View Full Version : What did you eliminate to attack your debt?
I'm looking at axing these~
-cell phones (would need to add a land line)
-internet (Library is close by)
-2nd car (the one not paid for - though may be a challenge if I get a 2nd job)
-eating out (may consider 1x a month for a treat - and keep it under $50 for 2)
-movies out
-Netflix
-Monthly allowance for college SD (she works and we send her $50 a month)
-Cutting grocery bill by 25-30%
-Garden expenses. No new plants; seeds or trades only. Cut this by about 90%
-Work on lowering water & electricity expenses by 20% (They are already low)
We don't have cable (never had)
Both our cars are super gas efficient - the one we're paying on is a hybrid
Heating is with firewood, which we save for over the year and buy in one purchase in the fall
Also, I have pledged to do no stuff buying for the year. I really cannot see that I will need anything except toiletries & food.
What areas made the most difference for you, both fiscally and in lifestyle changes?
Thanks!!
Some of my biggest bills are taxes and insurance. within making sure you've got a policy that's actually reliable, shop around for a lower rate or a higher deductible on auto and home policies. Make sure you're taking the deductions you've earned. Look for ways of spending in the future that would be tax advantaged.
Sometimes setting little goals here and there can be really helpful. Challenging yourself to find an extra $100 this month doesn't just earn you $100, it makes you observe your behavior.
Look to reduce your utility bills too. (opps, just looked and you mentioned that.) You say heating is with wood, but there are other little things you can do. If you buy the wood, wear extra layers of clothes in the house to burn less.
Replace incandescent bulbs with energy savings florescent - esp if your power company subsidizes new bulbs. We can often get them here for dirt cheap. And turn off lights when you leave a room.
Learn to cook efficiently. Open the oven and fridge only when necessary, and don't leave the doors open long.
Dry your laundry on a line instead of the drier. Take shorter showers.
I don't know your grocery buying habits, but that is an area most people can cut dramatically and still eat well. You might be able to cut more than 30%.
I'd keep a running journel where you do spend money, and then look that over to see where it actually is going in order to see if you can cut more.
On the income side, If I ever needed more money, one of the first things I'd consider is renting out a room. I did that years ago, didn't much like it, but the 'easy' income was very helpful.
Congratulations on tackling the problem head-on. :+1:
Blackdog Lin
1-9-11, 7:12am
Ditto congrats on your debt-tackling journey. It will be SO worth it in the long run, you won't believe how good it can feel to be debt-free.
We did it about 10 years ago, and if memory serves, the biggies that helped us were (though most of these have been mentioned already):
- Switching from standard to CFL bulbs all over the house.
- Checking into all our insurance policies with an eye to saving money. On our auto policies alone I found out I'd been overpaying by hundreds of dollars a year simply because I had been too lazy to look into them.
- Learning to loathe shopping. If I'm not in a store, I can't spend money in it. This one took a year or more of "mental gymnastics", I had to work hard to focus on the downsides of shopping (crowds, parking, time spent, money spent, having to deal with people etc.), but I'm proud to say that still today I have a hard time making myself go to the grocery store.
- Getting ruthless and creative with no food wastage. We learned to save EVERYTHING, if it doesn't get eaten by day 2 then it goes in a ziplock into the freezer, even the little bits of leftovers. Then every 3 weeks or so we pull everything out and get creative with a soup, or casserole, or sandwich spread. Along with this goes the common-sense methods of menu-planning and once-a-week-only grocery shopping.
- Eliminating eating out. Truly it just seems easier to me these days to throw together a meal than to get cleaned up and drive somewhere just to eat food that I don't know what went into it or how cleanly it was prepared.
- Giving up magazine subscriptions. This one had a wonderful unintended consequence: I now seem happier and more content in our simpler life without all those ads and pretty pictures in the mags telling me I should WANT those things. (Though I do still get National Geographic - it seems pretty safe!)
- My gazingus pin was clothes buying. I learned to ask myself 2 questions before any new purchase (1) "where will you wear this?"; and (2) "okay, what would you wear in that instance if you didn't have this new piece/outfit?". 90% of the time the answers tell me I have no real need for the clothing. I also stepped my first foot into a Goodwill and have never looked back! Twice a year or so, when I think I just HAVE to have something new, Goodwill takes care of the "jones" at 1/4 the price. It also makes me feel good about myself for the recycling.
