If you’ve been lurking around LRWC for a while, you have heard me talk about the need for setting up budgets and my families journey to live a completely debt free life.  We are not there yet but we are working very hard at it.  It’s a process for us while putting 3 kids through college at the same time.  But, we are headed in the right direction.

I can’t stress how important it is to rid yourself of debt, set up a budget for yourself and throw away those credit cards.  After 24 years of using credit cards and not being disciplined with them, we threw them all away and have not used a single credit card in 2 years.  It’s been cash or nothing.  And, I can not tell you how good that feels.  Was it hard in the beginning?  Yes, yes yes!  But, it’s the best thing we ever did and I have been drilling into the heads of my 3 young adult children. I think they really hear me because I see lots of promise in the handling of their money, albeit a small amount at this time.

Well, it seems that some of you have heard me as well.  I wanted to share with you an email I received from reader Justyna.  I was thrilled beyond when I read it and I hope that her success will inspire you as well.  It certainly did for me.  Here is her email:

I am addicted to your website.  I check it at least 4 times a day.  I want to thank you for all the great work. I came to the US 16 years ago as a teeneger.  Thanks to my wonderfull mother I have finished college and married a wonderfull man. I am living “the american dream”!!!. I have 2 kids ages 5 and 1 and boy do they always need something.  Thanks to your posts I am always able to find great deals for them, my husband and myself. You have motivated me to pay off all of our credit cards and today at the age of 32 I am mortgage free, purchased both of our cars for cash and have “0″ balance on my credit cards.  It took some time, but it is possible and at the end makes you feel very proud of yourself.  From time to time I will get a negative comment about my “cheap” life style and waste of time cliping coupons–but you know what—-I DONT CARE!!!!   I am happy that I do not have to worry about paying bills, buying formula or diapers for my kids, take them to the movies, enjoy family vacations  –and from time to time treat myself to something nice and expensive.  We also started saving accounts for both of my kids and started putting $ into them for their college  education.

So once again—THANK YOU!!!!  By reading my story you will see that what you do truly matters and makes changes in peoples lives.  I am your sucess story

Cue in the tears.  Because that is just what I did when I read her words.  Wow!  What an awesome story.  Congratulations to Justyna and her husband for that unbelievable accomplishment. Life is so much simpler when there are no worries of which bill to pay, when and how.  If you are not there yet or have not yet started, this should be your motivation.  The beginning is not easy, but the end result is worth it all.

Have you paid off debts?  Are you on your way to living debt free?  Share your stories!

Note:  I will be sharing our 6 month progress next week.  Right now my husband and I are going through all our numbers to determine how we are doing and how much more we have to go.  So stay tuned.

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{ 10/28/2010 with 16 Comments }

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How to Set Up a Budget and Stick to It!

Saving money at the grocery store is an awesome way to free up extra cash to spend in other areas or to just make ends meet.  As we have seen, cutting your costs on groceries is definitely doable.  If we work hard enough at it, we can really save a bundle. However, freeing up lots of extra cash and having the money just disappear elsewhere is not the best way to manage it.  And, that brings me to my next biggest passion.  Budgets.  I am now a firm believer that we all need a budget.  If we make $20,000 a year or if we make $500,000 a year.  It does not matter.  We all need to start a budget and stick to it.

For many, many years my husband and I worked and spent, worked and spent.  As our incomes increased, so did our spending.  Now the problem with that is that I can not even tell you what we bought.  But, I can tell you that it was truly nothing that we needed and it was definitely stuff we could do without.  Had we been on a budget, we would have been in a much better situation when my husband lost his job a couple of years ago, a much better situation now that we have 3 kids in college and a much better situation while we actively plan for his retirement.  That is not to mention our children’s weddings that might be in our near future.  (Oh please kids, give me about 5 years!)

So, here are some ways to help you manage your money and plan a budget for your family.

1. Go through your income and expenses.  Look at every single bit of income that comes in and every single bit that goes out.  Write it all down.  Everything.  Every gift, every fast food purchase, everything.  Once you have it all written down, start with the items that are due every month and can not be changed (at least not right away).  Then make a list of the bills that you can adjust.  So you should wind up with 2 outgoing expense categories: Fixed Bills and Variable Bills.

