I love being able to be at home with my family. It’s tough having one person earning the bulk of the income but it can be done. Here are some tips I’ve found that really help.

1. Remember what you’re saving.

Two incomes are not always significantly better than one. Depending on the number of children who would need to be in childcare, the cost of commuting, meals out, wardrobe, taxes and so forth, the second income may be more easily replaced than you expect. Some families even discover that having both parents work means they have less money. It doesn’t always happen that way, but it is quite worthwhile to figure out what the actual amount being brought in is.

2. Think about which parent stays at home.

It’s not always the mother who is most suited, either in personality or in earning potential. Both should be considerations. The person who will do best as a stay at home parent will generally do better with all the things that need to be done to keep a single income household running. Just make sure that the emotional support is there for both parents.

3. Check your housing expenses.

Housing is by far most families’ largest monthly expense. If it’s going to be tight going to a single income, look at ways to cut that expense. If you’re renting, consider a smaller place or one that is in a more affordable place… so long as you’re comfortable living in the area. You should not sacrifice your peace of mind.

If you own, look at what it’s costing you. If your current home is stretching your budget too hard, think about if it would be worthwhile to move. Sometimes the expenses of selling and moving are worth it, other times definitely not!

4. Look at your other monthly bills.

Telephone, electricity, gas, water, cable, internet… they all add up. Often times they can be controlled.

You can decide to simplify the plans you have on your phones. Cell phones are extremely common now, and some people choose to drop their land line telephone in favor of just using cell phones. Others simply drop features from the land line, such as caller ID, call waiting and any excessive long distance calling plans.

And of course you should be working on cutting down your water use, turning off excess lights, resetting the thermostat so you use less power, things like that. You can adapt and be comfortable with these.

You will have to decide for yourself what level, if any, of cable and internet services you need. These days the internet is used quite a bit by students, of course, and for quite a bit of regular communication through email for many people. But you can consider which speed of service you really need to pay for.

5. Pay down your debts.

Most especially pay down credit card debts. If you’re going to be earning less money as a family, you need fewer worries about your finances. Any debts you can get rid of or pay way down first will save you a lot of worry later on and provide you with greater financial flexibility.

6. Pay your bills on time.

Paying a late fee is a sign of not paying enough attention to when bills are due. They’re utterly unnecessary, especially since these days you can have many bills paid automatically. Just be sure any accounts you use for automatic payments always have enough money in them.

7. Make a budget - and stick to it.

Living on a budget isn’t fun. However it’s one of the most practical ways to be sure that you can afford to have one parent stay at home. Stick to it as best you can.

8. Have an emergency fund.

Stuff happens. A car breaks down. Someone gets sick. Have some money set aside so these problems aren’t added to with a financial crisis.

9. Use coupons and follow sales.

The more attention you pay to the many ways you can get lower prices, the less you’re going to pay in all your shopping. You can often get coupons for your favorite products by contacting the manufacturer. Plan your meals around what’s on sale and know which stores it makes sense to go to.

10. Learn about local free entertainment for your family.

There are a lot of things you can do for free in most areas. Museums may have free days. There are parks to play in. Play games at home.

11. Plan for holiday and birthday expenses.

You know when these are coming. If you plan ahead they won’t be a big drain on your budget.

12. See if the parent working outside the home can use public transportation or carpool.

As gas prices rise, either of these becomes a better and better idea. The practicality depends on your area, but when it works you can save a significant amount each month. There’s some loss of convenience, of course, but if the car is needed on a particular day that can be arranged.

You may be able to cut down to one vehicle for your family, a huge savings! My family has done this, and while it’s hard at times it is quite doable.

13. Get books and movies from the library.

Sure it’s not the same selection as if you’re buying them, and you may have to wait a while. But you can’t beat the price.

14. Get to know the other parents in your area.

Perhaps especially the other stay at home parents with kids around the ages of your own. They’re great for support, for the children’s playtime, for trading babysitting.

15. Consider whether working at home is an option.

It is very possible for the at home parent to earn anywhere from a very little to a lot of money from home. Do some research on the possibilities and decide if this will work for your family. It can make the difference when things get rough.

Kids are expensive, there’s no doubt. Food, clothing, entertainment, education… it all adds up.

If you take some time to talk with them, they can also help you save money. That’s helpful at any point.

In my experience, children are very sweet about things when you talk to them about why you want to save money. My daughter at age 5 offered to start a lemonade stand when we explained about money being tight. She just really wanted to help.

