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Knocked up: Cutting the cost of maternity clothes

18 Jul

Once upon a time there was a pregnant woman. She soon realized she couldn’t wear her “fat” jeans for long and had to buy real maternity clothes. She went to the store and bought an entire new wardrobe and spent a ridiculous amount of money. She then went home, poor. Sound familiar?

When I became pregnant with our first child I was pretty excited about having the belly. I wanted to wear cute maternity clothes and I hoped like crazy that I would be one of those cute pregnant women who only carried in her belly and not in her a$$. (I was neither… face and arms, bleh). Here’s a shot of me a few days before I gave birth to baby number two.

Notice the shirt barely covers me. Sigh.

I went from a Medium size to an Extra Large and almost a Double Extra Large within 6 months. What I didn’t realize was how many clothes I would go through over that 9 months. I know you all know where this is going so I will get there, fast.

It is nice to buy something for yourself to celebrate this moment in your life, but it shouldn’t be a strain on your household finances. Kids already add enough to the household budget, plus all the expenses of preparing for the child and paying for the medical bills associated. Maternity clothes is one thing for which I can offer a solution.

My sister was pregnant before me, and before her so were many of her friends. They simply saved their maternity clothes, put them into a trash bag and every time someone was pregnant, the trash bag migrated to their house. I would always purchase a few things of my own during my pregnancies and at the end, I would deposit those into the trash bag for someone else to enjoy. For at least 6 women I am aware of, the burden of purchasing everything new was relieved. With my second child I only purchased 5 new items! (most of those were late in the pregnancy when nothing would fit because I was having “giganta-baby”.)

Here are a few ideas to help reduce the cost of maternity clothes during one of the most exciting and expensive times in your life: Continue reading →

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Analyze your spending and stop nickel and dime-ing yourself

27 Jun

It is most difficult to start saving if you feel like you have no money at the end of the month to save. Every penny is accounted for… well, I beg to differ. I PROMISE you anyone can find places to cut back. Here are a few steps to take to analyze your spending and stop nickel & dime-ing yourself to hell.

  1. Stop carrying cash. There are varying takes on this. Mine is to use your debit card for EVERYTHING. This will allow you to truly track your spending down to every dollar. If you implemented the jug after my previous post then you don’t have much cash at the end of each day anyway. Use the debit card for all purchases for at least a month so you have something to analyze. (If you really MUST use cash, then take a little notebook and write down everything you spend money on during the month)
  2. Download your statement. Most banks allow you to download your previous months statement into Excel. Do that.
  3. Categorize each transaction. Take a look at every single little thing and put it in a bucket. Some of my buckets are: Dining, Entertainment, Shopping, Memberships, Utility, Gas, etc. Naturally this allows you to sort the list and see how much you’re spending in each category. If you have several months to download, it is worth the extra effort for the ability to see averages.
  4. Examine $10 and under. This is where most of us get into trouble. How much money did you spend on transactions under $10? These are unlikely NEEDS and most likely WANTS. Be honest, do you NEED to buy lunch at the local fast food joint 5 days per week?
  5. Cut deep but be realistic. Now be honest with yourself. If you commit to stop eating lunch out every day and bringing your lunch, then honestly you probably won’t sustain that. However if you commit to bringing lunch twice per week and cutting that cost down by 40% then you’ve made sustainable progress. The idea isn’t to cut every single unnecessary purchase but to give yourself a reasonable chance at making sustainable changes.
  6. Examine memberships and monthly subscriptions. These items are often things that are under utilized. Take a look at these and examine them on a PER USE basis. For example, if you pay $40/month for a gym membership and you actually went 10 times last month, great job, you only paid $4 per visit. More likely, you went 3 times and paid $13 per visit. Many places will allow you to pay per use, look at if that is a better option for you.
  7. Get Creative. Did you know if you subscribe to Netflix you can watch it on your TV with a $99 device like an Apple TV? My brother does this now and eliminated his TV Cable bill. He simply watches shows online for free or through his $8/month Netflix subscription. He is utilizing a subscription he already had and was able to cut over $1000/year in cable costs. He also watches less TV now and exercises more. My other brother (not Daryl) decided to drop his internet and keep his cable TV. His wife’s mobile phone can get access to the internet for small things and they go online on the laptop when they are out and about.
  8. Add it all up. Ok so you’ve now found some extra cash. What will you do with it? Will this be allocated to saving up that emergency fund? Or will you deposit into your kids’ college savings accounts? You could also increase your 401k contribution if you haven’t maxed it out.
  9. Pay Yourself FIRST! This concept is one of the most important things to grasp when becoming more financially sound. Once you’ve added this up and determined where you are going to put your extra money, schedule a regular transfer of these funds the day after you get your paychecks. That means if you found an extra $200 per month and you get paid on the 1st and 15th of each month, you are scheduling a regular transfer of $100 on the 2nd and 16th. Paying yourself first means you take it out BEFORE you spend it on Taco Bell or Starbucks. If it is just lying around in your account you will find a home for it, I promise. 401k contributions are the best example of this. The money doesn’t even make it to your bank account. If it is not there, out of sight, out of mind.

