The Financial Nitty Gritty

As we've shared our situation and new life with people, several have wondered out loud (and probably even more have wondered quietly) "What are you doing for money?"  - Well, it is a work in progress, but I thought that I would write a little blog post detailing some of the major changes that we have made in our lives to accommodate our new budget, while still allowing me to stay home full time.  

First of all, let me say that I don't mind at all being very open about our finances.  I think that God's provision in this area is one of the most awesome and powerful ways that He is moving in our lives, and an amazing testimony to believers and non-believers alike.  I don't want it to seem like we are bragging (this isn't written in that spirit) but I don't mind sharing this very personal matter with others, b/c I think that it shows how much God takes care of us when we are obedient to Him.  Along the same lines,  He has called us to be good stewards of the financial blessings (and other blessings!) that He gives us, so we do feel like we have some responsibility in living frugally and doing the best with what we have - hence, this post.  (And yes, we do tithe.) 

That said, here's the nitty gritty:  We are debt-free (except for a home we own in MA that we rent out).  Alex is in the Navy Reserves and I work very part-time (from home)  as a contract employee for a dental company.  We did save a pretty good chunk of money in anticipation of this change, so our emergency fund is well - stocked.  However, we are attempting to live without touching it - especially b/c we still have that house up north.  If our tenants moved and we couldn't replace them quickly, that emergency fund would be drained pretty quickly.  We are not taking out any student loans for law school;  Alex has the Post-9/11 GI Bill which covers all of his tuition and most of his fees.  Also, we are on a zero-based cash budget.  Everything except gas and our bills is in cash - (more questions? Ask me about it, or google Dave Ramsey)

Our sources of income are as follows:
Naval Reserve Pay
GI Bill Housing Stipend
Julie's Contract Employment Hours

I'm not counting the rent from our house in MA, b/c after the mortgage, our property management, taxes and insurance, we actually are in the red a little bit every month on that.  It is an expense, rather than an income.

So, here are some of the things we have done:

A)  We live in a 2 bdrm, 1000 sqft apartment.  This is quite a change from our 2400 sqft home in a gated community.  Luckily, the kids shared a room before we moved, so that aspect of our living arrangement has not been a huge transition.  However - the whole living in an apartment thing has obviously been a change and affected all of us.

B) We do not have cable of any sort.  We did buy a $15 antennae for our (OLD) tv, so we can watch the Cowboys play.  But if they come on CBS, it's too bad, b/c the antennae does not pick it up.  (Mom, Dad, we'll come to YOUR house when the 'boys are on CBS)  And, our old tv is in our bedroom - not in the living room, so we really only watch it at bedtime. 

C) We got rid of stuff.  Seriously.  Lots of stuff.  Just off the top of my head:  a bed, two nightstands, our favorite nursing/reading recliner, a tv, a dvd player, a stereo, a keyboard, a huge entertainment armoire, a dresser, two dining room table sets, a china hutch, a large office desk, an office chair, our treadmill, our piano, two tall bookcases, a short bookcase, tons and tons and tons of baby clothes and toys and accessories, a BEAUTIFUL stainless steel pasta pot, all my Christmas dishes, a few really good calphalon cookware pieces, an entire set of silverware, an entire set of Pfaltzgraff dishes, old teaching stuff (why was I hanging onto that anyhow?) deep freezer, grill, patio furniture, stroller, high chair, lawn mower, leaf blower, wheelbarrow, bench and wall cubby (for a mudroom)...I could probably list 20 more things if I really sat and thought about it, but that was just off the top of my head.  (Oh, and I can't forget the HUGE sacrifice of the dozens and dozens of books that Alex and I got rid off.)  We purged like there was no tomorrow.  And honestly, it kind of feels good.  There is not a single thing that I miss.  Well, I miss my piano, but in all fairness, we didn't really get rid of that - our dear friends are babysitting it for us for the next three years.  But, to me it counts, b/c we don't have it with us.

D) We got rid of our cell  phones.  That is right.  NO CELL PHONES - (how archaic!)  We do magicjack for our land line and Alex and I both got pay-as-you-go emergency cell phones to keep with us.  We have 1000 prepaid minutes to last for the next 13 months, and we are not giving anyone the numbers.  Total cost: $227 - for two phones, and 2000 prepaid minutes.  (We spent more than that in two months with our previous cell phones.)

