I know some of you were hoping that our move to Chicago for business school would instigate some budget-related posts that would echo the lifestyle of a typical grad-school-attending family, but as you’ve seen that hasn’t been the case with us. We have our mysterious “help” (seriously, let’s not get into this again, it’s just the way things are in the business world and I suggest you do some googling if you’d like to figure it out) and that combined with the significant raise TH will experience when he returns to work at Company X means that we can live our life the way we do.
We decided that we would rather spend $$ for 6 years, than spend $$ for two, then $ for another two, then $$$ for another two.
After T1 was born, I stopped categorizing my purchases in Mint and our budget fell by the wayside for many, many months. (If you missed it the first time you can read a little bit about our budget system here. We’ve made a few tweaks and someday TH will guest post to explain things a little better, but that’s all I have for now.) Once the holiday break started That Husband had the time to sit down and try to get things back in shape, a process that took over a month. He did most of the work leaving transactions marked as TBD when he didn’t know what they were. I finished my side of the categorizing last week, and when we imported everything into our spreadsheet we found that we were spending $$$$ in a few areas, $$$ in most, and only a few sections had avoided turning this very accusing red color that says “That Wife, you suck at not spending all the money!”
Our goal is to walk away from business school with no debt, and at the rate we are going there is absolutely no way that’s going to happen. We sat down and talked about the red areas, and made some plans regarding changes we’ll have to make to make it through until Fall of 2012. Here are a few areas where we are really going to be concentrating:
Food
Food has become a black hole for me. Remember when we were eating for $250/month? Ha! Those were the days. Once the farmers market closed and I had to start visiting the grocery store again I started to flounder. Moving is difficult because you have to build up your supplies again, so some of our money was spent on staples like oils and flour, but certainly not all of it. I started hitting up Whole Foods for the organic selection, the bulk foods options, and because it’s the only place I will buy fresh fish, but it was really more like Whole Paycheck because I was spending so much there. Our winter meat CSA has been awesome, but the vegetable one just isn’t big enough to feed both of us for two weeks without trips to the grocery store as well.
Our plans for cutting back include focusing on eating what we have in the cupboard, pairing simple ingredients together. I’m going to stop listening to people who tell me I have to eat fresh leafy greens every day or my diet sucks. Organic is important to me and organic leafy stuffs are out of season right now and imported from who knows where so they are really expensive! If we want to eat organic we’re going to have to eat a lot of potatoes, onions, squash, and a few canned and frozen things. I’m also saying goodbye to Whole Foods to start wandering the aisles of Hyde Park Produce and Treasure Island once again. Anyone who reads my food blog knows we eat very few processed foods but I’ve got to work harder to cut them out even further. If you want to eat organic on a small budget, anything that is both organic & processed has to go!
We’re still certainly going to spend more the $250/month on food until the spring, but I’m hoping I can cut back to the point where we spend a little more in the winter, a little less in the summer, and it all balances out in the end.
When it comes to eating out as a couple/family, we just don’t. Before the date we had in Utah we actually hadn’t been out to eat together as a couple since… May, I think. We picked up food at different restaurants a few times while we were moving and didn’t have our stuff for a few weeks, and once I massacred dinner in such a way that I lost all motivation to prepare anything and we ordered something and had it delivered. Other than that it’s all yours truly puttering around in the kitchen to prepare our meals. Unfortunately even after all those months of waiting we are still several hundred dollars (!!!) in the hole when it comes to our eating out budget due to a very indulgent night on New Years Eve and another in celebration of my birthday a few weeks before T1 was born. This makes me a very sad panda as we were supposed to go to out to eat tonight before we go to Wicked (hooray!) because I was sure that after all of these months things would be back in black once again. When we got Mint straightened out we discovered I was wrong and so our reservation for C-House tonight is cancelled. I really want to eat at Alinea but the experience is so expensive that we’ll have to save up for almost an entire year to go! Yet another reason I need to start making more money with That Wife, so I can go out and eat with my husband!
Clothing
I gained enough weight that “getting by with my regular clothes” simply wasn’t an option. A lot of skinny little women talk about just using a rubber band on their jeans and wearing some looser shirts to get by. Ha! Now that the baby is out you can see how much of the weight I gained went to my body and not to my belly. I needed actual maternity clothes! I tried to buy a combination of nicer pieces and some cheap stuff at Old Navy/Target. I should have enough to make it through my next pregnancy without needing new stuff, but we have no exceptions for baby built into the clothing budget section, so that area is deep in the red. I definitely have champagne taste on a beer budget (would the Mormon equivalent of that be Martinelli taste on a Sprite budget?) when it comes to clothes though, so the clothing budget was already suffering.
I’m hoping my commitment to only buy thrifted clothes until I lose weight will help me in this area. And actually, when I came home and modeled my clothes for TH, even though I did so on the very night where he figured out how much I had been overspending he actually sat me down and said that he’d like to increase my monthly clothing budget allotment, in part because I look so much better in clothes that actually fit, and because he knows fashion is important to me.
Health
We spent far too much on my teeth this year, because I am really awful about flossing (ever) and brushing (at night). I know, I’m like a small child with my oral hygeine. No head-scratching necessary to figure out how to cut back in this area. Flossing and brushing nightly, here I come!
My home birth experience cost us close to $5000 with all of the visits, supplements, tests, and the actual delivery itself. I’m currently weighing whether I’m willing to fight the system, have the baby in a hospital, and save a LOT of money
Jenna-Other
Yet another black hole of mine, literally, as it’s the place where all miscellaneous spending goes. Mailing out items for That Wife contests, eating out without TH, hosting and other blog related fees, my bodybugg, birth photography, and other extras that don’t really fit into a category. My options here are to just never eat out with friends, stop hosting That Wife, and basically not have any “fun money”, OR to make some money and pay this off and continue to have some fun. I’m going to go with the make more money option!
One reason this has been so hard to take care of is that we’re working with a running budget, tracking all spending since we were married in 2008. Whenever I overspend I need to either make a whole lot of money to pay that back off, or cut back severely to wait until the money builds back up again. That’s really hard to do, especially in areas like clothing when my weight keeps soaring up and down like a hot air balloon.
Some good news is that I’m closer to paying off Jenna Cole than I originally thought! I’ve been working to cut back on administrative costs and I’ve stockpiled a more than ample supply of equipment for wedding and portrait sessions, so no more big purchases need to be made for awhile. My parents also made some investments for me while I was growing up, and it’s been a long process to retrieve the money from them, the first time because they mailed me a check and it got lost, and the second time because I lost the paperwork that told me where I had the money invested! Quite dumb of me I know, but now everything is fixed and I’ll be able to use that money to pay off the “clothing” and “Jenna-other” categories. How nice to have those sections building up instead of paying down! I also get to give myself a pat on the back in regards to the “personal care” area of the budget. I’ve done such a good job at cutting back in that area that I actually have a nice little surplus… which I shortly plan on taking with me to Sephora to stock back up on thing.
A side note to say thank you to those who have signed up for and used Ebates using my referral link. You’ve earned me over $250 so far, which helps pay for hosting fees and the money I put toward contests I hold! Thank you to all those who signed up!