Have you done this? What are your weaknesses in spending each month? Mine is Starbucks. It has absolutely NOTHING to do with the attractiveness of the drive-thru guy.

If you like these posts be sure to subscribe to future posts or follow me on twitter @SamanthaShepard. Be sure to share this post with a friend too if you’re feeling particularly inspired.

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Today Show Clip: Money rules that can save your relationship

13 Apr

The Today Show aired a segment on “Money rules that can save your relationship”. I completely agree with ALL of these but specifically the one about declaring your own independence with money. I’ve talked about it before and we live this rule every day.

Take a look at the video clip here

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5 poor money decisions I make all the time

11 Apr

No one is perfect. I make spending mistakes all the time. Here are 5 poor ones I continue to make:

  1. Fast Food: I get lazy and go pick up lunch from any number of fast food restaurants. On a good day it’s Panera or Chipotle (I’m addicted). On a bad one it’s McDonald’s. I am WELL aware of the crap that is in their food but it doesn’t stop me. Also, I’m very aware that I’m wasting my money when I should eat healthier at home… but that doesn’t stop me either.
  2. Retail Therapy: If I’m feeling particularly sad or lonely, sometimes I’ll just go wander through a store and inevitably I always end up finding something I NEED. This is my trap. About 75% of the time I figure out it’s not a NEED before I check out but there’s still that 25% of the time that I end up buying it and bringing it home. A month later I realize it was a waste. Bye Bye Money!
  3. Luxury Items: I love shiny, new things. My particular weaknesses are with beauty products, handbags and shoes. Occasionally I will get obsessed with some other type of fashion item, but it is far less often. If I have a weak moment, then I might bring said item home in hopes that it will be the miracle. The one fabulous bag I will carry for the next 10 years. The lotion I will swear I can’t live without. These realities have never come to fruition but it doesn’t stop me.
  4. Buying Quantity: Costco memberships are evil. I have one. I never get out of that place for less than $100. We will never eat 64oz of RiceChips!! It doesn’t matter. I will bring one home to verify.
  5. Buying on Sale: This is probably my biggest weakness. I’m a sucker for perceived value. I love a good deal. I can’t resist it. I will buy something that I don’t necessarily even know I’ll use, but if it is a 70% off clearance item? Fuhgeddaboutit.

Like I said, no one is perfect. I am very honest with myself and the Mr. about my weaknesses. Admitting you have the problem is the first step, right? I find that our split finance arrangement helps combat this. I’m less likely to spend my own money and most of these things can’t come from the joint account because they aren’t in the budget. However, I still make these mistakes. The only thing I can say to defend myself is that I’ve progressed from making them every day to making them rarely. I keep myself in check by reviewing my personal account statement now and then. The worst feeling is adding up all the money I’ve spent on fast food each month. But, it does remind me and then I make that mistake less the following month. Another thing that helps is setting a goal. If I set a personal goal to save up and purchase something big, like the latest gadget, then I will remind myself every time I step foot into a store.

A few tips for you:

  • Be honest with yourself
  • Figure out what your weaknesses are and share them with your partner
  • Use a debit card so you can review your purchases easily each month and see exactly where your money is going
  • Set a goal for your money
  • Buy only things you have on a list
  • Plan your splurges

Allow yourself a little slack when you slip up but remember that discipline is the key to saving.

Leave a comment with mistakes you make too so I won’t feel like such a heel.

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The Emergency Fund. 42% of you apparently don’t have one.

10 Apr

I read this in Money Magazine and was dumbfounded.

“In a recent survey for the National Endowment for Financial Education, 42% of those under 40 reported getting financial help from their parents as adults.”

I realize there are circumstances under which you would need to accept help in an emergency. However, that 42% of us have had such emergencies in our adult life means one thing.

You’re not saving enough. You’re not INDEPENDENT from your parents!

