Financial crisis!

[FallenPixels]

Can your husband look into having his child support adjusted, surely a new baby for you would be a change in circumstances that is considered?

We also got rid of cable to save money, and changed to a voip phone that is much more reasonable on costs than Bell. It is amazing how much we watched tv just for the sake of it but didn't really miss the shows when we didn't have cable.

Obviously, you can save a lot on groceries, diapers etc by using smart canucks and couponing. Take an hour or so on the weekend to make a list of meals, and the groceries you need for the week - including snacks which are often a big expense - and go through the flyers and make a shopping list. Don't impulse buy, I only bring enough cash with me for shopping plus $20 max in case I see something I know we need at a great deal (and because I hate having no cash in an emergency)

As mentioned, survey sites, swagbucks, etc can help you make small amounts of extra cash if you have the time as well as using reward cards when shopping (if shopping at Shoppers, use an optimum card, sooner or later you will have free diapers and milk using it etc), Airmiles can add up, you can get 10 each time for doing a 5-15 min survey, 30 a month using their tool bar as a search engine. For me that means $20 gift certificates for every 160 airmiles - just searching, getting bonus airmiles in Metro and doing surveys, I can probably do that every 2-3 months.

[nadiabreckon]

Good suggestions on here, or if you aren't interested in taking other people's kiddos in your home, maybe you can speak to your boss about sometimes working your shifts around your hubby's (if that's at all possible, I know sometimes it can't be done)...but that way you can save on child care costs.

DH and I have decided that for now, I will only work PT and my boss doesn't mind working around DH's schedule most days, which means less $$ given to our sitter. Mind you, we decided to go with a sitter and not a daycare because she offer hourly and daily rates (as opposed to daycare centers who usually only offer half or full days).

You and your DH should also sit down one evening with the kids are asleep, and go over your budget. We only deal with cash (and once it's gone, we know we don't have anything else to spend). Of course, coupons and freebies are also a great idea!!

[Lexiesmom]

I have been passing along some of these suggestions to my hubby. Some just won't work for us (ie can't change support payments, can't change shifts, I need to keep working), but I really think we could get away without having the satellite, and maybe even (dare I say it), the internet. But OMG that caused a big domestic. I just can't convince him to give up watching all his sports, that is all he lives an breathes. He doesn't seem to think we are at that point yet...but I think we are. I will just have to tread lightly, too get my point across. Arghh!

I'm going to call and see if I can give up "my channels" though, and decrease my internet plan...(if we aren't locked into a contract)

I am going to also use the rachaelray $10 meal guide in my menu planning.

[screamy]

Lexiesmom, I applaud you for taking this on - a lot of people would be too scared to try to deal with it by grabbing the bull by the horns.



Consider tracking what you're saving by making your switches and show it to hubby - he needs to contribute to the savings too. I'm looking into veetle right now (AWESOME suggestion!!) and if he can see his sports stuff there, I say make him!


In all seriousness - as much as everyone does need to decompress and have some fun, maybe he can be coaxed into cutting back a few hours a week and use that time to do the preventative maintenance for the house or your vehicle(s) himself (oil changes, a little gardening if that's an option for you, etc.) - those little things will both save money and get him off the couch.

[avoncallingu]

I don't know if this would work for you - but do you have a room in your house that you could rent to a student? When I became suddenly single I took in students. They didn't impact on my life THAT much and since they leave in the summer that was an extra + - I was able to make $300-$400 per month and met some very nice young people - it might help with child care too, since their hours are flexible.

[FallenPixels]

I'm going to call and see if I can give up "my channels" though, and decrease my internet plan...(if we aren't locked into a contract)

I am going to also use the rachaelray $10 meal guide in my menu planning.

There needs to be some give and take and you may end up costing more if you give up your channels and then his at a later time, be careful going to a lower net plan if you do plan on using veetle etc as the bandwidth costs can be high if you go over a lite plan

[avoncallingu]

Also - what kind of clothing do you wear - I find sticking to about 4 basic colours that look good on me helps to make my clothing interchangeable. I only buy new at sales and usually find things at Value Village, Goodwill, Sally-Ann - certain things I have to pay premium for - shoes cause I have weird feet.

[tidytaurus]

Just a suggestion but maybe you can reduce your utility bills by using a clothes line instead of dryer and checking your toilets for water leakage problems. Just by not using my dryer and dishwasher (using dw once a week) I have reduced our power bill by almost 20%. Its amazing what you can do when you really have to. Wishing you all the best frugal living can be a challenge.

[Litesandsirens911]

. I just can't convince him to give up watching all his sports, that is all he lives an breathes...

You don't have to give up any sports...because they have all the sports channels including all the playoffs, wrestling matches, UFC fights, etc...on Veetle..just don't cancel your internet though, because you need internet to get to the Veetle site..

I don't know what a "bandwidth" is, but we have 6 of us and 4 computers in this house and only ever pay 38.00 for highspeed internet with Telus...we're always on the computer, because between my work online and kids/dh using the internet for Facebook/casttv, Veetle, etc...our internet is always left on..

