(The picture is of the beautiful hydrangea I was gifted Saturday for speaking at a ladies day event! It's beautiful and I can't wait to get it planted outside! Right now it's adding a bit of beauty to our hearth!)
Over to Vicky ...
Our Savings Journey......
It was a cold and dark day, haha just kidding, but just in case it becomes a book I thought it should start out like one. No, really for anyone who chooses to read this I am not one to pull a tissue from my behind and call it a homemade hanky, but I do believe that knowing others have climbed the same hills as we have can be very comforting to say the least.
Annabel posted the Vicky
Challenge and you can read more of what it's about there, but there is a little
more to the story that Patsy has asked that I share so here goes!
When we decided I would quit
working I wanted and needed to save as much as I had made while working. The
jobs I worked weren't high paying anyway. I budgeted and changed this and that
and more of this and that, but just to be sure the things we were doing was
worth it that was when I started keeping track of our savings. And the savings
have always been very much worth it and worth the effort we put into it. And
some people just give you a lot of flack or think you don't contribute to the
household at all if you don't have a paycheck on paper. So keeping tabs was a
throwback for having a paycheck. It worked well for us because we paid off $16K
worth of debt the first year. The snowball method is a good tool for this.
However, where my husband worked
they were always offering different things like seminars and workshops, etc. so
when a financial workshop came around we were excited to go. Well....
The gentleman we had was really
good at telling us how much we needed to save and that we needed to pay off the
rest of the debt, but now how. So this poor man I put him through the wringer!
He said that since I didn't work I added no value to the financial aspect of
our marriage and suggested my husband work at least 20 hours of overtime each
week to make up the difference. He didn't account for the taxes on this. So I
told him what efforts I made. For example I saved 4 thousand dollars that year
using coupons. And that was just from coupons. His answer was that wasn't
really saving. If we are blessed with things I count that in my savings again
he said that's not saving. And I have had this told to me several times because
most really only count dollars and cents in terms of the paycheck and bank
savings account. To this gentleman having a $20 gold piece put up for
emergencies was so wise, but my 20 bottles of dish soap that I got free didn't
count for nothing even though I only paid the tax on them and had enough dish soap that wouldn't come out of the budget for a long time. At tax time things
are worth something if you have given them away, but to receive them it's worth
nothing? That makes no sense to me. And on and on we went back and forth. So
after 3 sessions with this gentleman and his budget planning for us it was
basically do without. Nope, people want alternatives and deprivation should be a
last resort or a choice as far as I am concerned. I had my budget ready to go
and my list of all the ways we save and how much this has saved us, how much
debt we paid off, the debt that still needed to be paid off and how much we
wanted to add to our savings and how much we had in savings. Needless to say he
had to agree that my way was better! And it shows my value in the home which
many homemakers don't get credit for.
The reason it worked so well for
us was because by my keeping track of how much we saved on everything we
challenged ourselves to find more ways to save and look at things differently.
There are people like the
financial guy who believe that the bank account is the only thing there is. If
we would always go by that then there are times we would have looked destitute, but
were not, that nothing is a savings if it's not cash in the bank and that the numbers
are not correct or true. Hmm? So this is how I explained it to the expert.
For one I have done all of the
numbers and I can tell you in any given week based on the numbers if it's
cheaper for me to make a boxed cake or one from scratch, make or buy coffee
creamer, noodles, etc. I can budget gas down to the dime based on cost and how
much I will be driving, I have a pantry that we could live off of for at least
2 years without buying anything unless I wanted to by fresh things, so yes, I
know the numbers and what I need to factor in.
Also since everyone's debts,
incomes and needs are different that would also reflect cash in the bank
savings. Lifestyle is a factor also. I have never paid anyone to clean so I
never count cleaning my own house, but it is a savings if you do regardless. We
do count the cost of labor that we save by not paying anyone to do repairs and
such because we know so many that will write that check and never even try. There have been a few things we did pay for in the past and it wasn't cheap!
Another fact by keeping track and
challenging ourselves to find more ways to save we did in fact have a higher
savings and lower cost of living and the extra that was in the bank paid debts
so the bank account didn't look massive at the end of the month, but one by one
the debts were getting paid off at a quicker rate because there was extra to
add to the payments. And 2 examples of this would be the hubs wanted a new tv.
