Beware of little expenses; a small leak will sink a great ship.
-B. Franklin
Recently our family has had a few financial set backs--our blue car completely broke down (to quote the mechanic, "The radiator is completely fried; if it was my car I'd donate it and take a tax write off."), an unexpected medical bill arrived, and we found out that the heat pump and air handler need to be replaced. All of these things have served as a reminder that getting out of debt is a difficult, constant, and upward battle, and if we are going to make it happen, we are going to have to make a more concerted effort. So our goal is to pay off all student loans within 5 years, but in order to do this we are going to have to "retrench"(to use the Jane Austen term). So we took another look at our budget and here are some of ideas we came up with for how to save more money. Feel free to comment and share any other ideas or tips that you may have:
1) Live with one car: This will require a lot of sacrifice, working together, and compromise on both our parts, but will be worth it in the long run. Jared is going to ride his trike to work on at least 3 days a week so that I can have the car at home. We figure that we will save over $100 a month in car insurance, maintenance, and gas by doing this (not to mention the amount of money we would have to spend to buy a new car).
2) No Dental Insurance: We pay way too much for dental insurance--more than what it would cost for us to pay for work out of pocket. Accordingly, we are going to cancel our dental insurance after our next trip to the dentist, practice good oral hygiene and set aside money for regular visits and dental work.
3) Health Saving Plan: After the baby comes switch to a health saving plan vs. regular health insurance and then don't go to the doctor unless absolutely necessary (this is where having a husband that is a PA and a dad and brother who are doctors comes in handy). We are also going to work hard to live a more healthy lifestyle (nutrition, getting sleep and exercise, etc.) so that we won't have to go as often.
4) Cut household Expenses:
*Plant a garden and can extra produce
*Plan car trips to save on gas
*Buy as much as possible secondhand (especially kid stuff)
*Have a "is it need or greed?" mentality
*Trade babysit vs. paying for a babysitter
5) Use moderation and a strict budget in fixing up and furnishing the house: This is probably the hardest for me since I'm so excited to have my own house and want to make it really cute. I just have to be careful and do it gradually.
6) Avoid getting into more debt at all costs: "Use it up, wear it out, make it do or do without!"
In addition to saving, another part of our getting out of debt plan is to explore alternative sources of income. We have a few ideas of things we are working on, but we would be open to any suggestions you may have.