[Zonny]

Just a suggestion but maybe you can reduce your utility bills by using a clothes line instead of dryer and checking your toilets for water leakage problems. Just by not using my dryer and dishwasher (using dw once a week) I have reduced our power bill by almost 20%. Its amazing what you can do when you really have to. Wishing you all the best frugal living can be a challenge.

We don't have space for a clothesline in our yard, but we do have drying racks in the basement. Many things we just hang up down there. I must say it's easier to just toss it in the dryer, but often we don't.

Avoiding the dishwasher won't necessarily save you money. Most modern models use less water than washing dishes in the sink. Make sure you put it on the Powersave option, which doesn't give a heated dry. Also, check out your water heater - often folks have the water too hot, costs you more to keep it hotter.

I can't remember the last time I made a major NEW clothing purchase for DS (I did buy him underwear yesterday at Zellers, marked down - I draw the line at secondhand underwear! ). I use Kijiji regularly, both to buy clothes for him and to get rid of stuff that no longer fits.

Z

[ashedfc]

Cook at home (eat less at the restaurant).

[orv]

wow these suggestions are awesome.. i really needed these too.. i hope im not on a contract with cogeco because i would like to start cutting some of my non necessities.

[avoncallingu]

Here's one that you have to feel personally ok with. Look at the deductible on your house and car insurance, if you increase it to $1000, then you'll pay less month per month. That will quickly add up to the $1,000 you would need if there was an accident. Put that $1,000 in a "safe" account and don't use it. It then starts earning you money as well as the amount you're paying less each month.

[brunt]

I have been passing along some of these suggestions to my hubby. Some just won't work for us (ie can't change support payments, can't change shifts, I need to keep working), but I really think we could get away without having the satellite, and maybe even (dare I say it), the internet. But OMG that caused a big domestic. I just can't convince him to give up watching all his sports, that is all he lives an breathes. He doesn't seem to think we are at that point yet...but I think we are. I will just have to tread lightly, too get my point across. Arghh!

I'm going to call and see if I can give up "my channels" though, and decrease my internet plan...(if we aren't locked into a contract)

I am going to also use the rachaelray $10 meal guide in my menu planning.

Lexiesmom,

I'll try not to make this a novel, but to tell you the truth, in 1998 I was in a somewhat similar situation myself, except I had zero income (but fewer liabilities) and was staring down a set of looming troubles coming toward us with alarming speed. It got to the point where I was literally calculating how many weeks we had left until we could not make payments on anything. We did some pretty radical things, and made it through.

You, and especially your husband, may not like what I have to say, but I am saying it with the best possible intentions. If one is in a tough spot, it is far more important to admit that you are in a tough spot and do something about it than to listen to soothing words telling you that it is not that bad.

You are in a tight spot, and this is still in a decent economic climate (for those who disagree with this statement, you should see what I believe is coming over the next five years). You have your health, he has his job, you have a part time job and hopefully you have avoided some major catastrophes. But don't become complacent and just believe that a blown engine, job loss, sickness, roof leak, or whatever is not in your future. I don't want to make you worry about the future - in fact, preparation is the best possible solution for worries.

You can let this situation control you, or you can control the situation. Your choice.

To tell you the truth, I am a bit concerned about the reaction of your husband. I am a guy, and so I have a certain way of looking at this. At the risk of sounding chauvinistic (wouldn't be the first time that I was accused of this) I believe that as a man has a duty as provider/protector. It is a job that I take extremely seriously, and it is my top priority at all times. I don't mean this in the 1950's "wife must stay at home" kind of mindset. But it is definitely built into us guys, despite all of our faults, that we should take care of our families.

I cannot for a minute believe that your husband honestly feels that watching a bunch of overpaid prima donas chasing around a vulcanized rubber puck on an overgrown pond is more important that looking after his family. My father would have said that he needs a kick in the a** (always figuratively, my father was not a violent man, but could express disapproval with a look that would instantly fill you with shame as you realize how wrong you have been) and to start acting like a man, and I can't really say that I disagree with ol' Dad.

Having said that, I don't really know how you can approach this problem. Coming from you, he will become defensive, and it will in all likelihood end in a fight. We guys don't always deal well with emotion, but often will take action when confronted with facts that indicate only one possible action.

Perhaps you need to get your ducks in a row by outlining your current situation. Look at your every expenditure, and classify it as a "want" or "need". Be ruthless on this classification as in my mind, advertising is the science of convincing us that our "wants" are indeed "needs".

For every "want", you should figure out if it is possible to ditch it entirely. This list should contain things like cable/satellite, second car, Internet, landline phone, magazine subscriptions, makeup, eating out, parties, vacations, alcohol, cigarettes, lessons, boats, motorcycles, parties and the like. You can probably add more from your own situation.

