Some advice needed

[Peeking_Around]

Hi there - I'm new to the money talks forums but really need some $$ advice. Hubby has a year left before retiring from the military. Both of us had very bad financial situations from prior marriages and since we've been married, I'm glad to say that the majority of it has been cleared up and slowly being taken care of.

The advice I'm needing is this:

We're planning on moving by mid June of next year. We are wanting to buy a house where we plan on settling down and would like to have a good chunk of change saved up for it.

The bad thing is is that we have absolutely NO savings what so ever at the moment. I do have some stocks that are worth about 7K - so that's a plus. It's actually stocks my father is giving me ...

I've sat down and wrote out every bill/debt we currently have - put down exactly how much both our take home pays are and I was a bit shocked at how much we had left over. Where the heck is it going? That leaves me to believe that we eat out more often than I thought. So cutting back on that, I need to quit smoking, no more starbucks, ..... but I'm at a loss now .. what else can I do? What are some of the things you all did?

Thanks in advance!

[acshih]

Originally Posted by Peeking_Around

I've sat down and wrote out every bill/debt we currently have - put down exactly how much both our take home pays are and I was a bit shocked at how much we had left over. Where the heck is it going? That leaves me to believe that we eat out more often than I thought. So cutting back on that, I need to quit smoking, no more starbucks, ..... but I'm at a loss now .. what else can I do? What are some of the things you all did?

Thanks in advance!

I think you've already gotten some great ideas.

Here are a couple of great threads of what people had done to help cut down costs:

Share Your Tips on Money Saving

How did you save money today?

How to Save $400 a Month on Groceries

One of the toughest thing for me is that there is always temptations everywhere. Especially now when sales are all over the place. But you have a great motivational piece to fight your temptation, your first house. Just think about how great it is to own your first house, you will/should be able to resist spending money on unnecessary things. And, it is rewarding to see zeros increase in your bank account.

Good luck saving!

[5thelement]

I have a monthly budget with bills that absolutely need to get paid. And then I set myself an allowance for spending during the month, leave that in my checking account. The rest of the money from my paycheck then goes into a different account. Rationale being that if I don't see it in my checking account, I won't be as tempted to spend it.

[LadyLinda]

Originally Posted by 5thelement

I have a monthly budget with bills that absolutely need to get paid. And then I set myself an allowance for spending during the month, leave that in my checking account. The rest of the money from my paycheck then goes into a different account. Rationale being that if I don't see it in my checking account, I won't be as tempted to spend it.

This is absolutely the way to go. Prepare a detailed budget and find out how much you need to pay bills, spend for groceries, etc.. Once you know how much you can set aside each month, make your house savings plan one of those bills. Put that money in a separate bank account, preferably one with higher interest. And don't touch that money unless circumstances are dire. It's surprising how fast that account will grow if you never tap it.

[daluu]

i also suggest that you record what your monthly expenses are and compare them over time...i used an excel spreadsheet and found out that i ate out too much. i think that's a great way to see clearly where your money is/has been going.

[bnjj]

The 'curbing consumerism' thread my give you some good ideas as well.

I would recommend looking into using www.ynab.com for budgeting software as well. There are a few of us on this forum that use it and really quite like it.

[ChocoGrace]

It's great that you are already planning ahead. You have a goal and just keep focused on it. Take it step by step and congratulate yourself every time you resist temptation or throw in extra cash towards your savings. Good luck!

[Nola]

Use a budget sheet, lots of good ones available via google. Join the Curbing Comsumerism group for ideas and support. Wishing you both luck!

[mandarine]

Oh peaking,I understand you perfectly.Bills, unpredictable expenses.,..... Sometimes it is simple impossible to save.Maybe you can try with handcrafting?You can sell them+saved money=happy you and you husband I want to wish you good luck and God help you

[guccimamma]

start checking your credit report, and disputing anything that may be inaccurate...or aged. you may be able to get some negatives removed, if the lender is unable to verify the debt.

speak with a trusted mortgage person/banker...as to what your options might be when buying a home, and what you may qualify for...it is important to know that before setting out on a homebuying tour.

good luck, and quit the smoking! you could save hundreds right there.

[mmmpurses!]

Lots of excellent advice here, especially the budget plan and work on that credit report / FICO score. The higher the score, the lower your interest rate for your mortgage (or any debt).

Your mindset for savings should change from freely and mindless spending to carefully planned spending. That is how you do it without feeling deprived or feeling bad because you are doing without all your favorite things.

Since you are planning a move next year now is probably a good time to begin to declutter and weed out things that you don't use, or things that you know you would like to replace and try to plan those garage sales accordingly through the year. Also the less you need to carry with you on your move the less the moving expenses, which often is something else people forget they have to plan on 'budgeting' - your moving expenses.

There are tons of excellent 'quit' smoking support groups out on the web, even if you have not quit yet you should check them out