Posts tagged budgets

Money Monday

Instead of moving on to step #4, I thought I’d post something on budgets.  Suze Orman suggested going through 2 years of expenses making categories and establish amounts spent and work from there.  Like I said last week…yikes. 

First, it is all but impossible for me to do this.  Because there SO many things I have no paper trail for so I wouldn’t get a clear idea where my money is going.  I know this because I’ve tried to set up budgets using this method.  Per this…I should have a gazillion dollars left each month.

Second, then Ms. Orman says to ‘trim’ this numbers – trim to what?

So for those of you who are going through life in the same leaky boat as I am…here is a breakdown of percentages.  I have had much more success with this.  When my budget fails, it because of me personally not that I ran into unrealistic guidelines.

Typical Household Budget Percentages

33-38% Housing (59%-66% of this is on shelter – mortgage interest, property taxes, repairs, and rent, and other items)

15-19% Transportation (38-48 of this is vehicle purchase – 2 cars per household average)

13-14% Food Budget (55% at home, 45% away)

0-2% Alcohol

0-3% Tobacco and related products

0-2% Caffeine related products

4-5% On clothing and related services (drycleaning)

4.5 – 6% on out of pocket Health Care

9% Personal Insurance and Pensions (breakdown: 1% life and other personal insurance, 7.5% SS, .5% investment

5% Entertainment

2.5% Charitable Contributions

2% Reading and Education

1% Personal Care products and services

2% Miscellaneous

4% Credit Card, Consumer Loan Interest

Now that you know where your money is going…it’s time to start cutting.

 Easy? Not. Worth it? Doing the above will pay dividends in your life in many more ways than just dollars and cents. You will assure yourself a dignified and financially secure retirement. Do this well and you will also build a way for your kids and your grandkids to enjoy prosperous lives, and they will remember you with fondness and respect long after you’ve moved on to the other side. Now get started!

1. Stop using your credit cards.

2. Make a down and dirty budget right away. Don’t worry about it being right at first…you can perfect it over time. Just do it!

3. Cut back on your easy to identify, frivolous spending habits (3 dollar lattes, magazines, 450 extra satellite channels, etc.) If you’ve got some expensive habits you’ve wanted to quit for some time, now’s the time. For example, if you’re a hard-drinkin’, chain smokin’, coffee drinkin’ fool, you can reap a windfall of up to 7% or more of your income! Just cutting back to 2 drinks per day, only drinking coffee from home and quitting the cigarettes will net you a nice amount of extra cash and add years to your life! Refine your budget after eliminating what you can.

4. Build an emergency fund equal to 2% of your gross annual income. It should be a little hard to get to (like a separate checking account or mutual fund), but not too difficult (Certificate of Deposit.) Work this into your budget – it’s very important. You will not believe the amount of stress that will melt away when you do this.

5. Pay off your debts – everything except mortgages. And don’t just move your revolving debt into a second or third mortgage – that’s bad. Pay them off using a rapid debt paydown system like the Debt Hammer?. Pay off any student loans (for future reference, these are a bad idea.) Pay off your car(s) too. If you’re not upside down on a car loan (your car is worth more than you owe) you can sell it and get a cheaper, paid for car. Throw a small (inexpensive but fun) party for yourself and your loved ones every time you pay off a debt.

6. Take all the money you WERE spending to pay off your non-mortgage debt and start putting it into those investment accounts you put on idle. Make sure you’re investing at least 10% of your gross income. If you followed steps 1-4 exactly, you should have lots of breathing room in your budget now. If this is true and you want to invest more than 10%, go ahead, but be sure to reward yourself too and live a little. Grow your emergency fund to a level you’re comfortable with (2 or more months of income is a good start.) If you have young kids and you want to send them to college, start putting money into a college fund of your choice for them, if you haven’t already. Throw a bigger party than usual when this is done.

7. Pay off your mortgage and throw your biggest party yet! You can start towards this by refinancing to a single fixed rate mortgage (your credit should be in pretty good shape having paid off all your other debts.) If it’s a 30 year mortage, pay more than your monthly payment to dramatically lower the amount of interest you give to the bank. If it’s a 15 year fixed – wow! That’s excellent!

