Tag Archives: Frugality

How to avoid money drain

Recreational shopping has always been one of my biggest money drains. I can turn a quick stop at Target for a necessary item into a $40 splurge more easily than I want to admit. It’s a problem that I acknowledge, and I’ve been working to correct it.

We have a lot of things on the “to-do” list for our house – new furniture, a garage door opener, an epic garden, a riding lawnmower, and decorating to name just a few. All of these things are going to cost money. Since our mortgage payment is a bit higher than our rent used to be, our budget is a little tighter these days. Not to mention, I always promised myself that once we bought a house I’d finally buckle down and divert more money toward our student loan debt, so that’s definitely on my mind.

The point is, I certainly can’t afford to walk into Target or sign into Amazon and drop $40-$50 on crap I don’t need. When it comes to money drain, prevention is key. The trick is to avoid your triggers. Here are my main money drains, and how I combat them.

Marketing emails.

Signing up for email updates from your favorite stores and websites can help save money, because it will alert you of sales. It can also be a major money drain. If I receive an email about a big sale, I’m always tempted to buy something because “it’s such a great deal!” – even if I don’t really need anything. If you’re on a tight budget and unnecessary spending is an issue, unsubscribe to all of those emails. If an occasion rises that requires you to buy something, be purposeful about your shopping and seek out sales or coupon codes.

Daily deal alerts.

Daily deal sites like Groupon and Living Social are incredibly popular on frugal blogs right now. It’s true that they can save you a ton of money, but again, you’re not saving if you’re spending money on things you don’t need. If you’re struggling with self control, it may be time to unsubscribe and tune out the “daily deals.”

Recreational shopping.

This is a tough one for me, because browsing is one of my favorite frugal ways to get out of the house in extreme hot weather. I take a walk around a store or mall to enjoy being out and around without sweltering in the heat and humidity. Unfortunately, it usually leads to buying things – or seeing things that I want to buy, which just makes me feel deprived when I have the will power to refuse. I’m still looking for an alternative to this activity when the weather is too hot to get outside. Any suggestions?

The drugstore game.

I’ve amassed quite a stockpile of toiletries and hygiene items thanks to the “drugstore game” – matching coupons with weekly deals at CVS and Walgreens. I’m guilty of buying things I don’t need just to get a deal. Even if it’s a great price, any money you spend to buy things you don’t need is a waste, especially if you’re acquiring more items than you can reasonably use. Remind yourself that there will be deals in the future, and you can stock up again when your supply runs low. Use that money to pad your savings or pay off debt instead.

Plan a menu – and skip boring recipes.

If dining out is a big spending trigger for you, it’s time to get organized and get excited about eating at home. The two biggest reasons people spend unnecessary money on dining out is poor planning and lack of excitement about meals at home. If you frequently head to a restaurant or drive thru because there’s nothing else to eat, try creating a menu plan at the beginning of the week and hanging it on the refrigerator to remind you of what’s for dinner each night. If you plan meals, and still find yourself heading out to eat because tonight’s dinner doesn’t sound appealing, it’s time to shake things up. Try new recipes, recreate your favorite restaurant meals, or add new flavors to old foods. My favorite recipe sites are AllRecipes, Real Simple, and Food Network.

Make your favorite treats at home.

I’ve made no secret about my terrible little Starbucks habit. But when I realized my weekly fancy coffee allowance was turning into a two or three times a week habit, I decided to find another way to indulge. I make iced coffee and smoothies at home now for a fraction of the cost. If there’s an expensive treat you indulge in, find a way to satisfy your cravings at home for less money. Alcoholic drinks are usually way overpriced in restaurants and bars. Mix your own cocktails at home or buy a case of beer or bottle of wine and invite friends to your place instead of going out.

Get organized.

One thing I absolutely cannot stand: losing money due to poor organization. Even if it’s just a 25 cent overdue fine at the library, it is such a waste, because I get no value out of the money. I’m paying for a stupid mistake. Overdraft fees (which do still exist in some situations), late charges for bills, overdue library fines, and expensive repair bills for things that could have been avoided with better care and maintenance all fall into this category. Create a system for reminding yourself of due dates and service appointments for the car and home. Keep a close eye on bank accounts and statements to avoid charges. Keep your emergency fund healthy so you can afford to make repairs before small problems become expensive emergencies. Every penny you avoid losing is a penny in your pocket.

