Frugal Families say cutting costs long term is hard
— -- The Pivnicks saved $140 a month by changing cellphone plans. The Porters reduced driving mileage by 35% when they started doing errands in one trip. The Joneses bought organic food more cheaply.
In the past several months, USA TODAY and ABC's Good Morning America Weekend challenged families to save more, cut back on food costs, reduce gas spending, and simplify their holiday gift-buying. The Frugal Family Challenge paired seven families with industry experts to help them save.
But those were one-month challenges. How have the families done in a longer period of time, and what can consumers learn from their experiences?
Using a budget
In early December, the Walker and Pivnick families set budgets and held to them. Three months later, they report success.
"We haven't really had any major slip-ups," Jimmie Walker says.
Before the challenge, the Walkers, of New Haven, Mich., ate out several times a week, spent aggressively, and often put those expenditures on credit cards.
Timothy Wyman, a financial planner in Southfield, Mich., helped the Walkers differentiate between wants and needs.
The Walkers set a tight budget, reduced their satellite TV package, got rid of Jimmie's expensive iPhone and stopped eating out.
Today, they estimate their monthly savings at $500 and are working on eliminating their $25,000 credit card debt. They've already paid off about $4,000, a feat Wyman describes as "very impressive."
"Whether you live in Michigan or anywhere else, this is a big achievement at this time," Wyman says.
What the Walkers have learned:
•Saving is a team effort. Use your significant other for support. "We both want things. I want an iPhone; she wants new flooring. But we keep each other on track," Jimmie says.
•Eat in. Giving up meals out of the house was tough, but once they did, they started saving and became closer as a family. "Going to the grocery store and making dinner has become a family event," Mitzi says.
•Celebrate each month. "It feels good looking over the month and realizing how much you saved," Mitzi says.
