How We Are Breaking the Cycle of Living Paycheck to Paycheck

Written by Lyn Brooks, Staff Writer

Editor's Note: This article, How We are Breaking the Cycle of Living Paycheck to Paycheck, originally appeared on Yahoo! Finance in 2014, where it was a featured article. 

According to the Bureau of Labor Statistics, overall unemployment in America was down to 6.6% as of January, 2014. While this is certainly good news, significant challenges to long term economic growth remain, so, it's wise for households to prepare for another economic downturn. That's difficult to do if you are living paycheck to paycheck.

According to a recent article in Time magazine, over half of all Americans are still living paycheck to paycheck, 44% of American families have less than $5,887 in savings, and 56% have sub-prime credit. Sadly, after losing my job in the Great Recession, and facing unprecedented, catastrophic medical bills, my own household is part of that statistic.

At one point, after we had exhausted our savings and 401(k) plans, maxed out our credit cards, and ran out of unemployment benefits, our financial situation was so desperate that we almost lost our home to foreclosure. Slowly, we've managed to claw our way back from the brink of total financial ruin, but, we are still living paycheck to paycheck. I know that even though our finances have started to improve along with the nation's economy, we have to take action now to break the cycle of living paycheck to paycheck.

We've taken the following steps to break this cycle and regain control of our finances.

Take Stock of the Situation

The first step that we took to gain control of our finances was to take an honest and complete inventory of what we were spending our money on. We used a spreadsheet but you can take the old school route and write it down a piece of paper. Regardless of what method you use, make a list of where each penny goes for the next 30 days.

Create a Realistic Budget and Get Everyone on Board

Next, sit down with your spouse, or significant other, and talk about where the money is going, and where you can cut expenses. This is harder than it sounds. My husband and I had several painful conversations when we started this process, and to be successful, everyone has to give up their "sacred cows." It's very important that every member of the family gets on board and contributes to making the new household budget and commits to sticking to it. Otherwise, you will just sabotage one another's efforts and you will fail before you even start.

Negotiate with Service Providers

As part of the budgeting process, contact every provider and attempt to negotiate reduced rates for all of the services that you pay for. Many providers offer discounts based on bundling services, or if you belong to certain groups, organizations or even where you bank. By contacting our car insurance carrier, we were able to get our bill cut by 20% and save $600 year just because of whom we bank with. We were able to slash our telephone bill in half by eliminating certain features that we hardly used, and bundling our phone service with our internet service. This saves us $360 a year. We got rid of our triple digit cable bill, saving us over $70 a month and now use a popular streaming service that also allows us to choose unlimited DVDs each month for less than $30 a month. By talking to these three providers, we save over $1,800 a year.

Slash the Grocery Bill and Costs for Eating Out

Look at how much your family spends on eating out, as well as on the grocery bill, and learn how to drastically cut costs by learning how to cook at home. Even if you have a busy lifestyle, you can make delicious, filling, and cheap soups and casseroles in a slow cooker by tossing in fresh produce that is in season, bulk dry goods such as dried peas and lentils, cuts of meat that are on sale and marked down. 

If you have the space and the know-how, try planting a small garden and growing some of your own produce and herbs to save even more. 

Sometimes, for a treat, we do eat out, but we usually go during lunch hours instead of dinner. Many sit down restaurants offer lunch specials and other discounts during this time, and you will save money if you get water with lemon rather than paying for coffee, tea, soda or other beverages. Using this strategy saved us over $5,000 on our annual grocery bill when we first adopted it.

Set Savings Goals and Pay Down Debt

Once you have slashed your expenses, start savings goals and stick to them. Start by saving $100 in a rainy day fund. Then, move on to bigger goals, such as $1,000 in an emergency fund, and then saving at least three months of living expenses. 

Start or rebuild your retirement fund at the same time. In addition to establishing savings funds, use part of the savings from your budget to pay down your credit card and other debt and make a resolution to not incur new debt.

Enjoy Less Stress as You Get Your Finances Back on Track

My husband and I earn a modest salary, together, we earn less than $50,000 a year. Using these strategies, we've managed to save $100 for a rainy day and $1,000 in an emergency fund this past year. Now, we are working on saving three months worth of living expenses. 

We've also managed to rebuild our retirement fund to over $10,000, pay off $14,789 in credit card debt, and over $10,000 in medical debt and not incur any new debt in the last two years. It is a relief to no longer worry about how we will pay our bills.

We still have a long way to go to get back to where we were before The Great Recession, but we are slowly breaking the cycle of living paycheck to paycheck. Anyone can if they take the time to create a realistic budget and savings plan and be determined to stick to it.

With 3 Kids in College, We're Saving $3,000 a Year With Smart Textbook Shopping

As every college student and parent of a college bound child knows, purchasing required textbooks for college can be quite expensive. My children and I use the following strategies when shopping for textbooks to save money.

Buy Used When Possible

Check with your college's bookstore to make certain that the same edition of a textbook is being used, but when possible, check local flyers on campus for individuals listing their textbook for sale. Often, an individual will sale their book for less than what you can buy it used at the campus bookstore or even many online sites. The thing to remember when utilizing this method is that you cannot procrastinate, but you need to seek out individuals selling their books early in the season. One of my daughters saved over a hundred dollars per textbook by taking the same classes a friend had taken the semester before and buying her textbooks. If you have a friend taking a class that you are interested in, and it's offered the following semester with the same required textbook, you may want to work out something with your friend before the current semester is over. The semester that my daughter used this strategy she saved $500.

Check Online Sites for Used Textbooks

Again, make certain that you are searching online for the correct edition of a given textbook, but check online sites such as Amazon.com and Half.com for used and discounted listings of textbooks. Even many book retailers such as Barnes and Noble now offer used textbooks online. One of my daughters used this strategy to save half off the cost of her textbooks for a semester. She saved even more by redeeming the points she earned through her credit card's rewards program for a gift card at the online retailer which she then used to pay for her purchase. What would have cost over $600 at the campus bookstore for new textbooks ended up being under $300, and after applying her gift cards, she paid less than $150 out of pocket for the purchase. This is a savings of $450 for this semester.

Check the Campus Bookstore for Rental Prices

Many college bookstores now rent textbooks at less than half the price to buy a new or used copy of the same textbook. This method of acquiring textbooks for the semester has been gaining popularity. My son recently utilized this method and paid less than a third of the cost of what it would have been to buy the textbooks new. As a math major, my son's textbooks normally cost $150 to $200 each if he buys them new from the campus bookstore. Since he began renting these textbooks, he has saved at least $105 per textbook a semester. He normally takes 5 to 6 classes a semester, so he saves over $500 a semester on his textbooks.

Don't Save Textbooks, but Don't Sell Them Back to the Campus Bookstore either

You can almost always make more money by reselling textbooks on your own through a flyer listing, or listing it online. Last semester the campus bookstore offered by daughter $5 to buy back an art textbook that she had paid $88 for at the start of the semester. The class wasn't being taught again until the following year, making it unlikely that the same edition of the textbook would be used, but she was able to sell it for $36 on Amazon to a college student attending a different school.

Many of these tips may seem like common sense, but thousands of college students buy new textbooks each semester. One excuse for this practice that we have often heard is that students can't afford to buy the books outright before the semester begins, so they "charge" the textbook at the campus bookstore to be redeemed when their financial aid posts to their account. I have heard many of the same students say that it's not "worth" the effort to look for ways to save on their textbooks when their aid is "free money" and it doesn't "cost" them anything to purchase their books this way. Personally, I think it would be worth it to take a part time job or budget to save a few hundred dollars to buy their books early, and used, so that they would save money on their purchase and then have a larger "refund" of their aid money later.

I currently have three children in college, they save an average of $500 each a semester on their textbooks by following these simple tips. That is a savings of $3,000 a year in textbook purchases, and this does not include the money that they make when they later sell their textbooks online.

With the costs of college tuition and expenses rising each year, it does not make any sense to buy textbooks new. With a little planning you can save hundreds of dollars each semester when purchasing textbooks.

My Healthy New Diet Is Saving Us $5,400 a Year

In today's difficult economy, many individuals and families are looking for ways to cut back and save money as much as possible. With the New Year just begun, many of us have made resolutions to reduce our expenses and save money as well as making a more typical resolution to lose weight or adopt a healthier lifestyle. Many mistakenly believe that you can't save money and lose weight at the same time. I use the following strategies to do both. Since adopting these strategies I have both lost weight and now save over $5,000 a year on my familiy's grocery bill.

Save on Fresh Produce

Many diets -- such as the Dash diet, the Mediterranean diet, and vegetarian diets -- place a heavy emphasis on consuming fresh produce. To save on this often expensive item I try to buy fresh produce that is in season for my area. I have also learned to shop two or three grocery stores in my area for their "marked down" produce each week and plan my meals around what marked down fresh produce is available in a particular week. This is especially helpful in the winter. Later in the year I visit my local farmer's market for seasonal fresh vegetables, and I grow some of the more expensive vegetables such as peppers, tomatoes, green beans, peas, lettuce and spinach from seeds at home.

Save on Lean Meat Purchases

I use a similar strategy when purchasing meat, as there are several cuts that are usually marked down each week. I usually make a stew in my crock pot or a stir fry in my wok from the fresh vegetables and meat I have found on sale. When cooking with meat I try to think of it as a "seasoning" instead of the main attraction in my meals.

Organize the Refrigerator

Before I became more conscious of my budget and my waistline, I know that I threw out an alarming amount of food every few weeks because I would forget that it was there. Taking the time to clean and organize my refrigerator on a weekly basis, and keeping a shelf just for items that will expire soon that need to be used quickly helped me to save money on my groceries.

Packing Lunch

Bringing my lunch, instead of eating out, is another way that I stick to my diet and save money.

Many of these tips seem like common sense that we should all know, but few of us practice them. When I decided to adopt a healthier and more frugal lifestyle, I talked my plan over with my family of six and they agreed to eat in a healthier and more frugal manner as well.

Since adopting this strategy, we have been able to lower our grocery expense from around $800 a month to around $350 a month. This $450 a month savings on our monthly grocery bill adds up to an amazing $5,400 a year! I also lost 12 pounds the first month that I implemented these changes and noticed an improvement in the condition of my skin and my overall health and energy by changing the quality of the foods that I was eating. Shopping and cooking in this way does require more time and effort on my part, but in this economy, and with health conditions and health care costs on the rise, who can afford to not make the extra effort to save money and stick to a diet at the same time?

How I Save Money when Shopping for Children's Clothing

As a mother of four children, I know how shopping for children's clothing can strain a family's budget. Over the years, I have used a combination of the following sources to save money when shopping for children's clothing.

Freecycle and Cheapcycle

To help save money on clothes and other items, I joined my regional Freecycle and Cheapcycle groups. Through Freecycle, I receive children's clothing, and a host of other items, for free. When you join you have to post one item in good condition that you will give away. Members then respond to your offer if it is an item they want. I give the item to the first response that I receive. After this you can respond to members' offers. Some groups also allow you to post requests for items that you need. I strongly suggest that as you go along, you do not limit yourself to donating only one item. Be aware that you have to pick up items in person. Since you may be meeting a stranger in a non-public place, use caution, always bring a friend with you, and let someone know where you are going and what time you expect to return. Cheapcycle works in a similar way as Freecycle, except the items that are offered are not free, but available for a low price. I think of it as an advertised, online yard sale. Most of the clothing and other items I have received this way have been in good condition, and it has helped stretch our budget. You are also being environmentally friendly, as you are keeping unwanted items out of our landfills. You can find a local Freecycle group here: http://www.freecycle.org/group/US. Local Cheapcycle groups can be found by searching for them on Yahoo Groups and Squidoo.

Local Churches and Thrift Stores

In my region, several churches offer a monthly "clothes closet" where donated clothes are offered for free once or twice a month. You can also check out your local Salvation Army and Goodwill stores for deals on gently used clothing and other household items. In my area, there is a thrift store that is operated by a shelter. The proceeds go to assist homeless families in crisis. This particular thrift store also offers a deal once a month. You bring in two canned food items and you can fill a kitchen-sized garbage bag full of any clothing for $2.50. When visiting a thrift store, ask the employees if they are running any special deals, or will be in the future, to save more.

Consignment Shops

Consignment shops offer gently used clothing at a discount. This is an opportunity to earn money as well as save money. Bring in the items you wish to sell when you are shopping. Some shops will give you more of your items' selling price if you will take your payment in the form of store credit rather than cash. I have found this to be a great way to save, especially when teenagers want trendy, brand name clothing.

Rummage Sales, Yard Sales, Clothes Swaps, Family and Friends

Many areas offer annual rummage sales for children's clothing. You can find one in your area by typing in "Annual Rummage Sale" in your search engine; you should be able to locate dozens of sites, often by state. Cruise your region's yard sales on sunny weekends, and do not neglect to make friends with parents of children of similar ages as yours so that you can swap clothes. Always graciously accept clothing offers from family and friends, and suggest a clothing item if a well-meaning relative asks you for hints for gifts for your child's next special occasion.

Facebook Reseller Pages and eBay

On Facebook Reseller pages you can search in Pages by brand name, and can pick up new or gently worn brand name clothes at steep discounts. Many parents buy and sell their children's clothing here, and the same goes for eBay. When purchasing, it is best to try to buy from the same seller if they are open to bundling the shipping charges, as this will help you save even more. You can pay and be paid with a free PayPal account, and several friends take the money that they earn from selling the clothing their children outgrow for their new clothes purchases.

Department Store Sales and Coupons

I also try to buy clothes at department stores near the end of the season, on the markdown rack, but in the next larger size, so that my children have "new" clothes for the following year. If you end up with something too big or too small for the next year, offer the item in the "clothing swap", consignment shop, eBay, or Facebook Reseller Pages. One young mother who is a good friend of mine, Shannon, uses a similar strategy at her favorite retailer, Gymboree. According to Shannon, "Gymboree almost always has 20 % off coupons available. Their clothing can be out the budget for most people. However, if you wait it out you can get their clothing marked down 60% after a month or so, and then use your 20% off coupon on top of the markdown. Plus, if you have a Gymboree card, you get an extra 5% off for using it on the purchase. They recently had a sale where everything in the store was $12.50, or less, and you were allowed to use a 20% off coupon. This is a major price reduction when you consider that t-shirts can be $25 each. I got a pair of boots that are normally around $50 for less than $10 during this sale." Many department stores are also now online and often offer discounts of 20-30% off with a coupon code, which can often be found by searching for "Discount Code" online. If you combine shopping their sales with logging in from a "reward points" type site, such as Mypoints.com, you can earn points for your purchases that can later be redeemed for free gift cards at retailers. Also, if you pay with your credit card that is earning Airline miles or some other rewards points offer for purchases, you can save and earn more free items.

These are a few ways to save when buying children's clothing. By employing several different strategies, it is possible to stay within your budget when shopping for your children's clothes.

I'm 44, With $100 in My Retirement Account

I just turned 47, and I currently have less than $100 in retirement savings.

Over the years I've had different amounts of retirement savings. When I was 25 I bought my first car, my first house, and had over $40,000 in retirement savings. The following year my savings vanished after racking up extensive medical bills in the form of insurance co-pays and deductibles to pay for treatment of a rare blood disorder called Thrombocytopenia Purpura (TTP) and Non-Hodgkin's Lymphoma. I survived, paid off the debt, and raised four children on a limited budget. Later, I incurred more medical debt due to various health issues of my children, and my own additional medical bills after I was diagnosed with Crohn's Disease.

Even with all of these concerns, by 2009 I had paid my debts and saved $72,000 in a combination of old fashioned savings accounts and 401(k) funds. Then, on December 29, 2010 I had an allergic reaction that resulted in anaphylaxis, my death and resuscitation. I had ongoing breathing complications for months afterwards, and when I exhausted my FMLA leave my employer terminated me during the "Great Recession" last year in a cost cutting move.

My savings are now gone after paying for medications to breathe, I've defaulted on my credit cards and I am struggling to not lose my house while I look for another job. I have done the "prudent" thing and saved for a "rainy day" numerous times, but how can anyone save when it keeps raining?

Since College My Student Loan Debt Has Nearly Doubled

In 1990, I went back to college full time with the goal of obtaining a Bachelor of Arts Degree with a Double Major in Accounting and English. I had planned on obtaining work in the field of Accounting, as I was raised in a family that stressed the importance of being practical, and it seemed that this was a growing industry with the potential for employment opportunities. While English was my favorite subject in school, I did not believe that I had the patience to teach, and it seemed that there were few "practical" job opportunities provided by a degree in this field.

I left college in my senior year without my degree, after having children and surviving cancer. I lacked 5 classes of having my degree, but could no longer afford to remain out of the work force full time and support my family and pay my then astronomical medical bills. When I left, I had a little over $13,000 in student loan debt.

There are various programs available for those who have trouble paying their student loans. Over the years I suffered several other debilitating illnesses and had long stretches of unemployment. I would make payments for a couple of years and then something would always happen so that I would need to seek either a deferment or forbearance. While there are programs to delay repayment so that a borrower does not default, these programs do not pay for the accumulated interest that grows on the outstanding student loans. Today, after the years of accumulated interest charges, I have a little under $23,000 in outstanding student loan debt. Sadly, I am unemployed, again, and have no idea when I will obtain new employment to begin repayment.

Over the years, I have had many people advise me to file for bankruptcy, and while this would erase my medical debt, it would not erase the student loan debt. Also, to me there is something wrong with not paying my creditors, even if it takes the rest of my life to pay them off bit by bit, which may indeed be what happens.

Was using debt to go to college worth it, some might ask? I learned many things about myself, others and the world when I was in college and it is not an experience I would trade. Ironically, it has been my writing skills and my "impractical" love of English, rather than my accounting skills, that has been keeping a roof over my head.

Cutting Out Cable Has Actually Expanded Our Entertainment Options

A little over 6 years ago, we cut the cord on cable. In the beginning, we used many services that are now becoming popular to watch TV shows and movies for a low cost or free, including Netflix, Hulu, as well as checking out movies for free at the library. There are, however, many other options when you are seeking to watch premium content for little or no cost.

Viki

My younger daughter got me hooked on Asian dramas and programming. Now, I watch many of the most popular serials online for free. One of our current favorites is the international hit, Boys Over Flowers, which is a Korean drama based on the popular Japanese manga, Hana Yori Dango. Viki is available globally, has over 1 billion videos, and millions of people all over the world gather at this site to watch internationally popular shows, music and movies. Most of the programming has been translated into over 150 languages. So, whether it's Bollywood, Manga or other popular Asian programming, you can probably find free, high quality access to it on this site.

TV-Links

Several years after I cut cable, I started to miss it when HBO premiered their new series, Game of Thrones. I had resigned myself to waiting for it to come out on DVD and be offered on Netflix, when my next youngest daughter told me about this site. Now, I can watch all of the episodes of "GoT" as well as many of my other favorite shows that I mistakenly believed I could only view with an expensive cable subscription, such as How I Met Your Mother and Merlin. 

While some popular shows may have early episodes available on Netflix or HuluPlus, TV-Links often has the latest episodes of these and many other popular series. Once I discovered this site and Viki, I cut the cord to Netflix as well. To watch a show on TV-Links, it's a bit more complicated than watching the dramas on Viki or Hulu. You search for the show, then click on the correct result. You then search the seasons for the episode you want to view and then click, "view all search results." 

Many of the top search results will be through providers where you need a subscription, such as HBO or Amazon (which Amazon programming is free on this site if you have an Amazon Prime membership) but scroll down and you will see several providers that offer the show in streaming HD for free. AllMyVideos.Net and Putlocker.com are two of the sites I usually go through on TV-Links to watch my favorite shows on this site. Be careful though, as this site can be dangerous for downloading viruses. I don't actually choose to download anything, but chose the free viewer when it loads to stream and watch.

Other Sources

Many Networks post new episodes of their popular shows on their websites, usually within a day or two of their broadcast. This is how I watch shows like Survivor on CBS or House when it still aired on FOX. My local news airs their broadcast online live in HD as well, so I really don't feel like I am missing out much by no longer having cable.

I have missed having access to the Olympics, but we still have access to many other popular live sports events on ESPN 360 because of their relationship with Verizon, our DSL provider. With ESPN3 we can watch thousands of live sporting events for free: NBA games, The Masters, College Football and Basketball, Euro 2012 Soccer, Grand Slam Tennis Events and more.

The basic cable package in my area is almost $70 a month. You do the math, we've saved a lot by cutting out cable, without sacrificing access to entertainment.

Rebuilding My Savings After Job Loss and Health Crisis

As I've written before, I am 46 years old, and after losing my job and experiencing extensive medical issues that made liquidating my 401(k) necessary, I have less than $100 in savings for retirement or anything else. While I am still looking for employment and have exhausted my unemployment benefits, it is difficult to find the money to keep the lights on and prevent foreclosure on my home. Many in my predicament would not worry about saving for retirement or anything else, but I think this attitude will only lead to prolonging my misery and financial insecurity.

I now have two goals as I struggle to make ends meet without regular employment: save money for an emergency fund and begin rebuilding my retirement savings.

My first goal is to save $500 for an emergency fund. One thing that I have learned, particularly after this most recent financial disaster, is that saving for one's retirement is impossible if you do not first have an emergency fund. With an emergency fund I am able to resist the temptation to dip into my retirement funds or to pay for things on credit.

If you are like me, how do you save for your emergency fund or retirement if you are living on the edge and scraping just to make ends meet? The key is tried and true budgeting and getting everyone in the household to stick to the budget. Examining expenses and making a realistic budget that everyone follows is easier said than done.

Eliminate Unnecessary Expenses

While I am unemployed, my husband is still working, and has a retirement fund, so he doesn't feel as desperate as I do about our financial situation. Everyone has their private little sacred cows and indulgences that one does not want to give up. My husband insists on his morning coffee and biscuit from one of the popular fast food chains. "It's just $2.65 a day!" he exclaims. That is $18.55 a week, or a little more than $74 a month, and yet for less than $10 he or I could make that same sausage biscuit and cup of coffee for him each day for a month. That's a savings of $64 a month or $768 a year. Just eliminating this one expenditure we could replenish our emergency fund in about a year.

Resist Paying More for Convenience or Using Coupons for Unnecessary Items

There are other expenses we could easily eliminate that we think we can't do without. When shopping for groceries, I find that I can save drastically simply by not buying what I would call convenience items or buying items I don't normally use just because I have a coupon. It's not really saving if you aren't going to use it, is it? I really love the convenience and scent of some of the antibacterial wipes and the nice scents of some of the cleaners, but they are both more expensive and don't really get anything cleaner than using a paper towel and spraying on some generic cleaner or using a dish towel and some warm and soapy water. The same goes for many prepackaged foods. I've been using the internet to search for creative ways to use common, relatively cheap ingredients such as beans and rice to create new dishes that are both tasty and inexpensive. Using this strategy, I saved an additional $100 this month at the grocery store and I have added it to my savings fund.

Eliminate Services You Don't Fully Use

I also cut back on my Netflix subscription to streaming since we didn't return the DVDs often enough to justify the extra $20 we were spending each month to have 4 out at a time, and I was able to lower my car insurance by $30 a month by calling and asking the agent to help me save money and found out that I qualified for a discount because I already bank with an affiliated partner. It never hurts to call the companies you subscribe to services and ask, is there a way I can save money so I can keep your service?

By examining our sacred cows and giving up a few indulgences, I've saved $214 this month to add to my $100 in savings. In another month I will have replenished our emergency fund and can begin to look for ways to start rebuilding my retirement fund. Regardless of your current financial situation, it is important to take steps to save for unexpected emergencies, even if you are like me and are still trying to survive a financial emergency.

Christmas 1999: My Determined Grandmother and Her Quilts

The Story Behind the Christmas Photo

This is a photo of my grandmother, Florence Rubie Short Yeary, and the handmade quilt she made and gave to my family for Christmas 1999. My grandmother is 85 in this picture; I remember her always working and smiling - cooking, gardening, making quilts. 

Six months before this photo, she survived a heart attack and emergency surgery to insert a pacemaker. Shortly after this picture was taken, she lost her beloved husband of over 63 years, and later that year she fell, broke her hip, and had to have surgery, pins, and 6 months of physical therapy to relearn to walk.

My grandmother had survived a difficult childhood during the Great Depression, and many other trials in her long life, but she was always looking on the bright side and was a fighter, no matter how difficult the circumstances. 

So this picture is how I remember her when I think of her and her indomitable spirit. She remained determined and upbeat, smiling as she is in this picture, to the very end when she passed in 2003 from complications from pneumonia.

By her example I learned that attitude is the key to perseverance, to never give up, and to keep smiling. 

Recovering From Overspending During the Holidays

Many people set goals for themselves at the start of each New Year. Some of these resolutions deal with weight loss and fitness, but many of us also set goals to manage our personal finances better. In a sense, I go on an overspending diet at the start of each year. While I had a tight budget at Christmas this year, in the past I have been guilty of splurging during the holidays and going over my budget. During the holidays, it's hard to not get caught up in the excitement of the season and go overboard with spending, food and many other areas of our lives. I use the following tricks and tips to get back on track on those occasions when I have overspent and find myself with little funds, and in debt or with bills coming due for things such as increased heating expenses.

