20 Budget Tips for Families

With the start of the New Year, we’ve decided to overhaul our budget (if you could even call it that) so I thought I’d provide my top budget tips for families. To be honest, the past two years we’ve lived pretty frugal-less-ly. If we felt like eating out, we ate out. If I wanted a new shirt, I bought it. When I look back at my spending the past few years, I’m honestly ashamed. I spent thousands and thousands of dollars without a real awareness of where it all went.

This year, we’re getting back to our frugal roots and focusing on saving money. Here are my top 20 budget tips for families.

Top 20 Budget Tips for Families

Decide what’s important to you

If you’ve been reading this blog for any length of time, you’ll know I love my Starbucks coffee. I’ve been like this for over a decade…and I’m not ashamed to admit it! Getting my $4 cup of coffee per day may be excessive to some, but to me it’s important, so we include it in the budget!

Now, not to say you can include every splurge in your budget, but make a list of things you like and decide what you’re willing to sacrifice.

Cut out things that aren’t important

For us, this meant cable TV, excessive clothes and shoes, dining out (we eat at Chick Fil A every Friday and continue to put that in the budget…but every other meal is eaten at home), manicures, trips to the hair salon, and more. I’d much rather not get a manicure and instead get my Starbucks 🙂 It’s all about priorities.

Make a meal plan

I didn’t used to do this and would overspend on food every single month. It’s just too easy to go grocery shopping when nothing in your pantry “looks good” and you aren’t keeping track. Now, I write down all of our meals on Sunday and stick to it, even though I don’t always want to. I also make sure we have easy things on hand to make in case we run low on food (which does happen with five people).

Cheap things to make include: bacon and eggs/omelettes, pancakes from scratch, sandwiches, pb&j on toast with a side of fruit, spaghetti, frozen pizza, etc. None of these meals will win any awards, but eating cheap never killed anyone!

Give yourself an allowance

My husband and I each get $20 per week of fun money. I know that doesn’t sound like much, but we are making it work for now. My husband usually gets a lunch out and maybe a coffee or two. This is my Starbucks money and maybe a soda 🙂

Use cash

We used nothing but credit cards for the past two years and while we didn’t go into debt, we sure as heck spent a ton more than had we used cash. It’s just too easy to be impulsive with a credit card, even if you’re pretty financially savvy. I challenge you to give the cash method a try.

We take out our weekly cash for food and household items on Sunday. This includes our allowances and money the kids may need. Once it’s gone, it’s gone.

Include your kids in your budget conversations

When talking about budget tips for families, you have to include your kids. My daughters (ages 7, 6 and 3) understand that we’re on a budget and love being involved. Last week, we had an extra $20 so we decided to go to Trader Joe’s to get some yummy treats for movie night! It was fantastic involving the girls in this and they realized that by avoiding unnecessary purchases during the week, we were able to “splurge” as a family for a fun night! I’m also really hoping these habits stick with them as they grow older. What better way to teach your kids to budget than to include them in the family budget?!

Use Ibotta

I love using rewards programs to get money back when I shop! My favorite is Ibotta. All you do is scan your receipt from your favorite stores (Target, grocery stores, Walmart, etc) and get cash back! I typically earn $5-$10 per weekly grocery trip back. Then, just transfer to your bank account.

Sign up for Ibotta for free here! >>

Find your “Why” for budgeting

What prompted us to start a cash budget system was two things: First, we both knew that even though we weren’t going into debt, we were definitely not aware of our spending. We felt out of control in this area and needed to reign things in. And second, we heavily debated moving and knew that if we were to do that, we’d need to really start saving money. While we’re still on the fence about the move, we are SO HAPPY to finally feel like we have our finances back under control.

What’s your “Why?” Perhaps you want to save more, put more money into retirement, send your kids to private school, or simply eliminate stress regarding finances. Find your “Why” and remind yourself of it daily!

Use the 24 hour rule

You want to buy something either online or in a store. If it’s not truly a necessity, wait 24 hours before purchasing. If you still want it (and it fits within your budget parameters) after the wait, then buy it guilt-free! I’ll be honest – I do this a lot and every single time I end up passing on the item.

Get rid of temptations

I’ve recently had to unfollow people on Instagram because I’m just too tempted to want to buy whatever it is they’re promoting. Ladies, I promise you: The clothes you have are fine!! It’s ok to wear the same jeans or leggings multiple times per week. I challenge you to put on a halt on clothing purchases for at least one month. I promise you’ll realize you missed out on …. nothing.

