Here in Israel, cars are expensive and gas is very expensive, much, much more than in the US. While a car makes life so much more convenient, it comes at a price.

We’ve been living in Israel for thirteen and a half years and though we had a large family of ten children, didn’t buy a car until six and a half years ago. At that time, we were the largest family in our apartment building, and the only one who didn’t have a car. When we bought our home, we looked for a location with good public transportation and though it wasn’t as convenient as a car of our own, it served us quite well. We took our time in buying a car, not wanting the expenses of car ownership to sink our budget.

When we finally got a car, it was because life had become very difficult without one, due to the challenges of a child with special needs who had very little stamina for walking. The bus stop was less than a five minute walk from our home but it could take a half hour for him to walk home, and when multiplied by every time I needed to go somewhere with him, it had become stressful and draining. At that point, we agreed that having a car had become a need.

Fast forward to today, we are living in an area where the public transportation is irregular and infrequent. (I wouldn’t have considered living in a place like this if we didn’t already own a car.) We have minimal shopping and services locally, and though a small number of people manage without a car, it’s pretty much a necessity for living here.

For us, not only was one car a necessity, we needed two.

Last year, after we had a series of frustrating and expensive events involving our second vehicle, neither my husband nor I wanted to replace it. We brainstormed how we could manage with one car. We talked about what we needed the second car for, how we it it, when we used it, and how could we change our car usage so it wouldn’t be necessary.

We were able to work around most of the times we needed it, but the biggest factor that we couldn’t initially get around was my husband’s travel for work. He works in the center of the country once a week, and to get to the train that goes there, he would drive a car to the station, park it and then drive home after he got off the train on the way back. This made the travel manageable for him.

Taking a bus to and from the train station could add four hours onto his day, between the longer travel time on the bus, and waiting for the bus after getting off the train (it runs only every two hours, and if you miss it by a few minutes, you have a long wait). That seemed unreasonable.

However, when we both agreed we really didn’t want to have another car, he agreed to try it.

It isn’t comfortable. My husband leaves before 5 am and gets home at 8:45. I’m not going to sugar coat it and make it sound all wonderful, because it’s not. He’s been up for sixteen hours by the time he gets home and that is a very long day.

It may not be wonderful but it’s doable. He rests on the train, has changed his schedule to take a later train in order to minimize the waiting time for a bus and he has a good attitude about it all. This one decision has eliminated the expense of purchasing, fueling, insuring, maintaining and repairing a second car, and for the inconvenience four days a month, it’s worth it for us.

Finding ways to save will usually require you to first think differently about what you’re doing, and then do things differently. Different is going to feel uncomfortable and hard, at least in the beginning. That doesn’t mean you shouldn’t do them.

Building up the money you save as a result of these choices will create freedom and decrease stress the longer you do it, and that produces its own positive reward cycle.

If you have a car and you’re struggling financially, you might want to consider if you really need that car. I know how much easier life is with a car, believe me, and I know how irritating it may be to be asked to consider even for a moment not owning that car. But if you can’t really afford it – and honestly you can’t if have credit card debt/overdraft, or if you have no money for savings – then the price of a car is not being able to have the peace of mind that comes when there’s some positive padding between your income and expenses.

Peace of mind may be invisible but it’s worth a whole lot.

Avivah

When I learned about propane fueled vehicles, I was intrigued – how did it work, how much did it cost and how much did it save?

This interest was a natural extension of the research I had done on running a vehicle on waste vegetable oil. I didn’t ever write about this on my blog even though my first year of blogging overlapped with driving the mini school bus we bought and converted to run on waste vegetable oil. My husband was a restaurant supervisor at the time, and restaurants need to pay to dispose of their waste vegetable oils. When my husband offered to take it off their hands, it was a win all around, since it saved them money and we got easy access to a fuel source.

It was a great project- we learned a lot, it saved money and was good for the environment. So my interest in alternative fuels goes way back.

After spending a lot of time on a forum dedicated to converting cars to run on propane and particularly reading feedback from knowledgeable mechanics, I felt comfortable making deciding to move in this direction. When it was time to replace our vehicle, we decided to buy a car that was already converted to propane. (The propane system is installed in addition to the regular gas system; it doesn’t replace it.)