Overall we’re going to do fine. It’s certainly a good thing we sat down and hashed this out right now because we would have been in serious trouble 6 months from now if our spending patterns (yes, there are actually areas where TH will have to be a little more careful as well!) didn’t change, but I won’t need to write any posts with step-by-step guides on how to apply for student loans. This actually isn’t the hard stage of our budgeting, things are going to be a lot harder for me when we return to Company X and are surrounded by people who increase their standard of living because their pay increased and we keep ours the same because we lived so comfortably during school. We’re trying so hard to remember that once we start spending a certain amount it’s going to be incredibly difficult to adjust our lifestyle to spend less later on. The most substantial people are the most frugal, and make the least show, and live at the least expense. ~ Francis Moore
That Husband has been working on a post that better explains how our budgeting works, explaining how we’ve streamlined things a lot more and made it even easier to keep track of our expenses, but he’s in the middle of applying for summer internships (so we can know where we are going to be living this summer!) and thus it might be a little while before he finishes. Keep your fingers crossed that we get to go somewhere really cool after all this work he’s putting in!
January 12th, 2011 on 9:20 am
The miscellaneous category is where most people’s money goes. It is easy to dollar yourself out of your budget, very easily.
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January 12th, 2011 on 9:29 am
I really appreciate reading about how others budget. Santa Mom gifted me The Total Money Makeover by Dave Ramsey for Christmas (I actually had it on my list). I read it within a week and by New Years, the husband and I had a plan going forth to pay off all of our debt. Sadly for us, it’s going to take a few years (that’s what Ivy League education student loans will do to you), but we’re so excited to see the light at the end of the tunnel. If we hadn’t sat down and really looked at everything we owed, I honestly think we would be in debt for much, much longer. I definitely recommend the book to others!
I’m looking foward to TH’s post!
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January 12th, 2011 on 9:32 am
Good luck, Jenna! I think the first part of getting control of expenses and staying out of debt is being fully aware of exactly where all your money is going, and obviously you and your husband have done just that. My husband and I are both in school currently, and it’s our goal to graduate debt-free. We have a small student loan and his computer is on an interest-free credit card from Best Buy. I know we will get the computer paid off in a few months (my husband also has a summer internship)but I’m not sure how much of the student loan we’ll be able to pay off before we graduate.
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January 12th, 2011 on 9:39 am
Leafy greens *are* in season right now; just not all of them. Cabbage, brussels sprouts, kale, and more bitter greens like radicchio and endive are all in season in the winter. Many of them are harvested in the fall and cold-stored through the winter, so it doesn’t matter how much snow there is on the ground. (I live within 200 miles of you, and I’m buying all of those at my local indoor farmer’s market and getting them from my winter CSA.)
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Jenna Reply:
January 12th, 2011 at 10:25 am
We’ve received several of those in our CSA box, but I seem to get flack unless I eat an enormous salad at least once a day, which I think is unrealistic during the winter.
I wish I had the motivation to drive up and visit the indoor market but I hate fighting for parking and would rather just eat out of my CSA box during the week.
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Stephanie C Reply:
January 12th, 2011 at 4:42 pm
That’s ridiculous (about the flack for not eating an enormous amount of greens). Although I’d love to eat a large salad everyday.. just not make it.
I try to make sure my husband and I get at least one serving per day and often times I’ll buy spinach and put soup on top of that. You can also do that with kale, though it’s an acquired taste.
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Cristin Reply:
January 13th, 2011 at 8:09 am
Who is giving you flack? Commenters on the food blog?! Craziness. MYOB.
Re: indoor market - I know the grass is always greener on the other side, but I’m envious that you are home during the days, with a car. You have so many more options than most women y/our age. Granted, its easy for me to say that if I would/could stay home, I would always go to the markets - but I know life gets in the way (and I don’t have a child to tote around!).
Does your CSA have portion options? Ours has: A) 2-person serving for non vegetarians or B) 4 person serving for non vegetarians that they recommend for 2 if you don’t eat much or any meat. Might be an option for next winter?
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January 12th, 2011 on 9:44 am
I didn’t get past the food section - this is urgent!
Get ye to the Hyde Park Produce Market on 53rd street NOW. There is no reason to waste your money (or your gas) on going to Whole Foods when you live within walking distance of such a fantastic produce store.
Their packaged goods are pricey (except the frozen ravioli - try it!)and their organic dairy is also a bit expensive but you’ll find that anywhere. But seriously, their produce? Is great. And nice and cheap. And a lot of it’s organic. AND the cashiers are very kid-friendly - they give little cookies to well-behaved children.
Go. Now. We save so much money there.
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Jenna Reply:
January 12th, 2011 at 9:58 am
I know about it, everyone in our ward loves it! I’m guessing they are a regular grocery store with very little local goods though. Whole Foods isn’t perfect but I like that they tell mr where things are from!
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Schmei Reply:
January 12th, 2011 at 11:20 am
Actually, they have a mix of local foods (including some of their meats and frozen foods) and imported stuff.
I would really recommend trying it at least once.
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Jenna Reply:
January 12th, 2011 at 11:37 am
I will visit tomorrow then!
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January 12th, 2011 on 9:44 am
I can totally relate to this. Being a student on a budget is hard! I imagine it’s much harder with T1 and Jenna Cole - I know how much buying my body and lens set me back, and those are small pennies compared to the equipment you need to shoot and continue shooting professionally. I’m impressed that you and TH are so organized and responsible with your budgeting! I’m hoping we can get there this year, since we’re working on paying off all non-student loan debt by the next new year.
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January 12th, 2011 on 9:45 am
Good for you!
Curious-will TH be paid for his summer internship? I always found that was a very nice plus to being an MIS major…
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Jenna Reply:
January 12th, 2011 at 9:59 am
Depends on what it is. Because he is contracted after school he doesn’t have as much bargaining power as most.
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Marissa C Reply:
January 12th, 2011 at 9:30 pm
Good luck!
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January 12th, 2011 on 9:50 am
I enjoyed reading this, but must admit that my mind is only focused right now on Wicked! I don’t know if you’ve seen it already - and you’ve probably already heard this a 100 times - but it’s AWESOME! I’m going to see it for the 3rd time this spring. Just love it, love it, love it. You will have a great time!
And I agree with others - half the battle of getting finances together is knowing where it’s going in the first place. Making plans and budgets is pointless if you both aren’t on the same page with what is going where. But it is hard with those Misc categories! Much harder to track, but you guys are smart and aware and will be successful.
We are saving up right now for a minivan. And I actually say that with excitement! A few years ago I would be sad, but with the two kids (and more in the future) I can see the benefits! We’re making good progress in our savings, but now the question is what to buy, do we really want to spend *that* much money (even if it’s paid in cash and not financed). Anyway, I’m glad I have someone who is so good with money and numbers and I’ve known that TH is like that too!
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January 12th, 2011 on 10:00 am
This is an interesting post. I’m doing my PhD and it’s pretty standard in my field for my university to pay my tuition and give me a stipend to live on. I also have two other part time jobs, which are easy, lucrative, and fun, to cover extras like traveling. It’s great because I won’t have student loan debt when I’m finished. I left the flabbergasted Formspring comment about travel because I have one particular jealous classmate who doesn’t seem to understand how I trouble as much as I do.
