What Is Your Time Worth?

NOTE: My friend Marta (a.k.a. my comrade in cheapness) e-mailed me after she read Five Unfrugal Things I do. I really enjoyed her thoughts on the subject, so I asked her to let me share them with you. I think she makes a good point. Sometimes we need to prioritize which is more important to us: time or money. Some things are just worth the extra effort.

Marta writes:

I read your blog entry the other day about scrapbooking, disposable diapers, etc., and it reminded me of one of things my dad used to remind me of a lot when I was looking for a job and a place to live (and something I know you're aware of when you're clipping coupons, etc.): What is your time worth? He was talking about commuting time, I think, but it applies to everything, really. Would you actually be saving money over the disposable diapers when you calculate all the time you spent maintaining the cloth diapers?

Anyway, I have been doing a lot of sewing lately, and it reminded me that I did a little calculation for an economics class in high school about sewing vs. buying clothes in a store. I think the general assumption is that sewing things yourself saves money, but I'm not so sure. It all comes down to how much you spend on raw materials (not to mention you have to invest in a sewing machine to begin with), and when you add in the amount of labor even the simplest project requires, it adds a lot to the true cost. Not to mention that it would be hard to for me to beat the cost of some of the ready-made clothes I have, since they are so, uh, cheap. So if I add in the blood, sweat, and tears of actually assembling a garment myself, the ready-made item really has to come out ahead, financially.

But, as you know, I still sew, because I think it is fun (when it doesn't drive me crazy). Plus, I practice the same shopping techniques at Jo Ann Fabrics that I do at department stores: know when the sales are, check the clearance racks first, and milk those coupons.

Sneaking Candy Into The Movies? Think Again

First off, before I go any further... before you think I'm going to get on some moral high horse... I must confess: I have been known to sneak candy into the movie theatre on more than one occasion.

My mission was one of frugality: Buy the giant boxes of candy at Target or Dollar Tree for a dollar, then avoid the $3.50 candy at the movie theatre concessions.

I wasn't as bad as some friends though... they actually brought microwave popcorn with them (tacky!), and my husband once confessed to bringing a Big Mac MEAL into the theatre when he was in high school.

But I'm not going to do it anymore. Not after reading Frugal Dad's post entitled Ask the Reader: Is Sneaking Candy into a Movie Theatre Frugal or Cheap?

Frugal Dad makes the point that since movie theatres make most of their money from the concessions, it's pretty cheap to bring in your own snacks. He says that if the price is too high, then don't buy the treats... and if you're like us, and don't go very often, then it's not an expense that would break you anyway.

The post and its many responses really made me think. I always felt kind of cheap whenever we did sneak in candy... and when you get that lousy feeling in the pit of your stomach... then it's probably the wrong thing to do.

And if the money spent really was the issue, then maybe we shouldn't be going to the movies at all. I mean, is a 5-spot really going to make that much difference when we only go to the show a handful of times a year?

It also made me think about our children. None of them have been to a movie theatre yet, but I know they will. I don't want to explain to them why we "hide our candy." It just seems a bit deceitful. And how do you explain to the kids that it's okay to bring snacks into the theatre, but not okay to bring food into a restaurant. It's just awkward.

So, I've changed my thinking. Now, what do you think? Is sneaking candy into the movies wrong?

Five Unfrugal Things I Do

While I try to convince my husband that I'm perfect (he's kind enough not to point out the truth), I must admit that I'm far from it.

I do my best to lead a frugal lifestyle, but I am human. Sometimes time constraints or a case of "the wants" throw me off the path.

So I thought I'd share a few "unfrugal" things that I do.

1) My kids use disposable diapers. Yes, I know cloth are cheaper. Yes, I know in the long run I'm destroying the environment... But I am a BUSY, BUSY mom, and I do enough laundry already. My time is valuable.