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Money Monday

Step 3 – Being Honest With Yourself…

This week’s step is the hardest yet it is one ANY financial program has – where is my money going? 

The opening starts out with a reality check.  “Throw away a three-dollar magazine you never got around to reading – easy.  Toss in the garbage five dollars’ worth of food that’s good bad – a possible cringe.  But rip up a five dollar bill and throw it away. ..not so easy.

The story she uses to illustrate this step, I really relate to.  As a person in control of our money. I keep a lot from my husband (which I’m working on and making great steps of improvement).  Not just the money spent on me or the kids but what our bills are.  This isn’t a reflection on my parents but my control freak side.  My husband gladly turned the money over to me when we were first married which I pounced on quicker than a hawk on a bunny.  But to say “hey, we’re broke,” would be to say…”hey, I can’t handle this – it’s out of my control.”

Per Ms. Orman – Most of us believe, or deceive ourselves into believing, that we need about 1,000 to 1,500 a month less to live as we are. To get a ‘reality check’ on your spending and income, Suze Orman suggests going through two years of expenses – yikes!  That’s a lot of paper and to be honest…I don’t keep those types of records.  And I have to wonder how many people that are facing major money issues do keep track of expenses like that.  So most I’ve read tell you track ALL expenses for a couple of months and go from there…factoring in things you know will be only year expenses (taxes, insurance, club renewals, etc).  Make to include those ‘small’ expenses – the example given is Friday Night Movies…$20 for tickets and popcorn over the course of the year is $1040. Proof the small things add up.

Then of course comes the where can we cut?  I’ve been amazed how much I have cut our food bill and eliminated waste buy going from family to two people cooking.  This has taken some adjustments, meals that were once money saving are now a waste, most soups I made.  Unless I have a family to give a most of it, we end up dumping it.  Things like lasagna, I still make only in small individual loaf pans which are frozen and eaten over the course of the following month.  Foods once too expensive are now sensible.  For example, pork chop hearts served with potato is cheaper than chicken noodle soup.  Unrealistic budget cuts, like unrealistic diets, never work, the author reminds us.  To say you’re going to eat nothing but boiled turnips isn’t the solution to your weight issue nor is planning on never spending money on clothes or entertainment.

One way to curve the aimless spending is to use ‘real’ money.  Doing this often makes you think ‘do I want to spend money on this?’  Instead of blindly throwing it in the cart and ‘swiping’ for it.  Now there will be things you have to spend money on that you don’t want to – i.e. a new roof.  I didn’t want to spend $3,100 on a new roof but since our old one leaked, I had to.

Another thing don’t let the line between have to and want to blur.  This is line that waves and curves at times for most people. 

Also be realistic and schedule money for replacement things like bath towels.  My husband and I received towels for a wedding gift…13 years later and we were still using the same towels.  When I broke down and purchased new ones we were amazed – they actually dried us instead of just chasing the water around.

Spend this week working on a realistic budget.  Covering the small, hidden, and unexpected costs.  Remember keep it real no boiled turnips for every meal. 

Next week we start the ‘how to manage your money and create more’ steps.

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Money Mondays

Mid-summer is here.  Trips to the local park/library just aren’t as thrilling as they were.  And if the weather where you live is anything like here – 20 degrees below normal – the beach isn’t calling your name.  Lake Michigan is 62 degrees on July 20 – YIKES!  In the previous weeks, I posted some activities to help you cure boredom and not break the bank, here’s another.

Play tourist in your own hometown.  I know this is a common suggestion, and one I never really used.  Because truthfully, my little burg is boring, but with a little imagination I came up with some interesting day ‘fillers.’

1).  In a neighboring town (less than 30 miles away) they have offer free tours of a house built by one of the lumber barons.  So after a little research, I had a plan.  We went to tour the house first since that was the ground work for my day.  Upon returning home…

                Activity #1 – the home featured fifteen stained-glass windows so we made our own using old crayons.

                What you’ll need:

                                Black construction paper

                                Waxed paper

                                Crayons or crayon pieces  

                                Glue

                                Scissors

                                Iron (requires adult supervision)

                How to make it:

                                1. Take black construction paper and cut it into 5″ x 5″ squares.

                                2. With two pieces of paper together, trace a leaf on the top square and then cut out a design you want to have your stain glass in – i.e. a circle, a hand print, a leaf, etc.  with the two pieces together. The squares will be solid around the edges with the pattern cut out of the center.