I put all my expenditures on my Amex, which works great because I get miles for my purchases. I don’t budget in the same way as you, but each month, I pay my mortgage and put away money for savings. I’m then left with a particular amount, and I just spend on whatever I want, making sure I don’t exceed the amount (and I prefer to save as much from that as possible too!). When the end of the month arrives, I pay the entire balance.
Fortunately, I don’t have a lot of time, so I pretty much only spend money on food and plane tickets because I just don’t make time to go shopping (even though I enjoy shopping). The great thing about putting everything on my Amex is that you can make it break down expenditures, so I routinely monitor it to see where I’m spending and to make sure I’m happy with it.
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Jenna Reply:
January 12th, 2011 at 10:06 am
Do you have the AmEx (we have the clear) that has the guarantee that will give you a refund for stuff that breaks or get ruined? We have a friend who bought a shirt with his clear card, spilled something on it the first day he wore it, called AmEx and told the story about how the stain wouldn’t come out, and they gave him a refund!
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R Reply:
January 12th, 2011 at 10:14 am
I used to have a Clear but I switched to one of the airline branded cards. I haven’t really had cause to use the feature, but it does have an extended warranty feature, which doubles the manufacturer’s warranty on any item bought with it. They have the choice to repair, replace, or refund the purchase price of the item.
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January 12th, 2011 on 10:01 am
With food - we spend about $150/2 weeks. I menu plan, and then only buy the things I need for those meals (plus lunch items). We have soup twice a week, and only eat meat twice a week.
I didn’t realize you used mint - since the last post I saw about budgeting had a google speadsheet. I’m not trying to blog whore, but I did a post about Mint and the different features it offers - if some people aren’t familiar with the site. I love it and use it!
Mint information - http://oneshinystar.com/?p=175
Your husband makes me laugh - I don’t know if extending your clothing budget was a funny moment for you, but I can imagine the way it would play out if your life were a sitcom.
And with birthing… I know you loved home-birthing, but perhaps - depending on your location - you could consider a birthing center? Usually insurance pays for a good portion of it (if it’s in-network, and less if it’s out), but typically they have a combination of midwives and like, one OBGYN. At least that’s how it is here. Kind of a compromise between the two. Not that I have any experience, just research.
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Jenna Reply:
January 12th, 2011 at 10:12 am
There is one place like that on Dallas that I looked into, but the CNN in charge is very medically minded AND induces with cytotec which I fundamentally disagree with (according to some reports she uses it without even telling her patients what it is!)
As for Chicago, I haven’t done any birth research because chances are slim that we will have a baby while we are here.
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Jessica @ One Shiny Star Reply:
January 12th, 2011 at 10:59 am
I’m sure you’ve considered your options! I’m currently postponing any appointments. We’re so strapped with money right now (moving to VA made our rent DOUBLE!) so I feel like doing anything other than a hospital birth would be irresponsible - but at the same time I loath hospitals with a very strong passion.
I guess it’s best to not speculate and just wait until you see where you are when baby numero 2 comes along. Do you know where his company will be sending him once he’s done with school already?
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Jenna Reply:
January 12th, 2011 at 11:08 am
We are going back to Dallas
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Jessica @ One Shiny Star Reply:
January 12th, 2011 at 12:05 pm
That’s really nice that you know that - we’re kind of in limbo. While B-man has a good job, he’s going to have to get a different one to get any substantial pay increase, and that means we could be living any where in the next year or two. Kind of crazy!
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Michelle Reply:
January 12th, 2011 at 4:27 pm
Just a head’s up that there are several other birthing centers in the DFW area that are not like the one you are referring to when you get back here and start looking into that again.
There is also a group of midwives at UNT that are covered under most insurance plans, but do deliver in hospitals.
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Jenna Reply:
January 12th, 2011 at 4:46 pm
I had a hard time finding CNMs that worked outside of hospitals. My insurance only covered CnMs…
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Marissa C Reply:
January 12th, 2011 at 9:35 pm
Jenna,
I know which birthing center you are talking about. Largely because of your wonderful posts, I decided to make sure my regular ob/gyn provider was the type of person I’d want in charge of my child’s birth (1-3 years away-still working out the details!). I did some research and ended up with Cecily Floyd at Womans Health Alliance at Baylor Dallas. She is a CNM and from what I have heard/read (DFW Area Moms forum is great), she is very pro-natural birth. Baylor Dallas is supposedly excellent in this area as well…and it is 7 minutes from my home! I saw Cecily back in July for a regular checkup and was very pleased-she was extremely professional and nice. I am thinking a Doula would be a good idea too, if we can afford it.
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Jenna Reply:
January 12th, 2011 at 11:45 pm
Well maybe we will get to work with her around the same time. Thanks for doing some of my homework for me!
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Marissa C Reply:
January 13th, 2011 at 12:48 am
Haha-maybe! I forgot to add that I agree with you on the birthing center! What’s the point if they are going to do the same interventions a hospital would and you’ll end up there anyway with no control?
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January 12th, 2011 on 10:31 am
Wonderfully laid out, Jenna! I remember the budgeting days of b-school; it required some careful planning and allocation! Good job
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January 12th, 2011 on 10:56 am
Jenna, have you tried using coupons with sales? There are so many coupons out there for non-processed foods and a ton organic items. I started using coupons a few months ago and it has made such a huge difference in our budget. In fact, since the first of the year we have save 70% using coupons and sales. It’s fairly simple and not as time consuming as some people make it out to be and there are a ton of sites like hip2save.com, thecouponproject.com, moneysavingmom.com that have really wonderful tips and deals.
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Jenna Reply:
January 12th, 2011 at 11:06 am
We’ve had several coupon conversations on That Wife. I just haven’t seen how I can make it work with the way I want things to be! I’m also an impulse buyer and coupons make me think maybe I should but something I wasn’t going to just because it was on sale…
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Angela S Reply:
January 12th, 2011 at 10:18 pm
The only thing we really use coupons on are toiletries, but even then, it can make a huge difference.
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January 12th, 2011 on 11:06 am
Quick idea that has saved our budget when we get an increase. Over the years of my husband and I living together I’ve gone from no job, to job that made enough to have some fun money and some savings, while keeping debt free. Back to no job (moved)and still living a social life spending less than $100 a month - to a great job making more than I every expected and he’s gotten several raises in there - yet we still live the same basic life style. We just increase our dining out nights and I FINALLY retire and replace / upgrade my wardrobe one piece at a time (still on sales!), but really most of it goes into savings. Our BIGGEST saving grace here is that whenever we get an income increase, we auto-budget it out immediately, so that we never even see the money. He was auto paying $X towards paying off his car - and when he paid it off the same $X went into a new “car” savings account (that we use for car fixing and future car purchases). We prioritized travel and family planning and fancy eating for the next 5-10 years and set up savings account for each and as soon as and additional $ comes in - it automatically goes there instead of the checking account where we are more tempted to make unplanned splurges.
Wow - that turned out longer and babblier than I meant! But you are doing a good job - hooray for catching it early and being smart and realistic about your $!
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January 12th, 2011 on 11:07 am
Thanks for sharing your budget. I’m always really interested in seeing how other people do it as I’m really not very good at being strict with mine. (I’m the type of person that I won’t spend money if I know that we don’t have it.)
