Three months ago, Mr. Right and I had “the talk” with the kids.
“We’ve decided to cancel cable,” Mr. Right said. “It’s no longer in the family budget.”
To translate: Life was over and we officially became the lamest parents in history.
There were tears.
Long faces.
Sulks.
Fast forward to now when Mr. Right remarked: “I’ll never pay for cable again. I’m so glad that’s no longer sucking our souls.”
Yes, there is more to gain from budget cuts than money.
Cutting cable definitely helped pay down our debt … over $42,000 worth. But I won’t sugar coat it – not every budget cut has turned out so life changing. Some cuts are hard to love. There are times it really sucks to want money you don’t have.
Maybe that’s how you feel right now: cutting cable doesn’t even help cover groceries, let alone pay down debt. You’ve cut it all – the cable, magazine subscriptions and gourmet olives.
Here’s the question circling your mind:
What do you cut when there’s nothing left to cut?
The answer isn’t the rainbow, unicorn type. Here are some radical ideas that could really work:
Stop Giving Gifts. Start with this scrift for family and friends:
This year I’m focused on getting rid of consumer debt. I won’t be giving gifts at all and politely ask you to do the same for me/my family (yes, even my kids). A break from gifts can be your gift to me.
Then stop giving gifts to:
- Bosses
- New babies
- Wedding showers/baby showers (stop going)
- Birthdays
- Young kids (That won’t remember the gift. Bake a cake. They cost about $2. Give them a cereal box or Tupperware to play with.)
- Spouses (make spending time together a gift)
- Parents
- Siblings
- Pets
Sell all your cool stuff and use the money to pay down debt. Here’s how.
Don’t go shopping anymore. Except grocery shopping. Besides the occasional kid’s shoes and socks, we buy everything at the grocery store. Only, only, only use cash to shop, period.
Food, shelter, clothing. If an expense doesn’t fall into one of these categories, eliminate it. See how it feels to go without for a month – you might decide to keep it that way. Put everything except the bare necessities on hold. (Revisit your definition of bare necessities, too.)
Move. Once you sell all your cool stuff, move into a smaller place. Move to a cheaper city. Move in with family. Rent an apartment for two years until the debt is paid off. Leave the suffocating, indebted life behind.
Are you thinking: “What if?”
Crunch the numbers and see for yourself. How much of a difference would it make?
How much sooner could you be free?
From what I’ve experienced, there is only something to gain from needing less. Like peace of mind, a new perspective, feeling content for the first time in years and living life on my own terms.
What did it cost? Years and years not realizing it sooner.
If my writing helps or inspires you, please share it with other people. This is the number one way you can support my writing.
xoxo Melissa
Photo by Kat.B.Photography
{ 1 trackback }
{ 16 comments }
One cut we made was the expensive coffee drinks we buy which are any where from $2-$5 a piece. We bought an espresso maker (approx $50) instead and have saved lots of $.
YAY! Can you make me a caramel latte this weekend?
Thank you for validating the choice to downsize and move into a smaller home in a cheaper city. We are currently in the process of moving to a cheaper city that is about 2 hours from where we currently live. It has been the hardest decision we have ever made, but we hope that the rewards from paying off stifling debt will make it all worth while, and once the initial pain is over, that the freedom will more than make up for having to give up our big home and huge expenses. Thanks for helping me see that we are not the only ones!
Awesome for taking life into your own hands! The rewards are amazing – the ball and chain of debt is such a burden. Just wait for the feeling … you’ll get there. Good luck! Please keep me posted.
Hi Melissa,
This is a great post I can endorse with my whole – personal financial planner’s – heart!
I’d also add to cut out the bottled water! What a rip-off. Make your own – get a Brita system. You’ll save hundreds.
I’m Retweeting this!
Sincerely,
Angela Artemis
Hi Angela – Thanks for retweeting and great point – we gave up bottled water long ago for environmental reasons – but it saved us a lot of money, too.
We found long ago, the best way to control your spending was to literally write it down. Every day. When you start to track every purchase, you start to see what can be trimmed – and it also helps keep you on-budget.
This wasn’t our idea – Humberto Cruz writes a column for a Florida newspaper, and he has many other great ideas.
Another great post, Melissa.
Thanks Brian! That is definitely very eye opening – I couldn’t believe it when we spent $900 on groceries one month.
That’s been reduced by $300 each month now. Amazing. Glad you stopped by.
All great ideas and we ourselves began practicing (all but the cable) for the past 2 years. We have paid down an enormous amount of credit card debt and now only have our mortgage left to tackle. There is an extremely freeing feeling about being debt free and i never intend to go back.
Awesome! It is an amazing feeling and I second the not going back part.
Great post.
My partner and I have sold our condo in downtown Vancouver, are renting for two years while we build a house on an island community where we will be debt free.
Still, we are working at reducing our spending and I think I really have to start tracking expenses daily as suggested.
Hi John – As much as it sucks, it very eye opening to track every dollar spent. Good luck! Find a system that works and stick with it.
We’ve sold so much of our stuff and cut down on subscriptions. Its amazing how fast the savings start to ad up. Now we are trying to sell our house to cut down expenses even more. Our ultimate goal is to live on a sailboat!
Wow! That’s a unique goal. I will definitely check out your blog. Thanks for stopping by.
Thank you, Melissa, for being brave enough to present these tips. I was a burned out divorce law firm owner, litigator (and single mom) in San Diego. Two years ago I cut the cable (primarily to keep the negativity out of our home, then realized the savings!) Since then, I’ve downsized my law practice. Huge stress relief there. You can’t even imagine! And, we’ve downsized our home. We now have a quality of life that is extraordinary–far exceeding what we thought we enjoyed before. And–at about 1/4 of the cost that my burned out lawyer acquaintances are paying for their hamster wheel lives. Getting out of what I call ‘nonsense’ debt (the silly gift giving) and buying only what we need has been most liberating! Both my sons fully embrace our lifestyle. Passing this on to our children is truly the best way to break the cycle of the American Angst we’ve all been brought up with.
Kudos to your blog and thank you again.
Hi Isabel,
I like your points here about quality of life and breaking the cycle. Even though our family wealth is lower this year than last, so is our family stress level and chaos – what price can you put on that?
Our quality of life is still good, but mindful. We know where every dollar is going.
Thank you for sharing your story – love it!
Melissa
Comments on this entry are closed.