- Getting creative with "needs". My favorite example during our debt-paying time is our old ottoman, which had sprung leaks and looked terrible and I told DH I just HAD to have a new ottoman. He in turn got the sewing box out and in a short while had all the tears sewn up and it was servicable again. (Still using it today, though it does look a little ratty. I've learned to just not look at it.) Another "needs" idea: put the word out! If there's a household item you've identified as a necessary, tell everyone you know that you're looking for a used one. We found it amazing how much of the time someone had what we were needing and would give it away or trade for it.
- Staying out of the "quick stores". Those dollar-here dollar-there purchases really add up. I even still today just pay for my gasoline outside so I won't have to go inside and be tempted by my "it's just a dollar" mocha capuchinno.
Wishing you again the best of luck on your debt journey.....
I don't think I've eliminated any one category! Although I thought about eliminating cable and my car, I never got around to it. (I have a hybrid also--a Prius, and I've been on the fence about selling it for so long that now it really doesn't make much sense to sell it--I have 15 more payments, but after that, it's mine, and it's been well-maintained so I'll get many more years from it, I hope.)
I did eliminate attitudes like:
--I think this is cool; I'm going to buy it.
--My son/daughter could use this; I'm going to buy it.
--My family needs my financial help; I can afford it
I added questions before any purchase:
--Do I need this? Now? Can it wait?
--Is there a creative way to get this for free/cheap? (Like using up gift cards, travel points, Freecycling, making it etc.--not stealing!)
--Am I justified in just saying NO? (To myself or a loved one)
--Is there stuff in the house I could eat if I'm willing to put in 30 minutes of time? (To cut down on the "there's nothing to eat--we have to go out" syndrome).
--Do I REALLY need this? (My dog ate my glasses and I went for 7 months without buying new ones. Sure, I squinted a little reading stuff, but I borrowed DH's dollar store glasses when I really needed readers.
--What will I lose by NOT buying this? (Things that fall under this category are experience things-- trips to see family members. As desperate as I am to get out of debt, I refuse to go to someone's funeral saying to myself, I should have taken him/her up on the invitation to visit.)
The change of attitude and simply paying attention has meant more than slashing stuff out of the budget completely--for me anyway.
Edited also to add: I went through a period in which every time I said no to myself, I made an online payment for the purchase price of the thing I had resisted to the #1 debt on my snowball--just as a gesture towards how small decisions add up. It really motivated me to stay the course and made me feel like I was instantly getting some kind of payback for the sacrifice.
Never did have much debt, but when I did my gazingus pin was books. I either borrowed from the library or a friend with similar tastes, or made myself wait until I could get the paperback version used (no hardbacks entered my life for a long time). I also waited at least 6 months before I made any major purchase (major being anything over about $50). If I still needed/wanted it after that time period, then I would go ahead and get it. Most often, I didn't want or need it any more. Sometimes at 6 months I was still on the fence, so waited longer - over half the time, when a year or so had passed, so had the urge.
fidgiegirl
1-9-11, 10:41am
First of all, awesome and you can do it and it will be sooooo worth it.
Initially, I used tracking of my income and the monthly questions from Your Money or Your Life to identify the areas that I wanted to cut back on. I also sought out small bits of additional income like petsitting, odd jobs, I sold books on Amazon and other items on eBay . . .
Later, Dave Ramsey became a big motivator too. In the latter part of my debt repayment, it was a chart that really motivated me to save as much as I could in every area but also to "snowflake" my money toward my debt. If you look closely you can see that I used two kinds of green and that some of the marks are veeeerrrry small - denoting a small amount of $$ - but that's how the snowball started rolling.
I should also say that not all of the entries on the chart were debts. My sister was married in Hawaii that year and I treated that as a debt to myself and incorporated it into the snowball. That way I set the money aside before the trip and never added to my debt. In fact, aside from one disbursement of a student loan that had already been in the works before my decision, I did not add ANY debt once I decided to pay it all off. I treated savings goals as integral to my debt payoff. So I could have paid off faster, but sometimes took breaks for saving for grad school (paid most in cash) and two trips that were very important to me.
http://images.43places.com/entry/555406pw600.jpg
Looking back, it feels like my most conscious efforts were more on adding money rather than cutting back. However, I know I did both.
Since I've been married, my husband and I challenge each other to spend as little as we can. It helps to have that kind of support.