My husband and I spend an embarrassingly large amount on food every month. We’ve been trying to meal plan to reduce the amount that spoils, but haven’t quite figured it out yet. It probably also doesn’t help that getting produce here is really quite expensive given that everything has to be shipped in from California or further. Plus, with my gluten allergy, it means I can’t eat most regular things - only their very much so more expensive counterparts!
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January 12th, 2011 on 11:39 am
I appreciate your honest post. Money management is something I’m always trying to improve on so I love to hear what works and doesn’t work for you.
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January 12th, 2011 on 11:42 am
Jenna, when you’re ready for another child, please check out the local hospital affiliated midwives. It isn’t the same as a homebirth, I know, but it’s quite similar, and your insurance should cover it. You might even be able to find a stand alone birthing center, or at least a separate division of a hospital. You have options!
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January 12th, 2011 on 11:44 am
My husband and I love Mint.com too! It’s been great to see exactly where our money is going every month. I do get sad though when I see that I go over budget in something-usually groceries or misc. stuff at Target.
Thanks for honestly talking about your budgeting…looking forward to TH’s post!
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January 12th, 2011 on 12:03 pm
Budgeting is always hard. I think the most difficult part is agreeing to talk about it.
We’ve made some good steps in the past years which allowed us to buy a house and then buy a car when mine was totalled. We had to tighten things up a bit but were still able to maintain our lifestyle.
I do keep on working on lowering things though. In the last 6 months we got rid of our landline preferring to have my cell phone on an international plan. And as of yesterday we got rid of satellite (had to wait for the contract to expire) and are getting netflix instead.
I used to use coupons but I haven’t been as good with it lately. Of course that’s not really an option if you’re working straight with farms. I usually try to make a menu in advance so I don’t spend unecessary money and I make larger dish than can be reheated as left overs. Food is a big spending aread for us because we try to buy organic and local food too. I do feel it’s worth it though, not only for the environement but for myself too.
I don’t use Mint, but I do have a spreadsheet that I use to track everything and it does work great for us, on top of a previsional budget sheet that I made after reading The Total Money Makeover. Which reminds me that I need to update it anyway. Knowing where your budget goes sure makes a difference when it comes to adjusting it.
Oh and in the past few months I took on a second job (an extra 5h per week) to help cover some expenses like Christmas and to cover the slow season cut down in hours. I know it doesn’t apply to you with a little one but it worked for us.
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January 12th, 2011 on 12:14 pm
Good post! My husband and I do pretty well on our budget, and never spend more than we earn, but we need to be better about saving!
He is also in Business School (but at night, so he still works his full time job)…and with his student loans from his under-grad in forbearance..we are actually going to be able to pay off some debt ( my student loans) and end up in a better position.
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January 12th, 2011 on 12:41 pm
Honestly, I was wondering how you and TH were managing - not trying to sound judgemental but you (the both of you) have been spending a lot of money! I can definitely appreciate this post because my husband and I try so hard to keep ourselves on a budget and it is very difficult, especially when you have to keep track of every. little. thing. Like you, our “miscellaneous” category just grows and grows and grows!
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January 12th, 2011 on 12:45 pm
Interesting post! I think it’s really intriguing that you have a running budget since 2008. Usually when I think about budgeting, it’s a mindset of from-this-day-forward.
I’m interested in hearing your husband’s opinions on Mint since I’m wary of their lack of security (and that could just be my paranoia talking).
My household budget is a mess. I think that comes from being fortunate to have enough income right now that we don’t have to tighten up. But I’d like to feel more in control and in-the-know on things.
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Stephanie C Reply:
January 12th, 2011 at 4:19 pm
Which part of their security are you worried about? As a mint user, I know they use ssl/https.
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Stephanie C Reply:
January 12th, 2011 at 4:20 pm
My husband wants to add that it also uses AES-256 .. I have no idea what that means.
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January 12th, 2011 on 12:51 pm
I really like your budgeting posts. I think TH and Andrew would get along when it comes to money.
Andrew is super frugal. He and I had so many ‘discussions’ about money that finally we agreed on a monthly ‘fun’ allowance for each of us (he gave me the larger share) and agreed that I can spend my monthly share however which way I want and he won’t say anything. So if I blew all the money on a rubberband, that’s my choice. He, on the other hand, rarely spends his monthly allowance. If he does, he usually spends it on me.
We’re both working while he’s getting his MBA, so we’re avoiding loans, but we plan to keep the same standard of living even after he graduates and gets paid more. I can’t imagine needing more than we have now, minus some baby stuff eventually.
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January 12th, 2011 on 12:52 pm
Jenna, I also agree that a midwife practice that delivers in a hospital might be something worth looking in to. I went to one for my first child, and even when I ended up being induced for hypertension (my blood pressure was like 160/120 when I was sitting on my couch…yikes!) I was included on every decision that was made, and was able to have a great birth experience on my terms even though I was in a hospital. The midwives were great and I was able to get the care I needed for my situation. Maybe there is a practice like that in Chicago (and Dallas for after school)?
Loved the budget post, living within your means without debt really is liberating even if it means having to forgo some of the fun and nice things once and a while!
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January 12th, 2011 on 1:01 pm
Wait, I’m confused about one thing: why are you going to be living the same lifestyle when you’re making more money?
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Jenna Reply:
January 12th, 2011 at 1:25 pm
Well we are depleting our savings now, so we will have to make up for that the two years after school
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Ashley Reply:
January 13th, 2011 at 9:02 am
I’m really curious about this statement that you’re depleting your savings now. I think it’s sort of come up before (maybe on Formspring?? I feel like I’ve seen it somewhere) but I’m wondering what sort of saving/investing/retirement planning you do. My husband’s parents sort of act as our “financial advisers” for our own portfolios, but I have a lot of friends who don’t know where/how they should be investing. I don’t know enough about it to give any sort of advice, but I thought maybe TH would? In the end I think it’s a pretty personal choice, but I’m just curious (since you’re so open about so much) what you guys have decided.
As an aside, I can’t imagine depleting our savings just to maintain a certain lifestyle. I’d do a lot of things to change my spending before touching our college savings for our (as-of-now imaginary, hopefully future) children, for example. I do keep a “short term” savings account though where I save for little things. Right now, for instance, I’m putting away 1/2 my paycheck so we can give my little sister a nice chunk of money for her college graduation. So I guess I save up then use it pretty regularly (maybe every year or so) for things like this or vacations or new countertops, etc. But that is just a “baby savings account” (my made-up term, haha) and doesn’t have anything to do with our “real” savings. Is that what you meant by depleting your savings? I guess I’m just confused about what your savings plan looks like.
Sorry if this is a little scatterbrained. It’s 9am but it’s still too early for coherent thoughts, I guess!
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Jenna Reply:
January 13th, 2011 at 10:00 am
When we talk about living off of savings we mean what is in our bank accounts, those things we would have immediate access to, not cashing out retirement accounts. We try to live with an account that would tide us over financially for at least two years if disaster were to strike, and that’s what we are dipping into. While there is always the possibility that disaster does strike, we are lucky to both have parents who built up successful businesses that we can fall back on.