That was five years ago, and in that time we’ve owned a total of four cars that were converted to propane. Two of the four were already converted to run on propane when we bought them; I had propane systems installed in the other two cars. It’s fair to say I have a good bit of experience with these vehicles by this time.

When I initially learned that propane systems are a legally recognized option, there are gas stations across the country with propane pumps, and it saves so much money – I was surprised that hardly anyone has heard of it!

When we filled up our first propane car, I felt like we and all the others using the propane pumps were members of an almost secret club who found an inside way to beat high fuel prices – only 5% of cars in Israel are converted to propane. Propane is half the cost of gasoline, and even with a a 90 – 95 percent efficiency rate compared to gas (meaning that you get 5 -10 percent less mileage per liter as compared to gas), it’s quite a savings on fuel.

At my most recent fill up, I bought 24.729 liters of gas for 3.54 shekels a liter, for a total of 87.54 shekels. Propane is known as LPG (liquid petroleum gas), or in Hebrew, גפ”ם, but usually called גז.

This wasn’t a do it yourself project – we had our systems professionally installed. The two places I worked with and would recommend are J-GAS in Haifa, and Gas Saver/ גז חסכן in Kiryat Malachi. The cost of conversion depends on your vehicle; five years ago the costs of conversion at Gas Saver was 5000 shekels (now it’s up to 6000), and we paid 7000 shekels for our most recent propane conversion a year and a half ago at J-GAS.

That’s a lot of money to spend to save a bit on gas, right? However, realize that you’re going to spend money to fuel your car no matter what. If you install and use a propane system, you begin saving money from the first time you drive your car. Once your fuel savings equal the amount you spent on the conversion, you break even.

Reaching the break even point depends on your car and driving habits – we reached that point once we drove 10,500 km. We’ve driven over 45,000 kilometers since we did our conversion just 20 months ago, so it took us about a half a year to break even. It’s as if we paid the regular price of gas for the first 10,500 kilometers, and for the next almost 35,000, we’ve paid half price.

Our car uses some gasoline each time we drive, in addition to the propane. Some cars run only on propane once they are warmed up, and their savings are higher. Very conservatively estimated, we’ve saved over 10,000 shekels in gas in the last year on just this one car. For the cars we purchased that already had propane systems in them, we didn’t have any payback time, and we began immediately saving as soon as we drove them. And since most of the time we had two vehicles running on propane, the savings on fuel costs were significant.

There are additional maintenance costs for this system; every fifteen thousand kilometers we have to change the filters. Depending where you have the filters changed, it’s around 200 – 500 shekels each time (we go to JGas where it’s 200).

A bonus for the functioning of the car is that engines that run on propane stay cleaner, since propane has a higher octane rating than gasoline, and the reduced wear and tear on the engine reduces maintenance costs. As a much cleaner burning fuel, it’s also better for the environment.

Avivah

Sometimes buying a large size of a product will be significantly less than buying the much smaller product, but don’t assume that it’s always less. You must check the unit pricing to be able to accurately compare prices and know that you’re saving money.

Once you see it’s a good deal, you’re going to ask yourself, ‘What do you do with such a large container full of product?!’

When I saw jumbo (over 2.6 kg) cans of tomato paste for 25 shekels, the savings was so substantial that I stopped buying the standard size. Once opened, I kept the can covered in the fridge, but sometimes before I could finish it (because it’s a huge amount), the top layer would grow mold and I would throw whatever was left away. Even though I was still saving money, this obviously detracted from the savings.

For quite some time I went back to using small cans until one day I was out of tomato paste except for the two bulk cans in my pantry. At this point, I thought about a solution and now I’m back to buying tomato paste in large cans. I fill a silicone mini muffin mold with tomato paste and freeze it.

Once it’s all frozen, I remove the frozen pucks from the mold and stack them in a freezer bag. I put the bag in the freezer and remove the amount I need when I make a dish. Now I enjoy the savings along with the convenience of easy to use portions.

Another example – I bought a three kilo container of minced garlic for about 35 shekels, then separate two cups into a jar that I keep in my fridge. I freeze the rest, and refill the small jar as needed from the larger container.

I buy these items during my infrequent bulk shopping trips, at a store that sells restaurant size containers. But they can sometimes be found at larger supermarket chains as well.

