Family Budget…and Corn!

My husband and I sat down and made a list of all of our monthly expenses.  We then went down that list and figured out where we could make cuts.  Since I gave birth prematurely at 29 1/2 weeks and had to be out of work a few extra months, our finances took a hit, and we’ve had to adjust accordingly.  I’ve been thankful that I was able to stay home with Butterball since his birth (and while he was in the NICU, I was able to go several times a day and pump for him).  But we paid a hefty price for that luxury.  With that said, it is extremely important to go through your expenses and pinpoint exactly what you’re spending your money on.  It will really open your eyes and help you plan your spending better.  By the way–we did all of this on a family walk this afternoon.  L.P. rode on his scooter and Butterball was snuggled against me in the Ergo.  Perfect ending to a busy day.

I wrote about our family garden a few weeks ago.  One of the things we’re growing is corn.  I took an empty apple container (from Costco) and planted my seeds in it.  The corn began to sprout almost immediately, and they’re getting to be a pretty good size to transplant into the garden any day now.

It’s been a lot of fun for everyone to watch our seeds turn into something we can eventually eat!

2 more days until the giveaway for pregnant or thinking-about-getting pregnant moms!  Check back with me on Monday!

Family Finance Tips

I’ve read a lot of stuff lately about the recession we’re in, and another possible “double dip recession,” where times will only get worse.  It seems I don’t know anybody who hasn’t been affected by the recession—loss of jobs, difficulty paying the mortgage, increasing bills, you name it. 

My husband and I are always interested in cleaning up our finances and saving for that rainy day.  Adding kids and a house to our lives increases the urgency of covering all of our bases and having our finances in tip-top shape.

Here are a few things we practice and/or plan to start implementing:

1.  Pay yourself first.  This means when you get paid, automatically divert money to your retirement fund and savings. 
2. Put your savings in an account that is “out of sight, out of mind.” For us, that means keeping it at a different institution (my husband likes TRowe Price).  You really don’t want to see the money on a daily basis when you open up your online banking, because then you’re more likely to spend it.  Another trick my husband uses is to buy savings bonds. 
3. Pay the minimum amount on credit cards with higher amounts, and more than the minimum amount on cards with lower balances.  The goal is to pay off the lower balance cards sooner so you can get them out of your life ASAP.
4. Don’t spend.  You’re not going to get ahead if you keep spending, spending, spending.  I know www.babysteals.com and other things are tempting, but if you keep spending, you’re not going to get ahead!  My husband and I have even talked about implementing certain days of the week where we don’t spend at all.  Even trips to Starbucks for a $3 coffee will take its toll on your finances.  I have an aunt who is always crying poor.  Yet she’ll make three trips a week to Costco and drop a couple hundred in one trip without even thinking.  She’ll sign her kids up for expensive summer camps and go crazy buying new clothes, getting her nails done, and hair straightened for a wedding she’s invited to.  My aunt breaks the golden rule of smart finances every single day…DO NOT SPEND.  Especially do not spend on frivolous things.  Moderation is the key. 
5. Put your credit cards away.  I have one emergency card in the back of my wallet tucked away in a pocket I never go through.  The other ones are in a box in the back of a cabinet somewhere in my house.  My husband has even frozen his cards at times.  Do not use your credit cards.  Do not.  Save them for a real emergency.  Do NOT use them for food, gas, etc.   I have a good friend who is always charging things to her credit card.  Fast food, gas, new tires, you name it.  She is not going to dig herself out of her self-imposed hole until she stops using those blasted credit cards. 
6. Buy second-hand.  I bought almost all of my baby clothes from another mom online.  They were in great condition and a bargain at $.50-$1 apiece.  The baby doesn’t know any different!  We do the same for our 7-year old. 
7.  Any unexpected windfalls…sock them away in your savings.  If you get an unexpected $100 from a long lost relative, put it in your savings.  You weren’t expecting it, you didn’t depend on it, so it’s the perfect kind of money to save.  Another trick is to put all change you get back from the store away.  I’m talking a few bucks and loose change.  They will add up over time and help you save money. 
8. Eat at home.  Avoid the temptation to eat out.  Not only will your pocketbook thank you, but your health will too.  You will save money if you cook for your family at home.  If you aren’t a good cook, don’t worry!  Nobody is when they are just starting out.  The key is to pick recipes (check out my recipe page) you feel comfortable with and do it.  Also, be sure to eat leftovers too.  They are a great way to save money.
9. Don’t buy lunch.  Always pack your own.  Leftovers are great for this.
10. Find cheap entertainment for the kids.  Specifically free things, like going to the park.  Family movie nights at home are ideal as opposed to expensive trips to the movie theater.  Discount theaters are an option too. 
11. Use a clothes line to dry your clothes.  Shave money off your utilities bills by using a clothes line (check out my post on using a clothes line).  For places with less sunshine, get a drying rack for inside. 
12. If you have a baby, breastfeed and cloth diaper.
13. Use your public library.  THE library is loaded with great resources:  books, entertainment (toddler time, family nights, etc), cheap DVD rentals…it’s a great place to spend time with your family without going broke. 
14. Don’t buy more car than you need.  I see way too many people driving giant SUVS and they only have one kid.  You’re wasting money on the car and gas.  Getting a 4-cylinder is preferable too for gas savings. 
15. Pay off your car and keep it for a while.  A lot of people pay of their car and then get a new one.  The whole point is to pay it off so you have no payments and can pocket the savings. 
16. Get regular teeth cleanings (every six months).  This will have a long-term impact on your overall health and result in long-term savings.