundry, so I minimized my kid’s clothes. Now it was my closet’s turn. But OH MY! It was not going to be easy.

I looked for ideas and found good blogs and articles for help with what to keep and what to get rid of. The What I Wore blog, and How to Build a Capsule Wardrobe were very helpful. Additionally, I texted my sister for her advice, as she always looks cute and we tend to like the same things! I also made some rules of my own.

My 6 “Rules” for a Minimalist Wardrobe

1. I won’t keep something if it’s uncomfortable or doesn’t fit me well.

2. I won’t buy anything new (at least not for a while).

3. I won’t feel bad keeping some of my favorite t shirts and gym clothes, but I will sort through them.

4. I won’t consider any “dry clean only” items except coats.

5. I won’t hang on to gifted clothing simply due to nostalgia.

6. I won’t keep anything because it “might fit if I lost a few pounds”.

With those rules in mind I also looked through my clothes by pulling EVERYTHING out of my closet and dresser. I decided to keep the following:

• 6 pants
• 8 blouses
• 8 sweaters/cardigans
• 4 skirts
• 4 dresses
• 3 vests
• 5 scarves
• 4 pair of shoes
• 2 belts
• 2 tights

I don’t think there’s a magic number to how many items of clothing one should have… and the pictures I took are merely to show how many things you can create with a few of these items.

What you see in the pictures are: 3 pants + 5 shirts + 2 jackets + 1 dress + 1 scarf + 3 pair of shoes

By no means have I exhausted the possibilities, but it’s exciting to think that I can do more with less. I want to simplify to make things easier and I don’t want my life to be characterized by “excess” and “disorganization”.

You might decide to keep way less than I did. But this is a start for me. Hope you enjoy watching a fashionably-impaired person enjoy a day of dress up!

Carly is a stay-at-home mother to four boys. She blogs at Happy The Home about faith, family, homemaking and all that lies between!

Guest post from Pam of Be Healthy Be Happy Wellness:

The hot weather is winding down, and I am starting to feel a crisp bite to the air when I let our puppy out in the mornings. Fall weather is almost here!

I love, love, love fall. It is a fabulous time of year – it’s not too hot but still warm enough to be outside. We get to enjoy the beautiful fall colors on the trees. Plus, there are so many fun and free things to do.

If you’re looking for ways to enjoy this fall to the fullest, here are my top five FREE ideas:

1. Hiking.

With a new puppy in the house, this has become our favorite weekend outing.

He gets to go along, we wear him out (so we all sleep better) and we enjoy the fresh air and sunshine.

We are lucky enough to live near several county parks with short (1-2 mile) trails. Perfect for little legs and a fun way to spend a few hours.

2. Bike rides to the park.

My littlest one is finally a proficient biker – yeah! A short trip to the park is just the right length for him. The kids play, the adults talk, and we all end up feeling refreshed.

With many neighborhoods having little parks, why don’t you give this a try after dinner one night?

No neighborhood park? How about your local elementary school playground? Top off the evening with ice cream cones after the ride home.

3. A picnic.

As a child, we went on picnics every month with my Grandparents, Aunts and Uncles. It was inexpensive (we all brought our own meat and a dish to share) and fun.

In the fall it’s especially pleasant as it’s not so hot that cooking over a charcoal grill sounds dreadful. Plus, there are still plenty of tasty watermelons available to consume after the meal is complete!

No family nearby? Ask a friend or neighbor you’d like to get to know better to come along.

4. Visit an apple orchard or pumpkin field.

If you decide to purchase fruit, you will spend a little money on this trip, but I can justify it as grocery money myself.

Younger kids especially get a kick out of picking their own apples from a tree. Some orchards also have farm animals and little markets to check out.

We’ve been going to our local orchard every year since the kids were little, and they ask me every year when it’s time to go!

5. Find Local Festivals.

In the Midwest, fall is the festival time of year!

When we were at the State Fair last month, I picked up a state festival guide and discovered there are a dozen festivals EVERY weekend this fall around the state. Many of them within an hour or less drive — and ALL of them are free!

Don’t know where to find any for your area? Check your local newspaper or do an internet search using the keywords “festival + your state.” Pick one, load the kids in the car and tell them you are off on an adventure.

