Living below your means (budget example)

[Mrs. Dinero]

"Lower income?" lower than ours. Geez. If I thought about every world and how it could be interpreted by 100s I would never get anywhere. My intent was not to boost but to show an example of how it could be done and get some constructive criticism where I could budget differently. I did get some good advice so not all was lost. Sorry if you've been offended by my word choices.

[trytofindbalance]

"Sometimes (but not often) I wish I would have had a daughter instead of just sons. I could totally get into feeding a horse crazy girls obsession. It would be a perfect excuse for me! "
Well, she takes some reining in...pun intended.
She's got some lofty goals, but she understands that we do what we can within our budget and if she wants to have the horse, there are other sacrifices she must make. