Money Saving Mom®

In November 2007, our family began our Total Money Makeover journey. The very first thing we learned was to pay for everything in cash.

This was, of course, a new way of thinking. After all, we had our debit card, which was “essentially” cash, right? Well, after much praying and hard work, we have stopped using credit, rarely use our debit card and now believe that Cash is King!

We had the chance to put this mantra to the absolute test. We wondered if paying with cash would help us not end up with a case of buyer’s remorse, as we had felt so many times in years past when making purchases.

One Saturday morning in July, 2008, we awoke to learn our television had been struck by lightning the night before. Now, we could have run out and purchased a new one on a credit card — if we owned a credit card, that is! We didn’t, so we marched down the steps to our basement and carried up a replacement television — a 14-year-old, 25″ tube TV.

We then finished working our way out of debt. Afterwards, we began to save for that new HDTV.

How We Saved

We had budgeted a dollar amount for our groceries each pay period. At the end of that two weeks, we would take the money left over and put into our TV fund. Using coupons and working deals usually meant at least 30% went into savings.

We had a garage sale and added our proceeds to our stash. Imagine our surprise when, in less than six months, we had reached our goal of having enough cash to purchase not only our television, but also a new TV stand!

Then came the fun part — going shopping! We knew exactly which television and stand we wanted. We selected both our TV and stand and were armed and ready ask for a reduced price.

We asked the salesman what they could do since we were paying in cash and he said he’d have to check with his manager. Imagine our surprise when he walked up and offered us what we were hoping for — a 5% discount for paying with cash.

What We Learned

With great pride, we handed over our cash. It felt so good. We felt empowered, like we had done something that few had done before.

Sure, it would have been simple enough to just write a check or put the purchase on a credit card (and pay it off right away) but, I had never in my adult life made a purchase of this magnitude with cold, hard cash.

We now know that it is possible to purchase anything with cash. Dedication, hard work and the desire to remain debt free have kept us on track. And our mantra rings true – CASH IS KING!

Tracie has helped her family eradicate over $37,000 in debt in 27 months. She shares her money saving tips, coupons and deals daily at Penny Pinchin’ Mom.  She and her husband live in Missouri with their 3 children, ages 22 months – 5 years.

Have you saved up and paid cash for something — large or small? Submit your story for possible publication here.

A testimony from Adie

Throughout our daughter’s high school years, we saved up little bits here and there, knowing that college tuition was soon coming. Some years my husband got a bonus, and we usually put most of it aside into the college fund. Other unexpected cash, such as from garage sales, also went into the fund.

We learned that our home state of Georgia has a wonderful perk for in-state college students: if the student has maintained a B average or better during high school, then they are eligible for the HOPE scholarship. This pays full or almost-full tuition at the state universities as long as the student maintains their B average in college.

Except, that is, for homeschool students. The rules are different for all graduates of “non-accredited” high schools, including homeschools. If homeschool students have a B average in high school, they must pay full tuition the first year of college. Then, if they still have a B average, they become eligible for the HOPE beginning in their second year. But they also get a tuition reimbursement for their first year.

So, in essence, we lent the state the amount of tuition for one year. In our case, the tuition cost was $4,000. After our daughter’s first year was complete, we applied for our tuition reimbursement and soon received it. With our son only two years behind his sister, we banked that money so we could repeat the process when he began college.

At the end of our son’s freshman year we again received the tuition reimbursement, and then we had $4,000 in our bank account, unnamed. Thoughts of travel went through our heads, but only briefly. A certain young man had started visiting our home often, and a mother’s instinct told me that we may be planning a wedding before too many months had passed. $4,000 set aside would be a very good start on a wedding budget.

Last December, during their senior year, Daniel asked for Greta’s hand in marriage. A May wedding, soon after graduation, was planned. My husband told the happy couple that we had $4,000 set aside, and we would save up another $1,000 to add to that. Anything over that amount would be their responsibility.

On May 22, they had a beautiful afternoon wedding in a little country church, with about 150 family and friends there to celebrate with them. A lovely hors d’oeuvres reception and country dance followed the ceremony. They had worked hard to make it uniquely their own and asked friends and family to help out in many ways.

I kept careful records of every purchase, every expense. When all was totaled, the wedding had cost us $4,863!

Adie Noren is a wife of 31 years, mother of three grown children, and grandmother of two. She and her husband paid off their mortgage one month before the wedding! She writes about crafting and homemaking on her blog, Make and Do.

Have you saved up and paid cash for something — large or small? Submit your story for possible publication here.