Life_is_Simple
1-9-11, 12:12pm
Fidgiegirl,
We can post jpegs in the forum? Way cool! Now I'm REALLY liking it better than the old place :cool:
:~)
You can post an [IMG] link to a file that's elsewhere. We're trying to limit uploading because it uses a lot of storage/bandwidth, but at the moment you can upload to your album and then create a link to it. I like the feature but we're gonna have to see how much it costs.
This image is indeed linked . . .
I also used a chart when paying off student loans. It was soooo motivating and really inspired me to pay more and more each month - even a few extra dollars toward the debt felt good to put on the chart. I totally forgot about that - so thank you fidgiegirl for reminding me. I think I will make another chart since I'm saving toward a big expense at the moment.
flowerseverywhere
1-10-11, 5:40am
We started tracking and each month highlighted needs and wants. Needs included utilities, mortgage, taxes etc. Wants included eating out, clothes (we have enough clothes to last for years), books, magazines etc.
We eliminated just about all our wants and tried to cut down our needs as much as possible. This included reviewing our insurances, turning down the heat, hanging laundry etc.
We did not feel deprived because when you are super serious about it you see your debts going down monthly while your net worth increases. Being FI is such a great feeling as long as you have a roof over your head in a safe place, some clothes, a way to get around and healthy food everything else is excess. Even today, years later I think about every purchase carefully. Do I really need it? Will it end up in a landfill? Is there anything else I can substitute? Is it worth my life energy? If I wait a month or two will I still think I need it?
The best thing we did was set short term and long term goals. 25 years ago we started writing a Life Book each year of our current status, current budget, and goals. We initially held monthly meetings as a couple to talk over what was going on and agree on plans. After 25 years, this decision making is built in and we reached all our goals. We kept all our previous life books (which were great for a financial planner) and love to review them.
Having those goals gives the intermediate steps meaning and therefore not just deprivation. You need to measure (I am an accountant type) to see progress. Keep in mind that goals need to be more than just pay off a debt. There has to be a reason(s) behind it for the faimily. What are the reasons to pay off the debt? What is important for the future? What type of future life do you want to live? Write them down. They can be changed, and we did, but it reminds you of the reasons.
Example: A very long time ago I wanted a nice motor home in the future. We set up a savings account and called it the motor home account. Life changed and I no longer wanted a motor home but the savings continued and we still call the account the motor home account. It was just the goal to work toward.
I have given up my dream for a new fireplace this year - decided I could stick with what I have until I get my Heloc paid down. Today, I cancelled my newspaper delivery. Also, have been taking my lunch to work. It's the little things that can make a difference.
Polliwog
The only debt that I have is the mortgage and would like to pay it off early. I'd like to try to pay it off within the next 2 years. I do need to purchase all new replacement windows as the ones in the house are single pane. I am setting aside in an account $200 - $250/month so that I can pay for the double-pane (thermal) windows by late spring in cash. I live in the U.P. so have extremely cold, long winters.
We have started to replace all of our light bulbs with the CFL bulbs. We keep our house thermostat at 64 during the day and evening until bed, then turn it down to 60. 64 during the day because one of us is home in the day (works afternoons) and the other is home after 5:00. Highest gas bill last year was just under $110. in our coldest month.
Replaced the old storm doors with much better ones as well as the interior outside doors (others were warped and letting in all type of cold air). I had even hung blankets in front of the front interior door prior to this and we only used the side or back door. The front door faces north and the side door faces west -- direction that the winds are generally from in this area.
Make most everything from scratch for baking and cooking. Trying to get the food budget lower. Cleaning products are mostly vinegar, baking soda, hydrogen peroxide, bleach (very limited), lemon juice. I do have to purchase Whink Rust Stain Remover as the well water has lime and iron in it -- I use this to clean the faucet innards and a small squirt in the toilet bowl.
Slowly purchasing fruit trees (this will save us money in the long run by having our own fruit). I garden and have slowly expanded each year that I have lived up here. Have old windows in the polebarn and trying to find free boards that others are trying to unload to create a greenhouse for a longer growing period.
My sister is a clothes horse and half the time doesn't wear the items (still have price tags). I receive all of her hand-me-ups. I don't need to purchase any clothes for this reason for myself. I have boxes of clothing that I am either consigning (some consignment shops will purchase the items outright or give you a store credit). So when I have my choice, I go with the cash first or consign it out second - don't need items so never take a store credit. What doesn't sell this way will be for a yard sale(s) that I will have to help declutter and bring in some money.
