Sunday, November 2, 2014

Squeezing all the pennies

Peanut and I have decided that we'd really like to max out both of our Roth IRAs for 2014, which is a fairly tough proposition for a family of three (imminently to be four) on one income. In order to have $11,000 in hand by April 15, we'll need to slash our expenses. I think we're fairly frugal already, but here are some ways we are planning to scrape together that cash:

* Cancel our newspaper subscription. I subscribe for the coupons, but I'm not going to be doing a lot of couponing in the next couple months. In addition, I'm up for renewal at the end of this month, and the price is THREE TIMES what I paid last time I renewed, so, um, no, thanks! This probably will be a wash between the coupons I won't be getting and the subscription fee I won't be paying, but it's money I'm not shelling out, so I'm counting it.

* Putting our NPR membership on hold. I'm kind of torn about this one, as I love our local public radio, but the reality is we're not listening much right now (Peanut's vehicle doesn't have a radio and he takes the bus in the winter anyway, I won't be driving anywhere with two babies in the snow and I don't listen at home, so...). We'll resubscribe someday.

* Lower our internet costs. We have only one option for high speed internet and everyone knows it, but I'm still going to call and ask them to reduce the cost. It's $75 per month, and if I could save even 25%, I'd be happy.

* Cut down on eating out. This is kind of hilarious, since I know how things are going to be for a few weeks after the baby comes, but Peanut's going to cut back on how much he goes out for lunch (it's been 1-2x per week) and so am I (a few times a month, but I spend more when I go out so it's fairly even).

There are two areas where I don't think we'll make much progress.
* Cell phones. I don't think there's much we can do here. We just got new phones in April and managed to cut our bill by 5% so I think we're sort of stuck.

* Groceries. I think our grocery bill is pretty reasonable for a family of three (average $430/month) and while it could absolutely be lower, scrimping makes it easier to spring for takeout.

We need to save about $1,000 per month starting now in order to get to our goal. Between the cash we already save at the end of each month and what we can do between now and April (plus our newest little tax deduction), I think this is a reachable goal. Fingers crossed!

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