What are your biggest money drains? And how do you avoid them?

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Homemade baby food 101

All-natural, organic whole food is all the rage these days. If you’re introducing your baby to solid foods, you’ve probably wondered how you can avoid feeding him pricey, pre-packaged, preservative-laden baby food. Well, I’m going to tell you.

Here’s what you need:

  • Fresh, organic fruits and vegetables
  • A food processor, food mill, or blender to puree them

That’s seriously it.

The best thing about making your own baby food is that there is no tutorial necessary. There’s nothing to learn. If you can buy produce and puree it, then you can make baby food.

Of course, some foods are just a little more complicated. If you want to feed your baby something that easily oxidizes, like apple or banana, you’ll want to add a little vitamin C to the mix so you can freeze or refrigerate some. If you don’t want to mess with all of that, you can do what I do: cut the banana or apple in half, puree one half for baby, and eat the other half or serve it to an older child immediately. That way you’re not wasting any of it, but you don’t have to store it.

Judah hasn’t tried many foods yet. We’ve given him bananas, apples, carrots, and mangoes. We steamed the carrots before pureeing them, but the apple, banana, and mango were served raw. We tried to freeze half a pureed apple, but without vitamin C, the brown gook that we thawed was pretty inedible. Steamed carrots and fresh mango didn’t look or taste any different after thawing.

In addition to being healthier for baby, homemade baby food will save you a ton of money. At $1 or $1.25 each for two 4-ounce jars of organic baby food, it may not seem like you’re spending a lot. But when you consider the fact that you’re paying a whole dollar for a small amount of processed produce, it’s a lot more expensive than you think. Not to mention the environmental effects of the packaging and shipping.

We can get four 4-ounce jars of baby food out of one organic mango for $1.50. That’s 37 cents per jar. Organic mango is one of the fancier, more expensive foods. Organic bananas usually sell for around 69 cents a pound at my grocery store. A rough estimate is about 25 cents per banana. I feed half the banana to Judah and eat the other half, so 4 ounces of homemade mashed banana costs about 12 cents. Apples and carrots cost about a quarter per serving. Based on these very rough estimates, you can cut your baby food costs by 50 to 80 percent.

You can save even more (and be greener) by growing the food in your garden. Unfortunately, I wasn’t able to plant my garden this year, but my next baby will eat organic produce from my own backyard.

If you plan to make large quantities of baby food, buy some small mason jars or Tupperware containers. Freezing or refrigerating excess will make homemade baby food almost as convenient as the store bought stuff. To thaw frozen baby food, put it in the microwave for a minute or so. Be sure to stir the puree well and test the temperature for “hot spots” caused by the microwave before serving to baby.

If you’re like me and you don’t have a microwave, put the jar of frozen baby food into a bowl with hot water and place a coffee mug on top to keep it from floating. Leave it on the counter for 10 minutes. If there’s still a frozen chunk in the middle 10 minutes later, stir the puree, refill the bowl with more hot water, and leave it for another 10 minutes. If you just want to warm up refrigerated food, it will obviously take much less time.

I found a lot of great ideas and instructions on this wholesome baby food site. But honestly, once you get the hang of it, it’s as easy as perusing the organic produce section at your grocery store, buying whatever looks good that week, and buzzing it up in the food processor. No further instructions necessary.

What are your baby’s favorite homemade baby foods?

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Are you “financially fragile”? How to fix it.

According to a new study, nearly half of all Americans definitely or probably couldn’t come up with $2,000 in 30 days if they faced a financial emergency. Financial experts recommend keeping an emergency fund with enough cash to cover at least three to six months of expenses. Based on this research, it seems almost half of Americans would struggle to cover even one month in the event of a job loss or other emergency.

Considering the state of the economy over the past several years, this doesn’t surprise me. I have lived paycheck to paycheck in the past, and I know what it’s like when the money seems to leave your savings account more quickly than you can save it.

I truly believe that with some advance planning, though, most of these families wouldn’t be nearly as financially fragile. We were earning less than half of our current income when we finally began saving money. We went from barely squeaking by to saving a small amount of money every month without increasing our income.

