Jon and I are embarking on a new journey. One that involves getting very serious about getting out of debt entirely, living frugally, and making the most of what we have. I'm going to write about the journey here, even though I know talking about money and finances is often taboo. Writing will help me work thing out in my mind and keep me accountable.
We watched this show called "Til Debt Do Us Part" on MSNBC, which is kind of like SuperNanny for couples in financial trouble. There isn't very much detail in each show, sadly, but the host has one main message: USE CASH. Each variable spending category you have gets a fixed weekly/monthly budget, that amount goes into a jar at the beginning of the week, and that's all you get. Done. Seems pretty extreme, but Jon and I are going to give it a go.
The big variable categories are Groceries, Restaurants, Retail, Entertainment and Misc. Our average budget for these categories is going from $1850/month down to $750/month. Ack! That includes groceries, diapers, milk, clothes, hobbies, date nights, books, cleaning supplies, lunches out, medications, anything else. Big decrease. Maybe too big? It's a starting point, so we may have to play with the numbers as we go forward. I'm optimistic, though.
I'm going to try to work the whole coupon game. (I just got $107 worth of diapers for $77 with two coupons!) We're going to do some serious meal planning and all our cooking at home. I'm going to be cutting back significantly on soda consumption. Jon is going to learn how to process his own film. Little things will take us far.
This is pretty big for us. Go Team Lew!