Cutting Back

Both Hubby and I consider ourselves blessed that we grew up in homes where budgeting was taught at an early age. Still, dealing with finances can be tough - especially as we transition from two incomes, down to one. 

I'll be honest. Hubby and I have been spoiled over the years. We're in our 30's, and have both been working for 10+ years, which has allowed us some budget flexibility. So now we face the exciting challenge of how to reduce our costs and still feel like we're living life to the fullest.

Beyond the basics, like budgeting for everything and having an emergency fund, there are a few tricks we've adapted to help cut down costs in our budget, or provide us with extra perks that subsidize our income:

• Coupons for everything. Besides the necessities (milk, bread, etc.), we won't buy it, or even go out to dinner, unless there's a sale, coupon or gift card involved.
• Set spending limits. We set random goals for when we go out on date night - like that we won't spend more than $X on a meal, or we want our entertainment to only cost $X (hence our frequent visits to the cheap theater).
• Drink water. I know it's not as much fun, but drinking water (both at home and when out) saves a TON if you regularly purchase soda or other store-bought beverages. To splurge, we purchase store brand, sugar-free kool-aid, which is inexpensive and adds a little flavor into our lives.
• Take online surveys for points. Hubby is a master at this. He has found online survey sites that give him points for taking part in questionnaires. After a while we cash in our points for gift cards, which helps us save on dinners out.
• Maximize your gift cards. Instead of using a restaurant gift card all in one visit, we've found that by sharing an entree or ordering cheaper things on the menu (and no pop), we can make a $25 gift card last us 2 or even 3 visits to our favorite restaurants.
• Use a credit card with perks. If you use a credit card, make sure it gives you cash back or airline miles. We purposely purchase everything on our card so we can built up our bank of airline miles. This allows us to travel to family for a fraction of the price. Obviously, you need to be responsible with this one - never spending more than you have and paying the balance off each month.
• Reevaluate your bills. Are you getting the best deal for what you use? How many cable channels do you really need? Is your cell phone getting pricey? We saved $30 a month on our cell phone bill by adapting to a new plan that has the same # of minutes, but reduced the amount of downloadable MBs each month.
• Join their club. If a company is offering a rewards or loyalty program - join it. As annoying as their emails can be, you will often get special discounted rates that aren't offered to everyone. If needed, provide them with a "junk" email address to avoid the clutter in your regular inbox.

I'm not posting to say that we have all the answers. We're far from perfect when it comes to our budget. But we also have learned a lot of lessons along the way that are helping us prepare for being a one income family. And if that means we get the chance for one of us to be home with our little man, then it's totally worth it.