I budgeted $150 for a tv. That was it and he had to find one within that price
range or wait. He was driving and someone had set a really nice tv on the side of
the road, it worked great! After a few months it was still working really well
so I paid an extra $150 on a debt payment. The second is with the cost of fuel
oil we spent $400-$600 a month during the cold months. We purchased a wood
burner and the neighbor has a tree service so get wood free no cost there. I
didn't count it as a savings the first year, but it more than paid for itself
the first year with us no longer having to buy fuel oil. I deduct the cost of
the gas and oil it takes to split the wood, but now we have the extra in the
bank each winter that used to be spent on fuel oil. So it shows!
Do we spend money? We most
certainly, do who doesn't, but using whatever resources we have to our
advantage, getting the most bang for our buck and sometimes just waiting and it
seems like the thing you were waiting for you get blessed with. They say count
your blessings and I do because if I am blessed with something that I was going
to buy the money is still in the bank and that = Cash savings!
And to finish, I don't always have
time to add to my savings book each day so I keep a basket that I will put
savings on a piece of paper in the basket or receipts in the baskets and catch
up when I have more time. To see how well you can do for me is exciting and
challenges me to find even more ways to bring costs down and keep as many of my
pennies as I can. I know this isn't for everybody and don't expect it to be so.
I have been the single mom working two jobs, and the partner that works full
time or part time and the stay at home person, but for someone to say you have
no value or the snooty ‘oh you don't work attitudes’ from people I can say, ‘oh
really?!’
XOXO
Vicky
~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Until tomorrow!
Patsi
Sharing 42 years' experience of frugal, prudent living and pantry building
My second blog: From This Heart of Mine
She looketh well to the ways of her household … Proverbs 31:27
You can view my privacy policy HERE.
That guy was an idiot. I know so many people who have financial advisers. If the power went out, the stock market crashed, the computers or trucks had a glitch all these people are high and dry. I just cant figure it out. Money in the bank is good and I believe in savings but in hard times the banks can close and you cannot get your money. Many investments become a mere bit of paper in the blink of an eye and actually now most of them dont even have a bit of paper! Give me a full pantry, fuel, a garden, an orchard... the knowledge and abilities to make my own and get by. Saving to be debt free was our first goal, having done that we answer to no bank!
ReplyDeleteAnnabel, wise words!!!
DeleteI could not have said it better, Annabel!
DeleteAnnabel,
DeleteYour so right! Tangible things are very much overlooked and can keep us going in emergencies and crisis. If everything crashes we have our back ups!
To your point Ms. Smith,
DeleteIn the early 70's I was in Spain to see my grandparents, but not yet at their place when the banks closed down. I had to stay where I was - no transportation was moving - more than a little over 3 months. Happily, people I didn't even know housed and fed me for 3 months, as my travelers' checks were not being cashed and thus unusable!
Fast forward to Hurricane Katrina in South Louisiana: while I live 75 miles away from New Orleans, and where I live we weren't flooded, but this town lost thousands of trees so there was no electricity, without electricity there were no working ATM's for cash, stores and gas stations closed in a few days after they ran out of everything. This meant also no computers to acknowledge deliveries, no working cash registers, no fuel for cars, no cooling (96F), and some places no water...
Well I learned from the earlier experience to hide money in the yard, have bank statements printed before the storm, I had a deep pantry, a a gas stove, batteries, TP for the masses, etc. I was able to make coffee for the neighbors, feed pets, help others, "can" up food in the freezer (no one went to work for about 3-4 weeks) as I had everything I needed to do that, and not lose food. Also I had probably the only landline on the street, so I could call out, and others could also.
When the banks finally reopened, my credit union said that I had 0 money there. I whipped out my copies, and they had to make my account good! Which was a lifesaver, as I had some of my mother's assets as she wasn't well...
And I completely agree with you re:financial advisers! Laura
Great post Vicky! I agree I have heard those same snooty voices and my daughter gets them too. We have always been a do ourselves family; cooking from scratch, fixing the truck, car and tractors and any maintenance. We just have never kept track of the savings...listening to you for this past year I believe we will give it a try and possibly get my daughter a little more respect, too. Thank you.