                                3. Shave crayons. Using a warm iron, melt the crayon shavings between two pieces of wax paper. Then cut down the wax paper to fit between the two squares of construction paper.

                                4. To assemble the window, place one square of construction paper on the table and glue your wax paper glass to that square. Then place the second square over the first square making sure your pattern matches up and glue the two squares together.  

                Activity #2 – Game time.

                                One of the favorite games of the occupants of the house was lawn darts.  My parents happened to have a set buried in the garage so after an hour of hunting on the Saturday, I was set.  I also researched on the internet some other popular games of that time.  We learned a wonderful card game that we still play.

                Activity #3 – Eat.

                                What day outing would be complete without food?  None.  Again, I did some research and found a few items that were new to us and served them on the lawn in picnic fashion.  The lemonade recipe I found from that time period, I still make when I entertain.

Remember – the key here is to pick things that will be fun for your family.

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Timely Tuesday

 

From Horseshoes to S’mores….

This is another “I’m bored” buster.  Cheap and a great family activity!   Plan an evening or weekend afternoon of outdoor games with a finale of s’mores.  Several of the local parks in our area have shuffleboards, horseshoes pegs, and croquette materials that can be reserved for free. 

We start from the oldest game and work our way to modern time to finish with a game of apples to apples while making s’mores on one of the park grills. 

Here are the basic rules for horseshoes, shuffleboard, and croquette as found by the official game site for each.

Horseshoes – the oldest with a similar game being played by the Greeks and Romans

In horseshoes, there are two ways to score: by throwing “ringers,” or by throwing the horseshoe nearest to the opposite stake. This scoring system gives rise to the popular expression “Close only counts in horseshoes and hand grenades.” A ringer is a thrown horseshoe such that the horseshoe completely encircles the stake. Disputes are settled by using a straightedge to touch the two points at the ends of the horseshoe, called “heel calks.” If the straightedge doesn’t touch the stake, then the horseshoe is a ringer.

The nearest horseshoe to the stake within 6 inches counts for one point. If both of one player’s horseshoes are closer than the opponent’s, that player scores two points. A ringer scores three points. A leaner, the case in which a horseshoe literally leans on the stake, in pro horseshoes counts for 1 point. In amateur games, a leaner usually counts for two points. In the case of one ringer and a closer horseshoe, both horseshoes are scored for a total of four points. If a player throws two ringers, that player scores six points. If each player throws a ringer, the ringers cancel and no points are scored. Such occurrences are called “dead” but are still used toward the pitcher/ringer average. Most games are played to 21, and the winner must win by two.

Single points in amateur games must measure 6 inches or less from any part of the shoe to the nearest part of the stake. Also, a game cannot be won when an opposing player, tossing a shoe, bumps an opponent’s shoe to cause the opponent to reach the winning score be it eleven or twenty-one. The game winning point must be attained by the person tossing the horseshoe pertaining to his own score. Examples: If a player has 10 points and an opponent has 8 points, and the player with 10 points tosses a horseshoe and bumps his opponent’s horseshoe for a ringer, the opponent scores 3 points for a total of 11 points, but does not win the game because of the 2 point rule. If a player has 9 points and an opponent 8 points and the player with 9 points tosses a horseshoe and bumps his opponent’s horseshoe for a ringer, the opponent cannot score 3 points, because the winning point must be attained by his own toss. However, the opponent can take two points, bringing his total point score to 10

 

 

Shuffleboard – A 1632 royal expense for this game

 

In deck shuffleboard, the players use sticks, called cues, to push weighted disks, called pucks, along a usually wooden surface (e.g. the deck of a ship), placing the disk within a triangular scoring zone at the far end of the court. The pinnacle of the triangle points toward the shooter, and the zone is divided horizontally into four numbered sub-zones, the numbers representing point values. If the disk lands completely within the small triangular tip zone without touching any part of the borders of the triangle, it is worth ten points; completely within the trapezoidal second tier of the triangle, it is worth eight points; and completely within the trapezoidal third tier of the triangle, seven points. If the disk lands in the large, rearmost and also trapezoidal ’10 Off’ section, it costs minus ten points. Many boards have a small triangle drawn in the center of the ’10 off’ trapezoid, splitting it and making it harder to land completely inside the section. The game is played in matches of ten frames (a frame is both players or teams taking their turns). The basic strategy involves deflecting the opposition’s disks out of zones with a positive value, and increasing one’s own points by landing disks into areas of a high point value.