When TH goes back to work we will be able to pay back everything
we’ve Spent from that account with the first year (his pay raise is very, very substantial). It’s a little bit of a gamble but we are willing to take it!
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Ashley Reply:
January 13th, 2011 at 10:45 am
Thanks for the clarification Jenna!
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January 12th, 2011 on 1:02 pm
I would be so grateful for a budget update post from TH. I am a therapist with a private practice so I don’t get a regular paycheck every two weeks that I can use in my budget — my income varies week to week depending on how many patients I see. I often end up short, mostly because of a cash flow problem….my patients pay me at the end of the month but bills are due throughout the month and the reimbursements I get from the insurance companies come at such random times. I think I’m busy enough to be making enough money where I should be comfortable, yet every month I’m barely making ends meet. I wonder if TH would suggest I see a financial consultant/advisor? Most of my income goes to fixed expenses (at home and at my office) and food, taxi-cabs, and starbucks runs — I don’t really go out to movies or dinners so that’s not where the money gets spent (and forget about buying clothing or shoes or anything fun!), but I do seem to rely on convenience things (sending the laundry out, ordering in) because my schedule is so demanding that my free time becomes more precious to me. I’m curious to know his thoughts. I think the two of you do a great job balancing things — you seem to spend money on fun things when you’re able to all while keeping sight of your long-term goals — it’s really commendable and admirable!
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TH Reply:
January 12th, 2011 at 3:01 pm
I would try to work things out yourself before seeing a financial planner. To some extent, financial planners are like doctors without a license - they advise you on some of the most important parts of your life, and you have no idea whether they are right or wrong or whether they even know what they’re talking about. Often, they are paid partially by the makers of the products they recommend, which is a sure recipe for disaster. Therefore, unless you know someone you can trust with your life, you have to be knowledgeable enough to know whether their advice is good advice.
It’s a little hard to help without knowing the exact details of your situation, but below is some advice that applies to pretty much anyone.
The first thing I tell my friends to do is to track their expenditures. Mint.com is my favorite source, because they aggregate your transactions from different financial accounts and the only thing you really have to do is categorize them (and I’d make the categories pretty detailed, separating coffee runs from eating out, taxis from public transportation, etc.). However, if you like to use cash, this gets more tedious because you have to enter those in by hand. So one thing you can do is track only ATM withdrawals at first, and if cash turns out to be villain, then you can start tracking where the cash goes.
It sounds like you are very busy and this part will feel like a royal pain, but it will be hard to succeed without it. I can almost guarantee you will have a “Wow, I had no idea I was spending this much on X” moment, and this moment is a necessary epiphany before you can effectively cut back your spending. Taxi cabs, Starbucks, and eating out are all excellent candidates for money black holes. And it’s not until you see the $$$ figure that you are willing reconsider making your own food. Jenna and I had many of these moments a couple of days ago - I don’t think anyone is immune to this. I simply cannot stress this enough - you can’t improve something you don’t monitor.
Second, when you try to figure out where to cut back, consider this simple question: how much money would I have to make to pay for X? It sounds like you are self employed, so you are subject to 15% FICA taxes + your marginal tax rate of, I’m guessing, at least 25% + NY+NYC tax rate of ~10%. In other words, to buy a $20 meal you may have to earn $40 (20/(1-tax rate)). It is helpful to do this calculation because it may be worth the time spending an hour to make dinner if you’re saving $40 vs. just $20 (i.e. it may be cheaper to make the dinner yourself than to buy it and then work for an hour at your actual job).
I hope this can at least get you started. Once my schedule dies down a bit, I’ll write a more comprehensive post, but that may not come till late February or March. And feel free to ask more questions before then if I didn’t cover what you were asking.
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Balebusta Reply:
January 12th, 2011 at 3:15 pm
TH…this is incredibly helpful! Thank you for taking the time to give me a reply. I tried Mint.com before but kind of gave up on it….I think as a New Year’s gift to myself I want to re-invest a focus on getting my financials in order. For someone who works as long and hard as I do there is no reason I should feel “broke” and the point you made “you can’t improve something you don’t monitor” is really well taken. I actually had a moment the other night when I was ordering in dinner and one meal cost me $40! I looked at that and thought it was outrageous and reminded myself that when I was grocery shopping more regularly I was able to spend way less on food. i think seeing everything laid out on paper (or on Mint.com) for a few weeks will give me a wake up call about where this money really goes. I also think the idea you mentioned “how much will X actually cost me?” is really helpful….it’s easy to see spending $5-10 on Starbucks as nothing but it adds up quickly and there is a greater cost long term. I’m going to be in Chicago in February for school/work and I hope I get to drop in on you guys for a visit — I’ve tried a few times over the fall but every time I was in town you guys were away — I’d love to take you guys out to dinner as a thank you for the help!
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Stephanie C Reply:
January 12th, 2011 at 4:13 pm
I am going to chime in here as a Mint user
My husband is also self-employed and Mint has really helped us with our taxes. We can keep track of his business expenses, and my grad school expenses.
Just another reason to use the free service!
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Jenna Reply:
January 12th, 2011 at 4:36 pm
We would love to get together with you!
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Cristin Reply:
January 13th, 2011 at 8:24 am
One of my questions was whether TH and TW pay for anything in cash - so good to know TH’s thoughts on ATMs as a black hole! We tracked spending for three months last year (well, I did - my husband has zero interest in this process), and accounting for ATM spending was so frustrating. We started logging all cash purchases on our iPhones but didn’t keep it up.
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Sophia Reply:
January 13th, 2011 at 9:47 am
Regarding tracking cash/ATM withdrawals- I went all cash based for about 6 months at the beginning of my debt re-payment, but I used a system similar to Dave Ramsey’s envelope system. I made pre-determined, budgeted allotments for entertainment, food, and gas, and twice a month, on pay day, I would go to the bank- not the ATM, since it’s in multiples of ten and can’t get specific, but to the teller- and I wold withdraw the cash for those three areas for the next two week. It was accounted for, budgeted in, and I knew where the cash was coming from. It helped me track my spending in the 3 areas where I had the most control for tweaking my budget, and where I was the most likely to spend discretionary income. I wouldn’t want to do it longer than 6 months, but I think hyper-controlling the cash flow in those variable areas really helped me get a handle on my spending, and it opened my eyes to how much I was over spending in some areas.
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January 12th, 2011 on 1:03 pm
Thanks for sharing, Jenna! Talking about money can be so difficult so I really appreciate you being so open about it. I’ve got to admist - me and my husband probably spend nearly 550 dollars a month at Costco on food! I’m starting to think that we eat an insane amount because I think we’d starve if we only budgeted 250 towards food.
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January 12th, 2011 on 1:28 pm
I have 2 words: DAVE RAMSEY!
Oh my goodness - his budgeting plans and “Total Money Makeover” have seriously changed our lives!!
Both my husband and I have MBA educations, husband has a great job, and we’re making a decent income…. but got sucked into the false security of always being able to “have enough”.
My parents gave us (along with my bros/sis’s) Dave’s “Total Money Makeover” a few months back and it brought us to a stark reality-check that we were not being as wise as we should be with what the Lord has given us.