By saving or earning an extra $160 a month, you could build a bare bones emergency fund of $2,000 (plus a little extra with interest) in one year. But how? Through a combination of spending less and/or earning more. Here are some ideas.

Spend less

Line-dry your clothing. The clothes dryer is one of the most expensive appliances in your home. By line-drying some or all of your clothing, you could noticeably reduce your electric bill.

Weatherproof your home. Seal drafty doors and windows with weather strips, update window treatments to insulating curtains or blinds, and take other steps to better insulate your home to cut your heating or cooling costs.

Add one or two vegetarian meals to your weekly menu plan. Reducing your meat consumption can make a huge difference in your grocery bill.

Lower monthly payments. If you have a lot of minutes left on your cell phone plan every month, you might be able to save some money by reducing your plan. Call insurance and utility companies to see if you qualify for any discounts.

Use Netflix, Hulu, and Redbox instead of cable for entertainment. Hulu costs anywhere from $0 to $8 per month. Netflix can cost as little as $9 a month. Cable costs $40 and up. You might be surprised how little you miss cable.

Downsize. Move to a smaller, less expensive house or apartment. Trade your fancy car for a reliable used vehicle with a lower (or no) payment. Become a one-car household.

Use cash for weekly expenses. This was the easiest thing I’ve ever done to cut spending fast. Set your weekly budget for daily expenses like gas, groceries, etc. At the beginning of the week, withdraw the amount of cash you’ll need. You’ll be amazed at how little you spend when you’re not unconsciously swiping your debit card several times a day.

Earn more.

Sell your stuff. Do you have shelves and shelves of DVDs and books and you don’t watch or read anymore? What about clothing you haven’t worn in years? Jewelry you don’t wear? Have a rummage sale or start liquidating your unnecessary assets at consignment shops, resale stores, or online.

Think like a teen. Clean houses, mow lawns, babysit. Start thinking of the ways you used to earn money as a teen. They may still be viable sources of income even as an adult.

Sell crafts on Etsy.

Find a part-time job for evenings and weekends.

I realize it’s easier said than done, but even if you can’t get to $160 or more per month, cutting expenses and earning more can help you start saving something, and that’s the first step to building your emergency fund.

What suggestions do you have for people who want to start saving to protect themselves from financial emergencies?

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Is college worth it?

Lately, there have been tons of headlines touting the idea that rising unemployment, high tuition costs, and overcrowding in the post-college job market have made college degrees a poor value. Proponents of this theory believe that other career tracks — such as internships and entry-level positions that don’t require a degree — may be a smarter idea to get students into the work force faster without spending thousands of dollars.

I think this Time article does a pretty good job of dispelling this theory:

According to the Bureau of Labor Statistics, in 2010, the median weekly earnings for someone with some college but no degree were $712, compared to $1038 for a college graduate. That’s almost $17,000 over the course of a year and there is an even bigger divide for those with less education. College graduates are also more likely to be in jobs with better benefits, further widening the divide. Meanwhile, in 2010, the unemployment rate was 9.2 percent for those with only some college and more than 10 percent for those with just a high school degree, but it was 5.4 percent for college graduates. The economic gaps between college completers and those with less education are getting larger, too.

These statistics paint a pretty obvious picture. It appears that college graduates are not only less likely to face unemployment, but their salaries are thousands of dollars higher than non-college grads.

That doesn’t mean I don’t acknowledge that there’s a problem, though. As someone who personally made the foolish choice to unnecessarily borrow thousands for a college degree, I think college debt is a serious problem in this country.

That doesn’t mean I regret my decision to go to college. My college education opened doors for me. Not only did I learn valuable skills during my time at college, but I was able to find a job afterward that taught me even more valuable skills — and allowed me to support my husband and me while he earned a master’s degree, which is what allows him to pay our bills now. Do I regret the debt, though? You betcha.

You could argue that a college degree isn’t required for my freelance income. However, it’s unlikely I’d have the skills necessary to earn my freelance income without my degree and previous work experience. Not to mention, I don’t plan to be a stay-at-home mom indefinitely. When my youngest child starts school, I’ll be back in the job market. Depending on how many children we have, it could be a while, but I’m glad I won’t be starting college at that point like my mom did.