2) I don't give anyone haircuts in my family (except the dog). I have bad luck giving people haircuts. (Like, don't leave the house for a few days bad.) And since my husband talks in front of people all the time... it's important that he not look like he gave himself a haircut!

3) I use paper towels. Too much gooey, sticky, yucky stuff with three boys ages three and under in my house!

4) I send greeting cards. Yes. Even ones that cost $4 each. It's awful. But I like cards, especially Hallmark.

5) I scrapbook. Which means I buy ink, paper, accessories, print photos... you name it. But you can't put a price on memories, right?

My point is that we all have things we're willing to bend on in our budgets. Just be sure that if you splurge on one convenience, be sure to tighten someplace else.

So what "unfrugal" things do you do?

5 Things You Can Do To Free Up Some Cash

Last Saturday, I called in to the KAXE radio show Between You & Me. Host Heidi Holtan was talking about what kinds of things you can do for entertainment when faced with high gas prices. My tips were pretty local... but the concept can be applied anywhere: Be a tourist in your own hometown. Go to places you've never been... or haven't been to since you were a kid. In Minnesota, lots of free/cheap entertainment abound in the great outdoors.

It was a great show. But what struck me the most, was the first caller. He called in and was commenting on how much gas prices were hurting his finances. He wanted to know where to cut. He wanted to know how he could adjust to the price increases of virtually everything.

The problem is that there is no simple answer. Everyone's financial situation is different. But there's always something you can do.

Here are 5 things you can do right now to free up some cash in your budget:

Raise the deductibles on your car insurance. This move saved us approximately $20 a month. And since we had already paid our six-month premiums prior to changing the deductible, we got a refund check back. Yes, it's a gamble... but let me tell you, when you have high deductibles on your car insurance, you are extra careful when you're driving!

Change your tax withholding. If you are getting a refund from Uncle Sam every spring, stop letting him have your money interest free! Instead, adjust your withholding. There are calculators at the IRS and H&R Block to help you figure out how many allowances you should take. We put an extra $150 a month in our pockets by doing this. It made a huge difference in our budget.

Use your car one less day a week. Walk, ride bike, or car pool with someone else. You'll find that you not only save the gas money, but you will also avoid those incidental expenditures that come with being out and about. Not going to town one day a week saves me $8.... or $40 in a month!

Determine needs vs. wants. You don't need a morning latte, dinners out at restaurants, or candy at the movie theatre (gasp!). You don't need gum, soda, breath mints, Ziploc baggies, nail polish, Swiffers, or car washes. You will find that when you cut out the little stuff you want but don't need, you will have extra money in your pocket.

Find money at your house. Turn in your spare change for extra cash. Sell some stuff you don't need or use anymore. Have a garage sale. Haven't you been meaning to clean out the basement anyway?

The best advice I can give you in these hard times is to keep a positive attitude. Yes, the prices of things are high. Yes, it's hard to make ends meet. But it also forces you to be thrifty, to be creative, and to appreciate all the wonderful things you do have.

What College Doesn't Teach You Can Cost You

I've been out of college for some time now, but each spring, I still reflect back on the time around my graduation. It was a happy time, full of promise, and yet, it was full of unknowns.

What I've realized over the years is what college doesn't teach you can cost you.

College doesn't prepare you for life on your own. Sure, college gives you a lot of great information. You learn skills you'll be able to use throughout your career. But it doesn't prepare you for the loneliness of life on your own.

In college, you live in dorms. You eat with a group of friends for ALL your meals. You are always studying in groups and hanging out with people. Most if not all of your meals are provided to you with little effort on your part. You seldom need a car because you can walk everywhere you need to go. You have weekends off and holidays off.

Then you graduate. Suddenly you are out on your own with a new job and a new apartment. Lonely and in search of food, you head to the closest shopping complex.

And you buy yourself dinner and maybe a nice outfit (or three) because you have a career now, and you deserve it. And the next time it will be a new cell phone or a vacation to anywhere. And then there's the new car that looks so much better than your old one.... it's hard for you to see your old friends because none of you has any time off or money anyway.