Waste Not Want Not

The first few months of the year are a great time to establish habits that will serve each of us well through the year. Since many are dieting anyway, a great way to stick to an overspending diet is by watching what is eaten - these months are a perfect time to spend less on the grocery bill. In the months of January and February, I will normally spend very little money at the grocery store and not eat out at all. Instead, I concentrate on fixing the foods that I already have on hand in my freezer, cabinets and pantry. For instance, at the start of the year, I spent $76 on some perishable items at my local grocery store to feed the four of us that are at home; but I have no plans to buy any additional food before the middle of next month. I use online searches for the ingredients that I already have on hand and plan menus and prepare recipes around this. My goal is to completely use up all of the canned or frozen food in my house. I try to do this every January and then once again in the late summer. I save money two ways by taking this approach. First, I save money by spending less money at the grocery store during this time, and I also save money by making certain that I am not wasting money by forgetting about foods in the back of my freezer or cabinet until they have expired and must be thrown away.

Those Who Fail to Plan, Plan to Fail

During this same time, I also go back over my finances of the past year, and try to figure out what I did right and wrong. Questions that I ask myself during this examination of my budget are what things worked and what things did not? What were my causes or triggers for overspending? Without close examination, and making a plan to avoid these budget pitfalls, I've found that I often repeat these same mistakes later. 

An example of this is one year, I reviewed my grocery and dining out expenses for the year and realized that at certain times of the year my daily schedule is more hectic, which makes me more likely to go overboard and eat out or fix prepackaged foods, which are more convenient but also more expensive. Knowing that these times seem to pop up with some regularity, year after year, I now make plans beforehand to make and freeze things ahead of time, such as a few casseroles, so that I am less tempted to go through a fast food drive thru. When I started doing this on a monthly basis, I was able to cut my eating out expense over 75%.

Normally I am able to take the money that I save by using these two strategies at the start of the year to pay off my heating bill and other expenses that are larger after the holidays. This year, I was frugal with my holiday spending because I had little choice, but I plan to continue these strategies next year to have more money at the start of the year to put towards other financial goals such as savings and retirement.

$1,000-Plus Proms Are Silly; How We Reined in the Costs

The cost of prom has skyrocketed, according to Visa's annual survey. Parents are spending, on average, $1,078 on the event in 2013, about 33 percent higher over 2011. Here is our family's story on how we reined in the cost of prom.

Careful Budgeting and Planning Make Prom Affordable and Fun

I have to admit I am a bit shocked that the average amount households are spending on prom has risen so drastically, especially given the continued weakness in the economy. We live in the coalfields region of southwest Virginia, near Roanoke. Despite the layoffs in coal and other industries, as well as rising food and gas prices, many families in our area are like other Americans -- and will charge the expense or otherwise endanger their economic security to pay for their child's prom expenses.

I've always thought that buying clothes on credit or paying what I feel is a ridiculous amount for clothing, especially for a one-time event, is genuinely silly.

2011 was the last year one of my children, my third child, Cierra, went to a high school prom. She was 18 at the time. I have one son and three daughters, and affording annual junior and senior proms as well as military balls was difficult. We certainly didn't spend $1,000, or even half that.

We used these strategies to rein in what our family spent on the prom and other formal events.

Early shopping gives you the best deals on dress prices

The most expensive part of the prom for my kids was the tuxedo or prom dress. Several of my friends either rented their kids' formal attire or shopped at consignment shops and then altered their find. I've noticed the best department store deals can be found by either shopping in June or July at the end of the prom season, or beginning your search early in January or February.

In 2011, we went shopping in January and scored a beautiful prom dress at a name brand department store and in the latest style. The dress was a strapless, two-toned royal and periwinkle blue, taffeta and tulle, full-length prom dress with sequins, beads and multi-tiered bodice. It had a straight neckline and natural waist and the color really set off my daughter's bright blue eyes. On sale, this $400 dress cost us $120.

Accessorize with caution

We also shopped early to find deals on accessories. For our daughters, we chose either gold or silver tone jewelry and we always chose the shoes and handbag to match the color of their jewelry, not the dress. We also chose a dress that would be long enough to cover their shoes.

Using these strategies, our daughters were able to reuse their accessories for more than one prom or formal event. I have friends who have allowed their children to use jewelry or accessories that they already own to lower this cost. Using this strategy, our cost for prom accessories in 2011 was just $30.

Our daughter reused her beaded silver bag and silver shoes from her junior prom. Those were purchased for $30 at a department store clearance sale in January of 2010. My daughter also reused the jewelry she wore to her junior prom. It was originally a Christmas gift to her from a relative. The $30 cost for accessories in 2011 was for an ornate silver clip to pull back her hair and a special bra that she needed since the gown was strapless. We purchased both of these on sale and at a steep discount that January.

Hair and cosmetics

Many salons offer prom specials in which your child's hair can be styled and makeup applied and nails done for about $100. One of my children was best friends with the child of a salon owner, so she had hers done for free. My other children simply helped one another with the curling of their hair and used the makeup and nail polish that they already own. In 2011, our cost for this was just $40 to pay for the spray tan that my child had a few days before prom. A word of advice: If your child has very pale skin, as mine did, you may want to suggest forgoing a spray tan if they have never had one. My daughter disliked the uneven and distinct orange cast it gave her skin.

Formal photographs

Buying professional prom photos is very expensive, with many packages costing close to $100 or more. We always saved money by taking the pictures ourselves, but one year the parent of my child's date was insistent that we have professional photos. If you go this route, choose one of the cheaper packages and split the costs and photos with the other parent. If the other parent wants more photos, they can always contact the studio later and order reprints. 2011 cost for photography for us: $0.

Transportation

Our son took his date to the prom in our family car, a Dodge Caravan mini-van. Our daughters rode with their boyfriends in their vehicles. To us, a limousine rental is an unnecessary expense. If you child must have one, you can save by having your child and his date share the ride with other prom couples and split the costs. 2011 cost for transportation for us: $0.

Eating out and entertainment

At our children's school, the proms are catered events and food is provided. The school also hosts an after-prom party that lasts until 6 a.m., usually held at a local movie theater or bowling alley, where the food and entertainment are provided for free. In 2011, Cierra's after-prom party was held at the local movie theater. The theater was closed to anyone but prom couples from midnight until 6 a.m. the next day. They provided free showings of the latest movies and unlimited snacks and drinks. They even had a raffle for free gifts and prizes at the end of this event for the couples who stayed for the entire party. Some kids won new iPads, guitar and even cash prizes that ranged from $50 to $500.

Area businesses donate to the after-prom party as a way to give the couples a place to go that does not involve drinking and driving or other potentially dangerous after-prom activities. The party is chaperoned by local school officials as well as members of various local organizations.

You can't beat free. We always budgeted an additional $50 in case they got hungry and wanted to meet up with friends before or after the prom and after-prom events, but it was usually not spent. Many schools offer similar programs, so don't pay for what is available for free if you are on a tight budget. 2011 cost for prom dinner for us: $0.