ReplyDeleteJudy, our younger wives and mothers definitely need this kind of encouragement. Good for you for trying to encourage your daughter!
DeleteJudy,
DeleteThank you! It can be an eye opener as to how even the smallest things add up during the year. And she may even enjoy seeing those numbers. I do and it has helped us greatly over the years to help controlling our money and not letting money control us!
XOXO
Vicky
Well said Vicky and I could not have said it better myself :) and thank you for all you do.
ReplyDeleteI also get "the attitude" from people as I am a stay at home carer on a low carers pension to my husband with injuries from a military accident also on a military pension.
Such comments I have received from acquaintances are "it is not like you could afford to buy a new car tomorrow is it" to which I replied out of sheer frustration on hearing it so often from multiple people "well in fact we could buy two" but however please carry on (and we can really). "You've got to have some fun", to which I reply "well we have lots of fun and also everything we own we have paid cash for and have no debts either".
Like yourself Vicky we were in debt (run up by family in my name) that we had to work through and paid off $70 000 in debt and damages in 6 years through the snowball method. Needless to say we broke any contact after this.
So onto how we do it on a low income -
- We have a goal to work towards which is buying our land and having our home built.
- My husband and I make a game out of saving money where we can (husband calls it the how stingy can we get game :) ), country joke.
- We only spend on things that matter to us and only replace items when they no longer work.
- We trade what we have (vegetables, herbs, berries, the use of our trailer or land) for other products that we don't have eg electrical work, honey and other produce we don't have. We earn 15kg of honey a year for our pantry building by allowing an apiarist friend to put his hives on our property.
- If we have to buy something we check prices before we buy it to get the best value for our money. Then I still barter the price down on everything further eg a new end of plate date car I got $5000 off the asking price, new clothing I buy for myself and DH at end of season clearances mostly for $5 and a $1000 off the ticketed a brand new ride on lawn mower by paying cash.
- On that note check the prices on the internet for things you need to buy as we have found in most cases they are far cheaper than our small country town prices.
- We grow our own vegetables and preserve by blanching and freezing saving less expenses $4000 over purchasing them in the shops (incidentally it pays for all our garden equipment in savings there alone).
- If we have something to repair we will look at what we have rather than buy anything to do the job.
- We source firewood free from a friends property 5 minutes away which we cut and split ourselves saving money on heating with heaters or buying firewood which is $120 per cubic metre here. Each trailer load we get less expenses saves us $175 each load over buying it.
- For groceries we have a well stocked pantry that most has been purchased at 50% off sales, use a 5% off members discount we receive from our roadside assist club, or recently found I could purchase grocery e-vouchers that give us 16.66% discount on groceries too. I use the e-vouchers to stock our pantry items to a higher level as we are building up to 12 months supply.
- Through careful grocery shopping we have reduced our grocery bill from 4 years ago from $250 a fortnight to $413.33 every two months which is a saving of $586.67 every 2 months.
- Stockpile your groceries you usually buy when you see them on super sales and build up your stocks. By doing this we can wait till we see a good sale on most groceries we use.
- Buy fuel and stockpile it in jerry cans when you see it at a good price. We often find fuel at 30c per litre cheaper when we travel to city functions.
- We do repair work ourselves rather than pay tradespeople.
- We make our own home cleaning products (including stain remover) being mostly vinegar, bicarb, ammonia, methylated spirits and dishwashing liquid rather than purchasing commercially expensive premade cleaners.
I thought I would very much back up what both Vicky and Patsy say in being frugal and the huge amount it saves in our household.
Sewingcreations15.
Sewingcreations15, thank you for your input! It's so encouraging to hear how others play the savings game. I love the name you've given your savings game ... 'how stingy can you get!'
DeleteSewingCreations,
DeleteThank you! No one could take better care of your husband than you. LOL I call my game let's go to the store and see how much we don't spend. You do so well and I love reading your savings each week. Some think that saving is so hard, but usually, not in all cases, but usually the ones I come across it is more a matter of lifestyle than actually not being able to save. I m very happy with how we do things.