Okay, so maybe this is a bit of a dramatic picture. But the above scenario is how thousands of young, bright college graduates self-medicate themselves into oodles of credit card debt.

College doesn't always teach you how to take care of yourself outside of your career. It doesn't prepare you for the emotions of life. And many people end up spending money on material goods trying to deal with those emotions.

My advice to young college grads is this: Don't try to keep up with anyone. As Dave Ramsey says, if being in debt is normal, be weird! Material things won't bring you companionship. Food won't make you feel less lonely. Accumulating debt won't help anything.

Learn to like yourself and to find things that allow you to meet new people. Take a class, head to the local library, join a club, find a hobby. There are lots of low-cost ways to meet people and to expand your horizons.

Most importantly, take responsibility for your life. It's yours to do with as you wish. Pay down your debts, build up your savings, and continue to grow as a person.

My Personal Finance Tipping Point

Free From Broke has a contest encouraging readers to think about their personal finance tipping point. He wants to know, when was the moment you made the choice to take charge of your life instead of your charges taking control of you.

I must admit, I never hit rock bottom like some of the stories I've heard and read. But I do distinctly remember when I started to think about debt in a different way.

It was 2001. My husband and I had bought our first car together - a 2000 Chevy Lumina. We put down a couple of thousand dollars down on the 4-year loan, and because we were young and didn't have much of a credit rating, paid a ridiculous 10.75 percent interest on the loan.

And the very next day, we had an ice dam on our roof leak into our living room.

And a few months later, our upstairs bathroom plumbing started to leak into our kitchen.

Needless to say, it was not a great time for us. Our savings was decimated by the necessary repairs, and now we had a car payment to deal with.

I was in our "new" car driving somewhere, when I heard a radio interview with Gwendolyn Gabriel, author of a book called "Become Totally Debt-Free in Five Years or Less." I was very interested in the topic. It never occurred to me to live debt-free before. Everyone I knew had a car loan, student loan debt, a house payment. I just thought that was the way it was.

I went online and bought the book. I devoured it. I shared ideas from it with my husband, who instantly got on board with me. His parents had gone bankrupt twice, and he did not want to follow the same path.

Gabriel's book lead me to other frugal living and personal finance books, such as The Complete Tightwad Gazette and Debt Proof Your Holidays. I couldn't wait for Monday morning updates of The Dollar Stretcher. It totally opened my eyes to another world.

My husband I started to attack our debt. In one year, we knocked out $19,000 in debt. My husband wanted to make a career change, and since our debt repayment had given us some freedom, he quit his job and went back to graduate school. He got an assistantship, which brought in some money and health insurance for him, and earned his master's degree in ONE year. He found a new part-time job shortly after that, and we started attacking the small amount of grad school debt.

When he finally started getting full-time work, we continued to live like he was in grad school. We piled money onto our mortgage with the goal of paying it off in 10 years (instead of 30).

We had our house half-paid off, a little bit of savings, and no other debt. And then we had a chance to get some lakeshore property on a piece of land that's been in my family since 1946. We decided to build a house on the land. And have a baby. In the same year.

Our new mortgage was now FIVE times our old one. We had an extra mouth to feed and on top of that, a 30 mile commute (instead of a 3-mile one). And then we had twins two years later!

And as challenging as it has been to make ends meet, we love our new house and our life in the country. And we realize it would never have been possible if I hadn't heard that radio interview.

Adopting a frugal lifestyle and learning to live with as little debt as possible has allowed us to build the life of our dreams. The day I heard that radio interview totally changed my perspective. Debt does not have to be a way of life.

The Month in Review: Big Savings, Big Spending

The month of May carried its share of strengths and weaknesses for our finances.

On the plus side, I saved a TON of money using coupons this month. In fact, I saved a grand total of $297.97!