Spending for our daughter's prom in 2011 came in at $190 -- far below the national average. My daughter also went to the JROTC military ball that year, and reused her accessories. Since it was also a catered event, the only expense was the dress. We bought this dress after the prom season in 2010 when it was on clearance at 90 percent off. The dress was still in style for the 2011 season and cost just $45 on clearance. It was an elegant, full length, white beaded dress with a V-necked halter and empire waist.

In 2011, we paid $235 for our daughter to attend two formal events, which is much cheaper than what many will pay this year for their child to attend one prom. While the average cost of going to prom is dramatically rising, we are proof that careful planning and budgeting can help anyone to make prom affordable and fun.

A Recent Increase in Consumer Debt Is One Trend I Refuse to Follow

According to a recent article by Reuters, the total revolving or installment debt charged by American consumers recently reached a staggering record of $2.8 trillion. This record level of debt was reached after an increase of $19.6 billion in just one month - the sharpest one month increase in over a year. Having survived a job loss during the "Great Recession," this rapid return to the use of credit by consumers is one trend I will not follow.

Prior to the recession and my job loss, I did carry some balances on a few credit cards. After an extended illness and lengthy unemployment, I exhausted all of my savings, including my retirement savings. I also narrowly escaped the loss of my home after my lender accelerated my mortgage and began the foreclosure process when I ran out of money to make my payments.

Thankfully, we were able to save our home by contacting our lender and making a one-time catch up payment. The money for this came from what little was left of my retirement savings. Even with this last bit of savings, we would not have been able to make future payments and would have still lost our home if I hadn't finally found a new job after being unemployed for two years.

We are just now beginning to rebuild our lives after this financial catastrophe, and even though things are looking up, and even though I get tired of scrimping and saving, I can't see us returning to the lives that we once lived where we carried a balance on our credit cards and "treated" ourselves way too often. So, how are our lives different and what are we doing to not follow this recent trend of returning to credit card and other debt?

Keep One Credit Card for Rewards and Emergencies and Pay Off the Balance

We have one credit card now, which we only use on purchases we were going to make already, so that we earn rewards points. We make payments online within a day or so of the charge so that we are within the grace period. This way, we earn rewards points but aren't accessed any interest for carrying a balance.

Create and Stick to a Reasonable Budget

The illness and unemployment truly wrecked our finances. To get back on track, my husband and I sat down together and created a budget for each week and month. We do things that we all know that we should do to save money. We've stopped eating out and we bring lunch from home to eat at work. We've changed the types of things that we do for entertainment, and now we go on more walking or hiking trips where we can enjoy a picnic with food we cook ourselves rather than eat out at an expensive restaurant. We've looked into free cultural activities in our area, such as the weekly movie night that is offered for free in the park in our town and other similar events.

Plan for a Rainy Day because When it Rains it Pours

By strictly following a reasonable budget, we've been able to work on re-establishing some of our savings goals. The first goal was to save enough for an emergency fund of $500 to be used for unexpected repairs. We were able to fully fund this after just 6 weeks of following our new budget.

I am now self-employed, so I don't have the benefit of an employer sponsored 401(k) or retirement. We've worked on increasing my husband's contributions to 20% of his pre-tax pay.

Even with increasing his retirement contributions, we've also opened separate savings accounts to save for my retirement, a fund that will eventually contain 6 months' worth of our living expenses, a fund for housing maintenance and a modest fund for a trip to the beach next year. Each of these accounts is slowly growing, but it's a lot easier to find money to save when we aren't carrying a balance on our credit card and having to pay the interest charges.

Like many Americans, things are looking up for us financially, but this change for the better isn't a green light for us to resume the conspicuous spending that was so commonplace for many before the recession. Surviving the loss of my job taught us that it pays to go "against the herd" if that herd is resuming its charge over a financial cliff.

How We Paid Off $14, 789 in Credit Card Debt by Finding the Best Debt Payoff Strategy

After the Great Recession, many households started to increase their savings and looked for a debt payoff strategy to reduce their credit card debt. With the recent improvement in the national economy, there are signs that Americans are starting to go back to their old bad habits of charging up their credit cards.

According to the Household Debt and Credit Report recently published by the Federal Reserve Bank of New York, total credit card debt for American households increased by $11 billion dollars for the 4th quarter of 2013. The total credit card debt for Americans now stands at an astronomical sum of $683 billion dollars.

Just because things are looking up for our nation's economy, and our personal finances, our family will not be jumping back on the credit card bandwagon. During the last two years, we've taken steps to stop using credit cards, and have paid off over $14,789 in credit card debt.

How We Got In Over Our Heads with Credit Card Debt 
We lost over a third of our total household income when I lost my job during the Great Recession. At the same time, our budget faced added pressures due to high medical bills, and eventually the unemployment ran out. Like many unemployed Americans, we turned to our credit cards to pay for prescriptions and other necessary expenses, and it wasn't long before they were maxed out. It soon became apparent that we had to take serious steps to stop living paycheck to paycheck and get our finances back on track.

Eventually we were able to create a budget and reduce many of our expenses so that we were actually saving money at the end of each month. Part of our savings went to establishing our rainy day and emergency savings funds so that we would no longer need to charge unexpected expenses on a credit card. Once these funds were established, we looked at ways to pay down our credit card debt, despite our modest salary. We used the following steps to create a plan to pay down our credit card debt.

Time is Money - Invest Some Time into Researching Strategies to Pay Down Debt

When we first began to get a handle on our finances, we spent some time researching topics like how to create a budget, boost savings and strategies to pay down debt before we made any concrete plans or took any steps to improve our finances. You can do a simple online search for these topics and come up with a wealth of information that will help you to come up with a workable plan. It also helps to encourage you when you read the success stories of others who have overcome financial difficulties to get out of debt.

In the course of our research we discovered that there are many plans to help you to pay down debt, but most of them boil down to three strategies: paying the credit card debt with the smallest balance first, paying the credit card debt with the highest interest rate first, or paying the debt with the highest minimum payment first.

The Benefits of Paying Off the Credit Card with the Smallest Balance First 
There are pros and cons to using each of these strategies. Since we had such an astronomical amount of credit card debt, and several credit cards, it seemed an almost impossible task to think we could pay off all of our credit card debt on our limited income.

We decided to tackle this mountain of debt by starting with the credit card that had the smallest balance. We continued making our minimum payments on all of our credit cards, but we started to put our extra dollars towards paying off the credit card with the smallest balance first.