• Fixed Bills:  mortgage/rent, car payments, phone bills, etc.
• Variable Bills: groceries, gas, dining out, entertainment, clothes etc.

2. Write your budget: Get to work setting up your budget.  If your mortgage/rent is $2000 and you are budgeting every 2 weeks, then $1000 per paycheck gets put aside for that.  Go down the list and account for everything.   If you don’t have enough then you will need to make adjustments.  That is a must.  Your outgoing cash MUST NOT exceed your incoming cash.  If it does, then go to your variable bills and start cutting.  If you have extra money leftover, then that should be used to either pay down debt, add to your emergency fund, savings account and/or retirement account.

3.  Emergency Fund: If you do not have an emergency fund, you need to add that to your budget line.  Get yourself $1000 saved up as quickly as possible.  If it means selling off some stuff on ebay or at a garage sale then do it.  If it means, eating out of your stockpile for a month or 2, then do it.  It’s very important to at least have a small emergency fund so when something goes wrong, you don’t have to pull out a charge card to pay for it.

4. Cash Envelopes: We follow the Dave Ramsey system where we use a cash envelope system.  Every 2 weeks (because that is how my husband is paid) we pull out cash from the bank that we have budgeted for a select few items.  We place the budgeted money in the envelopes and use it over the 2 week period.  If we run out, we have to wait until the next paycheck.  Here are the cash envelope budget items we use:

• Groceries
• Gas
• Clothes
• Haircuts
• Dry Cleaning
• Blow Money for my husband
• Blow Money for myself

Blow money is just that, money that we each can put in our wallet and spend on whatever we want.  At $25 each, every 2 weeks, we are not getting very far with it but it’s nice to have some extra cash in our wallet.

5. Virtual Cash Envelopes: My biggest problem, when we first started on our budget, was not with the money that we pulled out for the cash envelopes but with the money that was budgeted and left in our bank account.  I didn’t want it to just sit in one account, all together in one big small lump.  I wanted it to be assigned an envelope. But it was in the bank which became a challenge to organize it.  So, I decided, since we use Quicken to track our banking, that I would set up separate accounts in Quicken and “transfer” the money out of the main Quicken checking account and into each of the budgeted separate accounts.  How I did this was by setting up other “bank accounts” within the Quicken software.  Each new “bank account” was named the budget item such as Mortgage, Phone Bill, etc.  My money still stays in 1 account at my bank, I just show it, in Quicken, as moving from the main account to it’s budget account.  So, when I go to pay my mortage, buy a present or have the car repaired, the money has already been accounted for.  I simply deduct it from the money that accumulated in it’s budget account.

I do this in Quicken, but you could do this in Excel or even use the free software Mint to manage your budget. Some bank accounts now offer this right online as well. Or even if it’s just old fashion pen & paper. Whatever works for you and your family.  Here are some of the virtual envelopes that we have:

• Mortgage
• Phone
• Car Payment
• Car Repair
• House Repair
• Hospitality
• Gifts
• and more (unfortunately)

6. Sticking with it. Once your budgets are set, the key is to stick with it.  It’s easy to pull from one of your budgeted accounts one month to pay for another budget that has run dry.  The typical thing to do is to say I’ll pay it back next paycheck.  Well, trust me when I tell you, 9 times out of 10 that won’t happen.  The money never gets back to where it should be and before you know it, a little hole has been dug that you are having trouble climbing out of.  What happens next?  Those credit cards come out to pay, not for fun stuff, but for the stuff you had on your budget that you can no longer keep up with.  So, STICK WITH THE BUDGET.

I am not going to lie.  When we first started, the first 3 months were torture.  They really were.  I thought it was a hopeless cause but I knew if we kept plugging along that we would be in a better place.  And, it did get easier.  It really did.  And now, I am so thankful that we are on a budget.  Being on such a strict budget is actually such a freeing feeling.  I know that sounds weird but we (including the kids) know our limits now and easily stay within them.  And, the funny thing is, our budget has not changed since we started it.  But, when we first started, I thought I was being squeezed and would never be able to continue with this tight budget.  But, now, I have no desire to change it.

