How did you cut back to stay at home?

callieallie345 · November 2008

Hi Ladies:

I was hoping to get some ideas and advice on how you are your DH were able to make the leap in order for you to be a SAHM. I am expecting #2 and would love the option of staying home for at least six months.

We own a home that is quite an expense, but worth while considering we have that out of the way. We do have some student loan debt and are currently paying off all revolving debt. My DH makes good money (not by So. Cal standards) but I also contribute 50% to our household.

My plan is to curb all spending by year's end (like eating out, unnecessary purchases, etc.) and then start getting some of our fixed costs down, like utilities, cable, etc.

I know if there is a will there is a way. Just need some ideas!

Thanks!!!

teach2183 · November 2008

Definitely start by tracking your expenses. This will help you determine where all of your money is going. Then, start saving as much as you can. Like you said, stop eating out and making unnecessary purchases. We use coupons at the grocery store and when we want to eat out ($50/month total). Consider other costs that will decrease with you at home - less gas, no work clothes, no lunches out. If you want, you can post your budget here or on money matters and we can help you determine what you might be able to cut.

MrsPreK · November 2008

I agree with tracking your expenses. It's important to know where your $$ is going so that you know how to curb/slow your spending. We also use coupons. They do add up. Even if you only save $1 a week on something you need/use you'll have $52 extra at the end of the year!

Steph_Kevin_41908 · November 2008

I used mint.com to track our spending and really love it. We were spending about 800 more a month than really nessecary. If you use your debit card for everything like I do mint.com would be the easiest but not if you use cash for most of it. We cut the eating out except for once a month and I add up our groceries as we pick things up, it keeps us from over spending.

W&J'sMommy · November 2008

My last 6 months working I put all my income in our savings. It proved that we were able to live off just MH and we had a great cushion.

And then the obvious, not eating out, going out, scaling down our phone plan, cable tv, (I wouldn't have internet but MH work pays for it , I got rid of my cell phone, I have a pre-paid cell for emergencies that averages out to $10 a month.

callieallie345 · November 2008

thanks for the tips- I would be ashamed to post our budget on here! LOL, we just have large costs, mainly due to our home. I think our goal will be to get our fixed costs reduced and then absolutely eliminate all unnecessary spending.

Tracking expenses is a great idea! It's scary when you sit down and add up what you think is a lunch here and there. I find budgeting to be like dieting, you fall off the wagon a lot. I need a way to be able to cap all spending or literally get a lump sum for each of us at the beginning of the month, and then that's it. I'm sure if would make a huge impact.

kellyjean7695 · November 2008

There are so many little things you can do: turn the thermostat down a few degrees (our is at 65 in winter, 80 in summer), make sure you use compac flouresent lightbulbs (spelled wrong!), turn off lights, turn off computers, TV, other electronics, buy things second-hand, walk/ride bikes to get places, wash laundry in cold water, buy generic everything, use cloth diapers (big expense at first, then just the cost of water), make your own baby food, buy bulk and freeze leftovers, and plant a garden in summer for fresh veggies.

MrsL1022 · November 2008

I was making 50% of our household income before I had ds. Dh has also changed jobs but we have cut back a lot. I wouldn't call anything we have cut back on a major sacrfice. We don't eat out a lot anymore b/c we have a baby. We cook almost every meal at home. Dh also travels 3-4 days a week on the company dime which helps but was not a factor. we scaled back our cell phone plan b/c I was no longer working. I have saved a TON of money on gas b/c I am not commuting anymore, I don't need work clothes, lunches at work etc...My only monthly recreation expense is the gym I joined with childcare and i try to make that my daily activity. I have been using couponmom.com for strategic grocery shopping and have saved a ton of money. I get diapers at costco and so far have only spent $37.00 per month on diapers which i think is very good. I buy my formula when there is a sale and I use formula checks. The trick here is to sign other family members up for the formula checks as well as yourself. I have my mom and MIL sending them to me, or BF if that works for you and your child. We just scaled back on phone plans and our tv channel offerings and traded the expenses of me working for baby expenses. It all ultimately worked out but if you had asked me a year ago when i found out I was pg if I thought I'd be able to stay home I would have said absolutely not. We are very blessed that it worked out. I hope you can figure out a way that works for your family, if that's what you really want. Sorry this was so long.

MrsL1022 · November 2008

I also wanted to add that we re-fied our house the month before ds was born. I also saved any commission I made (I was in sales) by the time I was on mat leave I saved everything I was making. Granted the market is not favorable for a re-fi but that is what we did to pair down the house expense I also locked in our power bill at a fixed monthly rate. They will give me back a credit at the end of the year based on useage. I also locked in our gas rate when it was lower over the summer so we are protected for a while on that. Sorry I forgot to add this before.

callieallie345 · November 2008

Awesome, MrsL1022 thank you so much! I agree, from where we stand now it looks impossible, I won't lie. But after I layout the reality of the bills/income there are things that can go and definitely squeeze room.

Thank you again so much! You give me hope

jen5-03 · November 2008

We changed our direct deposits so DH's went to checking and mine to savings. We had to transfer money sometimes to make ends meet while I was still working, but it does give you a much better picture of how close you are to being able to make it.

An easy way to save money on utilities is to use a programmable thermostat so you're not wasting money on temperature control while you're out.

taylormillgirl · November 2008

I'm reading the book "Miserly Moms" and it's full of suggestions I would never have imagined. I'd request it from your local library.

JDCSKF · November 2008

We do not have cable, and only have internet because DH's company pays for it.

We have no home phone, but DH has a cell through work, and mine is a pay as you go phone that costs about $30.00 a month.

I have my gas/electric bill on a budget payment plan. Basically, we pay one amount each month, for the entire year instead of paying what we use each month. The electric company just uses the average from last year. I learned the hard way last winter when we got behind on the bill because it was huge during the winter. We also have a programable thermostat. The heat comes on at 7am, when we get up, until 10am, when we leave the house. It comes back on around 4pm (when DD gets up from her nap) and turns off again when DD goes to bed around 8pm.

We have 1 car payment, and always have just one car payment. DH drives a POS (but it still runs!) in order to keep us into one car payment.

We have a garden and can and cook as much as we can from fresh produce.

We use the library exclusively for books, instead of purchasing them. DD doesn't have a large home library, but we usually have a large grocery bag of books from the library.

DD wears Parent Choice (WalMart) diapers. They are cheapest I can find and they work.

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