SO handles the car maintenance as much as possible - otherwise we know someone that gives us a break. SO loves the outdoors so doesn't mind snowblowing our driveway in the winter and has been doing a neighbor's drive as well. He's been given beer/wine and some homemade dinners for doing this.
Use the computer at the library, so no charges. We do have basic satellite (no cable in our area) network and too far away from TV remote towers to even get reception so had to get the satellite.
Keep all equipment running well and clean so that it doesn't rust (same with the vehicles). Repair and mend when needed - clothing items.
I have a free calendar where I note/post all expenses/bills as well as any income so that I have a total each month and try to improve on that.
No debt but wanted to retire young so wanted to pare things down. I gave up:
-internet at home (use the library or free wi-fi). This also helped me spend ALOT less time online which was a probablem I had.
-cable TV - use rabbit ears
-buying books, DVD's & CDs. Again, get them free to use thru the library
-morning Latte and bagel out. Still have good coffee & a bagel but just make them at home for a few cents a day rather than the appx. $5 plus tip I was paying.
-got a used compact car which was inexpensive to buy, register, insure, maintain and on fuel. Ride my bike as much as possible.
-don't do fancy dinners out except for special occasions.
-Try to eat a mostly vegan diet and do most of the preparing/cooking myself.
-entertainment. Found I prefer free or inexpensive activities over costly ones anyways. ex: movies at home instead of in a theatre.
-I'm a pretty hardcore minimalist with everything so never buy or own alot of stuff. Basicly never buy anything unless I ABSOLUTELY need it.
-that goes ditto for clothes. I'm retired so can live in shorts and tank tops and sneakers if I want. And i want :D!
-I travel very budget style - inexpensive hotels, off season vacation rentals, hostels or camping - for longer periods of time since most of the cost involved with travel is in the getting there.
-have a pre=paid cell phone (tracfone) that I rarely use. Costs aboute $8/month.
-use cash for everything. Use to put everything on a debit or credit card and pay it off at the end of the month, but found I was always buying those little "extras" each month that I didn't when I used a pre-budgeted amount of cash instead.
-had a couple of roommates for a few years while I paid extra to pay my mortgage off early (or save for retirement). Booted the roomies out after I paid off the house but having that extra income for approx. 4 years made a big difference.
lots of other small things that add up over time.
clear water
1-27-11, 11:27am
I'm trying hard to quit spending for anything I don't need. Of course buying on credit being high on the list. Yesterday I recieved yet another credit from Capital One. So I wrote them a note saying I would never need their credit card, or their greed. Then put it back into the envelope with all the info they sent me and I'm sending it back to them.(postage paid by them) I think if more of us sent back all this junk less would go out. What do you think?
I just try to resist the temptation to buy things I don't need or can't afford. I enjoy little luxuries like going to the cinema every so often and eating out with friends, but I guess because I'm such a penny-pincher in other areas, it doesn't really make too much of a dent in my income. I put away money each month to put towards things like trips abroad. I'm only 27 and for about 8 out of the last 10 years of living independently, I was a student, so being frugal was a must. If anything, I spend less now that I have a regular income than I did when I was living off student loans and part-time work. I recently paid off the last of my relatively meagre debt, and I hope never to be in debt again until I take the plunge and get a mortgage... (which will be no time soon as I earn diddly squat!)
fidgiegirl
1-28-11, 8:21am
I'm trying hard to quit spending for anything I don't need. Of course buying on credit being high on the list. Yesterday I recieved yet another credit from Capital One. So I wrote them a note saying I would never need their credit card, or their greed. Then put it back into the envelope with all the info they sent me and I'm sending it back to them.(postage paid by them) I think if more of us sent back all this junk less would go out. What do you think?
Here's some info for how to cut down on your CC solicitations. I did it years ago and it really cut down. Places like your union or your existing bank an still solicit you but it will cut down.
http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt063.shtm
Your example of snowball tracking is very helpful and inspiring! What was most helpful reading fromm Ramsey?
$30 minimum bookstore visits buying bargain books, quite a few of which went UNREAD before they went to Goodwill or friends of the library. (Can you say Gazingus!)
Stops at the grocery store every couple of nights after work, because I was bored. Replaced with.....
Stops at the warehouse store on the way home every week or so (to buy gas, and then to load up on the cheaper DVDs and food that was not so good for me. Company sent a letter telling me I would have had a $45 rebate on $2000 worth of purchases--instead of upgrading as they hoped, I realized I should QUIT GOING! A lot of it was weekly gas fillups, but still....As Michelle Singleton says, if you spend, you don't save.)