Do you keep a strict budget?  If so, how do you do manage it?

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{ 10/13/2010 with 46 Comments }

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Everyone needs a budget. Everyone! It doesn’t matter if you make $30,000 a year or $300,000 a year. You need a budget. You need to know exactly where your money is going because i you don’t, before you know it, you’ve spend more then you’ve earned and you have no idea where it went. That’s when trouble begins and those dreaded credit cards come out. Because you still need to live, eat, do and if you’ve spent more money then you’ve earned, well, you know what happens next. Charge, charge, charge. And the dreaded cycle begins.

Shortly, I will be showing you how we keep our budget but for now you need to take a long hard look at what you are spending and where it is going. Here are some prelimarly ways to make some cuts in your yearly spending. Once you’ve made some of these cuts you can really sit down and map out a plan. You’ll be shocked at how much you can shave off your budget from some simple changes.

1. Buy Less Coffee: Cutting out coffee purchases twice a week can save you $6.00. Total yearly savings: $312
2. Dry Cleaning: Cut back on the amount you send to the cleaners. Wash & ironing those dress shirts saves around $10 a week. Total yearly savings: $520
3. Order Water at Restaurants: Soda & alcholic beverages jack up the price of your restaurant tab pretty quickly. Order water when you are out to eat. Ask for lemon or lime to add a little flavor. Saving for 2 each week is around $4.00. Total yearly savings: $208
4. Brown Bag Lunch: Pack a sandwich, salad. Or grab one of the cheap frozen meals we score. Do that 3 times each week for a savings of around $24 a week. Total yearly savings: $1248
5. ATM Fees: Avoid ATM fees by going direct to your own bank. Or pull out the extra cash you need at the store where there is no fee to do so. Two trips to withdraw money and you’ve emptied your bank account by about $6.00 a week. Total yearly savings: $312
6. Phone Bill & Cable bills: Go over your phone & cable bills. Do you have services on there that you don’t even use. Call waiting, call forwarding, TV stations you hardly watch? We cut a lot out of our bill and saved $25 a month. Total yearly savings: $300
7. Use The Library: Don’t buy books when you’ve got a free resource for any books that you want for FREE. Use your library, it’s free! Total yearly savings: $360 (if you purchased 1-2 books a month)
8. Drink Tap Water: Forget the water bottles. Buy yourself an nice, reusable, water bottle and fill it with tap water. Add some lemon or lime to add some flavor or throw in some free or cheap Crystal Light. You could easily spend $3.00 a week on bottled water. Total yearly savings: $156
9. Haircuts: If you go every 6 weeks to get your haircut, stretch it out to 8 week. Just buy skipping a couple of weeks you reduce the amount of times per year from 8 haircuts to 6. If you spend around $45 per haircut that can really add up. Total yearly savings: $360 (for a family of 4)

Just from these simple changes you can cut out around $3400 a year. Of course every family is different and has different areas that they can cut, this is just something to get you thinking.

Let us know what areas you have or will cut.

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{ 06/03/2010 with 6 Comments }

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Have you wondered what happened to my monthly grocery budget posts?  Well, since the next round of numbers ended in the middle of February I decided to wait until the end of February to report.   For one very good reason.  February 28th marked exactly one year that I have kept track of my grocery budget.

If you had been following along each month you could see the savings that I posted.  Well, now that we have made it to one year I am so thrilled to report in my numbers.

Before I tell you how we did I want to point out a couple of things.  First, I know a lot of you are new to couponing.  Don’t be overwhelmed by the amount of coupons or deals that are out there.  Start slow, do a little at a time.  Build up your stockpile and you will slowly see your numbers go down.  And second, don’t feel like you have to use the same amount of coupons or deals that I use.  If you want to that is fine and of course your savings will be big but I want you all to know that going to the grocery store and saving $20 a week is a big savings.  A savings that equals out to $1000 a year.  So, don’t judge your success or failure on how others are doing.  You need to do what is right for you and your family.

::CRUNCHING THE NUMBERS

Okay, with that said, here are my 1 year numbers from March 1, 2009 – February 28, 2010.