I’ve read many finance books (um, MBA), created many different budgets using different tools (incl. Quicken, Mint, etc) over the past few years, but Dave’s plan is really the only one that has stuck. It’s a clear and relatively simple — and it makes complete sense! We’ve been able to stick to our budget and now have a clear view of not just the current state of our finances but also of where we are going financially in the future.
I completely recommend “Total Money Makeover” and “Financial Peace” to anyone who’s serious about not just getting out of debt but truly getting in control of their finances!
If you want to borrow the book, you totally can
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Laura Reply:
January 12th, 2011 at 1:38 pm
Ah - posted my thoughts (below) before I could read this, Maria. Thanks! I will go find “TMM”.
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Marissa C Reply:
January 12th, 2011 at 9:39 pm
I need to read some of his stuff…my husband and I would listen to him on the radio and always get annoyed at his lack of understanding of school loans. No, Dave, you can’t “pay for med school as you go!”
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Sophia Reply:
January 13th, 2011 at 9:58 am
That annoys me too because it’s so black and white to him, it’s a problem I’ve had with his message as well. But I do have to say, some people *do* pay for med school/law school as they go. There are a few stories on http://www.moneysavingmom.com of people who did it. They may have sacrificed their first choice school, they may have made other less than ideal choices, but I’ve read many very inspiring stories (including one by the author of the blog, about how she and her husband not only paid for law school in cash but then bought a home in cash 5 years later) on that blog and all over the web about radical ways of getting out of med/law school with no debt.
I would say, though, with the exception of med/law school (because you’re right, *most* of the time they are not possible to pay upfront) I do agree with him in theory that 99% of student loans are not necessary. I cringe when I hear of kids going to Ivy League schools simply because they were accepted, and then racking up $100,000 of debt in an undergrad getting an essentially worthless degree. I think Dave is doing a clumsy job of expressing himself in the arena of student loans (which is strange, since he’s usually so eloquent, if a little over the top), but I wish he would say something along the lines of “you know what? A college degree is not a magic ticket to $75,000 a year straight out the gate at 22. It is not worth it to take out tens of thousands of dollars in debt for a random degree that you have no idea how you will use. Community colleges are worthwhile and respectable places to go your first two years, where you can get all the same core courses for sometimes 1/6th of the cost of your local state school. And, while we’re at it- you don’t have to go to a 4 year school. There is nothing wrong with technical schools, or trade schools, etc.” If his message was more nuanced like the previous, and if he made exceptions for med/law school, I would appreciate his stance on student loans a bit more. As it stands, I think it’s kind of ridiculous that he’s ok with a mortgage loan as “good debt” as long as you pay it off quickly, but he’s not equally ok with a student loan as “good debt” as long as you pay it off quickly.
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Marissa C Reply:
January 13th, 2011 at 12:21 pm
I completely agree with you! Because the particular med school DH goes to is so cheap (~16k/year vs most which are 25-50k/year) and I am working, we could *technically* pay as we go…We are saving quite a bit, but it would be VERY VERY hard to do-especially since our rent is a bit more so we can live in a area close to the school, which will be necessary very soon. If his tuition was 40k, there is no way in hell we could do it, even with my salary. Plus, if we did pay as we go, we’d pretty much have no savings, and I’m not comfortable with that. The best thing we did is only take the loans that don’t accrue interest until after residency…pretty much free money until then. We save $500 month + any bonuses I get exclusively to pay off these loans in 8 years. This way, we have the money available to us in case of an emergency, but if we don’t need it, it is accruing interest in the bank, CD, etc. until then.
But yes, there really isn’t any way for a med student to work and still make decent grades…and those grades GREATLY impact your career options in medicine-could be a $100k difference in salary/year between specialties and the well-paying ones are notoriously hard to get into.
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Marissa C Reply:
January 13th, 2011 at 12:23 pm
Re: Ivy League-YES YES YES! DH and I went to OU on scholarships. We probably could have gotten into “ritzier” schools, but now we have no undergrad debt. A lot of his fellow med students were snooty because they went to Yale, etc….except they ended up in the same place DH did!
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Maria Reply:
January 13th, 2011 at 3:41 pm
True, true - Dave Ramsey does have a bit of a black/white stance on student loans that may be unrealistic for some situations (like med school), especially if you’re already enrolled in school and/or have already taken out the loans. The great thing about Dave’s plan, though, is that he provides a clear way to pay off this debt..quickly… and to stay out of future debt.
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January 12th, 2011 on 1:36 pm
I, too, appreciate your budget-oriented posts. But this time it is making me more anxious than anything! Because I had started thinking before Christmas that I should start a budget, so I began pulling some data together. I wanted to start with this month, so we’re keeping all our receipts… but that’s about as far as I’ve gotten. It seemed like a simple prospect but everywhere I turn I find more options or things to consider when budgeting. I feel so behind! Everyone else posting seems to have it together — I’m hoping that maybe this will just get easier. Thoughts, anyone?
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Married In Chicago Reply:
January 12th, 2011 at 3:54 pm
Don’t be so hard on yourself! Creating a budget that works takes time. And even once you create a budget, you might find that after a few months you need to tweak some things. Collecting receipts, if that isn’t something you did before, is a GREAT first step. I haven’t read TTM, but I can share about we got started. The very first thing we did was write down all of our “non-negotiable” monthly expenses (bills, mortgage, etc.,) and compare that to our take home income. Then, we thought about how we wanted to spend or save the extra money in a way that was in line with our values and ways to maximize the extra money (by reducing the monthly bills).
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Cécy Reply:
January 12th, 2011 at 5:28 pm
All right, this may or may not help. My mom did this spreadsheet for me when I started college years ago. It’s been of great use to me.
https://spreadsheets.google.com/ccc?key=0AhWwDGtEEBtedEZlcEs4ZW1JNFc1Y0t6NFRiOE00ZXc&hl=en&authkey=CJiQo5YF
At first I just entered what I would spend. So for that keep all receipts and once a week or so enter it. Now you don’t have to separate things the way I did, you can organize it as you want in categories. It just works for me that way.
You’ll probably need to look through a month of spending, maybe more. Look at what you’re spending, prepare yourself for utility charges (it varies from month to month).
Then create what Dave Ramsey calls a Cash Flow Plan ex: https://spreadsheets.google.com/ccc?key=0AhWwDGtEEBtedG4xcmY1UGs3N0J4cGtPRnBxNXNkbVE&hl=en&authkey=COubq7cC
Using what you’ve learned from looking at your past weeks/month of expenses, try to plan ahead how much should go where. Give yourself the total of your income and then place it in the spreadsheet.
Now at the end of each month use the spreadsheet to see if you’ve followed your plan or not and see if anything needs adjusting.
I hope this helps, let me know if you have any questions on the spreadsheet as they aren’t perfect.
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January 12th, 2011 on 1:37 pm
Hi Jenna,
I always really enjoy reading about budget posts, and find them very inspiring. Thanks for putting yourself out there, so to speak.
As a regular blog reader, (although I don’t have one myself,) I find that I really look forward to reading some every single day with a cup of tea on hand, as part of my morning routine. And I always tip the barista that gives me that cup of tea, and I often end up wishing that I could ‘tip’ a few bloggers as well, every once in a while. After all, you are providing a service! And I’m not one to click on ads or buy from sponsors, so I can’t ‘help’ out that way.