And we had some extra money come to us: we got our economic stimulus check and my husband's contract got settled, so he got a nice back pay check and a slight pay raise.

But we spent quite a bit more than we usually do. We bought a laptop and printer for me, a gas grill (which has been on our wish list for YEARS), and another flu bug cycled through our house, which meant a total of FIVE visits to the clinic and FOUR prescriptions. And the sickness is not done yet!

While our extra purchases messed up our May budget, we still did not mess up our overall spending plan. We budgeted for and planned for each of these expenses. We researched and talked about what we wanted. We made sure that we had the money to pay for these items in cash.

It was fun spending some of our money. But it's fun saving it, too. We realize how long it takes to save money and how quickly it disappears. We'll be back to our normal spending in June. No more big expenditures for awhile.

As for the pay raise, we are putting half of it into our "Buy a Car With Cash Fund" and the other half will help us cover our increased expenses (primarily gas and groceries). We channeled the money into our appropriate accounts right away so that we wouldn't get used to bigger pay checks. It will be nice to watch our savings grow a little bit more.

How was your month? Was your spending on track or out of whack? What's your plan for June?

How a Board Game Helped Me Learn About Money

Ever since I was a little kid, I've loved board games. I'm pretty competitive and enjoy a good match of wits with friends and family.

And even as a kid, I was a saver. I made sure I saved part of my allowance every week to use for gifts at Christmas time.

Now that I'm older, I am still a saver. And in a way, I view saving money as a game. It's a challenge that I take on daily, and I enjoy the thrill of getting a great deal or solving a problem in a clever, frugal way.

I think the Parker Brother's board game, Paydayhad a lot to do with my introduction to the world of personal finances.

For those of you who may not know of this game, the board game is set up in a calendar format of one month. At the beginning of the game, you decide how many "months" you would like to play the game. The person who has the most money at the end of the game, wins. Throughout the month, you may get bills in the mail, have to buy groceries, get a windfall, or make a purchase. You can save money (at 10 percent interest) or borrow money (at 20 percent interest).

I still remember the lessons I learned from this game regarding interest. At a whopping 20 percent, it didn't take long for me to avoid borrowing money at all costs. I also remember feeling that pit in my stomach when I knew there was more month than money. You learn quickly that if you want to win, you have to be shrewd with your money. It's something I still carry with me to this day.

I also remember that my mother rarely wanted to play this game with me. She said it was too depressing. (This was during a rough financial time for my family). I think about that sometimes, and I realize that I want to do whatever it takes to make sure our family isn't in that same place.

The game really helps you to think about a budget; winning is dependent on your ability to make more than you spend.

How Gas Prices are Changing "Me-Time"

As a stay-at-home mom of three boys ages three and under, it is VITAL that I get some time to myself. It helps me establish my identity outside of being a wife and mom and it makes me a better spouse and parent.

In the early months of my new stay-at-home mom status, my "Me-time" was spent bargain hunting and garage sale shopping in town by myself. (In case you haven't noticed, I'm a nerd who enjoys getting good deals!)

But now going to town is an $8 expenditure. My days of "bumming around town" are now much more limited. I am combining trips more than ever, and that often means I have to do my bargain hunting with my entire family in tow.

The situation has forced me to redefine how I spend "Me-time."

My Me-time is more often spent around my neighborhood now.

Sometimes my hubby lets me carve out a moment for me to scrapbook or do some card making while he watches the kids. I take walks by myself to clear my head. I spend time reading out on my deck. I write on my blog. I visit my parents or sometimes we go to town together (they're good people that way!). I spend time doing yard work. I work on projects around the house (like organizing things or cleaning). I plan future bargain hunting trips and hunt for deals online.

In a way, I'm kind of glad that gas prices are up because it is challenging me to be more creative in all areas of my life. I'm rediscovering old hobbies and enjoying being at home more than I ever have before.

Most importantly, I've learned that "Me-time" doesn't have to mean I'm in a store.