Work out at home

An easy budget tips for families is working out at home instead of a gym. There are two gyms within relatively close proximity of my house: The YMCA and Lifetime Fitness. I’ve been a member off and on at the Y for a few years, but just recently cancelled my membership (again). We were spending $115/month as a family of five but my kids didn’t love going there and we never went enough to justify the expense. Lifetime Fitness looks incredible, but we were quoted $270/month for our family of five and that just doesn’t align with our goals right now.

For fitness, I spend $15/month on Beach Body videos. There are so many options and the workouts are great! I also enjoy running and walking when the weather is warm.

Set some impossible goals

I would absolutely love if we could live off of rental income and dividends, for example. In order to do this, though, we need enough cash to be able to purchase said rental properties and dividend-paying stocks. If we achieve this “impossible” goal, our lives would be completely different. Can you imagine not “having” to work??! When you’re in your 30s and 40s?? Ah – the dream!

Setting big goals can help keep you motivated!

Earn more money

Some people truly do not have a spending problem, but an income problem. If this is you, I really encourage you to pick up a side hustle so you can pay off debt, save, and honestly change your life.

These are my favorite high-paying side hustles >>

Really think about your travel plans

I know, I know. Traveling is fun and a great way to create family memories. But, it’s also really expensive, even if you do it “cheap.” And I promise you your kids will remember fun times with you even if it’s in your own home.

Have fun at home

We basically have a $0 entertainment budget right now. Even taking our kids to the local jump place is at least a $50 outing! But, we have plenty of fun here at home. We go on walks and to the park (in the warmer months), we play tons of family games (Uno, Trouble, Monopoly and Bingo are our current favorites), we bake treats together, and we have movie nights. I hope more than anything that these things are what my girls will remember 🙂

Realize that budgets aren’t limiting

Budgets give you freedom, I promise!! It feels SO GOOD to know where our money is going each and every day. It doesn’t mean I don’t spend, it just means I’m aware and in control of my spending. This has rolled over into other areas of my life, too. I’m more disciplined with my workouts and eating, I’m spending more quality time with my kids and husband, and I’m focusing more on making money from home (something that’s been on the back burner for a while now!).

Watch your utilities

This is an easy way to save money and take control of your budget. Set your thermostat a little higher (or lower in the cooler months) than you’d prefer. Your body will adjust and you will easily save $3-$5 per day. We keep our thermostat at 68 in the winter (which is freezing for me; though I’m sure it’s too warm for some!) and 76 in the summer. And – similar to a budget – there is no “right” temperature setting. I simply challenge you to turn it up (or down) a degree or so from what you find the most comfortable.

Determine how much money you need

I recommend looking back at previous months’ spending to see where you currently stand. Then, start setting your budget with the ultimate goal of spending less money each week/month. Once you’ve come up with an amount, take that out in cash for the week. You can reassess once the week is over but I encourage you to give this a try. It has been very eye-opening for us!!

Ask for gift cards as presents

My dad gets me a Starbucks gift card every single year for Christmas and my birthday. While he may score low on creativity points, this is actually my favorite gift most years 🙂 I love saving money and I love my coffee, so this is truly the best gift for me.

My mom usually gets my daughters a gift card to Dunkin Donuts for their birthdays. This is also a super great gift as it gives us something to do (for free!) that my kids love! I know some people don’t like giving gift cards as gifts, but don’t be shy about expressing what you want! If you’re on a budget, asking for gift cards to your favorite restaurants is the way to go! And I bet the person buying the gift will be happy it’s an “easy” gift.

Take a close look at your health insurance

What are you spending each month on health insurance? We are self-employed and use Liberty HealthShare. If you’re interested in using this, please let me know as I can refer you! We spend $500/month for the family plan with a family “deductible” of $2,250 each year. Well-child visits are refunded, as are certain other visits/procedures. Once you meet your family deductible, 100% of your expenses are covered. There is also no “network,” so you can see any doctor. If you are spending significantly more on health care each year, I highly recommend you consider a health care sharing ministry.

Overall, creating a budget doesn’t have to suffocating. In fact, it’s extremely freeing once you get used to it. By budgeting, you are in complete control of your finances. Money no longer “disappears” out of your account with no recollection of where it went.