Anyway, one of my favourite blogs established a ‘tip jar’ button a few months ago, whereby readers could give a little donation via a button that linked to paypal, and it’s awesome. I love being able to do that every once in a while, just to in some small way be able to say THANK YOU for writing.
Just a suggestion? (With the hopes you would use any funds just for you, for clothes or dinners out or similar fun money, and then your readers can benefit from it as well, by reading about the experiences!)
Cheers, Kate, Vancouver
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Laura Reply:
January 12th, 2011 at 1:40 pm
Great idea, Kate! There are so many great writers out there giving us their writing for free. You aren’t alone in wanting to give back in some way!
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Cristin Reply:
January 13th, 2011 at 8:16 am
Ditto. I know that you’ll get readers who go both ways and the negative ones are often louder & harder to ignore. If people don’t want to contribute to your clothing budget, what about putting a thermometer on the sidebar to show, say, your hosting fees, and how the “tips” have paid off the website hosting charges.
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January 12th, 2011 on 1:48 pm
thanks for sharing this. On Jan 2 I sat down and compiled all of our expenses in Mint (checking to make sure they were categorized correctly! Love mint but sometimes it re-assigns things in totally wrong places) to see how our budget averaged out over the year. Very interesting to see where we were over and under and think about how to adjust things going forward. We spent just over $500/month on food (groceries + dining out) for the 2 of us which isn’t horrible (actually was very close to our budget at least!), but I’d like to decrease it if possible. I really want to try meal planning, just need to get the energy up for all the front-work and dive in!
for going out, I’ve used the coupons on restaurants.com with fairly good results and also some from groupon. This enabled us to go to a few fancy dinners that we ordinarily would not have wanted to pay for - saving over 50% in several cases. Just a thought for those special occasions!
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Jenna Reply:
January 12th, 2011 at 2:13 pm
We actually used VillageVines for the place we were going to go tonight, which would have saved us 30%! we had to cancel and wait a few months though
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Stephanie C Reply:
January 12th, 2011 at 4:06 pm
Have you experienced ‘doubles’ in Mint? Where it leaves the pre-authorization and then ALSO includes the official one authorized? It’s killing me!
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Jessica Reply:
January 12th, 2011 at 5:00 pm
I get that sometimes too, and it’s def. annoying! But I hope you know that you can click “edit” and click the button on the bottom left that says “this is a duplicate.”
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January 12th, 2011 on 2:21 pm
My birth center expenses were thousands less than a hospital birth would have been. Our insurance Deductible is 3,000 and our Out of Pocket Max is 7,000 which we would have had to pay all of. The birthing center is only 3,000 if you don’t have insurance or only 2,500 with our insurance. (AND we paid in full by 38 weeks and got a $500 discount!) So, $2000 to have an awesome birthing experience at the birthing center or $7,000 for a crappy hospital experience. Look into options, they are there! (In Portland, OR at least!)
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January 12th, 2011 on 2:41 pm
Hey - bit of encouragement here.
I really didn’t have to “fight the system” too bad at all when I had my hospital birth. I used a midwife, so that helped of course, but quite honestly it was pretty easy to just be like, “No, I don’t want Morphine.” I was 8cm when I got my Epidural, but before I got it, my midwife and nurses said, “You’d be a great candidate for natural birth, are you sure you wanna go this route?” and I yelled at them, hah.
If you do some research, use a midwife that can deliver at hospitals, and go in with the mindset that you’re in control - I’m pretty sure you could have a hospital birth and save a lot of money! My hospital birth was about $4,000 after insurance, but I got the Epidural and I had to have Pitocin after she was born to stop some bleeding. Of course that varies I’m sure.
I would not survive in your family. Seriously. TH would kill me because I’m so opposite of a budget it’s awful. So is my hubby, so it works thankfully haha!
We’ve tried it but we just never keep up with it and it seems like so much to tackle!
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Jenna Reply:
January 12th, 2011 at 2:50 pm
That is encouraging! So many women only post their negative hospital birth experiences (or they are experiences where people day they loved their doctor or their view and don’t really give any details) that it’s nice to hear about someone who got what they wanted in a hospital setting!
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Emily Reply:
January 12th, 2011 at 9:44 pm
I was going to post the same thing - during my pregnancy I went to a practice that was doctors and midwives, and saw mostly midwives (my choice). My baby was also delivered by a midwife in the hospital.
They were VERY supportive of my natural birth, but all my plans went out the window when baby decided she was still staying in there two weeks after my due date and I had to be induced (few doctors will let you go past 42 weeks). Still, I’ve heard from other natural birth moms that they were able to deliver naturally with midwives from the practice without too much stress.
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lindsay Reply:
January 12th, 2011 at 10:49 pm
Piping in as well, re: good birth experience at hospitals.
It’s all about finding the right provider (family practice doctor, DO, nurse-midwife, MD) who sees eye-to-eye with you. I had a wonderful birth in a hospital, and I was truly surprised when the nurses and other random drs commended me when they’d come in my room and I said I was going au natural. My 2 cents! After insurance paid their part, I paid about $800.
THANK YOU for staring this dialog. Your honesty is amazing and you rock!
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January 12th, 2011 on 2:44 pm
Oh! One thing I did have to fight the nurses on was pushing! They wanted me to push in a certain position so we did get in a bit of a fuss about that, I’ll admit. I had new nurses though that have since actually apologized for how they acted, so yeah!
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January 12th, 2011 on 3:41 pm
Thanks for the budget Jenna. I have been looking forward to TH’s post for a while now and I think this should hold me over for a bit!!
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January 12th, 2011 on 3:57 pm
Thanks for talking so openly about your budget. I am so impressed with the time, effort, and energy you guys put into keeping up with it!! I haven’t gotten to a point where I have that kind of discipline for this kind of thing, but I am working on it!
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January 12th, 2011 on 4:04 pm
I will definitely be interested in that post by TH! With me in grad school and only one of us working, we really need to work on our budgeting as well. This is something we’ve been talking about in the last week.
Also.. when you say you are in the red in certain categories and working on not being in debt.. does that mean you guys HAVE a credit card and just attempt not to use it? I was a little confused about that part.
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Jenna Reply:
January 12th, 2011 at 4:43 pm
It’s a running budget, so for instance with clothing I get $50/month and since I’ve been spending more than $50/month I’m “in the red” in that category until the budget builds back up to the point where I have money in that area again. I didn’t totally understand it in the beginning but it works b/c TH split up how much we want to spend on clothes each year into a daily amount and that amount gets added to the Excel budget every day. So when I have a surplus I’m in the black, when I overspend I’m in the red until the daily amount builds back up to $0+ again.
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January 12th, 2011 on 4:28 pm
I think it’s commendable that you’re getting back to a budget. We were doing really well for awhile, but for the last six months of last year, we kinda went downhill. The biggest downfall? That MISC category! At the end of last year, after budgeting for normal things (none of that misc), I discovered that we could almost have a surplus of about $500!! I was shocked! It certainly didn’t feel like that. Now granted, things come up, like this month, my niece got married and we spent money on her, but overall I knew we could be better about saving more of that, than spending it. I know it can be done!!
