It’s time for me to go through our expenses with a flea comb and figure out what we can get rid of. This is nothing new, as we have been slowly cutting back for a year now. J got a pretty good severance package and we had some cash savings that combined with the unemployment ensured that our lifestyle didn’t have to change much in the first year. Of course, we always assumed that another job was right around the corner and never would have dreamed that our unemployment would have lasted this long. After our severance was gone and the savings began to dwindle is when we started to get real nervous, and now that we are facing a total cut off of all income, it’s a full-blown panic.
Our student loans have already been in deferment for about a year. We still are accruing interest, but at least we don’t have to pay them now, and that saves us about $600 dollars a month. Our retirement account has started to pay about 25% of our mortgage. It takes some of the pressure off, but I hate so much that we are dipping into any of it. Every dollar we take out of there means four fewer dollars we will have later on. Each year that we dip into it mean an extra two years we will have to work, assuming we even start making as much money as we were before. It also assumes that the markets recover, which it is harder and harder to believe will ever happen. The long-term unemployed can expect to earn about 20% less over the course of their careers. That is a big hit.
J and I have always been frugal, and have always lived within our means, which I hope will be our saving grace now. We have one TV, a 1750 square foot house, two beater cars with 120,000 miles on each of them. Aside from our honeymoon in Quebec, we have never taken an international vacation and only one domestic vacation per year. We don’t have any credit card debt. Our biggest expense next to the mortgage is food, so that is where I will be making some deep cuts, while still trying to eat healthy.
Here are some other items that are on the chopping block:
- Cable. This one seems obvious, but we only had basic plus HBO, so I was holding off on it for a long time. Our “Triple Play Package” is $110 per month, plus $17 for the HBO. I am going to call them and ask to get rid of everything, and downgrade our internet connection to the basic (read: slow) $25 per month. That will save us $100 dollars a month. I will keep our Netflix unlimited streaming package at $8 per month, though I hear its going up.
- Cell phones. I’m sort of dreading this one. We have a family plan, and I use a smart phone. Our plan is $60 a month, plus $10 for the extra line for my husband. We never go over our 700 minutes. My unlimited data plan though is another $30 a month. I got my phone for inventory tracking, order and credit card processing at farmers markets and craft fairs. I’m in love with it. I’m so reluctant to give it up. I’m going to look back in my records and if I have at least $30 in credit card orders per month that I process on my smart phone, then I’m going to keep it.
- Food. This is the big one. I’ll be talking a lot about this. I’m the primary hunter and gatherer in the house and always looking for more ways to save. The warning is that we do not eat the standard American diet. I (and by extension, the rest of my family) don’t eat gluten, grains, legumes, processed sugar (and minimal natural sugar) or industrial vegetable oils. For ethical reasons, my husband wont eat CAFO (Concentrated Animal Feeding Operation) meat and for health reasons I strictly limit it. He and the kids will eat some grains, but we just dont have much in the house. What I never have in the house are processed foods no crackers, cookies, goldfish, pasta, boxed mixes of any kind, chicken nuggets, etc. We make everything from scratch, and only use fresh ingredients. To say this will be a challenge is an understatement. I do a lot of food preservation projects like fermenting, freezing and canning. I always want to learn more, too so please pipe in with any other techniques you think I should look into. I really need to learn cheese making. Unfortunately we aren’t great gardeners. Our garden this year, and last, produced nothing but copious jalapenos. I’m not complaining.
- Utilities. Our house was built in 1830. This sort of makes things tough. Winter is coming, and we have two little kids so we can’t exactly leave the thermostat at 50 like I used to do. We recently had the basement insulated, we have a smart meter to watch our electricity usage, and we keep insulated blinds drawn all night in winter.
- Household Expenses. You know soap, detergent, cleaners, diapers and wipes, paper towels, plastic bags, sippy cups that are always getting lost, socks, gas, underpants. I need to find alternatives to all the above and more. Except the underpants. I think that will be the last thing to get downsized.
You might be wondering why I don’t have a job. I was lucky to be able to leave my job when my daughter as born so that I could be home with her. I’m a Social Worker and I specialize in the treatment of psychological trauma. I worked with kids and adults who were survivors of sexual violence and I loved my work. The thing is that no one else does. We were always the first to get our budgets cut, and the last to get funding. Despite my Masters degree and year of specialized postgraduate training, I made about 25K per year. It just didn’t make sense to pay for full-time childcare for that kind of paycheck. I kept meaning to go back to work, but other things kept getting in the way, like illness and more babies. There aren’t many temporary social work jobs out there, and I don’t want to commit to clients if I’m just going to have to quit after J gets a job. A typical social work job isn’t going to pay enough to cover full-time daycare for two kids. In fact, I did work briefly selling my soul for a crushing job that paid 45K, and after health insurance and daycare, I brought home $230 a month. Pretty bad. When J can make three times my top pay scale, it behooves us to just get him working.
And besides, I do work. I put my crafty skills to work and started my business. J helps me a lot with it, and I get to do something I was already doing for people I really like. It’s fun, but it ain’t gonna save the family farm.
Coming next: Putting Food By: Projects in Food Hoarding. Let me know in the comments anything specific you want me to cover, and thanks again for coming along.