The first thing you want to give your children is a reason to help you save money. You may choose to share with them a portion of what is saved. You could set a savings goal for a family vacation. You just need to figure out what will motivate them and you.

Have a family meeting to start discussing options. You want to get everyone on board with the general concepts. You probably won’t come up with every possible idea for saving money right away, but you can get the thought processes moving.

One of the great things about talking things out with kids is that sometimes they are very willing to make sacrifices. They can really surprise you, even at a young age.

Some things they should help you with will be obvious. If keeping extra lights turned off is an issue, come up with a reward system for that. It doesn’t have to be significant, perhaps just a mark on a chart that will eventually lead to something.

You may be able to compete with each other a bit too. You can each pick a habit that’s wasting a bit of money, and see who does the best at beating it. You should be sure the competition stays lighthearted, and keep encouraging your children so that there’s a good chance that they could win. Your purpose here, after all, is two fold. You want to save money but you also want your children to get a good lesson.

Another good area to explore with your children is snacking. Could they go from a more expensive snack to a cheaper and possibly healthier one? It can be done. Things like fruit snacks really aren’t that cheap.

This should lead to your kids helping you shop for bargains in the grocery store. Have them help you with the ads, figuring out which stores to visit and what to buy. Maybe even have them help with some menu planning.

Another big expense for many families comes from video games. You may want to consider renting video games rather than buying them, or talking with other families in your area about trades. Your children will probably know which of their friends have the same system and might be open for trades. Setting up workable rules can be a challenge but also a good lesson. But if things are tight enough, new games may simply have to be given up on.

Your family can probably come up with a lot more ideas to save some money. You can figure out what kind of rewards for saving money makes sense for your family, and really get everyone motivated. It’s really wonderful to be able to get some control over some of the expenses associated with raising a family.

While the immediate thought is to try to cut back your grocery bills as higher gas prices and grocery prices make your budget tighter, these are often not the most effective.

Today I’d like to review some of the other areas that might help you to cut back successfully.

1. Underutilized monthly memberships.

How much use do you really get out of your gym membership? Are there any other memberships you have that you aren’t taking advantage of?

Canceling poorly utilized memberships is an instant savings that can be significant. The average gym membership is about $50/month. If you still like to go to the gym, find out about their per-use fees, and see if that would be cheaper for your personal habits than the monthly fee. Or start walking, bike riding and other fitness activities at home.

While they’re generally smaller expenses and happen just once a year, look at any magazine subscriptions you have. If you’re not reading it, cancel it!

2. Cut back on telephone services.

Some people these days have cut out their landline telephone and just use cell phones. Others choose to cut their cell phone. Either way, you may be able to save money by cutting one or the other, assuming that it’s practical for your lifestyle. It may not be.

If you keep a landline telephone, review the services you have on it. You may have a big package of services that you don’t take advantage of. Most people only use caller ID and call waiting with any regularity. You can even cut those if you don’t really want them.

You should also review any telephone service plans you’re on, whether it’s your cell phone contract or the deal you get on your long distance calls. You may be paying too much for your plan, or you may have too small a plan and be paying out for excess minutes.

Many cell phone carriers will let you change your contract with no penalty so long as you are going to a new contract with them. This may start your term over, and you do need to think about whether or not that’s the best move for you. If there’s just a little time left on the contract and another company has a better deal for you, it may be a good idea to just switch carriers at the end of the contract.

3. How many television channels do you really need?

Whether you have cable or satellite, you’re paying for a lot of channels you never watch. While cutting subscription television services completely out may not be for you, a more basic package can allow you to still watch many great channels with good reception for significantly less money. Review what you really need.

4. Eat out less.

Eating out is almost always significantly more expensive than eating in. If you’re getting the cheapest of fast food the costs may be similar, but the quality of the food goes way, way down from what you could enjoy at home.

Lunch out is probably the one that many people do on a nearly daily basis. If you can remember to bring your lunch, either with an ice pack or to put in the company refrigerator as you work, you can save a lot of money while doing something with your leftovers.

Similarly, cut back buying coffee when you’re out. Homemade coffee takes just a few minutes to make and is significantly cheaper.

5. Ask for a lower APR on credit cards.

It takes just a phone call, and if your credit is in good shape you have very good odds of getting a rate cut from your credit card company. While I don’t recommend making only the minimum payment every month, knowing that you’ll be paying less over time can be a significant benefit.

