Wow, its amazing how fast the summer has gone.
The BusyBeaver household went full steam into summer activities. Travel, vacation, summer camp, birthdays, swimming. It seemed like it would never end.
All this summer fun does come with a decent price tag (although it doesn't have to).
That got me thinking about my budget. What lessons could I impart about maintaining your sanity while running a household?
Income - I've worked very hard to get my financial position where it is today. I've gone from lower paying jobs to seeking higher and higher pay. While none of these fill my soul, they do fill my son's mouth with food. I've been on WIC, I've applied for welfare. Luckily, I didn't have to use those programs long. They are designed to help out those who find themselves in a difficult time.
It was a big humble pill to swallow.
Being a single parent, most of the financial burden falls on me. Yes, I receive child support, but that only helps. We cannot live off that.
So first, evaluate your income. While you may be comfortable where you are at, is there an opportunity to branch out and maybe earn more? Could you pursue your hobby and sell some items on the side for a little more cash flow?
Next, and by farthest the biggest part, expenses. Bills. The worst part of checking the mail box.
We'll break this down into several parts.
Household expenses (rent/mortgage, utility bills, etc) things that stay pretty steady
Living expenses (grocery, fuel/gas, etc) things that fluctuate cost from time to time
Outstanding debt (student loans, credit cards)
Household expenses - While you have some control over where you live and therefore how much rent you can afford, there is always the opportunity to look into cost savings. Renting from a private owner rather than a large corporation often times means no yearly rent increase. My current landlady has not changed my rent in the 5 years I've lived here. She's an awesome property owner. She lives next door, so if I have any problems, I just notify her and she resolves them quickly.
Private renting comes with risks. You may get a non-responsive landlord, one who doesn't fix anything even though the contract says they will. It pays to do your homework.
Electrics/water/trash bills- There is a lot more competition these days for utilities. Price shop. Do the little extra bit of legwork and you can save lots of money. I recently switched my trash pick up company and went from $160/quarter to $75/quarter.
Living expenses - There are some amazing apps out there to help you save money. Like GasBuddy, which lets you know what the prices in your area are, and the trends of rising or falling gas prices. Apps to save you money on groceries are a dime a dozen, but here are a few more popular ones; ibotta, basket, and Favado.
Online shopping also has many ways to save money. If you regularly use Amazon, sign up for Amazon Prime to save on shipping. Honey helps you save on online purchases, including Amazon.
Outstanding Debt - Typically the most unpleasant part of being a responsible adult. Paying back those student loans and credit card debts. If you are like me, you may have several student loans and or credit cards. Trying to keep track of each one, and their different due dates is mind boggling.
My best solution at the time was loan consolidation. This is not the best choice for everyone. There are many more options today to deal with your loans than 20 years ago.
For instance to get an idea of where to get started check out the following sites:
These are just a few of the many options available if you do an internet search for "How can I reduce my student loans."
Just a quick review of the sites:
- Student Loan Hero - A very well put together site. It is full of information about consolidating your loans, refinancing, and overall how to get the most of the tools you use to finally pay off those loans. They have an ongoing blog of useful tips and reviews of your different options. I really wish this was around when I was working through my own student loan consolidation process. I would have made a much different decision (maybe its never too late to change my mind).
- Nerd Wallet - This is geared more towards credit cards, but they do have some information on student and personal loans as well. Calculators, lender rates and some tips on how to lower your payments can be found here.
- Earnest- This site offers information as well as refinancing through Earnest.
Also available upon searching were bank options and opinions on their consolidation/refinancing and loan services. I advise you to thoroughly read each one carefully and decide for yourself which option is best.
Extra expenses - Outside of bills, the next area to consider is extra expenses. Where can you afford to go cheaper? Where can you not? I tend to have a certain level of quality I'm willing to accept depending on where my finances are. Name brands can be sacrificed. Organic is nice but not entirely necessary if you are extra broke this month. Aldi has re-branded itself as a quality and economic choice for organic options. It is worth a try! Farmers markets offer fantastic item choices at prices that are often cheaper than chain stores. I've written about my local Spice Rack store where I get all my dry goods that are better and far cheaper than the chain store versions.
I haven't bought clothing from the mall stores in years.
All these little savings in your life can help save up for that car repair, or new bicycle. Certainly traveling on a budget has gotten easier with couch surfer and airbnb. Not to mention if you want to camp and shirk at paying camping fees, there are many campsites that are free (first come first serve).
Cheaper traveling options often bring you a more memorable experience without the padded cost. Do you really need a luxury hotel? Or would a rented private room suffice? Hostels are not scary, and some even cater to a more family friendly atmosphere.
Like everything in life these days, it really does pay to do your research.
What are your favorite ways to save money and enjoy life more? Leave comments below!
Wow, its amazing how fast the summer has gone.