Paying Down Debt is Hard Work - Celebrate Your Success

Once we paid the first card off, our family had a little ceremony in the backyard where we burned a print out of this card's highest balance, and we had cake afterwards, like it was a party. We celebrated this small success at tackling our debt and this helped to give us a psychological boost and encouraged us to stick with our budget to continue saving money to pay down our other credit card debts. We were also able to add the minimum payment from the first card to the extra amount that we were paying on the second credit card.

Over two years, we were able to pay off eight credit cards and $14, 789 using this strategy. We've continued to celebrate each success with a bonfire and cake. We still have 2 credit cards left, and about $12, 000 to go, but we are whittling the balance down quickly by sticking to our budget and continuing to add the minimum payments for cards that we have already paid off.

Why Other Debt Reduction Strategies May Work Better for Others

Critics will say that we are paying a bit more in interest over the course of the debt by not paying off the credit cards with either the largest balance or greatest interest rate first. This is probably true, but if you are like us and your debt level is overwhelming and seems insurmountable, paying off the card with the smallest balance first can give you the encouragement that you need to keep going.

Regardless of which debt payoff strategy that you use, it is important to celebrate your success when you stick to your budget and pay off a debt. It takes both having a realistic, workable budget as well as determination over the long haul to make a successful debt payoff strategy.

Investing in Ourselves - Why We Are Going to Save Rather Than Spend Our 2013 Tax Refund

According to Capital One, 35% of Americans planned to spend at least part of their tax refund last year, with 30% of that number spending their refund on necessities, 23% using it to go on vacation and 15% treating themselves to a new electronic gadget. Since there have been some modest signs of economic recovery over the past year, it is likely that this national trend of spending one's tax refund will continue this year. This is one national trend that our family refuses to join.

Our family has survived some difficult financial times the past few years: unexpected job loss, catastrophic medical bills, a bit of reckless spending that resulted in thousands of dollars in credit card debt, and exhausting our savings. For the past two years, we've made a serious effort to improve our financial footing. We established a budget, we cut back on all of our expenses, and we put the savings towards rebuilding our emergency savings and retirement funds, as well as towards paying off our credit card debt. Now that our finances are improving, I see no reason to go out and celebrate by spending our tax refund.

According to MarketWatch, the average tax refund will be about $3,200 this year, and many Americans will spend all or part of it. This year, our expected Federal tax refund is $1,778. That amount would make a big dent in paying off our household's remaining credit card debt. According to the same Capital One report listed above, 22% of Americans will use their tax refund for just that - to reduce or pay off their credit card debt. While we've done the same in past years, we aren't going to spend this year's tax refund in the same way.

To me, it seems wiser to use our tax refund towards rebuilding a savings fund that will contain three months worth of our living expenses.

At first glance, this might not seem to be a wise financial move. After all, it can be difficult to find a savings account that will pay a pitiful 1 to 2% on your savings, and after any special promotional rates have expired, most credit card companies charge anywhere from 10 to 30% interest on the balance that you carry over each month. For some, it might actually pay them to use the refund to pay off their credit cards so that they aren't being charged such a high interest rate to carry the debt.

As we've taken steps to improve our finances by reducing our expenses and debt, the importance of having a savings fund has really hit home for our family. If you don't have any savings, it's more difficult to resist the temptation to place unexpected expenses on a credit card, thus perpetuating the cycle of digging yourself deeper in debt and living paycheck to paycheck.

While the nation's unemployment rate dropped to 6.6% in January, there are still significant challenges to the country's fragile recovery. There are even signs that hiring may be slowing, as The Labor Department now reports that initial claims for unemployment benefits are rising again. As I learned when I lost my job during the Great Recession, if you carry debt and live paycheck to paycheck without substantial savings you are one job loss away from financial ruin.

So, our family plans to continue following our austere budget, and using the savings to continue to rebuild our retirement savings and pay off our credit card debt. We will use this year's tax refund to start building our savings to cover up to three months of our living expenses, so that if job loss occurs again, we will be better prepared to deal with this blow without having to return to credit card debt.

Taking the difficult steps to establish a budget and repair our household's financial footing has been well worth the effort. By reducing our expenses and debt levels, I no longer spend hours lying awake at night wondering how we are going to pay all of our bills each month. This reduction in my stress level is truly priceless. The satisfaction that I now feel is certainly worth more than any temporary rush I might get by spending my tax refund to splurge on a family vacation or new gadget.

How We Save Money on Our Weekly Grocery Bill with a Frugal Recipe for Roast Chicken

How to Make and Serve Six Meals for a Family of Six for Less Than $30 Total

It was hard to feed our family of six, even before the recession began. After my job loss, the task became more difficult. Polls show that our family is not the only one struggling to put food on the table. 

A NBC News/Marist Poll conducted earlier this year shows that 19% of Americans have less food in their refrigerators than they did last year.

We've found a way to save money on our grocery bill with frugal recipes that make and serve six meals for a family of six for less than $30 total.

Our evening meals are easily the most expensive of the day, as everyone is usually home from school or work. I frequently make roast chicken for supper. Cooking this one frugal recipe for roast chicken allows me to stretch the leftovers into six different meals that taste great.

Frugal Recipe #1 Roast Chicken with Vegetables

Whole chicken is normally 69 cents to 99 cents a pound at my local grocery store. I buy two whole chickens that weigh 4 to 5 pounds each.

I sprinkle the chickens with garlic powder, Italian seasoning, and a bit of black pepper. These seasonings are normally $1 each at my local dollar store, so the cost of the herbs that I use in an individual recipe is literally a few pennies.

Next, I sear the chickens on in a skillet on high heat, so that the skin is a bit crusty. I then place the chickens into a large oblong crock-pot and top the chickens with a sliced yellow onion and a few small whole potatoes. Sometimes I skip the crock-pot, and just place the chickens into a large covered roasting pan.

I then cook the chickens on the crock-pot's highest setting for 5 hours or low to medium for 8 to 10 hours.

For additional flavor and variety, before I add the onions and potatoes, I add one of the following three items: 1. drizzle a bit of barbecue sauce on them, 2. squeeze a bit of lemon juice on them, 3. add some salsa and 1/2 of a packet of taco seasoning. I get each of these items for less than $1 at my local dollar store.

I buy a 50 pound bag of potatoes two to three times a year as each bag contains well over 150 whole potatoes of various sizes and costs between $8 and $10. So each potato is about 10 cents each. A 3 pound bag of onions is less than $2 and there are normally about 10 onions to a bag, so they are less than 20 cents each.

