I guess I should explain in more detail as to why I’m saving obsessed. Yes I have been able to stretch our grocery budget and decrease it to a 25-33% of what it was a year ago. Great.
I have been using the extra money to pay of debt. I keep my grocery budget set to $600. Then any extra money I have, I use to pay on our bills. Working on the smallest bill and paying it off. Once that bill is paid off, then you apply the money you were paying on the other bill.
In the example below. Credit card one you pay $50 a month until it’s paid off. In April you take the $50 you were paying on credit card1 and put that $50 in addition with the $100 you pay (so $150 starting in April) is applied to credit card2 until it’s paid off.
Once your bills have been paid or you are in a more comfortable situation, you can start saving for a vacation or an item you want to buy or need.
Doing this has greatly helped my family pay our bills and be able to start saving for a Disney Vacation in 2013.
What bills are you working on paying off and what will you do with the ‘extra’ money once the bills are paid off?