I think the question of whether college is “worth it” is silly. The more important question is whether college debt is “worth it.” And to me, the answer is no. The debt isn’t worth living beyond your means as a college student.

Skipping college isn’t the answer. The answer is skipping college debt (or at least as much of it as you can). Attend a state school or community college for all or part of your education. Apply for grants and scholarships. Work as much as you possibly can. Live frugally. Do not use student loans to subsidize your beer and pizza fund or buy expensive gadgets or a car you can’t afford. Work full time and attend school part time for longer than four years.

I’m not naive enough to claim that graduating with no debt is an option for everyone. I acknowledge that middle class students without a college nest egg often have limited options. As someone who attended a state school, worked two jobs in college, received financial help from parents, and still didn’t have enough to pay for tuition and living expenses, I understand that avoiding all debt may not be possible if you want to graduate in under a decade. But the point is to borrow as little as you possibly can — and the ideal is to borrow none.

If you’re a graduating senior, please trust me when I tell you — your first job will not pay you enough to make those student loans payments easy. But don’t feel discouraged enough to skip college all together. An education is absolutely worth the hard work required to pay for it — the debt, however, is not.

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Why I’d rather spend less than earn more

This post was originally published on May 13, 2009. Now that I’m a stay-at-home mom, this post is truer than ever for me. I needed a reminder of why my priority will always be finding ways to cut our spending instead of increasing our income. I thought I’d share it with you, too.

When you’re working to save money or get out of debt, there are two main ways to do it: spend less and earn more. When you’re struggling to make ends meet, the solution is to cut your spending or find a way to increase your income or some balance of both.

I’ve always favored the spend less approach on my blog and in my life. I’m not a big fan of Dave Ramsey’s advice to go to extreme measures to increase your income. I’d rather work hard to cut spending than pick up a second job or extra hours to increase our income. Here’s why:

My time is worth more than money.

If we took on night jobs or weekend jobs, we could speed up our debt repayment and savings. But at what cost? We’d lose our only real quality time together, our only time to relax and recharge. As I said yesterday, frugality is about improving my quality of life. Working nonstop isn’t what I think about when I think about my best life.

Being short on time can cost money.

When you’re constantly rushing around, you’re more likely to cling to convenience. From picking up take out at the end of a night shift to paying more in childcare to cover your long hours to skipping money-saving habits like menu planning and coupon clipping because you don’t have time, rushing around can get expensive.

Higher income leads to more spending.

Obviously, the point of frugality is to avoid increasing expenses as income increases. But the harder you’re working to bring in that extra income, the harder it can be to tell yourself, “No.”

Even if you can avoid spending money on unnecessary things, there are some natural upgrades that come along with a better income: home ownership, vacations, little luxuries. If you put more of your focus on earning than saving, it’s likely that those little upgrades will add up to a lot of extra spending. By focusing on saving instead of earning, we’re living comfortably without being tempted to splurge to much. As our income naturally increases and we continue to spend less than we make, we’ll find a way to fit these upgrades into our budget.

What about you? Would you rather spend less or earn more?

How much are you really spending?

At the beginning of this year, Tony was hired for a full-time teaching position, and our income doubled. That sounds like we’re making a lot more than we really are considering the fact that Tony was seriously underpaid as an adjunct professor. But for us, it’s a lot of money, and it’s finally enough to cover all expenses, save a good bit of money, and treat ourselves every now and then.

Along with the income increase, our goals increased, too. Now that we can afford to fund our savings account again, we’re working toward the lofty goal of saving for a down payment and other necessary costs that go with buying a house. We’ve set a tentative deadline for two years.

Aside from buying our car — an admittedly huge expense — and an increase in rent, we haven’t increased our major living expenses at all. We budgeted carefully for the car payment and the increase in rent, and these increases were offset a bit by a reduction in health insurance premiums, so those two things don’t affect our monthly savings allotment anyway.

One thing I’ve noticed, though, is that big expenses aren’t what really affects my budget. I always think carefully before adding a big expense. We carefully looked at our budget before adding a car payment to it, and we thoroughly discussed how much we could afford in rent before signing our lease. I know what to expect when I add a big expense. What gets me though, is the hundreds of tiny little purchases I make throughout the year. The amount is so small that I don’t give a second thought to swiping my debit card, but at the end of the month (or year), it adds up to a significant chunk.