And remember, you can include things that are important to you in your budget! If going out to eat is something you enjoy, include it! Again, the purpose of a budget is to be aware and be in control, not to limit you excessively. I hope these budget tips for families helped!

What budget tips for families would you add to this list? Is your family on a budget?

How to Save Money on Food without Sacrificing Quality

We all want to save money on food, right? I’ve been experimenting with our food budget lately and have discovered a few tips that have been saving us a decent amount of money each month. We are a family of five – my husband, myself and our three little girls (ages 5, 4 and 1). You would think little ones would be easy to feed but my goodness – my kids are all very picky (aren’t they all?) and go through snacks like there’s no tomorrow.

I’ve also always wondered if what we spend on food is “normal” compared to other families. While doing some research, I came across this chart that details monthly grocery budgets based on family size. As a family of five, we could be spending anywhere from $621 to $1660 according to the chart. And yup – we fall exactly in that range. Our total food spending each month (this includes groceries, restaurants, coffee shops, and some household supplies) ranges from $1,100 to $1,500. Whether we seem to eat out often or spend the entire month cooking at home, we always seem to fall right in that range.

Prior to wanting to save money on food, we spent closer to $1,800 per month. Since cutting back, we haven’t sacrificed one bit on quality and, since I’m more aware, dare I say we’ve been eating better?

Here are 12 ways to save money on food without sacrificing quality.

How to Start Managing Your Money

This is a sponsored post for PSECU, a not-for-profit credit union. All opinions are my own.

Managing your money is a necessary life skill and really should be taught in schools right alongside math and English. Usually, we make mistakes in our 20s and learn our lessons the hard way. We get into auto loan debt, student loan debt and credit card debt, then are left wondering how the heck we’re going to pay all this off.

If you’re just starting out with learning to manage your money, or if you’re knee-deep in debt and are trying to dig yourself out of a seemingly endless hole, this post is for you. Here is how to start managing your money in an easy-to-understand, step-by-step format.

15 Ways to Save Money in Everyday Life

I don’t budget. Instead, I am acutely aware of my spending every single day. Whether I’m grocery shopping, out with my family or hanging out at home, I try my best to make choices that will save money. And by doing that every single day, you absolutely will see your bank account grow. Here are 15 ways to save money in everyday life.

4 Reasons to Refinance Your Student Loans

Average student loan debt is over $30,000 per borrower (you can see your specific state’s student loan debt here). With most interest rates being between 4-7%, that can make for quite the large monthly payment. And, with a high monthly payment, it can be tough to pay extra each month toward your student loans in order to pay them off faster.

If you are looking to pay off your student loans fast and get rid of them once and for all, consider a student loan refinance and the best reviews of student loan consolidation companies. Here are four reasons to refinance your student loans.

5 Ways to Make an Extra $500 a Month

What would you do with an extra $500 every month? I personally would save half of it ($250), go out to eat a few extra times each month ($100), and put the remaining amount ($150) towards debt.

Below are five ways you can make an extra $500 a month. Combine all of them for an extra $2,500!

How to Spoil Your Husband without Spending Money

If there’s one person who deserves to be spoiled, that would be my husband. He is truly the most incredible dad to our three little girls. They love him so much that they cry when he leaves and ask for him all day long (aren’t kids supposed to be more attached to their moms?!). He spends quality time with them, reads to them before bed, wakes up with them in the middle of the night, changes diapers and more. I am incredibly thankful to have him by my side.

Today, I wanted to share a list of ways I spoil my husband without spending any money. If you’re looking for free gift ideas or just want to say “thanks” to your man, you’ll want to keep reading!!

Top 10 Unfrugal Confessions (of a Personal Finance Blogger)

I’m naturally frugal and naturally a saver. However, I am absolutely not extreme. Today I’m confessing all of the things I spend money on, even as a frugal person.

Some of you might not think I’m that frugal after reading this 😉 But, I should preface this by saying that my husband and I work hard at side hustles so we can live a little more freely. Just in the past year, we purchased our dream house (that we thought at the time we were “over buying”), paid extra toward new said mortgage every single month, paid off $16K on our auto loan (this will be gone next month, woot!), contributed 10-15% of our checks to retirement, and added thousands to our personal savings.

ALL of that was possible because of side hustles!

My two side hustles are freelance writing and blogging. Blogging is my main one now, as I also have a FT job. I am averaging over $1,000/month from my blog and I spend about 10 hours a month on it.