Total spent for the year: $3863.90.  That equals $321.99 per month or $74.31 per week.

My goal was $75 a week so I can’t believe I made it.  Almost exactly!

::MY SAVINGS

Previously we had spent $250 per week easily.  That equals $13,000 per year.  So our savings:

$13,000 – $3863.90 = $9136.10 SAVED!! Woohoo!

::WIN A $50 TARGET GIFT CARD

Now for the fun part.  I am so excited about my savings that I want to celebrate.  So, as part of my celebration and to thank you guys for being awesome readers, I am giving away a $50 Target Gift Card to one lucky LRWC winner.  Yeap!  Here is what you need to do to win:

1. Leave a Comment -Tell us how much you saved in February at the grocery store.  If you have just started couponing, tell us your plan to save in March.

2. Follow My Blog Via Email or Reader – you can subscribe in the right sidebar. Please be sure to comment back to let me know you did it. If you are already following LRWC via email or reader just leave a seperate comment letting me know.

3. Follow Me On Twitter – Follow me on Twitter at www.twitter.com/LivinRichCoupon and Tweet about this giveaway. Make sure to copy me on your tweet by adding @LivinRichCoupon. Also comment back on the post that you have done this.

4. Follow Me On Facebook – Use the facebook link on the right sidebar. Please be sure to comment back to let me know you did it.  If you are already a facebook fan just leave a comment letting me know.

Good Luck!!

Note: Target did not sponsor this giveaway.  The Target gift card is a gift from LRWC and paid for by LRWC.
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{ 03/02/2010 with 268 Comments }

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I am higher this past month then I have been in a while.  I had 5 adults living and eating in the house for a month (home from school) and some guests so actually, when you think of it, it really wasn’t that bad.  I stayed below my $75 budget which is all I can ask for.  Here are my current numbers since I started keeping track in March:

March:
Total spent out of pocket for the month: $567.83
Avg $128.24 per week

April:
Total spent out of pocket for the month: $380.57
Avg $95.14 per week

May:
Total spent out of pocket for the month: $425.02
Avg $106.25 per week

June:
Total spent out of pocket for the month: $323.34
Avg $80.84 per week

July
Total spent out of pocket for the month: $288.99
Avg $72.25

August
Total Spent out of pocket for the month: $288.08
Avg $72.02 per week

September
Total spent out of pocket for the month: $279.16
Avg $69.79 per week

October
Total spent out of pocket for the month: $245.13
Avg $61.28

November
Total spent out of pocket for the month: $197.88
Avg $49.47 per week

Nov/December
Total spent out of pocket for the month: $207.81
Avg $51.95

December/January
Total spent out of pocket for the month: $291.80
Avg: $72.83

**If you missed it you can check out our months shopping trips here.

So to sum up our budget, for the last 44 weeks I have saved over $7500. That is over $682 each month. Click here to see how I got started using coupons and saving.
If you are ready to get started using coupons, check out my beginner series here.

My grocery budget week goes from a Friday to Thursday as that is when we get paid. So this month’s groceries were determined from Friday 12/19 through Thursday 1/14. Next month are from 1/15 – 2/11.

How have you done on your grocery budget.  Share your savings!!

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{ 01/25/2010 with 5 Comments }

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Here are my current numbers since I started keeping track in March:

March:
Total spent out of pocket for the month: $567.83
Avg $128.24 per week

April:
Total spent out of pocket for the month: $380.57
Avg $95.14 per week

May:
Total spent out of pocket for the month: $425.02
Avg $106.25 per week

June:
Total spent out of pocket for the month: $323.34
Avg $80.84 per week

July
Total spent out of pocket for the month: $288.99
Avg $72.25

August
Total Spent out of pocket for the month: $288.08
Avg $72.02 per week

September
Total spent out of pocket for the month: $279.16
Avg $69.79 per week

October
Total spent out of pocket for the month: $245.13
Avg $61.28

November
Total spent out of pocket for the month: $197.88
Avg $49.47 per week  

Avg $51.95

**If you missed it you can check out our months shopping trips here.

So to sum up our budget, for the last 9 months I have saved over $6700. That is over $679 each month. Click here to see how I got started using coupons and saving.
If you are ready to get started using coupons, check out my beginner series here.