You have to be ruthless here. For example, it is too easy to say "I will go insane if I give up my vacation". But first of all, you won't. And second of all, there are many alternatives to taking an expensive vacation. Stay at home, disconnect the phone, lock away the car keys and do nothing but gardening, sleep and eat for an entire week. You still have your vacation, but it costs essentially nothing.

Phone is another good example. Our landline was costing us $45 per month before we even made a single call. We cancelled it, and we have a cell phone from Seven 11 that costs a grand total of $100 per year. Sure, we only get 500 minutes per year, but to tell you the truth, we have minutes left over every year. We also have a MagicJack phone that costs $20 per year and gives us unlimited Canada/US calls.

Another example. We gave up the vast majority of eating out. But darn it, it is nice to do it every once in a while. So now we get pizza from Domino's about every other Tuesday. Tuesday night is their 2 for 1 night. We get 2 large pizzas for the price of one, eat a bit for supper and freeze the rest. I have a slice for lunch for the next couple of weeks on most days. So don't give up you pleasures in life, but try your hardest to find ones that are cheaper.

If you really can't/won't give something up, at least admit the fact that you want that item more than you want to secure your financial future. Sorry to keep harping on the sports on TV thing here, but I really am flabbergasted by this thing. Giving up a few channels is going to save $10 on a recurring $80 bill. The problem is not the $10 for your channels, the problem is the $80 for the whole darn thing.

On the "need" list, see which ones you can reduce. Clearly, child support is a fixed cost, but most others are not.

Once again, be ruthless here. For example, I consider housing to be a cost that is not fixed. If you are living too close to the edge, and you own a house, and cannot reduce your other expenses so that you are no longer on the edge, then you can't afford that house.

And don't fall into the trap of "well X is a necessity". Sometimes it is. Sure you have to eat, but that doesn't mean that you have to eat filet mignon.

An example here. I live in a townhouse that would cost about $300,000 to purchase. Interest expenses on this house with a 90% mortgage would be about $15,000 per year. Property taxes would be about $5,000 per year. Repairs would be about $5,000 per year. And if I wanted/had to move, to sell it would cost about $18,000 in real estate commissions, plus $4,000 in mortgage prepayment penalties.

So my annual costs of just owning would be about $25,000, and it would cost another $22,000 to sell. So what are my annual costs? I pay $1,300 per month for a grand total of $15,600 per year. And I don't have to cut the grass or shovel the driveway. And if the furnace breaks, I call the landlord (who lives next door), and he fixes it within 24 hours at no cost to me. And if I want to move, I give my landlord and handshake and a wave, and I move out. The place is brand new, and is one of the nicest areas in town. And to top it all off, I don't have to do any of the upkeep on the place, my weekends are entirely my own.

Forget the common "wisdom" that states that "paying rent is throwing out money". It may be true at times, but in our current insanely overpriced real estate market right now, it is patently untrue. If you want a view on real estate that you will never hear on TV, read Garth Turner's blog http://www.greaterfool.ca/. I don't agree with everything Garth says, and I get the feeling that he is a bit egotistical, but I agree wholeheartedly with his overall real estate message.

Resist the temptation to tinker your way to a solution. If you conclude that your finances are broken, then fix them, don't tweak them. Don't do anything rash that is going to make things worse.

Also, don't rest when you receive a merciful temporary reprieve. This almost happened to us when we made our changes. One of our problems was the bankruptcy of my biggest client, who owed me my pay for about 18 months of work. Thanks to the dot com bubble, I was able to cash out some stocks that I received in the bankruptcy settlement that more than paid for what I was owed and would have carried us for about 3 years with no trouble. I am so relieved that we went through with our changes any way, as we fixed our problem and it is definitely history now. We are far better off for making the changes even though they were no longer necessary.

Frame of mind is of utmost importance here. You have to view this as a game, or a goal. You really aren't giving up satellite, you are making it possible to pay off your mortgage. You aren't giving up a trip to Hawaii, you are allowing yourself to actually retire.

Also, go to the library and sign out copies of Amy Dacyczyn's "Tightwad Gazette". She has three volumes that were combined in "The Complete Tightwad Gazette". She is the undisputed master of cheap, and if you can't reduce your bills reading this book, then you are in big trouble indeed. It is laugh out loud funny, and filled to the brim with practical ideas.

Another absolute must read is Vicki Robin, Joe Dominguez and Monique Tilford's "Your Money or Your Life". It is not so much a book about how to save money, but rather examines your relationship with money. I make it sound a bit too "new age", but it is not. Read it, I cannot recommend it enough.

One last point, don't be jealous of others. Jealousy is as unproductive an emotion as they come. Life is not fair, so don't lose any of your all too limited time here wishing that it was.

If you have any questions, or if I can give you any links on any of these things, please just post or PM, and I would be more than happy to do it.

I wish you the best possible success.

[ashedfc]

Next leg of this Financial crisis is begining to appear.
Prepare for a slower global economy: -
1. Currency value depreciating.
2. Higher unemployment, maybe deflation.
3. Real estate prices gets a break (might not go down, but for sure, its not going up)
4. Lack of credit availability.