You can view my latest income report here!

Also, if you’re interested in starting a blog, you can use my “How to Start a Profitable Blog” tutorial. With it, you’ll receive my book, The Beginner’s Guide to Blogging, for free; in addition to a special discount from Bluehost to my readers only! Get started now!

Here are my unfrugal confessions (please be nice, and remember I am pregnant!):

2 Guaranteed Ways to Stop Stressing About Money

We’ve all been there: bills are due, things around the house keep breaking, a child gets sick, we of course need to eat, and basically the expenses just don’t stop rolling in.

I would say our “low” point was right after our first daughter was born (this was about four years ago). I had quit my full-time job when she was born and was just starting to break into freelancing. My husband was working for himself in construction and remodeling. We had just gotten back from a week-long family reunion (that my parents so graciously paid for or else we would not have been there) which meant my husband missed an entire week of work. We had savings, but for a few months, we were forced to make so many withdrawals that we were practically down to nothing.

I hated that feeling. Every day I woke up with a pit in my stomach. We lived in a very, very modest house (we purchased our first home for less than $150K), we ate pasta with sauteed onions for dinner multiple times per week, we didn’t go out to eat, and we by no means went shopping for fun. We were on a super tight budget, and even then we were still just scraping by.

Can anyone else relate to this?

Stressing about money sucks, period. And heck, I’ll say it, being on a tight budget sucks, too!

Fast-forward four years later (now), and we’ve completely changed our situation. I can honestly say that I haven’t been stressed about money (in that sense) in a while, and it feels incredible. I’m sleeping better, I’m happier and have a healthier outlook on life, my relationship with my husband is better than ever, and I’m truly enjoying life.

Want to know what I did to stop stressing about money? Grab a cup of coffee, this one’s a long one…

Six Smart Financial Moves for Future Millionaires

Whether your goal is to become a millionaire by a certain age or to save a set amount of money so that you can retire early, the way to get there is deceptively simple. Save more, spend less. It sounds easy, but if it were easy then everyone would do it. Here are a few tips on how to build your wealth.

1. Clearly Define Your Goals

When you decide to start getting serious about saving money, it is a good idea to have a set of goals in mind as well as a plan for how to reach them. Think about writing down a business plan of sorts, with a timeline, goals, and small clearly defined actions that will allow you to reach those goals. It is very important to be clear about what you are trying to accomplish, whether it is retiring early with a set amount of money in the bank, saving money for your children’s future, or something else.

2. Pay Yourself First

With any income you receive, whether from your full-time job or a side hustle, pay yourself before spending money on anything else. This means to put money towards savings before you start spending your income. Some people put a set amount into savings every month, and those that have a more variable income will sometimes save a set percentage of their income towards retirement, other investments, emergency fund savings, or college savings funds.

3. Have a Side Hustle or Two

Frugal Millionaires know that while having a full-time job is a great source of income, you are not limited by your FT salary. You can always start working on the side to increase your income, and if you’ve already been living on your full-time salary alone then you can devote your side hustle income entirely to meeting your financial goals faster.

My side hustle is blogging (learn how to start your own profitable blog here!). This month, I’m on track to make close to $700, and I spent maybe 8 hours this month blogging! It took some time to build up an audience and create posts, but now my income is steady and dare I say…passive? Which leads to the next point…

4. Set Up Passive Income Streams

Passive income is money that you earn without having to do very much for it after an initial output of effort. Something like writing an eBook and self-publishing through Amazon, designing and selling a course on Udemy, or even simply selling t-shirts and stickers with a logo you designed are all ways to earn passive income.

5. Always Have Insurance

Frugal millionaires like to cut costs in order to put more money towards their financial goals, but having proper insurance will save you money if you are ever in the position of needing to use it, and is not a smart way to cut costs. Renter’s or homeowner’s insurance, good car insurance, life insurance, and health insurance are all important and well worth the cost. Visit this link to learn more.

6. Maximize Your Tax Breaks

Never pay more in taxes than you are legally required to. This means fully funding your IRA and any other pre-tax retirement accounts you have, investigating whether you should itemize your deductions or take the standard deduction, and following any other advice your accountant provides you.

Through setting clear goals, increasing your earning and saving while minimizing your effort, and protecting yourself from financial catastrophe, you should be able to meet your savings goals. With common sense and determination, you can be a millionaire.