For example, if you buy a soda from a vending machine every day on your lunch break at work, it doesn’t seem like a big deal. It’s just 50 cents a day. But that adds up to $2.50 a week, $10 a month, and $120 a year. Is a soda a day really worth $120 a year to you? If the answer is yes, then great! But most of the time, when I really think about purchases like this, it’s not worth the money to me.

My biggest vices?

  • Starbucks beverages – At $4 each, the expense adds up quickly even if I only indulge 2 or 3 times a month.
  • Movie rentals at the local video rental store – Sometimes we run out and rent a movie if it’s not available on Netflix Instant Play or Redbox. This is mostly TV shows or older movies. We pay $2-$3 a pop a few times a month for the convenience of watching something now, but if we just put it in our mail queue and wait, we wouldn’t have to pay extra at all.
  • Cute baby clothes on the clearance rack – I’m guilty of paying as much as $5.50 for a pair of pajamas just because they’re cute. Yes, it’s clearance, but he really doesn’t need any more clothing. Even if he did, I could get a much better deal at a consignment store.

A few dollars here and there doesn’t seem like a big deal at the time. We’re making more money, we can afford it, right? But these purchases add up. All together, if I buy 4 Starbucks beverages, rent two movies, and buy one outfit, that’s $25 a month I could have been saving toward our house. That adds up to $600 over the next two years that could go toward a house. The $25 isn’t the problem; the problem is that I spend $25 without even thinking about it.

This isn’t to say that I believe in total deprivation. You guys know that I’m all about budgeting for life’s little luxuries. The point is, it’s important to budget for these things. You wouldn’t drop $600 without thinking seriously about it, so why should this be any different?

Sit down and think about the little mindless purchases you make. How much are you really willing to spend when you think about it?

I enjoy treating myself to the occasional Starbucks beverage, but $16 a month seems like too much. If I limit myself to one per month, that’s only $4 a month. That’s much more reasonable to me. Even better, I could cash in MyPoints or Swagbucks (referral link) on Starbucks gift cards and get them for free.

When I really think about those movie rentals, I remind myself that I’m already paying $120 a year to rent through Netflix. I’m not willing to spend any more than that for entertainment, so I should really skip those stops at the video rental store and just wait for the things we want to watch to come in the mail.

And Judah is going to look cute in whatever he wears, whether I pay the clearance retail price or a fraction of that at a consignment store. So I should stay away from the clearance racks and be more strategic in my clothing purchases for him by shopping consignment sales and setting a seasonal budget for how much I can spend to keep him clothed.

It’s important to be mindful about every penny you spend, whether it’s several thousand dollars for a car or a few dollars for a coffee. Every penny counts, and if you’re wasting money on things that don’t really matter to you, it’s easy to sabotage your goals for the things that do matter.

Photo by alancleaver

Buyer beware if it’s too good to be true

So you know those Kindle gadgets? Tony’s been talking about getting one for a while. He’s an English professor, so he’s usually got a stack of about 10 books on his bedside table that he’s actively reading. Many of the books he reads are classics that have now entered public domain, which means they’re available for free as e-books. A Kindle makes them nice and portable. Plus, you know, fun toy!

We never updated our tax withholdings for the baby, so we received a sizable refund this year. Most of it is going right into the bank to replenish our emergency fund. But we decided to splurge on a little something, and $140 seemed like a reasonable splurge, especially since our income increased with Tony’s new job.

We put a lot of research into e-readers in general. We considered the Nook, the Kindle, and the Sony. Ultimately, we were pretty sold on the Kindle for a wide array of reasons that I’m not going to get into.

We’d made up our minds, but Tony was only slightly hesitant because he’s convinced that the Kindle will drop below $100 in the next year or so. He’s been saying all along that once the price is $99, he wants to buy one.

So imagine our excitement when we stopped to look at the Kindle display in Target last night and OMG! There was one marked down to $99! It was labeled as “repackaged.”

We were wary at first, so we asked the associate. Was it damaged? He said nope, it had just been opened and returned, and the only thing wrong with it was the torn packaging. Did the same return policy apply to repackaged items just in case there was something wrong? Yep, 90 days with a receipt.

