In 2011, I was a 21-year-old newlywed with a household income of $30,000.
Fast forward to 2015, and my husband and I have two little kids, three-year-old Penny (a potential hoarder) and one-year-old Georgia. My husband earns $42,000 a year working full-time as a youth pastor and I recently re-entered the workforce as a freelance writer, on pace to earn $23,000 annually while working about 15 hours each week.
By most measures, we’re a low-income household. A year earlier we were struggling financially, barely covering our bills and sliding into the frightening habit of putting emergency expenses on a line of credit.
But with determination and a few lifestyle adjustments, we managed to reorganize our spending and save $1,045 each month. We no longer carry credit card or line-of-credit debt. We make a modest monthly payment on our new van and are saving toward our first house, all while keeping an emergency fund intact.
Here’s what we changed to reduce our monthly budget and regain financial stability.
1. We Moved to a Smaller Place
We aren’t ready to buy a house yet, so we decided to rent a smaller unit and concentrate on beefing up our savings.
We went from a 1,400-square-foot, three-bedroom, two-bath townhome to a 1,000-square-foot, above-ground basement apartment with two bedrooms and one bathroom. It’s a bit cozier, but 1,000 square feet suits us, and the cost savings are significant.
Savings per month: $550
2. We Cut the Cable
We had a basic cable package that we didn’t really use, so we made a short phone call and cancelled it. We received an Apple TV for Christmas and now subscribe to Netflix, which costs much less and fits our viewing habits better.
If you’re thinking about cutting the cord, be sure to add up any related expenses first.
Savings per month: $30
3. We Eliminated Our Landline
In the era of cell phones, a landline feels outdated. We were slow to realize it, but once we did we cancelled the home phone and have enjoyed the monthly savings.
Savings per month: $25
4. We Haggled With Our Internet Company
We shopped around a bit so we knew the promotions other providers were offering, then we called our current ISP. Since we had already dropped their phone and cable services, the representative was keen to keep us as internet customers.
By simply asking for a better deal, we saved $30 per month and improved our service quality.
Savings per month: $30
5. We Contacted Our Auto Insurer
After comparing quotes from several insurance companies, we called our current auto insurer and told them we’d found cheaper rates elsewhere.
Rather than lose us, the company matched a lower rate and we saved the hassle of switching providers while still enjoying the reduced cost. We saved $50 per month after that call, and when we purchased a new van with better safety ratings, our insurance dropped another $50 per month.
Savings per month: $100
6. We Began Planning Meals and Shopping With a List
Many families overspend on groceries, and we were no exception. The remedy was straightforward: a system to cut food waste and keep meals at home.
We now prepare a weekly meal plan and a grocery list, and we stick to them like our budget depends on it.
Savings per month: $200
7. We Switched Grocery Stores and Used Price Matching
We used to shop at a pricier supermarket because the aisles were neat and organized, but that convenience was costing us.
We got over it and started shopping at a discount grocer that offered lower prices and price matching with competitors. I use an app called Flipp to make price matching quick and simple. If you want more ways to reduce food costs, check out this guide to cut down your grocery budget.
Savings per month: $100
8. We Stopped Buying Cereal
It may sound trivial, but buying cereal led us to consume milk quickly and start the day with sugary carbohydrates — which made us reach for snacks soon after and pushed our grocery bill up.
We swapped cereal for cheaper breakfast choices like eggs. Eating a protein-rich breakfast instead of processed sugary cereals keeps us fuller longer and prevents mid-morning snacking.
Savings per month: $10
Small Habits Make a Big Difference
Implementing these changes helped us save an average of $1,045 per month, roughly $12,540 per year.
Some adjustments required more discipline and sacrifice than others, and usually the tougher changes yield the greatest rewards. We’ve found that we’re happier with the results and appreciate living more within our means.
Your Turn: Have you tried any of these tactics? How much did they help you save?