So first things first… you need to start saving up. And this is NOT for a rainy day. Rainy day funds are from the jug. This is for your emergency fund and to get you into the habit of being saver. Financial responsibility isn’t an inherent talent. You learn it. You have to study it and hone your ability to know what is a want vs a need. Now you’re thinking “I’m not interested in being a financial genius.” Believe me, neither am I. What I AM interested in is feeling the confidence that unless something cataclysmic happens, I will not need to seek financial help from my parents. You know why that is so important?? Because I feel the entire weight of responsibility to save for my future. There is no fail-safe for me. Even though our parents are well-intentioned, by rescuing you every time you need help paying your car payment, they are giving you a “parents-as-the-backup mentality”. So let’s fix that. Because mom & dad aren’t always going to be around and let’s be honest, they deserve to enjoy their savings in their own retirement.

Okay so how much to you need to save?

The rule of thumb that I like to start with is 3 months of your household expenses. If you lost your job today, it would give you 3 months to find another one. Some people say a flat amount like $10,000. If that is easier for you, then by all means do that.

Once you get your 3 months of expenses, go for 6 months or $20,000. If you have that, then go for a year or $50,000. The idea is get into the habit of saving. You can choose to put it in whatever account you like, money market, high yield savings accounts but just make sure you can get access to it within a few weeks time without penalty. (aka: Liquid)

If you already have an emergency fund then take a look at your retirement savings. According to Money Magazine, you should be saving at least 12% – 15% of your yearly income for retirement. Many companies have a 401k contribution match program. This is free money. Make sure you’re taking advantage of any opportunity to save tax free and get FREE money.

“What if I live paycheck to paycheck and NEED all my money. I can’t afford to save.”

Believe me there is always a way to pare back your expenses. If this is a problem for you then look for a future post about how to cut the fat from your monthly budget. For now start with putting $5 a day in a jar. Every day. Voila! You just saved $150 in a month. Easy peasy. The key is making it a habit and committing to it. It doesn’t matter if it takes you a few years to save up your emergency fund. Just as long as you save regularly. It’s hard at first but then it gets to be so easy.

So get started. Today.

Leave a comment if you’ve already saved your emergency fund so we can congratulate you. If you haven’t, leave a comment committing to starting today. INDEPENDENCE people. It feels great.

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Play the lottery. And Win.

13 Mar

We play the lottery every day and we win… every time.

Ok, now you’re getting suspicious. (what’s the gimmick here, Sam?)

Ok, you caught me. You caught the tater. (don’t know that reference? I feel sad for you.) When I say lottery, I don’t mean that money-sucking version of gambling you can play at 7-Eleven. I mean we take that money and put it in “The Jug”.

Let me explain young skywalker.

We have a big water jug. Like the kind the culligan man brings. Every day when we come home, any $1 bills and change are deposited into the jug. When it’s full, we take that puppy to the bank and cash her in for something fun.

There are several things going on here:

  1. Respect that change! Spare change often gets wasted away on little stuff.  Give it a future beyond that ridiculous Diet Coke. Save it and buy something fun later on!
  2. Breaking a $20 isn’t something we do lightly. Because I know, once I break that $20 any change and single bills will go into the jug… and I won’t have any money in my wallet! It’s psychological more than anything. It prevents me from breaking a $20 bill for something unnecessary, like a pack of gum.
  3. It becomes a game for our kids. Often in our household you can hear a little voice saying “Daddy give me some money, Put it in the jug!”. How can you resist those little voices? (No, they are not in my head… well, most of them are not in my head)
  4. Give your lost money a home. A jug shaped home. Lost money, any denomination automatically goes into the jug. That $5 you found in your jeans after being in the washer? In the jug! You didn’t know you lost it, which means you won’t miss it now. This is also true of money you lent people you forgot about. When they pay you back, yep you guessed it… JUG!!!
  5. Actually win at the lottery. It’s become our own form of the lottery. We don’t feel compelled to buy that lottery ticket while getting gas because that $1 has a brighter future… like as a flat screen TV for your bedroom. Or a family vacation. Or, in our case, college tuition! (Ok, I admit college tuition is not as sexy as a flat screen TV. We’re not sexy. We know this.)

Consider your change to be found money. Stop buying small things (like a piece of paper with numbers on it) and start buying those fun big things you never seem to have the money for. You can even put a sign on the outside of the jug like “FAMILY BIG SCREEN” or “DISNEY”.

The jug allows you to win something with that $1 burning a hole in your pocket.

Get a jug. Put your change and $1 bills in the jug every day. Do it.

You know you want to.

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New Year’s Resolution Suggestion

16 Dec

This year is coming to an end and soon we’ll be thinking about New Year’s Resolutions. I didn’t used to believe in them but then one year I made one to eat breakfast every day and you know what? I did! So each year since then I make an effort to come up with one doable resolution. Don’t know what yours will be? I have an idea for you.

Continue reading →

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