Shuffleboard can be played either one-on-one or by two teams of two. After all pucks have been played on one ‘end’, only the winning puck or group of pucks scores (according to the points marked on the board). Play then continues in the opposite direction. The winner is the first to a set number of points (e.g. 15).

 

 

Croquet ~ England by storm in the 1860s.

The point of croquet, of course, is to use your mallet to hit your ball through the wickets and into the stake(s), and finish doing so before your opponent(s). Croquet is usually played as a team guy, with two or three people to a side. The order of play is always blue, red, black, yellow, followed by green and orange if six croquet balls are being used. In team play, blue/black/green goes against red/yellow/orange.

Each player has one shot per turn but can earn extra shots by scoring a wicket or by striking another ball, which is known as a roquet. Scoring earns one bonus shot and roquetting earns two. New bonus shots can only be earned on the final bonus shot, and there’s a limit of two at once. With the optional “deadness” rule, a roquetted ball can’t be struck for a bonus again unless the striking player has first scored another wicket. If a ball stops out of bounds, place it inside the boundary in a direct line from its position.

Croquet wickets have to be run in the proper order and in the right direction.

Nine wicket: bottom two up, bottom right, center, top right, top two up, stake, top two down, top left, center, bottom left, bottom two down, stake

Six wicket: bottom left, top left, top right, bottom right, bottom center, top center, top left, bottom left, bottom right, top right, top center, bottom center (up), stake

 If none of the area parks offer any of the equipment for these games, water games are also great fun and can be played at home. 

Next week, I’ll list a few of our favorites along with a few ‘water’ snacks.

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Money Monday

Fresh Vegetables and Fruits

In the spring, I wrote about container gardens.  Well, the summer has come and my garden is producing beans, peas, and peppers.  The farmers market is flooded with fresh blueberries, peaches, summer squash, raspberries, etc. 

So now begins the time to can and freeze (also the time for cobblers, pies, and crisp!)

Whether you get U-pick blueberries, farmers’ market peaches, apples from a neighbor’s tree, or blackberries by the side of the road, summer offers plenty of inexpensive fruit and vegetables that can
be easily preserved. Look for discounts at grocery store sales, farmer’s markets, or roadside stands. Compare prices, since boxed fruit is often cheaper per pound. Free fruit is even better, if your area has wild fruit like blackberries or blueberries.
 

Whether you decide to freeze or can the fresh produce, preserving is it will have money saving benefits as well as taste bonus.  I prefer my canned vegetables over even the most high end tin canned store green bean. 

But many face the dilemma how to can?   Here are to incredible sites.  One is the basic ‘how-to’s’ and other is a list of recipes (a REALLY long list). 

http://www.canningpantry.com/home-canning-articles.html

http://www.canningpantry.com/home-canning-articles.html

The side note on canning is it can be expensive to start up.  But if you hit estate sales and thrift stores you can usually find jars, rings, and canning kettles for next to nothing.  Also keep in mind once the basic supplies are purchased they are reusable the next year so your yearly cost is the produce and lids.

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Money Monday

10 Healthy foods under a $1.00!!!
Rice – Brown rice retains the most nutritional value and white rice loses the most. Many rice producers enrich white rice with vitamins to add back in some of the nutritional value lost in the processing of rice. When you go to the supermarket many rice products will say “enriched” on the packaging. Even after enrichment whole brown rice is still more nutritional.

Oatmeal – My grandma swore by the health benefits of oatmeal. She had a bowl of oatmeal for breakfast every morning and lived well into her nineties. Oatmeal is rich in dietary fiber and has been shown to lower cholesterol and improve cardiovascular health.  Raisins/apples/nuts/dried fruit are all great stir-in.

Potatoes – As long as potatoes are prepared without loading them up with butter or sour cream they can be an extremely nutritious low calorie staple that’s high in fiber and other vitamins.

