Earlier this year, my husband learned that his company was doing an across-the-board pay cut. The percentage wasn't huge, but once it came into effect, it was more painful than we thought. We have never been overly extravagent people and both are decent at saving money, but in the past few years, we seemed to always find ourselves spending pretty close to (or going over!) what our monthly paychecks brought in. It's so easy to spend what you have, adjusting to each pay increase, isn't it?
Once we heard about the pay cut, we realized we really needed to look at our budget and cut out any and all unnecessary spending. I already was looking at our spending periodically to make sure we weren't missing any savings, but this time we had to get serious. We have some money saved as a cushion, but we really didn't want to dip into that to cover our monthly expenses. Somehow, we had to get our monthly spending to be LESS than our incoming paychecks!
Right around the time of the paycut, a friend shared a couple blogs with me: Moneysavingmom and Hip2Save. They are both dedicated to finding ways to save money on the purchases that we make everyday - from groceries to toiletries to gifts and lots more. Just to name a few, they post ideas on how to live frugally, coupon codes for online shopping and grocery store match-ups, which pair sale prices with coupons and other promotions that help you get items for free or at incredibly reduced prices.
In the 8 months or so that I have been following these and other great blogs, I have been getting tons of good deals on things I would normally buy anyway, and I have saved lots of money. The best part about it, though, is that it has totally changed the way I think of spending our hard-earned money. No longer do I traipse around the grocery store picking up anything and everything that looks good, only to forget about it once it is away in the pantry or freezer.
Now I will clarify that I am a total foodie and love cooking, and I haven't lost all the fun of grocery shopping. Using coupons and pairing them with sales to get products close to free has actually allowed me to try more new foods that I might not have spent money on otherwise. In some cases, I have loved the product, and in others, I'm glad I didn't spend more than a few cents!
Just recently we received word that the pay cut will be reversed, and this month we will be back to my husband's normal pay. Also, I changed jobs this month, which will give us even more wiggle-room with our budget. Will I go back to my old ways of spending? NO! I'm so excited to report that after the first month or two of the reduced income, I forgot we even had the extra savings that could bail us out if we charged too much on the credit card that month. I spent my time trying to get great deals and keep our out-of-pocket expenses as low as possible. I think that because I started small, and tried not to let couponing overwhelm me (because it can be very overwhelming!), I have continued to do it and enjoy it. Sometimes a big trip to the grocery store with my stack of coupons and shopping list that I have carefully planned out can be exhausting, but when I come home and proudly show my husband how much I did (and didn't) spend and all that we got, it is worth the extra effort in my opinion.
Here are some of the best lessons I learned when I had to tighten my belt these last many months:
:: Spending mindlessly is like eating mindlessly - you're left with unhealthy results, whether it is an enlarged credit card bill or an enlarged waistline.
:: Using coupons and finding bargains not only saves us money, but it fulfills my urge to shop! No longer do I go shopping just to go shopping, and yet I feel like I am living more abundantly than ever.
:: Patience is key. Unless I really need something NOW, I try not to buy it. Often, what I need really does go on sale and/or I find a coupon by the time I need it.
:: Just because something is free doesn't necessarily mean it is a good idea to buy it! There are lots of coupons out there for highly processed junk food. While the occasional (free) treat is fun, many times I have to just ignore some good deals. On a similar note, if you don't need it and it only costs 45 cents, you're still spending money and adding clutter to your life. So keep walking.
So yes, living frugally is a lifestyle not everyone can understand or want for themselves. The way I see it, I live frugally in some areas of my life by using coupons, not spending much money on technology (including cable) and really considering every purchase I make, so that I can live a life of abundance in other ways.
What are the best lessons you have learned from cutting back? Please share!
This post is linked to this post for Frugal Fridays.
Friday, November 13, 2009
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The best frugal lesson I've learned over the past years is this: don't buy something when you need it, buy it when it is on sale for the lowest price. If you have a coupon, even better! You might not need that jar of mayo now, but if it's on sale for 2.99 and you have a dollar coupon, it's a good idea to get it. I'd rather reach for that 1.99 mayo in my pantry than to have to pay 3.99 or more later. I guess what I'm saying is that building up a stockpile a little at a time really helps. These days, watch for butter and baking needs to go on sale. You can freeze butter, you know, and 1.99 now is a lot better than 4.99 in January.
ReplyDeleteIn the process of cutting back, I found that I really didn't feel deprived. It's a game, in a way. Not only that, but when your grocery list decreases as your stockpile increases, you can swing special treats like good steak without breaking the bank.
BTW, I'm sure you know this: it's important to take inventory once in a while, or you'll end up with 55 tubes of toothpaste and not a single bottle of shampoo. (Those CVS deals are soooo tempting...)