XOXO
Vicky
Thank you! I really needed this today! I have been struggling with the fact that I "don't contribute any money/value" to my family lately and this is exactly what I needed to be reminded of! =)
ReplyDeleteTrayceeBee, I'm glad Vicky's post gave you a 'shot in the arm' of encouragement. You are a valuable asset to your home, never doubt that!
DeleteTrayceeBee,
DeleteAw chin up sweetie! Everyday things are important not just the paycheck on Friday. Some don't realize or choose to acknowledge our efforts, but we do have value and being able to save or save creatively is just as important as a paper check. There is so much to homemaking that it truly is under valued, but we make a BIG difference in our homes. Just keep following along with us!
XOXO
Vicky
I know the kind of people you are talking about. When my kids were little, and even sometimes now, people would say how lucky I was to be able to be a stay at home mom. Luck had nothing to do with it. It was hard work and dedication from my husband and me. We cook 99% at home. I coupon, shop sales, do rebates and have a nice pantry. We drive older cars(no car payments) and do most of the work around the house our selves. We shop at thrift stores and take hand me downs. I never say no to food people offer. We have a large garden for our area and I can food for the winter. What we do does count. That is why we are financially Ok and others aren't. I will never be rich because of coupons but I know I will always have food to feed my family. It is also important that both of us felt it was important for me to be at home with the kids then it was for me to make a little more money at a job and have my kids go to day care and eat takeout. Thanks for writing this. Nice to know others out there feel like I do. I wish I had more like you in my day to day life.
ReplyDeleteMakingCentsOfItAll,
DeleteThank you so much! You are exactly right it is hard work and dedication! If we choose to do things we can. All of the effort we put forth pays off in one way or another. Finding like minded people in our day to day life is a bit of the same for us, but we mostly let what others say go in one ear and out the other. They are complaining about bills and mortgages and we're done with that so it is a good feeling that keeps us going. Thanks again!
XOXO
Vicky
I remember the first time I ever heard, "Oh, so you don't WORK?" when I told someone I was a full time homemaker. I felt as if I wasn't contributing. After all these years however, I have gotten to the point where other folk's opinions of my lifestyle are far less important. I do many of the things that you and the other ladies in the comments do, and my family lives a very comfortable life, with bills paid and the few luxuries that we like. Good post!
ReplyDeleteEvelyn,
DeleteAnd if we are happy that is all that matters. We like our life and it is a lot less stressful who couldn't ask for more than that?
XOXO
Vicky
Even if I had not tried to save everywhere I could for the 40 years I have run my home, I saved a ton of money on college for the kids. I homeschooled them for 23 years and did so with the goal of scholarships. Four out of five had full tuition covered. Oldest daughter $120K. Son #2 $80K. Son #3 $160K. Daughter #2 $88K. That was my biggest challenge and it is done! I could not have contributed as much by being in the workforce. My energy level could not have kept up a job and home and raised 5 kids so I contributed in other ways. But. I could not have been home if I had not pinched pennies everywhere I could. I hope this makes sense. I am not saying that none of the kids would have gotten scholarships if they had not been home but I know my kids and it would have been 2 of them at most.
ReplyDeleteLana,
DeleteI have seen you post your savings, your a smart cookie and get stellar deals! Homeschooling is a lot of work so that was huge and look at the results! You make sense perfectly, the pinching pennies is usually the difference between being able to stay home or not. Sadly some are not willing to do it so you have done an excellent job in my opinion.
XOXO
Vicky
Vicky, I really love how you've brought your experience to life. This is our strategy too, and I get tired of people saying to me 'but why don't you work?'. I DO work. I actually work quite hard, and what I do, like you, saves us more than I could earn outside of the home. That has allowed me the great luxury and privilege of being home for my disabled son and only daughter, and what a great gift that has been. Well done you. And thankyou. You've expresses so eloquently, what I've been saying for years. Mimi xxx
ReplyDeleteThank you Mimi! Caring for home and loved ones and over seeing everything that needs done is work. Lots and lots of work. We can have nice lives and nice things if we so choose. And you do it beautifully!
DeleteXOXO
Vicky