Eggs – A great source of affordable low calorie protein. One egg contains just over 5 grams of protein.

Beans –  Garbanzo/Pinto/Navy(white)/red – Rich in dietary fiber and are a great source of protein. A cup of most beans contain more than a quarter of daily recommended protein.
Carrots – Carrots are low in calories and packed with essential vitamins and minerals. They are easy to pack and make a great healthy snack.

Lentils – Lentils are a protein powerhouse, one cup of cooked lentils contains more than a third of recommended daily value of protein. Lentils like most legumes are also packed with cholesterol lowering dietary fiber.
 

Flour Tortilla – A great healthy alternative for bread in making sandwiches. 

Pasta – Is fortified with folic acid and a ½ cup of cooked pasta contains a mere 99 calories, less than half a gram of fat, and less than 5 milligrams of sodium.  This is a highly versatile cheap addition to any house hold’s menu

 
Water – Water is one of the key building blocks of health. Replacing soft drinks and high calorie, sugary drinks is one of the best things you can do for your health. Drinking plenty of water also cuts down on hunger and food consumption.

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Timely Tuesday

The beginning of the month is ideal time to restock the items in your pantry. Also, in May, August, and November I add the staples I keep on hand to go with that season.  May will be items I use for Spring & Summer vegetables and fruits as well as canning supplies, etc.  November is my holiday cooking and winter time menu staples. 

The beginning of the month is also when more coupons are issued and more stores run staple sales at the first of the month.  (See yesterday’s post of coupon websites)

What should be on your Pantry checklist? Key ingredients you repeatedly use throughout the month.  If you make menus that this list will reflect the next four weeks of meals, if you’re a night by night meal person this will make your life so much easier.

I made a master list and posted it on the door to my pantry so whenever I remove an item I can mark.  NO memory for me, I’ve made way too many batches of cookies with borrowed sugar.

I add items as new recipes become mainstays in my menus or subtract items when season’s change.

 

Here are some links to pantry list that you can add or delete to.

http://www.betterbudgeting.com/freeworksheets/pantrylistprint.htm

http://oldrecipebook.com/basicpantrylist.shtml

What are some of the basics you keep in your pantry?  What is your favorite ‘pantry’ recipe?

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Money Monday’s

I’m back after a week of no electric which in turns equals no internet.  We had major rains, which washed out MILES of electric lines. 

Anyway, for today’s money Monday, I gathered some websites that offer coupons or money saving deals.  I would love to hear what you thought of them or if you have any favorites.

Coupons & Thrifty websites revisit

Couponwinner.com – fairly new.  Offers discounts and coupons for more than 5,500 retailers.  Cool features:  You can view multiple deals side by side! 

Couponcode.com – Cool feature:  breaks coupons into categories – new, expiring, and free shipping

Ebates.com – offers discounts for shopping on line

Paperbackswap.com is great to save money on books.  Our library is small and the selection is very limited and it’s 35 miles away.  I have saved over $5,000!  And solved the problem of what to do with the books once I’ve read them.

Shortcuts.com to see if your grocery store offers e-coupons

Swapsavers.com – “a social network for frugal folks who love freebies, coupons & rewards.”  Offers a lot of different forms and some fun information. 

thriftyfun.com is a coupon swap

wholegrainscouncil.or is a great resource.  Includes recipes, general information and a list of whole grain manufactures.

Donate Expired Coupons – U.S. military families stationed overseas are able to use expired coupons on base for up to six months after the manufacturer’s expiration date. You can adopt a base. See http://www.ocpnet.org/base_list.htm

Have a great day!

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Money Monday’s

Todays Money Monday is a list of resources.  Including of free budgeting tools, cool websites, and some interesting reading material.  If reading about money is interesting. Remember when visiting websites and reading material on budgets, keep in mind what is real for your family.  If you live in the city, growing all your own vegetables and having a cow for dairy isn’t going fly.  Any more than if you live in the country and have only one grocery store within a 20 miles, store hopping isn’t an option.


http://www.stretcher.com/stories/09/09apr06j.cfm ~ offers free price book printouts.  A price book is something that can be used for all purchases but is mostly focused on food items.  I use the 3X5 size and keep in the photo holder with my coupons.

http://www.betterbudgeting.com/budgetformsfree-basicbudgeting.htm – This is a very basic budget sheet

http://www.daveramsey.com/fpu/home/index.cfm?FuseAction=dspContent&intContentID=135 = this is a link to Dave Ramsey’s site.  It has a lot of free stuff, links to listen to his radio show, and information on his books (not free).