Last week I did my bulk shopping for the first time in a year and a half, and some other things I bought that I transfer to smaller containers as needed are: baking soda (1 kg bag – 6.10 shekels), vinegar (4 liter jug – 10 shekels) and dish washing paste (18 liter bucket – 80 shekels).

There are plenty of things that I could theoretically save money by buying in large containers, that I choose to buy in a smaller size because the money savings isn’t worth the repacking and the space it takes to store. An example would be a huge can of olives, versus buying a can that is enough for one meal. I’ve seen five gallon buckets of techina for a great price, and bulk peanut butter, but I stick with the standard jar size found in any store.

No one can tell you what is worth buying in bulk, because it depends on what you use and how you use it. But you can definitely save a good bit of money by shopping in bulk wisely.

If you ever buy larger than usual sizes, what items are worth it for you to buy? How much do you save and how do you store it?

Avivah

>> Avivah, could you share more details about how you track and budget? It’s one of those things we know we should be doing but never do. I’d love to get a better handle on tracking and budgeting, but even the idea overwhelms me. <<

I so much understand this! The more time that’s gone by without tracking, the more overwhelming it feels.

There’s a huge emotional relief that comes when you get clarity about what’s going on with your money. Even when you think it doesn’t make a difference to you not knowing how much you spend on what, there’s an energy drain from ignoring something that you know you should be paying attention to.

Get ready to do some homework – give yourself a week to get this done. Starting is the hardest part; once you’ve started, you’re on your way to bettering your financial situation so don’t put this off.

Step 1 – The first thing to do is to print out the last three months of your bank statements. Some people recommend twelve months and this is ideal since you can see your yearly spending pattern, but I think three months will give you a good idea and isn’t overwhelming.

You’re going to track two things: your income and your expenses. You can do this with pen and paper (that’s what I do) but a spreadsheet is a good option if you are inclined, and it’s nice to have the math done for you. Some people use budgeting apps; I’ve seen many recommendations for the YNAB (You Need a Budget) and Every Dollar trackers. They both have free versions. My husband once bought the paid version of YNAB and said it was very good, but obviously, it’s just a tool and if you don’t use it, it’s not going to help you. An advantage of the apps over a spreadsheet is the interface with banks in the US but I don’t know of apps that interface with Israeli banks. (If you know of any, please share that with us in the comments!)

Step 2 – Make a list of whatever income you have – salary, freelance, child benefits, disability payments, alimony, etc. Add that up and write your total income for the month, for each of the three months.

Step 3 – Now make a list of all of your expenses. You have two kinds of expenses, fixed and variable. Fixed expenses are fairly stable and predictable from month to month; variable expenses fluctuate from month to month.

Here’s a list of fixed expenses:

• mortgage/rent
• property tax
• utilities – water, sewage, electricity, gas
• insurance – car, life, house, health
• communication – internet, phone, mobile services
• building maintenance fee (vaad bayit)
• tuition
• day care/babysitter
• extracurricular activities/tutoring
• house cleaner
• therapies
• bank fees
• debt repayment

Variable expenses:

• food
• take out/restaurants
• baby supplies – diapers, etc
• pet supplies
• makeup/cosmetic procedures
• haircuts
• medical expenses
• dental expenses
• home maintenance
• car expenses – repairs and maintenance
• gas (for car)
• transportation – buses, trains, tolls
• clothing/shoes
• computer maintenance
• appliance/furniture purchases
• holiday expenses
• gifts
• vacation

These aren’t going to include every possible expense, so add your own category if you find something that you spend on isn’t included above.

Now, total up the expenses in each category for each of the three months. Then total all of the monthly expenses for each month to get a total for your monthly spending.

You’ve done it – you’ve faced your worries about what you’re going to find, and you’ve tracked your expenses. Now give yourself a huge pat on the back for your accomplishment!

Once this is done, you’ll have solid information to work with to create your budget.

Is there anything that surprised or discouraged you? Don’t worry about it. This is just a starting place. There’s plenty of change possible to get you where you want to go.

Make a commitment to get this done in the next week. You may dread thinking about it but once it’s done it will be a relief and it will really help you.

Avivah

I haven’t been actively budgeting in recent months so I’ve spent some time in the last couple of days remedying that.

Though I haven’t been budgeting, what I have been doing is tracking our expenses. Tracking is knowing what goes in and out of your account, and is something you must do to be a good steward of your money.

