For Real?

So, if you've seen my video entry for this contest you know that I mentioned "cutting the cable." Meaning, in an effort to save more, I wasn't going to pay for TV service anymore. Did I really do that though?

Well, not initially. I had big plans to do so but we were stuck in a long-term contract with a big cancellation penalty. Don't you hate those?

We Finally Did It Though

Long story short...last week I was able to get out of the contract for free and so we've officially "cut the cable!" This move reduces our monthly spending by at least $50. That's roughly $300 ($50 x 6 months) more towards our end goal.

Our Solution

I'm not going to lie...I like my TV. There are certain shows I really enjoy watching (e.g. The Office, How I Met Your Mother). So I'm not just going to give up on my TV shows so quickly. Our solution will be to track them down on the Internet and watch them on our computer.

Gizmodo.com put together a nice quick-link page to all the free shows available. Most of our favorites are here: all free and legal.

Since our TV is a LCD with "RGB inputs" we should be able to connect it to our laptop occasionally and actually watch the show from the big screen. We'll see how it goes.

I've yet to find a good solution for sports games though. I'm hoping to pick up some "rabbit ears" in the next few days so I can at least pick up some of the local channels and catch a few games.

Check back soon for more ways to save, as well as an update on Mom and the baby.

Wow. What a crazy month in the financial world we've had? To help calm our fears, Liz Weston just wrote a nice article titled 5 Things You Need to Know About the Financial Crisis. Liz writes that in times like these we should:

"concentrate on what you can control: spending less, saving more..."

That's advice I will try to follow, and a point that hits to the heart of what we're trying to do here at the Pay Yourself First Challenge.

So, in this post I thought I would take Kristen's lead and share a little more detail about our goal and current financial situation so you'll know where we're coming from.

How Much Do Babies Cost?

As you know, we're saving for the expenses related to our first baby, due in March. How much does a baby cost? I certainly didn't know a month ago. For the purposes of this contest, we're going to try and save up enough to cover all the expenses to be expected in the first year. This includes all the medical and insurance costs, furniture and equipment, supplies, clothes, and any day care costs we might incur.

There's a nifty cost calculator at BabyCenter.com, which put the first-year cost somewhere between $8,000 and $10,000 for us. I honestly didn't think it would cost that much. We'll see though. SimpleMom.net shares some unnecessary baby expenses to watch out for. Good to know. I'll be exploring several tips like this throughout the contest to keep this total down.

Our Financial Situation

So where are we financially right now? We currently have a fully funded emergency fund (about 6 months worth of expenses). We also have been saving to pay our annual property taxes, which can be pretty high here in Texas (we didn't escrow them so we could earn interest on the money ourselves). That goal is close to being met for the year. In addition to that, we're contributing around 15% of my income to my employers 401K.

We also have some debt: student loans, a mortgage, and a small auto loan. But we're pretty comfortable with their low fixed interest rates, so we're not in a hurry to pay them off. All that to say, we're going to be throwing most of our extra money right now at this savings account designated for baby expenses.

Our Goal and How We'll Get There

We're setting our goal at $7,500. With the $5,000 match FNBO Direct is throwing in, we'll have plenty enough for baby expenses in the first year, and maybe a good jump start on year two.

So, how do we plan to get there? Direct deposit, of course. You gotta Pay Yourself First. Automatic is the way to go. I've designated a nice percentage of my paycheck to be direct deposited into FNBO Direct's Online Savings Accounts starting this month. As long as we keep our spending down and don't have any huge emergencies come up, we should reach our goal...even in these crazy times!

Thanks for stopping by,

- Phil

Hi everyone. Thanks for stopping by my blog. I'm so excited to get started with the Pay Yourself First Challenge. As you've read above and seen in my video, my wife and I are expecting our first child next March.

Our goal is to save up some money for all the new baby-related expenses we'll be taking on. I'm really looking forward to sharing our experience with you throughout the challenge using this blog.

You Can Follow Along

If you're expecting a baby too, or if you're just looking for more ways to save money on expenses related to your little ones, be sure and follow me throughout the challenge. I'll be sharing what I learn and the experts will provide their input as well.

You can simply bookmark this page and check back every few days. I'll try and post 2 or 3 times a week. Be sure and vote for me every time you're here.

More About Me, PT

You can call me Philip, Phil, PT, or even PT Money (my rapping alter ego). I'm in my early 30s, married for a couple of years now to a wonderful woman, Teresa. You'll get to meet her soon.

We live in Frisco, TX (near Dallas) where I work for McAfee, the world's largest dedicated security technology company.

Throughout the challenge I'll be doing some traveling with my job. I'll do my best to take FNBO Direct's message of Paying Yourself First (and their cool t-shirt) to the rest of the world.

Teresa has six years experience as a special education teacher and is now attending graduate school full-time in Adapted Physical Education.

We moved into our first home a little over a year ago, and feel like we've got a pretty good handle on our financial situation.

Still, together we plan on making a big effort during this challenge and learning as much as possible.

Thanks FNBO Direct!

Lastly, I just want to add that I feel so blessed to be a part of this challenge. A huge thanks to the fine folks at FNBO Direct for selecting me, and the other challengers, who are all great people with great families and stories.

Bring it on, baby!