11 comments
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September 5, 2011 at 10:18 pm
Kerry
One thing I can contribute that may help. I don’t use shampoo or soap on my body or hair. I use baking soda. My hair has never been more healthy or manageable. I know you use vinegar/tea tree oil/lavender(?) for cleaning fluid right?
I also stopped using paper towels/wipes. I bought a couple packs of cheap face cloths/rags at walmart. I use them for cleaning EVERYTHING even poopy bums when we had them 🙂 All surfaces, dishes.
Are you buying diapers at target? they were the cheapest when we were using them and work GREAT.
You could look into soap nuts for your laundry needs. I haven’t tried them yet but heard they are great http://hazelaid.com/C_Products_Soap_Nuts.html
Use code goodwin10 for 10% off at that store
Would it be helpful for you get a job (anywhere) as long as J IS home? You know so you don’t have to pay for childcare? Maybe something you wouldn’t feel guilty quitting when J does find work?
September 5, 2011 at 10:57 pm
Jaymee
Do you have an amazon mom account? Get free 2 day shipping. I use it for diapers, wipes and anything else I can buy there. If you subscribe to a product, have it delivered regularly you also get an extra 15% off. If you need an account I can send you an invite.
September 5, 2011 at 11:45 pm
sherpamelissa
You know, I’ve always been a fan of commando. Just sayin’. Gotta cut expenses where you can. 🙂 XOXOXOXOXOXO
September 6, 2011 at 1:20 am
Lisa
Amanda you gotta coupon and store track! Cvs, rite aid, walgreens let u use stor coupons and manufactures coupons and is you follow the sales you can get non perishable items for under a buck if not for FREE! It is a lot of work but worth it. Plus CVS also has extra bucks which are awesome. You also need to follow all the supermarket fliers and sales. I save so much money doing this and when I am on top of it it f-ing amazing.
Next your smart phone. See if you have mobile hot spot. Some company’s offer it for 10 bucks a month. Then you wouldn’t need to pay for Internet via Comcast you would carry the wireless router on your phone for way less.
Also while J is home any job is worth it and when he gets a job have no guilt in quiting cuz you gotta do what you gotta do and if it is a small amount of money just use it to pay the gas bill cuz you need that in the winter. I will be racking my brain for other money saving ideas.
Good luck, great blog and I am amazed by you all the time!
September 6, 2011 at 4:25 am
Kerry
Actually my friend just told me tonight about if you jailbreak your iphone you can get an app that lets you use it as a hotspot without going through att or whatever.
September 6, 2011 at 4:26 am
Kerry
only issues is you’re limited to your data limits on your plan but I’m not sure what they are or how easy it is to use it up.
September 6, 2011 at 2:34 am
Jen Tobin
Love your blog!! I just read you can make automatic dish soap, laundry soap, bath soap, out of Borax!! Cheap and (I think?) eco friendly!! I want more info on this coupon and store tracking your friend Lisa mentioned…??
September 7, 2011 at 7:17 pm
Jennifer Pennifer
Amanda – you completely inspire me and thank you for sharing your struggle on this Blog. While I have no tips for being frugal (I struggle with it constantly), I appreciate all the tips people are leaving. I am here for the long haul and I am sure you know, there aint nothing I wouldnt do for you! I wish you were closer and I could share all my canning bounty from this summer…
September 18, 2011 at 4:41 pm
Joshua Whiteman
Some things I’ve intuitively adopted over the years. Using no soap or shampoo for a shower. Making my own deodorant, with coconut oil, tapioca starch and baking soda. Using only baking soda and hydrogen peroxide for dental care. A calorie cycling diet, with 3-4 days a week in the 1200-1500 calorie range. Also a fair bit of fasting. Food wise, I eat a good amount of canned salmon and other nutrient dense seafood products. (kippered herring and oysters) I also use cheaper white rice for calories and eat liver twice a week. I cut Tv viewing down to 5-10 hours a week. (watch off the computer) I went without a cell for 3 years, but recently got a new one. $128 android smart phone with no contract and $35 a month unlimited data, text plus 300 minutes. I wear the same clothes all the time and rarely buy anything new. My situation is no where near as dire as yours. If anything I’ve mentioned, fails to resonate with you, then I suggest this one thing. (maybe you already do it) Begin meditating on daily basis for 10-20 minutes. I recently came out of a self destructive, depression burn out. Meditation has been an integral part of my recovery. Also, if you plan to continue eating grassfed meats, maybe consider offal as the staple. I live below my means, even with food, because I can’t afford the high quality stuff. Anyway best of luck and I say remain positive. As long as you have family and friends and positive attitude, you can get through these tough times.
September 18, 2011 at 4:53 pm
Joshua Whiteman
One more thing I failed to mention. I quit using big towels to dry off with and converted to small towels. Now I do laundry much less, and small towels are cheap at the store.
September 18, 2011 at 7:06 pm
darius sohei
clicked through from perfect health diet – some ideas you may not have thought of regarding generating more income – check out ramit sethi’s blog and twitter account, lots of great financial advice for free.
with your psych skills you could parlay that into life coaching, personal coaching, etc. many “normal” or well-off people have unresolved painful issues that they would deal with if they had support and a system that keeps them safe while resolving it. could be a lucrative and meaningful new career.
p.s. keep the smartphone and internet, ditch the cable, keep buying and preparing traditional foods in bulk – its pretty much the only way to go.