Saturday, July 24, 2010

Step 1- Reduce bills

So step one of me becoming a SAHM is to be able to afford to be one.  Last year my husband lost his teaching job...... we were 6 weeks pregnant and didn't see the layoff coming. We spent a year on 1.5 incomes (he found work, but not full time). So our budget was already tight. Now he is working full time, getting a "raise" (or back up to his old pay).  I also am/about to be was/ a teacher and make less than he does.

So we calculated it.... cost of childcare being covered by my job leaves us an extra $800 a month. So.. we calculated again... where can we cut out $800 a month so that I can quit my job to raise our son.  We made a list, we researched money saving things on the internet and here we are:

1. Called cable/phone/internet company- reduced bill by $80.
2. Called car insurance and said I'd be a SAHM- reduced bill by $50
3. Called cell phone company- reduced bill by $20
4. Called grocery store and reduced bill to $250. (okay I didn't call the grocery store we set ourselves a budget)

Budget reductions-
Eating out- sorry thunder thighs, no more eating out 2-3 times a week (reduce grocery/food bill to $250 gives us back another $200)
Gas money- out goes my 23 miles each way trip to work, in comes $100
Thermostat- up to 78 in summer down to 72 in winter (not sure of savings)
Target- oooooooooh so that's where all my money went....... no more $100 trips every 3-4 weeks. (Can't even tell you what I was buying anyway)
Cloth diapers- back fully into cloth reduces our spending habit by $50

So let's do the math
Need 800
-150 (bills)
-450 (budget reduction)
=600 still 200 bucks short.

Well............ we're still going with it anyway. My husband supplemented our income while he was laid off with construction. He was bringing in an extra $500 a month (we didn't add this into our initial budget) and I can tutor kids or sub a few days a month.

I'm also going to research more ways to save money.
First up: Coupon hunting and efficient grocery shopping

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