Why A Recession Is Good For Us

The media is expounding its gloom and doom depressing recession talk, and it's got me thinking.

There are some good things that come out of a recession:

Recessions force us to think. When the housing market is lousy or when we fear potential job layoffs, we make more calculated decisions. When gas prices sky rocket, we must make some decisions about our driving habits. We're forced to consider what things are "wants" and what are "needs." We're forced to consider our values and determine what our goals are. We're forced to get creative to make our dollars last.

Recessions help us to conserve. When the economy is bad, we're more likely to do things that will help us conserve our resources. We may cut back on driving. We cook our own meals. We may start using CFLs to save money on our electric bills. We recycle things. We fix things. We borrow and lend things.

Recessions inspire us to save money. We look at ways to eliminate our debts, to earn more money, and to make our money go further. We prepare for that rainy day because we can see the clouds on the horizon.

Recessions foster stronger communities. When times are tough, it's harder to buy gadgets and toys and go on vacations. Recessions help us find inexpensive, local activities to participate in. We get to know our neighbors and spend more time with our families. During recessions, we also are reminded that others may be having a hard time, and seek ways to help them, because we know what it feels like to struggle.

No one likes a recession, that's for sure. But during a recession there is potential for personal growth, innovation, and kindness that doesn't always appear when times are good.

Some Frugal Reading For You

It seems like whenever I hit a bit of a writing rut, I can easily be distracted with a little internet surfing. What amazes me about my surfing is that so many of my favorite bloggers are writing about the very topics I've been thinking about.

Here are a few good reads I've discovered recently:

• No Credit Needed has a great article about learning to delay gratification in an article about his $100-A-Day-Rule.
• To go along with that, Frugal Dad, also writes about his desire to own a Nintendo Wii. Note: I didn't want a Wii before I read the post by Frugal Dad, but now I do!
• Want Not has a thoughtful article about The Conundrum of Groceries and Gas. I know that I am not getting out of the house as much as I once once because a trip to town now costs $7. I definitely could relate to her post and enjoyed her money-saving tips.
• As I was shopping online (saving gas money!) for my son's third birthday, I came across this list of helpful money-saving websites from Think Your Way To Wealth.

Are You A Compulsive Shopper?

So many people have gotten themselves into serious financial trouble because of their addiction to shopping. They will max out credit cards for shoes in every color of the rainbow with matching handbags.

Those of us who live frugal lifestyles often scoff at these shopping fanatics. Yet, being a frugal person is not without its risks, too. Sometimes frugal shoppers get so excited about their bargain hunting, they spend money they don't need to spend on things they don't really need just because it's a "great deal." It's very easy for a frugal person to get caught up in the concept of "spending to save." You spend money stocking up on a "great buy" because it will save you money in the long run. You end up with little cash in your pocket and a hall closet overrun with shampoo and deodorant because you get nervous you may run out before the next big sale.

Shopaholics Anonymous has some great resources to help you determine if you are taking your shopping habits too far. The website can help you identify if you have a problem, along with some potential solutions. Some signs that you may be a compulsive shopper are shopping when you are angry, scared or upset, feeling guilty or ashamed after a shopping trip/hiding purchases, using credit cards to buy things because you don't have the cash, thinking about money incessantly, or buying things simply because they are a good deal. Some people buy things to fill an emotional void; others get caught up in the "thrill of the hunt." There are many reasons why people develop this type of addiction.

You can take this quiz to see if you are a compulsive shopper. Be sure to seek professional help if you feel shopping is an addiction for you. Compulsive Shopping affects approximately 6 percent of the population.

The bottom line is to make sure that you are buying things for the right reasons. You must decide if you really need something before making a purchase. Sometimes this means waiting a day or two or longer to determine your motivation for buying the item. Sometimes this means recognizing that you have enough stuff.