Still a little wary, we headed to the customer service desk just to be sure. A second associate assured us that the only problem with “repackaged” items was that the packaging had been opened, and that we’d be able to return it no problem.

We were obviously pumped. It seemed like fate! Tony wanted to pay $99 for a Kindle, and we’d found a $99 Kindle! We were sold.

After we bought it, we rushed out to the car to open our new toy and take a look. It looked perfect! No scratches, no defects!

Then I realized there was something conspicuously missing … the power adapter and USB cord. I checked inside the box, under the packaging, everywhere. No power adapter or cord. Crap.

Thankfully, we’d covered our bases. Tony went right back into the store and returned it. The customer service rep’s weak sauce excuse? “We take our customers’ word for it when they return an item, and we assume all parts are included.”

Um, what? So someone returned the item opened, and nobody bothered to crack open the box to be sure that all the parts were there before slapping a discount sticker on it and sticking it back on the shelf? Granted, there was a deep discount, but still! If parts were missing, I think it should be clearly labeled on the box so customers know what they’re purchasing. Furthermore, if the store’s policy is not to check returned items, then customer service reps should warn wary customers that the item is “as is,” and it may be missing integral parts. They should not assure customers that the item is perfectly fine except for some torn packaging. What the heck?

If I had gone back to return it, I would have spoken to a manager to complain. Perhaps I could have gotten a gift card or something for our trouble. Unfortunately, I had to send Tony in because Judah had started to fuss in his car seat, and I didn’t want to leave Tony in the car while he screamed his head off. I can typically keep him calm, so I stayed behind. Tony settled for a full refund.

Eh well. The moral of the story is an old one that you’ve certainly heard before: if it seems too good to be true, it probably is. If we hadn’t been told the item was returnable, we most definitely would have asked to open it in the store before purchasing to make sure it was functional and all the parts were there. As it turned out, we didn’t get the deal we were hoping for, but no harm was done.

What a bummer, though, right?

This post is not sponsored by Kindle or Amazon. However, the link to the Kindle is an Amazon affiliate link.

How much is laziness costing you?

I’ve mentioned before that Tony and I use a credit card to purchase all of our gas. We pay the bill off every month before it accrues any interest, and we get 5% cash back on all fuel purchases. Since we’re not paying interest, the 5% cash back is basically free money, and keeping an active credit line is important for building and maintaining a good credit score. It’s win-win.

The credit card is through BP, and we only get 5% cash back on BP purchases, so 99% of the time we buy gas at BP. We only buy at another gas station if the cost per gallon is less than we pay per gallon with the 5% discount. Makes sense, right?

At the beginning of December, we started seeing signs at BP gas stations for a new rewards program. Fill up five times, and you receive a $10 gift card. Since we fill up at BP 99% of the time, it should have been a no brainer for us. Enrolling in their loyalty program would net us up to three $10 gift cards for 15 fill-ups in addition to our 5% cash back.

The only catch? You have to print a receipt and take it inside to the cashier to get credit for filling up.

I’m ashamed to admit that we didn’t start participating in the program until last week. It’s the end of January, and we’ve only gotten credit for two tanks of gas even though we did more driving in the month of December than we’ve ever done in a single month. We probably could have already received the $30 worth of gift cards considering all the gas we used last month with holiday travel throughout the state and the move.

The truth is, I saw the signs every time I filled up, and the only reason I didn’t take advantage of the promotion was laziness. It was cold, I didn’t want to drag the baby into the gas station, I was in a hurry and didn’t want to go inside. It was easier to pay at the pump and get on my way, so that’s what I did. But it cost me. We easily would have filled up 15 times in three months, but we probably won’t fill up enough in the next six weeks to receive all three of the $10 gift cards we could have gotten.

Granted, in the weeks after a newborn arrives, I think it’s easy for even the most frugal person to be lazy about saving money. But it’s unlike me to turn down any offer for free money, and that’s basically what I did by putting off participating in this promotion.

I see this type of thing all the time from less frugal people, too. Sometimes it’s easier to pay twice as much for an item at a gas station when you need it than it is to go to the grocery store where prices are much lower. Millions of people would rather pay higher prices for groceries across the board than clip coupons and hunt for deals. Many people spend hundreds of dollars a month on takeout because it’s easier than cooking every night.