If your current credit card issuer won’t decrease your APR, start shopping around. If you have good credit, you may be able to apply for a card with a lower rate, and transfer balances over. Just be aware of balance transfer fees and introductory APR versus regular APR. A lower introductory rate isn’t a benefit if the long term rate is too high.

6. Adjust the thermostat.

In summer, learn to tolerate a warmer house, in winter, a cooler one.

During the summer, I put extra coverings on the windows that get the most direct sunlight. This has a significant impact on the temperature in my home. Depending on the window I may use a blanket, sheet or cardboard box. It’s not pretty, but it gets the job done.

In winter, of course, extra warm clothes are the rule.

In any season you can check to be sure that your home does the best it can in terms of insulation. This is one of those cases where you may have to spend money to save money over time, not an easy thing to do if your budget is already tight. But if you can manage it, the benefit will be there eventually.

Check your filters too. A clean filter can greatly increase the efficiency of your heater or air conditioner.

A programmable thermostat can take care of changing the temperatures for you, based on the daily routine you give it. If you tend to be away from the house all day, obviously you don’t need the heater or air conditioner running. But when you’re home you want things to be comfortable.

Another option is to use an efficient space heater. This can be more efficient than heating the entire house, especially if everyone spends all their time in the same room.

Alternatively, keep it in rooms that you don’t use much, and close their heater vents. Turn on the space heater as needed, turn off when you’re done.

7. Drive less and more efficiently.

With gas prices going up, anything you can do to cut back can help your budget. Planning your errands so they can be done can save money both in gas and in what you spend shopping.

Another way to drive less is to carpool or take public transportation. This is generally going to involve some inconvenience, but the savings can be substantial. My sister saves about $80/month carpooling with coworkers, and that’s the number she quoted me about 6 months ago. No doubt it’s more now.

8. Buy used.

Consignment and thrift shops often have great deals on near-new clothes and other merchandise. It may take a couple tries before you find the right shops for your tastes, but there’s a great range of options out there.

9. Rethink your watering habits.

Many people overwater their lawns. Do some research for your area and find out how much water your lawn actually needs a week. I heard a quote of 1 inch per week in my area, and it’s actually better for the lawn to have it in one deep watering, so long as the soil isn’t too dry, than in shorter spurts through the week. The lawn then grows deeper roots and becomes stronger.

10. Review your insurance coverage.

What are you paying to cover your car in case of an accident? What’s the deductable? How often have you really needed to use even a bit of your coverage?

While car insurance is pretty much a must in many places, you may be able to cut back on what it costs you. Increasing your deductible can save you money every month, and only costs you money if you make a claim. This can be a very good deal.

Cutting health insurance can be a bit trickier. There’s still a certain quality of coverage you probably want. But once again, if increasing your deductible will save you money overall with the way you use your health insurance, it may be worth the effort. The only question for many people is ‘Will I remember that during open enrollement?’

Review your homeowner’s insurance too, if applicable. Balance what you will be able to handle paying in case of a claim with what you are willing to spend monthly.

11. Turn it off and unplug it.

Turn what off?

Whatever you’re not using. Turn off unnecessary lights and teach the kids to do the same. Turn off the television… unplug it if you’re willing, as it does use some electricity even when it’s off. Same for the DVD player or any other electronics that have a clock or respond to a remote. Any of those you’re willing to unplug can save you a bit of money.

12. Get a smart power strip.

A smart power strip is an interesting device. It shuts off the power to all devices plugged into it when you shut the first device down. This can work great for entertainment centers and computers… just make sure that if it’s something you want to stay on, such as a DVR, you plug it into a separate strip.

This can seem like a small thing, but the power these things use up just by being in standby mode can really add up.

13. Clean out the house… declutter!

While this won’t necessarily save you money, it can make you money or at least get rid of the things you don’t use anymore. If you think you can make some money, hold a garage sale or sell the best stuff on eBay. It’s a bit of effort that can be quite profitable.

14. Drink more tap water.

Get a Brita or other filter if you prefer, as it will quickly pay for itself over buying bottled water, drinking juice or drinking soda. It’s also very healthy for you.

If you don’t like to have a glass of water at your desk, especially if you’re concerned about spills, get a reusable water bottle. If BPA concerns you, there are metal bottles available, or non-BPA plastic ones. ReusableBags.com carries a good selection. I’m completely hooked on mine.