Overcoming a shopping addiction is something you must do in order to get out of debt and live a better life. But as you learn to live a more frugal lifestyle, don't let yourself obsess over your savings. You need to have balance in your life. It's not healthy to take things to extremes.

Counting Calories

Sometimes when I think about living a frugal lifestyle, I'm struck by its similarities to dieting. Both require extreme self-discipline. Both require attention to detail. Both are difficult.

I'm currently on a quest to get more exercise. My current goal is to do some form of exercise 30 minutes a day, three times a week. I plan to extend that time as I get more in shape. Eventually I will be attacking my less than stellar diet. But for now, I am working on fitness. One of the biggest things I've learned about being debt-free (except for my house) is that it is best to set specific, realistic goals. If I can have some success at the smaller goals, I can build momentum to attack the larger ones.

In case you haven't figured it out yet, I'm a dork. I like numbers. I like statistics. So I like Calories Per Hour. This FREE website has calculators that will tell you how many calories you burned doing a particular activity (30 minutes of computer typing burns 51 calories - WOO HOO!).

Calories Per Hour also has calculators to help you figure out how many calories your consuming and how long it will take you to reach your weight loss goal. I like that I can see exactly how my activity is adding up to help me reach my goals.

This healthy and frugal lifestyle stuff seems simple enough. To lose weight, simply expend more calories than you consume. To have personal financial success, you must earn more than you spend. These two things are similar and they both require major self-discipline. The key to success is to keep your eyes on the end result. Never lose site of the goals.

If this were easy, we'd all be rich and skinny. Time to go lace up my sneakers.

Frugal and Proud

My frugal friend Marta recently sent me this story on CNN. The story details how more and more people are adopting a frugal lifestyle and are proud of that decision.

My favorite part of the article is the quote from Annette Economides. She said, "It's not about sacrifices, it's about priorities."

Economides knows what she's talking about. She and her husband Steve are known as "America's Cheapest Family." Their book, which bears the same title, talks about how they save money on everything from groceries to car insurance.

Living the life you want is all about choices. You can choose to eat out every night and carry a balance on your credit card. Or you can choose to eat at home and pay off your debts. You can say your family has to have two incomes to survive, or you can examine your finances and make changes that allow one of you to stay home with your kids.

I'm proud of the choices I've made with money. I think of how many times people teased me about my frugal ways, but now, the media LOVES all of us cheapskates. People realize that as the economy goes sour, we cheapskates know how to survive.

How to Ride Out a Recession

All the gloom and doom talk about the economy got me thinking about how to ride out tough financial times. Of course there are some obvious things you can do:

1. Build a 3-6 month emergency fund.
2. Don't switch jobs unless you have a very, very good reason.
3. Be indispensable at your job. Make sure your skills are current.
4. Don't try to sell your house right now.
5. Pay off your debts (and don't start any new ones).
6. Stay healthy. Eat right, exercise.
7. Keep your vehicles maintained.
8. Don't make any major purchases right now.

And while those are solid tips, they don't really deal with the day-to-day hassles of high food and gas prices.

So here are some other thoughts I have for riding out these hard times:

1. Just say no. You don't need to buy every new gadget or get new shoes for this season. Make do with what you have. Save now and when it comes time to make the purchase later, you may realize you didn't need it after all.
2. Repair and recycle instead of buying new and tossing the old stuff.
3. Trade stuff with/borrow from friends and family.
4. Hang out with friends and family instead of going out to expensive dinners or movies. Make it potluck and you just might discover a great new dish.
5. Explore the outdoors. Go for walks, bike rides, etc.
6. Take full advantage of your local library. They have just about everything you could possibly want to read, see, or hear.
7. Bring back game night. Pull out those board games or a deck of cards and have a blast without spending much money.
8. Become a bargain hunter. Use this website, use the links on my sidebar. Shop thrift stores and garage sales. Make you money stretch.
9. Have your own sale. Get rid of some stuff on Ebay. Clear the clutter from your world.
10. Learn to cook. You don't need to eat out. Anyone can learn how to cook.

