Need tips on how to tighten our belts

amother

Mon, Dec 05 2011, 2:43 pm

Baruch Hashem I've been comfortable financially for most of my life. My parents are well off and, although we were never spoiled & did not grow up in luxury, we did have everything we needed and
I never heard "sorry dear, but we can't afford that" (although I did hear plenty of "sorry dear, but we don't need that now" Very Happy

). So I know about being responsible but I don't know about budgeting (I know that sounds like a paradox but I don't think it is. I never splurge and buy things I don't need but I also don't go around hunting for the best deals...)
So far in our married life, we've been ok financially. I have a good job & until now I have been able to support our family on my paycheck (dh is in kollel) with a bit left over to put into savings.

Lately, as our family's needs keep growing B"H, there's nothing left at the end of the month. B"H our bills are being paid and we have food to eat but it is important to me to have money put away for a rainy day. I want to start spending less but I have no idea where to start. I've never had to think before spending and am clueless about what I can cut down on, what I'm spending too much on, etc.

Beginning this month, we are writing down everything we spend so we can see where the money is going. I'm assuming that's a good first step. Confused

Once we have those numbers, what do we do next?
Any advice would be much appreciated!

goodenoughmom

Mon, Dec 05 2011, 3:14 pm

Sounds like you are off to a good start with tracking your expenses. Perhaps it is a good idea to figure out if you are spending entirely on priorities, and defining with your husband what your priorities as a family are. You might also want to develop an idea of how much more you would want to be saving. Saving would probably come as a function of spending less on the things that are not priorities for your family. Some other ideas might include setting a budget for given expenses (I.e. clothing, toiletries) and stocking up on groceries you use frequently when they are on sale rather than buying everything full price. Hatzlacha!

TranquilityAndPeace

Mon, Dec 05 2011, 3:15 pm

My accountant recommended that I read a book called the Tightwad's Gazette a long time ago.

90% of her suggestions are wacky, IMHO. But the remaining 10% have some value.

I can only recall the wacky ones right now, like: Don't use makeup, it serves no purpose. Make a contraption to keep your bottle of oil dripping upside down into a pot overnight, so you gather a few extra drops of oil before disposing of the container.

This one really makes me laugh: She had a hard time figuring out which is cheaper - cloth napkins or disposables. Obviously, cloth napkins are cheaper over the long run. But, you have to launder them and factor in the cost of running the washing machine plus detergent. Not the dryer - she hangs everything to dry to save money. However, you probably only wash napkins along with other items of clothing, so it's debatable if they really add to the cost of detergent and using the washing machine. This is really a shailah for Eliyahu Hanavi, as the author herself was stumped! Rolling Laughter

amother

Mon, Dec 05 2011, 3:18 pm

OOTBubby wrote:

amother wrote:

Bump

'

I think a bump 22 minutes after posting is a little premature.

OP here

In most cases it is. But it seems imamother is very busy today so this thread had moved waaaay down, to almost the last thing viewable on the home page. So I bumped it up so that people can see it and reply. May I please be excused?

Seraph

Mon, Dec 05 2011, 3:19 pm

That is a terrific first step.
Once you know where you're spending your money, you'll be able to evaluate where you want to be spending that money. Are you spending more than you'd like to on eating out? On takeout? On groceries? On shopping? On entertainment?
If there's one area that you know is your area in which you want to cut back, post on imamother asking advice on "how do I cut back on xyz?"

amother

Mon, Dec 05 2011, 3:25 pm

Thanks goodenoughmom. The thing is, I've never learned to look out for which items are on sale but I guess I will now, somehow.

TAP lol! I have a long way to go to get that extreme

Seraph you make a good point. I guess I'll only know that at the end of this month.

As it is, I hardly get myself anything new (I'm still wearing some clothes from high school Rolling Eyes

), we never eat out and get takeout very rarely. I don't enjoy shopping so only do so out of necessity, and when I do get something it hurts me to overspend (almost physically lol) so I'll never get anything very expensive.)

The way it seems to me, a lot of money is going to childcare (which I can't cut down on since I work), bills & groceries.. I guess I need to find out which foods are cheaper than others and use only that...

TranquilityAndPeace

Mon, Dec 05 2011, 3:38 pm

If you're living somewhere where there's a cold winter, lowering your thermostat a few degrees can save a lot.

Save your grocery receipts and study them later. I find that when I'm the grocery, I'm too busy putting things on the conveyer belt and watching my kids to check the prices. Yes, I check prices when I put things into my cart, but unless I watch the register or study my receipt, I won't know that $.99 per lb. of apples will end up costing me about 75 cents per apple. Same with cuts of meat and anything else that they weigh and charge by the pound.

amother

Mon, Dec 05 2011, 3:42 pm

Seraph wrote:

If you want grocery bill cutting tips, I can give you some. Do you use much disposables?
What do you generally have for breakfast, lunch, supper?
What type of place do you usually shop in?
Are you in brooklyn or somewhere else?