15. Check your car’s air filter.

A dirty air filter reduces your gas mileage. And cleaning one is so simple even most people who can’t do car repairs may be up to the job.

Cher your owner’s manual to locate the filter. Undo the top screw or release the clamps, take off the top and you’ll see the filter inside. Pull out the filter and use the hose of your vacuum cleaner to suck the dirt out of it. Run the vacuum through the holder as well to get any other dust. Take care not to be too rough with the filter, as you can damage it. Put it back in and reattach the top. The job is done and you didn’t have to pay someone to do it.

16. Talk about ways to save money with friends.

Friends can help you to find new ways to save money and just encourage you in your own efforts.

17. Look for free events in your area.

I went last weekend to a street fair just 2 miles from my home. We walked out of there with a free month of karate classes for my daughter, and a generally fun day. We did spend some on rides for the kids, but not much considering the overall entertainment.

Most cities will have some sort of event calendar online these days. Find your city’s website and check it out.

18. Borrow from the library.

Rather than buy books or rent movies, check out the selection at your local library. While their selection of movies won’t come even close to Netflix, or even a local movie store, you can check to see if the movie selection is adequate to your needs.

But many do pretty well, especially when it comes to finding great titles to read to the kids. Children don’t care how long the book has been out; they’ll enjoy the story regardless.

19. Make your own cleaning supplies.

Just a few ingredients that you may have around the house already can work wonders. Baking soda, white vinegar, lemon juice and olive oil can replace most of the cleaning supplies that cost you far more, and aren’t toxic.

20. Use rechargeable batteries.

The battery charger and rechargeable batteries are a bit of an investment at the start, but they quickly pay for themselves. We handled the expense in my family during the changeover by just buying rechargeable batteries as needed. Our charger handles all sizes we use.

21. Think about living in a smaller home or apartment.

This one won’t work right now if you’re upside down in a mortgage, and definitely may not be right depending on the real estate market in your area. Going into a smaller home can save you money in many ways if it makes sense to do so, from a lower mortgage payment to lower heating bills and so forth. Do not try this if you own a house unless you are sure you will save money!

On the other hand, renters may have more flexibility to move if they’re not stuck in a lease. If you can move into a place that costs you less to rent every month, you may have a significant savings that will make up for the expense of moving quickly.

Just be sure both the financial and the intangibles are worth the move. If you love where you live, the money may not be worth it unless things are just that tight.

22. Think before you buy.

Anytime you think you want to buy something, consider why you’re doing it. If you can walk away and return to the item later, do so. If the purchase can wait a month, do so. Do what it takes to make sure that it’s something more than an impulse buy.

23. Simplify your gift giving.

You don’t have to cut it out, but you can simplify it and give things that will be greatly appreciated and cost you less money.

Try giving time, especially to friends and family who you know have very little of it. Free babysitting is appreciated by parents of small children. A homecooked meal may be appreciated by grandparents, especially if it means you take some time to be with them.

If you’re creative, take advantage of that fact and make gifts. Homemade gifts don’t always have to be chintzy. Create something that you know the recipient will appreciate and that you’ll enjoy making.

24. Shower more efficiently.

I know, a nice, long, hot shower is bliss for many people. It also uses a lot of water and either electricity or gas to keep the water warm. If you can keep the length down you will save money.

You should also be sure that you have a low flow showerhead on your shower. A good quality one will still provide excellent water pressure, but use significantly less water. I’ve found that the mist setting on mine is good for everything but rinsing conditioner out of my hair, and uses significantly less water than the other settings.

25. Wash your clothes in cold water.

Most of the time, your clothes will come out nice and clean, even if you don’t use warm water. If you’re worried about it, there are now detergents formulated to work in cold water. I’ve never used one and never had a problem with clothes not getting clean enough… except when my kids absolutely stain them. What can I say? They’re kids. They like to get really, really messy.

There are, no doubt, many more ways you can save money. I’d love to hear more suggestions from any of my readers.

Even when you’re trying to save money, there’s often that one person in the family who just isn’t quite cooperating with the plan. The one who still really wants those extras.

Maybe it’s Mom, maybe it’s Dad, maybe it’s one or all of the kids. But that person sure makes going grocery shopping difficult. How do you avoid buying all the extra stuff they want?