How do you enjoy the fall?

Do you have any fun and inexpensive ideas to share?

Whatever you decide to do, I encourage you to plan to enjoy at least a few fun outings. Before we know it, the cold weather will have arrived and we’ll be missing these beautiful fall days!

Pam is a Certified Health and Lifestyle Coach specializing in helping frazzled working moms create a happier, healthier life. Reach her at Be Healthy Be Happy Wellness

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Guest post from Lisa of FreelanceMom.com

Do you work in a career where your paycheck is unreliable?

Maybe you’re a freelancer. Perhaps you work on commission. Whatever your job, living without a regular paycheck can put strain on your budget, and it can be hard to determine how to save and how much to save to cover slow months.

Curious how to make your budget work efficiently like many moms before you? Check out these tips for saving your money when you don’t have a regular paycheck:

1. Automate Your Savings

Don’t jump to scheduling automatic transfers from checking to savings right away. If you’ve tried this before, you’ve likely found that this type of automation process doesn’t always work that well.

You may want to put $50 away in savings every week, but sometimes you simply don’t have the extra cash. Other times, you have plenty of extra to contribute to your savings… but keeping a constant eye on things and making manual transfers can be a pain.

The good news is that there’s an alternative! Digit is an automatic savings program that’s perfect for moms whose income varies from week to week.

This free program tracks your spending habits and monitors your checking account. Then, it stashes away a couple of dollars when you can afford it. It’s totally free and takes the manual guesswork out of savings!

2. Determine Your Average Income

As a mom without a regular paycheck, some months may yield twice as much money as others. It can be all too tempting to splurge during those months, yet when a slow month comes around, you feel the pressure.

That’s why it’s important to outline a budget for yourself. Your starting point is how much money you average every month. Take a look at your income over the last year and divide it by 12 months. You shouldn’t be spending any more than that in any given month. Ideally, you should be spending much less than your average so you always have something to put away in savings.

Decide on a budget lower than your average, and stash extra away. That way, you’ll have enough to cover slow months as well as emergencies and larger expenses.

As you’re looking over your income, take the time to evaluate your spending habits as well. If your monthly expenses are pushing your average income, look for ways to cut down so you have more to contribute to savings.

Don’t forget to calculate business fees into your monthly expenses (if you’re a freelancer). These would be things like office supplies, PayPal fees, and taxes.

3. Pay Your Own Salary – In a Sense

The strategy outlined above — tracking your spending and depositing extra into savings — works for some people, but for others, it seems like a backward process. So instead, take control of your income.

Start by having all of your paychecks deposited into your “business” account. Then, set up automatic payments to be made into your “household checking” account on a weekly or biweekly basis.

The total you transfer each month should not exceed your average income, since you still want money in your business account, particularly at times when pay is slow. You can also set up automatic transfers from your “business” account into your retirement or savings accounts.

If you use this method, you can better manage your money as if you had a regular paycheck, making budgeting for the month a lot easier.

4. Open New Bank Accounts

One thing that makes it easy to overspend is when your money feels accessible and spendable. If you have only a checking and a savings account, you may find yourself withdrawing too much because the money hasn’t been set aside based on your financial goals.

Instead, open up new sub-savings accounts so you can put a name to each dollar you earn. The goals for each account are up to you, but at least you know the money in that account is reserved for a specific purpose, which will help keep you from overspending all while promoting better savings habits.

Some reasons you might open sub-savings accounts include:

• Taxes
• New car
• Car maintenance
• Retirement (consider opening an IRA)
• Emergencies
• Rent/mortgage

Living without a regular paycheck isn’t synonymous to “living paycheck to paycheck.” It’s still possible to budget your money and do it effectively, even when you can’t accurately estimate your future income.

Are you struggling to save on an atypical paycheck?

Let us know what method you’ll try first to start growing your savings!

Lisa Stein Chang owns FreelanceMom.com, is a college business professor, and a mom to two growing daughters. Lisa is dedicated to playing a part in helping moms run a business they love, help support themselves and their family, and create a “flexible” lifestyle. You can find Lisa burning something in the kitchen, on her blog or fumbling around on Twitter and Facebook.

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