Laziness is a harsh word, and I don’t think it applies in all cases. When time is limited, I think it makes sense to value your time over the money you could save sometimes. But my point is, how often do we choose the easy way when just a little bit of effort could save us a lot of money? If you’re taking the easy way out most of the time, you could be costing yourself a fortune.

It’s a question I’m asking myself a lot lately as we adjust to earning a higher income than we’re used to. I don’t want to be lazy about our finances. When you have a little extra money, it’s tempting to take the easy way out, but I’d rather work a little harder to save even a few dollars if that means building our savings and reaching our goals faster.

So it’s confession time: how often do you let laziness keep you from saving money? Think about it, and consider just how much you could save if you made a little extra effort in those situations the majority of the time. It could mean paying off your debt sooner, building your savings faster, going out to dinner once a month, or even taking a vacation once a year. When you make the extra effort to save most of the time, those dollars and cents add up quickly.

Are babies expensive?

Throughout my pregnancy, everyone who gave me advice agreed on a lot of things. I’d love the baby instantly. He’d grow too fast. He’d be worth all of the discomfort of pregnancy. (They were all right.)

There was one thing they couldn’t agree on, though. Half of them said to prepare myself because babies are SO expensive. The other half told me babies don’t cost much at all.

I was really curious to see who was right. Two months into parenthood, and I can see where the disagreement comes from. The answer: it depends.

Baby expenses begin long before the baby is born. We needed a car seat, somewhere for baby to sleep (we chose a bassinet for the first few weeks and a crib for later), clothes for the baby to wear, and diapers for the baby to, well, you know. The rest of the baby stuff is optional, but nice to have.

While it’s possible to buy secondhand, shop around for deals, or accept hand-me-downs (we did all three of those things), the truth is that the initial startup costs for baby can be steep. Thankfully, we have a huge support group of family and friends who gifted us with everything we needed.

Once the baby’s born, formula can be one of the biggest monthly expenses. If your baby doesn’t have special dietary concerns, off-brand formulas can provide the same nutrition for a fraction of the price. The cheapest option is breastfeeding (it’s basically free if you do it exclusively), and I’m incredibly grateful that it’s working out well for us so we can avoid the expense of formula.

Diapers are another huge monthly expense. Newborns use 8-12 diapers a day, so the costs really do add up. Buying diapers on deep discount and using coupons can cut the cost tremendously. So can cloth diapering. By hunting for deals, buying seconds (slightly imperfect but new diapers), and sticking with the economical prefolds and covers system of cloth diapering, I built a stash that will last throughout my baby’s diapering years for under $300. That works out to about $10 a month if the baby spends 2 and a half years in diapers. That number drops even lower if you use your diapers for a second or third child.

Our generous friends and family provided us with enough new clothing and hand-me-downs from Judah’s cousins to keep him clothed for the next year. He has enough outfits in each size that I can get away with doing just one load of his laundry every week. He wears the same things all the time, but that’s okay with me. When he grows out of the clothes we have for him, we can shop garage sales, thrift stores, and clearance racks to keep clothing costs down. Until he’s old enough to complain about it, he’ll be wearing the same handful of outfits every week.

These are just the expenses that you can control, though. The biggest expense for us (and one that we unfortunately can’t do anything about) is health insurance. When my husband and I were both covered by individual policies, the cost to add our son was going to be astronomical — $400 a month added to the $500 we were already paying to insure the two of us. My husband’s new job offers family insurance for about half that, which is a relief. But our health care costs are much higher as a family of three than they were as a family of two.

Later we’ll see changes in our food costs as Judah starts eating solid foods. There will also be education expenses and recreational costs as he gets older.

These expenses that you can’t control are the reason why it’s so important to save money on the expenses that you can control. Cutting costs where ever you can will make it easier to afford the expenses you can’t change.

My point is this: if you’re pregnant or want to get pregnant, how expensive (or inexpensive) your baby will be is entirely up to you. Like so many other expenses, the choices you make will affect your budget. If you buy everything brand new, pay full price for diapers and formula, and fill your baby’s closet with more clothing than he needs, the costs can be astronomical. But with a little careful planning and frugal know-how, your baby’s first year doesn’t have to affect your monthly budget that much at all.