Visit to the library which is not followed by another visit returning books before they are over due. Double digit fines when I finally paid everything.
I let lapse a county parks and recreation membership I used but did not need or really enjoy.
I quit going out to movies when I was lonely or bored (I have an HD TV and antenna so I get some free TV, and I have all those DVDs which I am making myself actually WATCH since I paid for them. Most are not TOO awful....).
We eliminated our 2nd car and along with it - car insurance, gasoline, mechanical upkeep, and the personal property tax we had to pay yearly for owning it.
And as avid gardeners - we said no new plants. Only trade with others or starts from seeds.
Pared down our grocery list. No processed foods/junk food. Rarely eat out.
Rarely buy clothes. We have enough for our needs right now and will for a long while.
Downsizing on pets. When each one passes we don't plan to take on another. Goal is to own only 1 to 2 dogs or cats as we age, as compared to 6 now. And no more trips to the groomers - I bathe and trim my 3 dogs at home now and they look great. :)
Spend 3/4 less at Christmas.
Live in a small home which means lower utilities. Turn off lights, set the thermostat low in winter and high in summer. Replaced old appliances, furnace, AC, windows and doors with new energy efficient ones. This is paying off for us well in energy savings longterm, and we received rebates from the government.
Our cheap entertainment these days is walking the dogs, reading, going to the library, listening to music while drinking cheap wine, ;) borrowing and watching movies from our adult DD's extensive DVD collection, visiting with our kids and grandkids.
Our life may sound boring to some, but we are happy as clams to be completely debt free in our early 50's. :) We started working hard to get to this place in 2000. Paid off our mortgage in 2006. It can be done without feeling too deprived. It's all about priorities, and the sense of well-being of being debt free is the best feeling in the world! I could probably add lots more to the list above too....maybe later.
flowerseverywhere
2-3-11, 7:23am
last night I stopped in the grocery store and ran into someone I hadn't seen in a few years. We used to work together and we were not close as I was the super frugal non social one and she was the new outfit, out to lunch, shiny car socialite. She lost her job, then her husband traded her in for a new model so she was in her mid 50's and was starting over. She talked about how for years with two good incomes they spent and spent and here she was with no hope of retiring (her two jobs don't make as much as her old one) and she didn't pay much attention to pensions or retirement savings. The ex pretty much cleaned out the accounts before he took off. Then she went on to say how she has cut every non-essential out of life as many have noted here. Sold stuff on e-bay, son and wife moved back in and help with expenses (with two jobs she's never there anyway), cooks everything from scratch. Even babysits on weekend nights for extra money. I have some lines on some on call jobs that I do that I am going to help her with. She is a totally different person than when I worked with her.
What might help motivate is to ask yourself what would happen in a job loss, or two job losses. If my SO was out of the picture. If I became disabled. Anyone who is paying attention has to see that the government as we know it is changing in all countries. The social safety nets are changing, Medicaid, Medicare, social security, schools and libraries... nothing is sacred from the federal and state budget cutting axes except the pay and benefits of the top officials that is. Protect yourself because no one else is going to do it.
You are all so much further on the journey than me, but I took another baby step today - cancelled the home phone land line. Rarely used - think I hung on to it for security reasons. On to step 2 tomorrow :)
We, too, ditched one car and use bikes very often for local trips
Don't charge anything we can't pay off each month, avoid finance charges this way
Cut our own hair
Eat most meals at home, cook from scratch, very little packaged, prepared foods, buy seasonal produce, mostly vegetarian
Buy 95% of clothes from consignment/thrift shops
Use local library to the fullest
Have friends over for Scrabble or Charades and have pot lucks
Swap pet sitting with friends and neighbors
Purchased a new, high-efficiency heat pump to cut down on carbon footprint and lower utility bills
Canceled magazines, read at library
Use Netflix for entertainment
I took a job working outside the US. I work for a US military contracting company and with the extras added in and the fact that I won't pay US Federal Income tax if I can keep this job for 330 days (outside of the country 'tax home'), I am hoping to pay off all of my credit card debt this year. I don't go out much, don't shop. My Jeep is in storage so the insurance is minimal, gas not an issue. I could have done this cheaper, but so far I've paid off $6K in debt in 4 months. Whether I stay OCONUS (outside US) for another year or not depends mostly on where I'm at financially when this year is up.
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