Websites:

http://www.Miserlymoms.com – Joni’s book was the first budget/thrifty book I ever read.  I loved it!  And I still bring it to all my workshops for young moms.  Now as with all tips/suggestions not everything in there is for me. 

http://www.betterbudgeting.com website with newsletter, tons of tips, and free budget forms.

http://www.cheapskatemonthly.com Mary Hunt offers a lot of info on her website.  Not much of it is free but there some things that make it worth a visit

 

A reading list for the budget minded (remember request from your library and save even more):

Family Budget Workbook: Gaining Control of Your Personal Finances by Larry Burkett – Mr. Burkett is one of personal favorites so while this book is older, I still recommend it when ever someone I know is looking to start a budget.

Get to It! Budget Book: A Fresh Start to Personal Finances to Help You…Get Organized! Get Control! & Get on With Your Life! by Cheryl G. Hosking and Brandi McNaughton – A nice beginning book

How to Get Out of Debt, Stay Out of Debt, and Live Prosperously: *(Based on the Proven Principles and Techniques of Debtors Anonymous) by Jerrold Mundis – I haven’t personally view this book but it was recommended to me…it’s on my request list from the library

365 Ways to Live Cheap: Your Everyday Guide to Saving Money by Trent Hamm – While most of the tips in this books were not for me it definitely gave me something to think about.

I also recommend anything by Suze Orman.

So what are some of the books, websites, or budgeting forms you have found the most useful?

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Money Monday

A challenge….A week of frugal

 

Note:  while this may seem extreme, I think the results will surprise you.

Warning:  This requires ~ A LOT of effort and determination

 

The Challenge:  A week of no spending and minimal utility usage

On your mark:  Get the family pumped about this week…it will be fun to see you can save the most. 

Get ready:  Select a week, for seven days, no in your family will spend any money and will only use the bare minimum utilities.  The week before the challenge write the meter readings for your electric & if available the gas at the beginning of the week and the end.  Also track money spent on ALL things, groceries, lunches, coffee, and entertainment.

Get set:  The day before round up the troops and go over the ground rules.  Here were ours.

                (1) One hour of computer time per day (yes, this included facebook and homework – most projects less IM and facebook take over an hour a day)

                (2) One hour of television/X-box/dvd’s a day.  (Because I clearly missed the on your mark goal, my kids decided they would pool their time.  So Amberleigh paid for the first hour, Willow the second, and Sawyer the third.  Yet they all watched three hours of tv….no, whoever is watching tv pays up.  The same with the Xbox if my boys played together they paid together.)

                (3)  No hot lunches…or vending machine purchases.  Including my hubby!

                (4)  Limited shower time – must people including teenage girls can shower in 10 minutes.  Now they can be in the bathroom longer than 10 minutes but the water can only run for 10 minutes. 

                (5) Dial down the water temp and the heat.

                (6) No space heaters

                (7) Unplug all items when not in use (except clocks – my youngest did jump on the bandwagon and I had to reset all my clocks ;)

                (8)  Only on trip to the store…at the beginning…if it’s forgotten then it’s done without.

                (9) Take the meter readings again.

                Add any items that work for your family or subtract those that don’t.

GO!!!

Finish line:  Take the readings again…I was amazed at the difference between our normal week and the week of torture as my kids refer to it.

The results:   My hubby figured out the savings ~ $30.00 dollars in electric (WOW).  No extra spending (lunches, etc) resulted in a $45.00 savings.  So while it required a lot of effort to do this for a week (like I said my kids didn’t so groove on it) the realization of how much we spend in surprising.  And I consider us a frugal family to begin with.

So if times are hitting you hard.  Take the challenge see what you can save and then decided what can be permanently removed.  I have a friend who does this monthly with their family.  They set it up as a game; the kid that spends the less computer/tv/game time and takes the shortest showers wins two free blockbuster movie rentals.

 So make it fun and save!

 

 

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