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Any REALISTIC ideas how we can scale back our budget?

Here's a breakdown of my husband and my monthly obligations: Mortgage: $1206 Car payments: $466 Electric: $120 Natural gas: $66 Verizon: $70 Cable/phone/internet: $80 Water/waste disposal: $75 Life insurance: $85 Auto insurance: $174 Student loans: $120 Credit card: $51 Currently, my husband is getting a lot of overtime, and we are bringing home $4,400 a month. However, in June his overtime will end for about 8 months, and his income will settle back down to approx. $3,000 per month. Both of these figures are after health insurance, taxes, and our 401(k) contribution of 4%. I am extremely grateful that we are making what we are in this terrible economy, but it's very frustrating because once the overtime ends, we will just be making it, with room for few extras, and I just don't know what else we can cut down/cut out. Our mortgage is not going to change; in fact, it could very well go up if our homeowner's insurance premium goes up or our city decides to raise the real estate tax; We owe 3 more years on our cars, and $466 TOTAL between both payments is quite cheap, and it's silly to trade one of our cars in for something cheaper since we have already paid so much on them, so there's not much to do with that; Our natural gas, electric, and water bills are right on par with the local average - we are very conscious of our lights, heat, and water usage, and can't cut these bills back anymore without major discomfort; We are in the middle of a 2 year contract with Verizon and are on the cheapest plan available (they actually don't even offer our plan anymore... we are grandfathered. The cheapest plan currently for two lines is $20 extra a month); Our phone/cable/internet bill cannot be reduced - I work at home and depend on the house phone, since my husband and I share a mere 500 peak minutes on our cells, our cable is the minimum package at $12 a month - basically just prevents us from needing rabbit ears, and our internet is the cheapest available in our area; We just acquired life insurance, which is $50,000 each whole and $100,000 each term - that's a necessity, especially since we are 23 and 24 and locked in our rate for life; Our auto insurance could be lowered by upping our deductible to $500, but I called and asked about it, and it would only make a $30 difference every 6 months, which doesn't seem worth it considering we'd be upping our deductibles so much. The student loan... well, there's not much we can do about that. We could get it financed for more than the standard 10 years, but then you are just spending SO much extra money in interest. We have recently paid off $1,100 furniture, $500 department store charge, $1,500 Best Buy, $1,600 on my credit card, and now all we have left is my husband's credit card, which has a $3,000 balance. Most of this debt was from early in our marriage and we decided quickly that we didn't want to carry debt, so we have been working hard to pay it off. Before my husband's overtime ends, we will have paid the credit card completely off. So... any realistic ideas of how we might cut our expenses? All the articles on the internet are so cheesy or unrealistic. For instance, I'm not in dire enough of a situation to reduce my heat to 60 degrees! -- OUR income will be $3,000. Not just his. The insurance deductible reduction would only lower my auto insurance $30 every SIX months, not every month. I wish it'd lower it $30 per month! :)