Well, kids are easier to cope with than when it’s the other parent. You either learn to say “no” or you go shopping without them as much as possible. Neither one is easy at times, and as your kids grow you will have to figure out what works best for each age, but you do what you can.

Such as have them buy the extras they think they can’t live without with their own money.

But it’s much more difficult when it’s one of the parents who isn’t hearing the other say “we need to spend less money and don’t really need that.” It gets to feeling as though you’re nagging or that they just aren’t paying any attention to you.

And of course an adult can easily just go back to the store on his or her own and buy the things you said no to before. It can take much more effort to break through the stubbornness.

Shopping alone is often much cheaper than bringing anyone else along. Just make sure it’s the person most willing to limit impulse buys. And bring a list.

A list can help even when you do bring the family along. Warn everyone who’s coming along that only items on the list will be bought. Go through the grocery store ads so you know what deals you don’t want to miss, and at least tentatively plan the kinds of meals you’d like to have for the week. The more you know about what you’re actually going to eat, the less excess you will buy.

Talk over the issues too, and be clear about exactly what is happening to your budget due to overspending at the grocery store. Making the problem clear may not be enough to immediately stop the problem, but it does mean you can brainstorm some acceptable solutions.

Take a look at your eating habits too. Can you give up convenience foods? What about sodas? Candy?

These items tend to add up fast, and many aren’t too good for you to begin with. Work up a way to work these out of your diets if possible, or at least agree on limits. I’ve always found that if they’re in the house, they get eaten, but if they aren’t, I won’t get desperate enough to go to the store just for them.

Changing your grocery shopping habits probably won’t solve all your money problems - many families have other places that could be cut equally or even more effectively, but it’s an area many are willing to target. Talk it out, work it out and see what happens.

In light of yesterday’s post on the economy and rising food prices, I thought I would share ways I save money at the grocery store.

1. Don’t shop hungry.
   Some of the oldest food shopping advice, and some of the best.
2. Plan ahead.
   The more you know about the meals you are going to make in the days ahead, the less extra stuff you are likely to buy, and the less spoilage you should have in your fridge.
3. Go through the ads.
   It’s easy to miss a special if you aren’t particularly looking for an item. If you use the ads in combination with planning ahead, your meals can be based on what’s fairly cheap right then.
4. Go to more than one grocery store when reasonable.
   I have a Henry’s and a Vons sharing a parking lot, and Stater Bros. across the street from them. It makes it very easy to shop them all, even though Vons most often has the highest prices. But driving too far can ruin your savings.
5. Take advantage of coupons for things you would buy anyhow.
   Coupons can save you a nice bit of money on the things you need.
6. Don’t buy things you don’t need just because you have a coupon.
   Buy what you need, not just what is at a good price.
7. Know who, if anyone, doubles coupons.
   This is harder to find than it used to be, but if a store near to you does it, take advantage if the price is then the best.
8. Know the regular prices and what a good sale price is.
   Any time you can get something for it’s best sale price, you’re doing pretty well, and the more you can avoid the regular price on most foods, the better. I also have just general guidelines such as “most fruits and vegetables should be under $1/pound, under $0.75/pound is better”. A lot of people keep notebooks so they always know if the price is good. I’ve seen stores drop a price $0.01 and call it a sale.
9. Plan at least an occasional vegetarian meal.
   Meatless meals generally cost a lot less. One of my favorites is called Sand and Shells, and the kids just wolf it down. Most of the ingredients are *ahem* dirt cheap in my area.
10. Take advantage of your freezer space.
    I love keeping meat in my freezer that was bought at cheap prices so I don’t have to buy so much when the prices aren’t so good.
11. Check out farmer’s markets.
    Sometimes the prices are great, sometimes not so great. But know what you have in your area.
12. Garden.
    Not easy for everyone, but if you have the space and are willing to give it a try, you can produce your own food for reasonable prices. Note it may take a while for you to regain your investment. But if you compost your other food scraps you will have a great natural fertilizer, saving one expense as well as concern about chemicals. It may also help your kids to see where their food comes from, and some even eat their vegetables more eagerly.
13. Make your own mixes.
    Spice packets and other mixes can cost significantly more than what the individual ingredients cost. Mixing up your own is pretty easy, especially since many from scratch recipes are readily available online.

And a bonus tip, just because I thought of it…

Don’t buy in more bulk than you’ll actually use. It’s not a good deal if you paid more and used less than is made up for in savings.

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