Kudos to you for trying to spend $250 for all of you. That’s quite a feat. I know our goal is less than $100 a week (but that’s to include household items, as well as toiletries), for now, but to get back to being better couponers, as I once was.
I agree that many coupons seem like they are for processed foods, but even when I was couponing hardcore, I found I did the best at CVS (if they don’t have CVS near you, try Walgreens or Rite Aid for similar savings). In 2009, I purchased over $500 worth of items at CVS (like toiletries, household items, and the like), but only spent $50 out of pocket! Many sites out there show you how to do this.
And, I’ve heard it said that even if all you do is shop from the items the store has on sale, you will save on your groceries. (I know some weeks are better than others.)
Oh, and I’ve had my husband tell me I need/can get new clothes — isn’t that nice??? ^_^
Good luck!!!
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January 12th, 2011 on 5:23 pm
Are you still having the contests with your ebates money? I signed up using your link and bought something just so I could enter the contests!
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Jenna Reply:
January 12th, 2011 at 5:47 pm
Yes! I’m sorry it takes me so long to get things together but I promise I’ll have one soon!
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January 12th, 2011 on 5:36 pm
I’m such a budgeting nerd, I love posts like this
I know it sounds strange, but some of my happiest financial memories are from the two years when I was digging myself out of all consumer and medical debt. I loved sending triple payments in to my credit card company, knowing I was doing the exact OPPOSITE of what they wanted me to do- paying them off and stealing their opportunity to make interest off of me! Making spreadsheets and being super frugal and clipping coupons and paying off debt while going to grad school and working kept me super busy, but super happy, for those two years. I kind of miss it sometimes, as strange as that is, because building up savings is more personal, whereas paying off debt felt like rebelling against our consumer culture and “sticking it to the man”, lol.
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Jessica Reply:
January 13th, 2011 at 11:01 am
I so know what you mean! Currently my husband and I are in the middle of paying off $80,000 in student loan debt, with unconsolidated loans - so every 4-6 months we get the satisfaction of knocking off another loan
I love making that phone call to our loan servicers. The tough thing about savings is the lack of many milestones, I think… It just kind of piles up, without any significant markers usually.
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Sophia Reply:
January 13th, 2011 at 11:39 am
I think you’re right about the milestones thing!
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January 12th, 2011 on 5:40 pm
OH, and I highly recommend the book “Your Money or Your Life”. Be sure to get the updated version, as the first was written in the 80′s. It is such a great book to hammer home the psychology behind money. I especially love how they continue to emphasize this fact: If you work an hourly wage, say $10 an hour, then you are, quite literally, selling an hour of your life that you will NEVER EVER GET BACK, for $10 an hour. So, when you spend $20 mindlessly on i-tunes, you have to think- is that a worthy expenditure for two hours of life I will NEVER EVER GET BACK?
They repeat it a lot, but once it starts to sink in, you kind of think about it all the time, and it truly does make you more conscious of what you prioritize, and why, and how you spend your money. It’s sometimes kind of hippy dippy, but mostly it’s awesome
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Jen Allyson Reply:
February 1st, 2011 at 2:59 am
The problem with this idea comes in when you’re making $100-200/hr. Then $10 seems like nothing, when it really is something when you add up all those tens. So you just keep spending 10s and 20s here and there and then you wonder what happened to all your money!
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January 12th, 2011 on 5:56 pm
I too am looking forward to TH’s post!
And I wanted to tell you that it IS possible to have an amazing natural birthing experience in a hospital! (Sorry if this gets rambly…) With my first I ended up delivering in a hospital instead of the birth center because I developed preeclampsia. I was strong and didn’t get an epidural, but I was induced and had stadol and the antibiotics because I hadn’t had the group b test yet. It was a really rough labor and delivery. I was so out of it I didn’t even care that my son was born, it wasn’t until I was home and all the drugs were flushed from my system that I bonded with him. And for me, what took the cake was that I NEVER met my doctor. My midwife would call him up and he would prescribe stuff without even seeing me. So when I got pregnant with my second child I didn’t want anything to do with hospitals and looked into home births. But I was scared of having complications and not knowing my doctor again so I decided that in case I had to end up in a hospital I wanted to know my doctor. Lucky for me, I ended up finding an OB/GYN that had a couple midwives. And they delivered at the hospital (thankfully, a different one. The birth center was in the next town over so I gave birth in the hospital there. But the second time I went to the Women’s Hospital in my town. If you can find one near you next time, go there!) BUT that was the only thing different from a home birth. Because my group b was negative I didn’t have an IV, I got to walk the halls unimpeded, there was a tub so I got to labor in the water. Unfortunately it wasn’t a birthing tub so I got out when it came time to push my (second) son out, but I got to push him out in the position I wanted (squatting). I also got to check out 24 hours after giving birth; I could’ve 12 hours after, but we didn’t get him circumcised in time for that. AND the BEST part of it all? My insurance covered it ALL (unlike the birthing center, we paid out of pocket for that). We didn’t pay a cent and I got the birth experience I had been wanting my entire life. So look into CNMs with your next one, I think you might be pleasantly surprised! Just make sure to ask lots of questions so you know they’re a right fit.
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January 12th, 2011 on 6:33 pm
My deep dark confession, I am really bad at brushing my teeth at night…and pretty much the whole routine. I just fall asleep while I am working and forget the whole bag. It drives Sean nuts.
The funny thing is now that I am working and I get a real paycheck and not have to pay for basic bills in groceries it’s amazing how much stuff sucks money. I thought I would have so much money to buy new work clothes and eat out and it’s just not the case. It’s amazing how having to get a new tag and pay a student loan zaps all that extra money.
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January 12th, 2011 on 7:43 pm
I’m student teaching for a year which means I’m not earning any money. It’s been pretty stressful for us. I’ve tried to save by using coupons but coupons are usually for processed foods…which we really don’t eat of ton of. Every now and again, I find them for bagged salads or milk and use them for that. Every little bit helps!
Mint.com has helped us a ton. I now see that I was spending way too much money on clothes. CRAZY!
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January 13th, 2011 on 7:18 am
As always I really appreciate your honesty when it comes to your budget and how you and your husband discuss these issues. Thanks!!
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January 13th, 2011 on 10:02 am
Jenna,
I know how hard it is to budget. I am starting classes again, so I need to tighten the belt. I hope I can force myself.
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January 13th, 2011 on 11:25 am
Jenna and TH-good work! I’m a naturally awful budgeter because I don’t like to own up to where my money goes.
Some things that I’ve done have worked (meal planning, for instance, so I don’t waste money on “sale” food we won’t eat; coloring my own hair. I have also always been a really good tooth-owner, until I went to college an on my own with no dental insurance. I didn’t go to the dentist for a cleaning for — let’s just say it was a long time — because I didn’t want to pay $100. When I got on my husband’s insurance with dental, I had EIGHT cavities. The first cavities of my life. It cost me, with insurance, $90-$120 each. Let me assure you that I spent more having those teeth fixed than I had ever avoided spending by going.
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January 13th, 2011 on 4:19 pm
Have you tried shopping at Trader Joe’s? It’s a great place to save money and their quality of products is outstanding IMO.
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February 1st, 2011 on 2:57 am
Can you send TH over to whip us into shape?? please!
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