If you had to give someone advice on how to trim their household budget by $10,000 per year, what tips would you suggest?

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Umm, don't have kids....
I guess I would recommend the "normal" moneysaving ways -- brown bag lunches, eat most meals at home or prepared at home (save the eating out for special occasions), don't finance two cars (I've seen many people get over their heads with two car payments and rent/housing), delay "moving up" or maybe move down in housing if necessary, cancel unused/expensive memberships, etc.

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Michele

My advice would be .. give your family income a $10,000 a yr demotion. Many families (not all) could still survive fine on 10,000 less a year. It would be tight but you'd adjust. Have the money automatically put into savings, and your household budget (assuming you didn't take on any additional debt) would be decreased by $10,000 a year.

The other thing that can make a significant difference is housing. We live in a small place ~ 250 sq feet per person. Our mortgage is lower, our property taxes are lower, our heating and electricity costs are lower.

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That's hard to say without knowing 'where' all of their money goes.

Very true.

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Michele

My best advice would be... when you wake up every morning decide what is a "want" and what is an actual "need."

I would say that you would need to reevaluate everything you purchase, and think about only purchasing necessities..
..Shop around for the best rates on car insurance, phone, cable etc..
...BUdget, Budget budget
..Brown bad your lunch
..ride our bike instead of drive

Ouch that would really hurt that is over $800 a month. I would say don't finance a car - keep your current car as long as possible once it is paid off or trade down to get a lower payment if you have one. Cut out extras like soda even at home, extra snacks, cut out cable, gym memberships, netflix (use library instead), downsize house if possible. Only buy neccisties and reevaluate what is a want vs a need - most likely a new purse, shoes or clothes are just a want - except kids will outgrow their clothes but look for cheaper options - used clothing stores, coops, thrift stores. Sell thing syou don't use.

I know we struggle now and I can't imagine doing it on that much less and yet I know we have done it on that much less not that long ago.

Technically we will have an extra $400 a month next month - DS no longer in preschool and no gas for the commute I am planning on putting it into savings.

Write down everything you spend - you will surprize yourself.

Cut out any extra driving. Look at going green for your cleaning products - vinegar is so much cheaper than anything else out there. Go green to cut out a lot of your paper products - buy a set of microfiber towels (in the auto section of Costco) and use them instead of papertowels. Pick up some cloth napkins at a garage sale or thrift store. Brown bag your lunches, cut down on meat in your diet. Coupons for anything possible - combined with sales - I am a newbie at this but so far it is a lot of fun just wish they had coupons for more things that we buy - organic.

OK, if I had to trim $10,000, I would:

Quit Netflix -- $120.00
Drop cells (no contract) $742.00
Drop cable $444.00
Drop a car (insurance) $720.00
Sell a car $6000.00
Drop internet $84.00
Sell computer $500.00
Sell DH's guns $800.00
Cut all eating out $500.00
Cut electric bill $400.00
Rummage sale $100.00

Yikes! It is scary to see that this would be do-able! Of course, DH wouldn't want to part with his guns unless it was an emergency. Same thought for my computer!

Marlene

I like it listed all out like that.

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