Public Comments

1. The biggest flaw people make when creating budgets is to forget to include the "other" category. This category is filled with other random events such as movie tickets, eating out, buying clothes, paying a parking ticket, etc.. This category can almost be as much as peoples mortages. This is also the only category you can realistically start cutting back on unless you want to do something more rash like getting rid of your car.
2. What about groceries? Use coupons. Dont eat out. Cook in bulk and freeze extras. Electric: Use energy efficient light bulbs. Dont spend alot of time in the house. Go to the beach, the park or something for couples time out. You all seem to be well on your way seeing that you have paid down several debts already. Continue that and dont acquire any more credit cards.
3. Eating Fast Food, dinning out, and eating prepared foods are a major budget killer. Say no to fat food. Also kiss coke cans good bye, and welcome koolaid power and plain tap water. /
4. you have make sacrifices in some places whether you like it or not. here's some i've been doing, i shut off the water when showering. i wet myself enough to start then shut off the water when lathering up. turn it back on to rinse off. i flush the toilet every 2 times, unless going # 2. which sounds disgusting but i live by myself so i'm the only one who sees it for hte most part. i unplug tv's/electronics (or just turn off the surge protector) when leaving, even just for a few hours. i don't use the central heat. i have a space heater which i use rarely for the bedroom. but just cover up with an extra blanket. some of these can be considered extreme but i don't consider my standard of living all much lower than prior to doing these things. that insurance premium reduction you mentioned, it may only be $30 a month but thats $360 a year. id' take a reduction in a payment, as little or as big, everytime. it'll add up. seems like you are already living pretty meagerly.
5. maybe you could trim your expenses by lowering your electricity just 2 degrees, spend just a little less at the grocery store, eat at home instead of eating out/entertainment. cancel your internet service and use it at the library until you can afford it again. do you have a nest egg saved? stop contributing to your 401k for right now. just some thoughts on how to reduce expenses
6. You have made some big strides paying off all that debt. Good job! It looks like you will have $51 free up from the credit card debt. I suggest you add that to your student loan payment or car payment to help pay that debt down faster. You need to get to $0 car loan payments as fast as possible. If you can sell a car and replace it with a fully paid for vehicle that helps. Drive a clunker if that is what you need to do. Can you find more income? Is there a 2nd job husband could take while OT is not there or is there a job you can find to help compensate for lost OT? If your husband's credit card is at a high rate like over 20% then I suggest you contact http://www.moneymanagement.org/ because they can help reduce rates to 6%. That can be a big saver. Can you drop Verizon? That is a lot of money for a cell phone when your budget is so tight. Vonage offers home phone service for $25 a month and there are others that are cheaper than that. Perhaps while OT is gone you can reduce your cable and internet service so monthly outlay is less. Can you cut it altogether or go to a less expensive plan until OT is back. Don't try for home run but take the singles. Drop your deductible and take what they give you. Drop you thermostat to 65 if 60 is not comfortable right now. Enough little things add up.
7. you have Verizon, and then you have phone internet and cable - if you have cell phone, why do you need landline phone, or once your current cell phone plan ends - just get a pay as you go service - that';s what I plan on doing - I got a family plan for me, my ex and my kids, but my ex never lets the kids have their phone and I rarely use it all - waste of $90 a month - when that's done, I'll get a basic phone with a rechargeable calling card or something - save myself $60+ a month - for a home phone - I got a magicjack - plugs into computer usb - uses broadband - device and 1st yr of unlimited domestic calling is only $40- A YEAR! - 2nd year is only $20 for the service for the whole year. plug a regular phone into the device - I haven't used it much, because I'm just not a talker, but it works fine - that could save you another $20+ a month cut down eating out and entertainment
8. Congrats on paying off your back debt, keep up the good work! Since the two of you are earning extra income for the next six months, take advantage of this opportunity, by sacking away 15% of the earnings and socking it away in an interest-baring account for an emergency fund when times become lean. If the two of you have cell phones, get rid of them. As an accountant once told me, saying that you need a cell phone is ridiculous. I remember when there were no cell phones and people used pagers or "beepers" and looked silly. Get a pre-paid phone for emergencies and only use it for emergencies. Sorry, you might have to get rid of your cable and make use of free DVD rentals at the library. Only get take-out food or eat out twice a month. Only order appetizers and go during lunch when they have lunch specials and food is cheaper. How much are you spending on groceries? It should only be $100 to $150 a week. No more. Get generic brands, learn to make casseroles, clip coupons. These "little things" may not seem like they add up, but they do! Also take the $30 reduction on your car premium, it is worth it. Don't believe me? Try not eating out, not going to the movies and not shopping at the mall for two months and watch your savings grow. Have you guys been spending money on professional portraits, amusement parks, vacations or parties? Did you over-do it at Christmas, a birthday? If you have, cut it out. Entertain yourselves with free or low-cost community events. Check your community or local paper. If you don't want to scale back, you'll have to sell the equity in your house and move into a cheaper one because on your hubby's salary, after the six-month period, it's only a matter of time before you guys get behind and the bank forecloses on your home or your vehicle gets repossessed. There are college graduates and professionals living in missions, shelters and churches for this very reason. Many places have had to build on more lots to accomodate the steady influx of repossessed cars. Have you tried selling your extra junk at garage sales? Check out when the next flea market is in your area and get a table for about $5 to $10. I've seen people rake in $800 in one day! Save your loose change. I read about a man who saved enough loose change to pay for two new cars! You may not be that extreme but the loose change adds up. Once I saved $1,000 in loose change in one year. Don't make purchases online for the next six months, other than for your home business, it's too easy to spend what you don't have online, if you do, spend no more than $20. This was a problem I had and my husband doesn't make as much as yours does. For now, you may have to deduct from the retirement account to settle your husband's credit card unless you're getting a tax return and plan on using the return for settling debt and saving, like I will be doing. Most importantly, learn humility, let go of insecurity and your sense of entitlement, learn to count your blessings, the people in your life and your health and to embrace the simplicity of life. If you don't you won't follow anyone's advice because you'll just go, "That's ridiculous and unrealistic, I have to have my . . ." Yes, there are people with worse spending habits than yours but you could still improve, most Americans could. You are not your things, you are not your car, you are not your house and when you internalize that, it will be easier to let go of what you don't need. Good luck!