What I'm thinking of cutting
I know it's coming, but it has not hit me yet. What this whole financial mess means for me and Hubby. Do you know what it means for you? I know our 401 (k)s have lost 10 to 25 percent of their value, maybe more. I know our jobs are slightly less secure.
But if neither of us gets "downsized," we are far enough away from retirement that the financial turmoil will effect us mildly. Am I being naive? I went to Hubby for a reality check. His resounding answer was, yes.
Even if we are luckily enough to avoid a direct hit and stay gainfully employed - knock on wood - we will get hit indirectly through higher taxes and lower services, Hubby believes.
The cost of things like car registration and sales tax will go up while our infrastructure and schools will lose funding. If others in our community are unemployed and become destitute, scams and crime could rise. Our parents may also need help that we hadn't anticipated.
I hope my optimistic view trumps Hubby's pessimistic one. But to hedge my bets against the worst I am going to cut back these expenses now:
+ Our cell phones. We are in between plans so we won't be penalized for stopping service. Hubby will get a cell phone through his new job and I can use...
...Skype to make and receive calls at home. My friends will hate me, but I think I will adjust. Plus, it'll save us $93/month.
+ Air travel. I visit the family in the Bay Area about four times a year. How often do they come visit me? About once a year. That ratio is going to be more like 1:1 now. Savings: $200- $250 per trip.
+Dry cleaning. I'm going to pull all the shirts and pants that have to be dry cleaning and stick them in the farthest corner of my closest, next to that skin tight hot pink top from BeBe that I have worn exactly once. Under a buttoned blazer. That will save me about $25/month.
+ Gifts. I usually spend about $25 on family and friend's birthdays. Now I'm going to drop that to $10 per birthday. My nephews just turned 4 and I'm afraid they got the last of the good stuff. Savings: about $15/month.
What are you cutting?
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About The Bargain Hunter
Daily News staff writer Julia Scott loves to find bargains on everything from groceries to Gucci. Her tips will help keep your hard earned cash where it belongs - in your pocket.
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My husband and I took a good look at our bills and thought about what needed to be cut. First on the list...the DVR in the bedroom. We realized that we hardly use it and it's a luxury we just can't afford anymore ($19.50/month). Dinners out are really not an option anymore unless it's a special occasion...not just a Tuesday. We've also decided to make simple changes like turning lights off when we leave the room and unplugging appliances that suck energy when they are off. Unfortunately, I have a feeling that this is just the tip of the iceberg. We're really going to have to cut back. On a positive note, this doesn't have to be a bad thing. Our grandparents, even our parents did this sort of thing everyday. It's time to start realizing that we don't have an endless supply of money, energy or resources anymore.
Kathy,
You hit it on the nose. We have to take stock and realize we have been taking for granted many luxuries that, in this new economy, really will be luxuries. Rare splurges that really are a treat. ~Julia
Dear Rockstar Bargain Hunter Babe(RBHB),
Hot Pink Bebe top being pushed to the back of your closet!? what?!?!?! you have a sister living in New York City, you know. maybe consider lending it out for one night as a holiday gift when i visit in december?
i liked all of your ideas for saving money...except nixing your cell phone. do you REALLy expect to continue your high speed time-is-money life without a cell phone to facilitate??? does this mean i'm going to have to learn how to skype? or call you on Hubby's phone?
miss you,
love, your ny sis
Everyone in my family are readers. My kids bring home from school the Scholatic Book orders. While I can appreciate that my purchases help the class to buy books too, I really can't afford it. The kids are starting to get it too. We use the Scholastic flyer to see what books we are interested in and check them out of the library. Then, if we really like them we wait and see if they show up at the library book sales where we can get them for about .25-.50 each (and they are typically in very good condition). We've also started using Redbox for movie rentals. They are always sending us codes for free movie rentals. And of course, the mantra in house continues..is there a coupon for it? Nope, then we have to wait.. And, eventually one does come at which time, since the wait was long enough.. the item isnt as desireable anymore.
Those are a few things we're doing...
I switched to Virgin Mobile about 2 years ago. And it totally works for our family. First off, we're not big cell phone people, we don't chat a lot, it's mostly for "I'm running late" or for giving it to the school, doctor's office, etc.
Having said that, here's how the plan we're on works: I pay $15 per cell and "pay as you go", BUT it should be called "debit as you go." The $15 is credited to our account and you NEVER lose it, so if you don't use your cell for a month, you still have $15 in your account the next month. When you do use the cell, you're debited something 18 cents per minute, which is not a big deal for us, because, again, we rarely use them.
If you don't use the phone for 3 months you do need to "top up" with another $15, but again you don't lose your previous $15, so you would have $30 in your account. Basically, you could wind up having a cell phone for emergencies (I think at this price totally worth it) for as little as $5/month!
For anyone interested when you complete your 1st "top-up" or charge of at least $20, they'll add 60 BONUS airtime minutes to your account (and mine) when you sign up using kickback code 99OPdwTU .
I think it's a bargain!
Great suggestion and thanks for the referral code! ~Julia
I like your household mantra - is there a coupon for it? That's a great way to get in the habit of saving. ~Julia
I should have known you would want the hot pink top. Now what can you trade in return? ~Julia
Julia, a pay-as-you-go cell-phone plan might make sense for you. Use less and you pay less. Virgin Mobile is good, but I still think T-Mobile has the best deal.
What about home broadband and cable TV? Those are two things that can be cut from many budgets. Free, over-the-air digital TV looks great (that's what I have), and you can either hook up to your neighbor's DSL via wireless (how about two or more neighbors splitting the bill and agreeing to share the connection?), find a free Wi-Fi hotspot, or just use the Web at work.
Steve,
Great suggestions! I especially like your idea about splitting the wireless DSL bill. That could really save us a bundle. ~Julia
Seems like several ideas listed here - using work cell phones and connecting to neighbors DSL lines - are not ethical.
Do you also give us acting ethically while cutting expenses?
Interesting points, but I stick to my original suggestions. Some companies allow workers to use company-issued cell phones for personal calls, in which case it is not unethical to call, say, your Mom.
As for sharing a DSL line (through WiFi), some providers prohibit that, in which case you could run afoul if you choose to do so anyway. Many people chose not to share their Internet access by requiring a password.
I see sharing as a consumer issue. You may split your Internet bill with roommates, but not a person who has a separate entrance. If your provider allows it, you should share with others as long as your connection can handle the extra traffic.
~Julia