This month, we're going to set them up with three experts to help them with their budget, credit, and investing. In Part 2 of "Escaping The Debt Trap" we take-on John & Jenni's spending.
We had no idea how this was going to turn out. And its been a real eye-opener to see how much money we can save this family.
When John and Jenni got married three years ago, they not only brought a lot of kids into the marriage, but a ton of debt. They say they're at least $150,000 in the red.
On top of that, they have two mortgages, college tuition, and outrageous monthly bills. That's a lot to tackle, so let's help them be smarter shoppers and spenders, to get them and you on the road to saving money.
To do that, we've enlisted the help of the 918 Coupon Queen, Sarah Roe. She's saved countless families a lot of money with her shopping advice.
"What kinds of things are you buying, can I look in your refrigerator?"
Jenni says she spends at least $1,200 a month on groceries, feeding five of the six teenagers who still live at home, plus all their friends. And she admits she doesn't always buy right. "We go to the store hungry and don't make lists we don't plan ahead and just buy whatever looks right or just looks good."
Shopping hungry, no lists, and buying whatever looks good. Already three strikes against her. So we had Jenni make up a grocery list and immediately the coupon queen found places she could save money.
On meat. She says stores will start slashing prices the week of sell by dates.
And another expensive item? Cereal. Roe says, "You can pay $4.00 a box for cereal; but if you buy it on sale and use a coupon, I get most of my cereal for about a dollar a box." There's a reason they call her the coupon queen.
"Razors, toothpaste, shampoo, all that kind of stuff, I don't pay more than 50 cents for," Roe says. "If you use coupons combined with sales and combined with other methods of saving you will cut that in half without a doubt."
Where else can they cut? Jenni says they spend nearly $100 a month buying DVD's and books. Roe's advice? Rent movies and go to the library instead.
At least $500 a month on the family's eight cell phones. Switch to prepaid minute plans.
And their monthly eating out bill? $750. That's nearly $10,000 a year.
"Obviously you're already buying the groceries and then you're eating out at the same time so you need to choose one or the other," says Roe.
And Jenni has already started making the tough choices. Last weekend, her family by-passed the fast food and ate at home instead. Jenni says, "I fed them for less than half of what it would have been to take everyone out."
Jenni went to the store Thursday night armed with coupons and this new advice. She'll blog her experience here on our website, ktul.com.
Next week, John and Jenni get help with a mountain of debt.
We've got a link for the Coupon Queen's website and for 918 Moms here on ours.
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