Thank you, that would be really helpful.
Yes, we do use a lot of disposables but I started using regular dishes this week. I also have cleaning help 4.5 hours a week, which I'm cutting down to 3 hours (this will save me $60 a month). I'm hoping it'll work out since I barely have time for housework now as it is.
I shop in the grocery down the block Very Happy

And yes, I'm in brooklyn.

OOTBubby

Mon, Dec 05 2011, 3:44 pm

amother wrote:

Seraph wrote:

And yes, I'm in brooklyn.

If you can get to a place like KRM (Kollel Store) it may be significantly cheaper. The disposables can add up fast too; cutting them out is a good move.

Seraph

Mon, Dec 05 2011, 3:46 pm

amother wrote:

Seraph wrote:

And yes, I'm in brooklyn.

I dont know what grocery you have down the block, but smaller groceries tend to be more expensive; bigger ones, especially chain ones, usually have better pricing. I havent lived in brooklyn for 6 years, but when I was there, KDS was pretty cheap comparatively. Is it still around? I heard something about the kollel store?
Shoprite is relatively cheap and they have sales and take coupons, so just switching the place you shop can make a difference.
Shkoyach for you for switching to reusables. If you still do use disposables, try buying disposables in bulk so you pay less per plate/bowl/cup than if you bought them at the regular price.

amother

Mon, Dec 05 2011, 3:46 pm

TranquilityAndPeace wrote:

My rent includes heat, so BH no heating bills (I know those can be huge!)

You're so right about studying receipts (and about being unable to think anything but "stop taking things off the shelves!" when shopping with kids Very Happy

). I've started doing that lately and discovered some amazing things. Like frozen stir fry is about $4 more expensive than frozen mixed vegetables! and green pepper are $3 per lb cheaper than red peppers! This may be common knowledge but I never knew these things! embarrassed

Seraph

Mon, Dec 05 2011, 3:52 pm

Ok, grocery shopping tips- make as few trips as possible; the more frequently you shop, the more you spend, because you "suddenly remember" things while out. Make a list of things you'll need so you don't forget and need to make extra trips for those stuff.

Be aware of the prices of everything before you put it in your cart. Just knowing how much something is can make you be a little more money smart.

If brand names don't matter to you so much for certain items, price compare for them- see which tomato sauce, for example, is cheapest, and buy that.

Try switching to cheaper types of fleishigs if you have fleishigs for supper nightly.

Try buying the fruits and vegetables that are in season. You can tell which are in season by seeing which is lowest per pound.

OOTBubby

Mon, Dec 05 2011, 3:54 pm

And remember, that the less processed the items are the cheaper they usually are. The ingredients to bake your cake from scratch are a lot less than buying a cake mix and a cake mix is a lot cheaper than buying a ready made cake.

amother

Mon, Dec 05 2011, 3:59 pm

Thank you so much Seraph and everyone else! I'm so grateful since I'm totally clueless when it comes to these things.

I gotta go pick up the kids now and probably won't have time to check back on here tonight but I'll iy"H be back tomorrow. If there's anything else anyone can add it would be greatly appreciated!

OP

chippy

Mon, Dec 05 2011, 4:33 pm

I found that I was spending waaay too much on groceries weekly. And about 85-90% of what I buy are produce...and the bill would be extravagant...for fruits and veggies! I hated that I felt guilty about wanting to eat healthy so now I go to the farmer's market and I save about $50 a week and my bill at the grocery store was cut down by 80%. It is a HUGE difference.
Now I realize that not everyone can find a farmer's market nearby...but it may be worth the trip every so often.
I also am a conscious coupon clipper (and am wary that even items with a coupon can be more expensive than the generics).
I know my local dollar store well. I can get sugar and ketchup there and some other kosher items for a few dollars less each time.
I am getting to know all my local supermarkets...so far I've explored 9 nearby. I know where they charge the least and I make my list according to that. (No, I am not running to 9 different supermarkets each week. But I know where to go when I have to.)
This is the easiest way for us to save a few extra dollars each month.

STovah

Mon, Dec 05 2011, 9:18 pm

amother wrote:

I shop in the grocery down the block Very Happy

And yes, I'm in brooklyn.

Unless your grocery store down the block is KRM or Moishe's, you need to think twice about shopping there for anything other than the midweek milk run or other emergencies. What I've found in general in Flatbush/BP is that stores that sell a lot to WIC and food stamp recipients have inflated food prices. Check the weekly sales at Shoprite, Pathmark and Waldbaums. You can get cereal, pasta and much more for excellent prices if you shop those sales.