Do you suffer from Affluenza?

My frugal friend and faithful reader Angie sent me a link for a fabulous website. It's actually the companion site to a PBS documentary entitled Affluenza. Angie said she caught the tail end of the show on television recently and thought I'd be interested. Unfortunately, I missed seeing the show, but the website is full of lots of fascinating information about how Americans live.

According to the website, this is the definition of Affluenza:

Af-flu-en-za n. 1. The bloated, sluggish and unfulfilled feeling that results from efforts to keep up with the Joneses. 2. An epidemic of stress, overwork, waste and indebtedness caused by dogged pursuit of the American Dream. 3. An unsustainable addiction to economic growth. 4. A television program that could change your life.

So if, after reading the definition of affluenza, you're still wondering if you suffer from it, you can take this quiz. Fortunately, I am not showing any signs of the disease, but I think I'll try to find the documentary at my local library just to make sure I don't get it.

The website has a lot of disturbing statistics about America's debt load and spending habits. I can only imagine that the numbers have worsened since the documentary was filmed in the 1990s.

I was cheered by one statistic that I found on the site: "Eighty-six percent of Americans who voluntarily cut back their consumption feel happier as a result. Only 9 percent said they were less happy. (Reported in 1995) In 1996, 5 percent of the "baby boom" generation reported practicing a strong form of voluntary simplicity. By the year 2000, some predict this number will rise to 15 percent. "

I hope that the number of people living a simpler lifestyle starts to climb even higher. Life is better when you control your finances instead of them controlling you. Life is better when know you are prepared for whatever life hands you.

More thoughts on frugal living

I've been doing a lot of thinking lately about cutting expenses and living frugally so that I can be a stay-at-home mom.

So, I was thrilled to see Thrifty Mommy post "Top 10 Ways I have Cut Expenses."

This is a great post - not just for people who want to be stay-at-home parents - but also for everyone facing a challenging financial time.

The Hidden Costs of Working

When I was thinking about How I Became a Stay-At-Home Mom, I also thought a lot about the hidden costs of working.

Here are some of the things I thought about when I was considering returning to my job.

1) Day care for three little ones on a full-time basis would cost me at least $1300 a month.

2) I needed to have a professional wardrobe. When I'm at home, I get to wear lots of comfy jeans and sweatshirts.

3) It costs approximately $130 a month for gas just to get to work. And then you have to figure in the frequent oil changes and other maintenance on top of that. When I'm not working, I save a ton of money on car expenses.

4) When I was working, I often brought home take-out or we went out to eat because I was too tired to cook. (BIG expenditure!) I also spent more money on convenience foods. Now I cook more.

5) I often got invited for lunches out with co-workers or drinks after work, or Pampered Chef parties... and hit up for all the kids' fundraisers, too. It was fun, but it adds up.

6) If my parents did watch the kids a lot, they wouldn't want to babysit on weekends, which means my husband and I would not get very many dates. Not good. Parents need grown-up time, too.

7) I am not good at the working mom juggling act. I know moms that can do it and I'm so impressed with them... but I am not one of those moms. Our family just seems to function better with me home.

8) When I was working, I didn't have time to scout out great bargains or find great sales. I have saved a lot of money simply by being able to scour the internet, newspapers, and stores, for deals on everything from clothing to insurance costs.

9) Since I've been home, I have become more organized. And when you know what you have, you save money. I'm also not running out of things and being forced to pay full price like I did when I was a working mom. I can buy things on sale and stockpile them for later.

10) When I was working, I carried a lot of guilt about not being home with my son. I felt like everyone else knew him better than I did and it broke my heart. I don't feel guilty any more.

How I Became a Stay-At-Home Mom

It's official! This week I resigned from my position as an academic advisor at a community college.

While it was a job I truly loved (I've worked there for more than 7 years, and I'm also an alum!), I decided that my family needs to take priority at this point in my life.