E)  Buying ONLY what you need from the grocery store.  This has been hard for me (not as hard as bar soap, but you'll read about that next.)  I am a stockpiler of food.  I like to have a fully-stocked fridge and pantry.  If tomato paste was on sale for a good price, I'd buy ten cans.  We shopped at Costco A LOT for Cooper's first two years of life.  (Because every family of three NEEDS 200 rolls of paper towels)  We had plenty of room in our home and I hated my fridge and pantry looking empty.  Now, my fridge and pantry ALWAYS look empty.  Well, not my pantry - b/c it is tiny and I could have a single box of crackers and it would still be crowded.  Especially b/c it also houses my griddle, crock pot, breadmaker, measuring spoons & cups, knives, broom and dustpan, foil & sandwich bags, potato basket, garbage can, laundry hamper for kitchen towels and recycling bin.  Someday I need to do a pantry post.  Seriously, my pantry is like one of those clown cars...You know, a smart car and then two hundred clowns climb out.  I have that thing packed.  But our fridge is virtually empty on any given day.  I know that all the couponistas say to stock pile, but we just don't have the room.  Plus, I don't want to lug all those groceries up a flight of stairs while carrying a whiny two year old and trying to keep tabs on the four year old and trying to dig out my keys at the same time.  So, now I menu plan for three-four days at a time and only buy the things that I need for THOSE days.  And, I plan my menus based on what is on sale.  So, I'm still getting a good deal.  If it isn't on sale, we just don't eat it.  That part I was a little used to, but the whole no stockpiling thing...That has been a big change for me. 

F)  Bar soap - This is probably the biggest sacrifice for me.  I hate bar soap.  When we are done with law school, I'll never buy bar soap again.  In fact, when I am done with the package that I bought in August, I may never buy bar soap again.  But, that package will probably last me through Alex's entire law school career and then some - never has $2 been stretched further.  Which is why I bought it in the first place.

G)  We don't buy stuff.  This seems like a no-brainer, but I think that for most people it really isn't.  I wonder how much money I threw away in the first four years of Cooper's life, buying this here, or that there - (Great English, Julie!)  You know, all those little, inconsequential things that you don't really need, but you get anyway.  A tube of lipstick, a little snack, a soda, a coffee, a DVD of your favorite movie (it was on sale for $5!), a magazine, a toy...We just don't do that anymore, for the most part.  That is almost as hard as bar soap and the no stockpiling thing.  

H) No Netflix - seems like a bummer, but the library system is so awesome...we can really get any movie or tv show that we would want to watch.   And we can always splurge on a redbox!  (Yes, $1.30 is a splurge when you can get it for free!) *Okay, I have to add in here that I put myself on the hold list for Snow White & the Huntsman at the library.  I was #419 in line.  So maybe we can't get ANY movie we want to watch.  I'll probably be red-boxing that one.  :)

I) Cloth diapers - we also did this before the change, but it has saved us hundreds of dollars.  We also used to cheat before - now we are 100% cloth except overnight.  (We literally use one disposable diaper a day)
 
 Funny, as I read that list back - it doesn't seem that crazy. I mean, I guess maybe normal people think that no cable and no cell phones are crazy, but the truth is, I actually have enjoyed it.  We still have internet (we have to, for Alex's school) and we are together (like REALLY together) all the time, but for us, so far, I think that this experience has brought our family closer together.  Don't get me wrong - it has brought its challenges, too (see almost any previous blog post).  But our familial relationships seem to be strengthened - how awesome is that?!  And, I feel like I have a lot more time.  The kids and I are enjoying exploring our new town and finding all the fun free stuff to do here.  And not talking on the phone in the car - it has completely changed our lives.   

The craziest thing is bar soap.  Can I say again how much I detest bar soap?  I mean, I guess it gets you clean - (I haven't had any comments to the contrary) but it just doesn't lather as nicely.  And, as much as you enjoy the smell when you buy it, it is the same scent that you smell day in and day out, with no chance of variety.  The scent becomes relentless.

Moving away from bar soap, I am always open to hearing more bargain ideas - if you have an idea of where we could trim more fat from our budget, or something that worked for your family (maybe even a low-budget recipe!), please feel free to share it - I'd love to hear it. 


Adios! 

*Post Script:  It has taken me a few days to write this blog post, and I am finishing it right after working on our budget for the next month.  I will be honest and admit to myself and the general populace that as I worked on the budget, I was near tears almost the whole time.  It is a daily battle to give our finances over to the Lord but I am choosing to wait expectantly to see how He delivers our financial situation.  I am so thankful for the encouragement of my dear friends and family and most of all the encouragement I find in His word to help remind me that God is bigger than our bank account.