I fix another vegetable on the side as well, such as green beans, or peas and carrots. I buy them fresh from the grocery store if they are marked down, but the dollar store also sells a fairly large bag of each for $1. I normally add rolls, or garlic bread that has been marked down to a dollar at my local grocery store. The total cost of this meal is $13.80, which seems like a lot for one meal, until you realize that you will have lots of leftovers that will become the basis for several additional frugal recipes. By adding a few additional low cost ingredients you can make the following five additional meals for six people.

Preparing the Leftovers

Take the chicken carcasses and carefully remove all of the meat by peeling and scraping it away from the bone. Reserve any leftover vegetables as well.

Frugal Recipe #2 Chicken Broth

Place the carcasses into a large stock pot with some additional garlic powder and Italian seasonings as well as a bit of fresh onion and carrot and fill close to the top of the pot with water. Bring to a boil and then turn down the heat and simmer on low for 1 ½ to 2 hours. Allow to cool, skim off any fat that floats to the surface, and then strain through a sieve or colander. Discard the bones. You now have an entire stock pot full of healthy, low sodium broth that can be used as the base for soups and gravies, and you can freeze the leftovers.

Total Cost: $0

Frugal Recipe #3 Chicken Fajitas

Take 1/3 of the leftover chicken meat, which should equal about 1 cup of cooked chicken. Add ½ packet of taco seasoning. Place some of this mixture into one burrito shell and then top with chopped onions, sliced peppers, salsa or chopped tomatoes, and sprinkle with some grated cheese. This is enough filling for 12 burritos. Lightly brown the burritos, one at a time, in a greased skillet for a minute or two on each side. Top with some sour cream. Serve with rice and red beans on the side.

Burrito shells, a bag of frozen pepper slices, 2 pounds of rice, 1 pound of dried kidney beans are all just $1 at my local dollar store. Tomatoes are 79 cents a pound, cheese is 24 cents an ounce, and sour cream is $1 for 16 ounces at my local grocery store. If I don't want to soak and cook the dried beans, I can get two cans of pre-cooked beans for $1 and my local dollar store as well. I fix ½ of 1 pound of rice for this meal, as well as two cans of pre-cooked kidney beans. Sometimes, I will switch out the kidney beans for black beans, navy beans or pinto beans for the same price.

Total Cost of this meal for six: $8.

Frugal Recipe #4 Homemade Chicken Stew and Biscuits

I bring two quarts of the homemade broth to boil, add the leftover vegetables and 1/3 of the leftover chicken to it. While this is coming to a boil, I take a bit of grease or butter and flour, and brown it in a skillet to make a roux which I add to the broth to thicken it a bit to make a soup. I sometimes add ½ to 1 cup of milk to make the soup a bit creamier.

From this point, you can add strips of pastry to make dumplings, for Homemade Chicken and Dumplings, or you can serve it over biscuits or crackers. A 4 pack of refrigerated biscuit dough in a can is $1.50 at my local grocery store, and crackers are $1. I usually make my biscuits homemade as it's a bit cheaper.

Most biscuit recipes require plain flour, shortening, a bit of salt and baking powder and water, milk or buttermilk. A 5 pound bag of flour is about $2, shortening is about $3 for a large can, and salt and baking powder are a $1 each at the dollar store. There are several biscuit recipes online and several batches can be made with these ingredients, so each dozen biscuits costs less than $2 when it's homemade.

The total cost for this meal for six is less than $2.

Frugal Recipe #5 Chicken Pot Pie

I normally have about half of the chicken stew leftover. I simply line a 9" inch deep dish pie pan with a pie crust, prick the crust with a fork, pour in the leftover chicken stew, top with another pie crust, and cut some slits into the top pie crust. I repeat the procedure again, as I normally have enough for two pot pies. I then bake the pies in a 350 degree oven for about an hour. It costs $2 or less to buy two pre-made pie crusts at the store, but I usually make mine homemade because they are simply a mixture of flour, shortening and ice water. You can find basic pie crust recipes by doing an online search.

Using homemade pie crusts the total cost for this meal for six is $0.

Frugal Recipe # 6 Varies Between Chicken Noodle Soup, Chicken Salad and Chicken Parmesan Pasta

Using the last 1/3 of the chicken leftovers, I make one of the following frugal recipes.

Chicken Noodle Soup

Bring some of the reserved broth to a boil; add a handful of your favorite pasta, such as bow-tie, or even spaghetti that you break into 1 to 2 inch long pieces. When the pasta is tender add the leftover chicken. A 16 ounce package of pasta is a $1 at my local dollar store, and I would use only about ¼ to ½ of it. You can also add a bit of chopped onion, shredded carrots or peas to the broth while it's beginning to boil, but you really don't have to. Serve alone or with crackers.

Total cost for this meal for six is less than $2.

Chicken Salad

Finely chop the leftover chicken, and add finely chopped onion. For variety, texture and color you can also add a bit of shredded carrot. Sometimes I add a bit of chopped apple, celery, or grapes that I've found in the marked down produce section of my local grocery store. Combine with several tablespoons of low fat yogurt or mayonnaise that are each a $1 at my local dollar store. Serve on sandwich bread.

Total cost to feed six with this meal is less than $2.

Chicken Parmesan Pasta

Boil and drain 1 16 ounce package of your favorite pasta, which can be obtained at the local dollar store for $1. While the pasta is boiling, add one of the following: a shredded carrot, a chopped onion, or a bag of frozen peas. Once drained, toss with a bit of butter and sprinkle with garlic powder and Italian seasoning. Add in the leftover chicken pieces and sprinkle with ½ cup of grated Parmesan cheese. A 16 ounce container of grated cheese (4 servings) is $2.99 at my local grocery store. Serve with garlic bread or rolls that cost $1 marked down at my local grocery store.

Total cost to feed six with this meal is $2.75.

Even after making these 5 meals, I normally have quite a bit of broth leftover. I usually save it to cook beans or other vegetables later, or make Egg Drop Soup.

Frugal Recipe #7 Egg Drop Soup

Combine the broth with a bit of chopped onion. Add a dash of 5 Spice and ground ginger and bring to a boil. In a separate bowl, beat a couple of eggs until smooth and drop by the spoonful into the broth once it is at a full boil. We can get 30 medium sized eggs for $3.50 at our local grocery store, so each egg is less than 15 cents.

Total Cost to feed six with this meal is less than 50 cents.

Using a basic frugal recipe for roast chicken is the backbone of our menu for six meals for six people for less than $30 total.

Let me know what you think about these frugal recipes. Does your family like roast chicken? Do you know of other frugal recipes that you would like to share with others? Let me know by posting your feedback in the comments section below, I would like to hear from you!