The decision was one of the hardest ones I've ever had to make. I enjoyed my job and the people I worked with are like a family to me. It will also mean a loss of about 40 percent of our family's income. On the other hand, being a part of my kids' lives on a full-time basis is one of the most challenging and rewarding things I've ever done.

Becoming a stay-at-home mom has been something I've thought about off and on since my first son was born nearly three years ago. But we had just built a new house with a GIANT mortgage and bought a new car and quitting my job wasn't in the cards. Plus, my parents took care of my son for free, so I didn't have to worry about day care costs.

I often told my closest friends that if I had two kids, I would continue to work, but if I had three kids, I would want to stay home until they were older. Flash forward two years later... and a funny thing happened...

I got pregnant with twins! Apparently a higher power was helping me make my decision!

I knew that my parents would not want to do full-time day care for three little ones. But at the same time, I was scared that we might not be able to live on just my husband's income. So here are some of the things we did while I was pregnant and still working full-time:

1) We lived solely on my husband's income for that entire year. We banked all of my income in what we affectionately called the "Special Projects account."

2) We upgraded our heat system to be more energy efficient so that we could shave approximately $200 a month off our heat bill.

3) We paid off our debts. We used our "special project" money to pay off our Ford Focus in just one year. We currently have no debt except for our mortgage.

4) We saved for a minivan. We knew that with three wee ones in car seats, we'd never fit in our Ford Focus, and our 2000 Chevy Lumina just wasn't going to be comfortable or reliable anymore. We traded off the Lumina, bought a minivan, and use the Focus wagon as a commuter car for my husband and a grocery getter when I go out without the kids.

5) We built up an emergency fund. This was especially helpful because I ended up on bed rest several times during the twin pregnancy and wasn't making my usual salary.

6) I took a one-year unpaid leave of absence from my job after the twins were born. I wanted a safety net - to make sure that we could survive on one income. And I found that we could make it work.

7) We made a budget. I'm not always the best at following it, but at least I know we have a plan.

8) I learned how to make my dollars stretch. I read as much as I could, visited tons of websites and shared information with friends and family on great deals. I learned about resources in my community. I learned about things I could do to make sure we were on track for retirement, even without my income for a few years.

9) I used the power of the internet. I love, love, love the internet. I have found so much information about frugal living and saving money. My list of favorite websites (see far right) grows bigger all the time. I have made several blogging friends who share my passion for frugal living and they inspire me. They remind me that there is so much that can be done to live a life of true prosperity.

10) I found ways to bring in a little extra money. I do some light bookkeeping for a friend of ours. The work keeps my mind sharp and keeps my resume from completely withering on the vine. I have also done a few surveys and similar things online to bring in some fun money.

11) I connected with people. I live in a rural area, so it was essential to my mental well-being for me to connect with people besides my three little boys. I am a volunteer for several organizations and I also connect with people via this blog. I make sure I get out of the house on a regular basis for solo shopping trips or to have lunch with friends. A healthy, happy mom, makes for a healthy, happy family.

12) I learned to be happy with all that I have. I don't have to keep up with the Joneses. I don't need to go out to eat four times a week. I don't have to have stuff to be happy.

These are just some of the things I did on my path to becoming a stay-at-home mom. It is a major move, but one that can be done, if you plan for it.

Thrifty folks mentioned in Newsweek

My frugal friend Sara and her husband Michael, authors of the frugal blog Be Thrifty Like Us, were featured in an article in Newsweek today.

The article titled "It's Time to Trim the Fat" by Linda Stern talks about how Sara's family saves money on their groceries and other bills. As a big fan of their blog, I already know they practice what they preach. And I know they are terrific at finding fabulous bargains. I've gotten lots of great tips from their site. Check out the story, then be sure to read their blog, too.

Congrats, Sara and Michael, for hitting the big time and for bringing recognition to those of us trying to live a better life for less!