Here are a few things I noticed when tracking our expenses:

Last month I noticed that our mortgage payment went up 630 shekels – and our mortgage is fixed so it shouldn’t have gone up at all. I looked into it and for some reason the bank started charging us for home insurance – despite having a different insurance provider since 2023. When our insurance agent checked this for us, it showed that our paperwork was all in order and the necessary notifications had been made to the bank long ago, so we’ll get our money back. But if I didn’t track our expenses, the bank would have continued to automatically deduct this amount every month for years.

This week I noticed that a transfer I made to a different bank didn’t show up. It turns out that there were two account numbers and I sent it to the wrong one – I corrected that and the money is now in the right place.

Two weeks ago I saw that money that was supposed to be reimbursed to us by the health clinic hadn’t come in by the latest date they told me to expect. I went back into their office, and within two days the outstanding 850 shekels was in our account.

Several months ago, the horseback riding stable we had one meeting with charged us for three lessons for two children (ie six total lessons), and one lesson for another – hundreds of shekels for lessons that never took place. I got that refunded as well, and moved the kids to a different ranch for lessons.

A couple of months into the academic year, I noticed one of the tuitions wasn’t being deducted. My husband called the yeshiva and let them know they hadn’t activated the automatic withdrawal plan we had set up. If we hadn’t realized that, at some point they would have realized we weren’t paying and we would have accrued a high outstanding balance.

My husband once ordered an Adobe product. Months later, we were still being charged a monthly fee of 45 shekels for something he had forgotten about and never used – he cancelled it and we’re no longer being charged that fee.

We have another ongoing monthly expense, a charitable donation for a cause that we committed to for a year – I don’t know how long we’ve been donating for but it’s been a lot longer than that. I was glad to contribute initially but now I’d like to shift our giving to a different cause.

This isn’t an exhaustive list of things that I found, but some examples of the kind of things that come up when you track your money. What you learn when you track your expenses can save you a lot of money.

Ideally tracking includes tallying the total spent each month in each area of spending (eg, food, utilities, clothing, health, leisure, etc) so you know what you are spending your money on.

In October we reached the financial goal I shared with you last year, which was to pay off the smaller but higher interest loan of our two mortgages. (When we refinanced the track that was adjustable to a fixed rate, the two tracks of the mortgage were separated into two loans rather than one). It was an ambitious goal and tracking was critical to our success, because I controlled for the expenses that would have otherwise drizzled out with nothing to show for them, and all of that extra money in addition to the savings went to the principal of our mortgage loan.

Now I’m thinking about what I want to set as the next financial goal. It might be paying off the second mortgage loan, it might be putting it towards something more investment oriented. I’m still reflecting on that; there are pluses and minuses and I have to confront my own conservative tendencies and ask myself if that’s serving me as well as possible. Whatever I end up doing, it will benefit our finances for me to tighten up my money management even more and actively budget our money.

Let me share with you what the difference is between the two. Tracking is noting all of your expenses after the money is spent, and knowing how much you spend in each area.

Tracking is a critical preliminary step to getting your finances in order. If you’re not tracking, it’s likely you don’t have an accurate ideal of where your money is going and your money is leaking out.

Once you’ve tracked your spending, budgeting is the next step. Budgeting is looking forward, and determining how much you’ll spend in each area for the coming month. When our finances didn’t have much wiggle room, I had to carefully budget and there was no such thing as not having a budget established in advance. There’s no way we would have avoided going into debt and had an expansive life without being very on top of the details.

Budgeting is when you ask yourself, “Although I’ve spent a certain amount in a category in the past, is this really the amount I need to spend? Can I trim my expenses in that area and funnel the difference into savings? If so, what amount do I choose to allot for each area that will allow me to meet my financial goals?”

Tracking shows that I spend a certain amount of money each month on food. Budgeting is when I decide to spend the amount I want to spend, and to do whatever I need to do to keep my spending limited to that amount.

Budgeting feels very different than tracking; it’s proactive, intentional and powerful. It’s when you commit to yourself, “I’m going to set my goal and I’m going to reach it!” A good budget is a wonderful financial tool. I’m setting some parameters in my budget that will challenge me and am looking forward to seeing if I can jump over what feels like a high bar that I set.

Avivah