My grocery budget week goes from a Friday to Thursday as that is when we get paid. So this month’s groceries were determined from Friday 11/21 through Thursday 12/18. Next month are from 12/19 – 1/14.

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{ 01/03/2010 with 3 Comments }

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Here are my current numbers since I started keeping track in March:

March:
Total spent out of pocket for the month: $567.83
Avg $128.24 per week

April:
Total spent out of pocket for the month: $380.57
Avg $95.14 per week

May:
Total spent out of pocket for the month: $425.02
Avg $106.25 per week

June:
Total spent out of pocket for the month: $323.34
Avg $80.84 per week

July
Total spent out of pocket for the month: $288.99
Avg $72.25

August
Total Spent out of pocket for the month: $288.08
Avg $72.02 per week

September
Total spent out of pocket for the month: $279.16
Avg $69.79 per week

October
Total spent out of pocket for the month: $245.13
Avg $61.28

November
Total spent out of pocket for the month: $197.88
Avg $49.47 per week <-----such a happy girl right now!!!!

**If you missed it you can check out our months shopping trips here.

So to sum up our budget, for the last 9 months I have saved over $6000. That is over $665 each month. Click here to see how I got started using coupons and saving.
If you are ready to get started using coupons, check out my beginner series here.

My grocery budget week goes from a Friday to Thursday as that is when we get paid. So this month’s groceries were determined from Friday 10/23 through Thursday 11/20. Next month are from 11/21 – 12/17.

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{ 12/01/2009 with 2 Comments }

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Here are my current numbers since I started keeping track in March:

March:
Total spent out of pocket for the month: $567.83
Avg $128.24 per week

April:
Total spent out of pocket for the month: $380.57
Avg $95.14 per week

May:
Total spent out of pocket for the month: $425.02
Avg $106.25 per week

June:
Total spent out of pocket for the month: $323.34
Avg $80.84 per week

July
Total spent out of pocket for the month: $288.99
Avg $72.25

August
Total Spent out of pocket for the month: $288.08
Avg $72.02 per week

September
Total spent out of pocket for the month: $279.16
Avg $69.79 per week

October
Total spent out of pocket for the month: $245.13
Avg $61.28
**If you missed it you can check out our months shopping trips here.

So to sum up our budget, for the last 8 months I have saved over $5100. That is over $640 each month. Click here to see how I got started using coupons and saving.
If you are ready to get started using coupons, check out my beginner series here.

My grocery budget week goes from a Friday to Thursday as that is when we get paid. So this month’s groceries were determined from Friday 9/25 through Thursday 10/22. Next month are from 10/23 – 11/20.

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{ 10/26/2009 with 1 Comment }

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September numbers are in. How did we do?
If you remember, I started keeping track in March. Previously my grocery bill used to be $225-$275 each week. I used to take advantage of some coupons that I would cut from the one insert I had from that week.

Here are my current numbers since I started keeping track in March:

March:
Total spent out of pocket for the month: $567.83
Avg $128.24 per week

April:
Total spent out of pocket for the month: $380.57
Avg $95.14 per week

May:
Total spent out of pocket for the month: $425.02
Avg $106.25 per week

June:
Total spent out of pocket for the month: $323.34
Avg $80.84 per week

July
Total spent out of pocket for the month: $288.99
Avg $72.25

August
Total Spent out of pocket for the month: $288.08
Avg $72.02 per week

September
Total spent out of pocket for the month: $279.16
Avg $69.79 per week
**If you missed it you can check out our months shopping trips here.

So to sum up our budget, for the last 7 months I have saved over $4400. That is over $600 each month. Click here to see how I got started using coupons and saving.
If you are ready to get started using coupons, check out my beginner series here.

My grocery budget week goes from a Friday to Thursday as that is when we get paid. So this month’s groceries were determined from Friday 8/28 through Thursday 9/24. Next month are from 9/25 – 10/22.

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{ 10/03/2009 with No Comments }

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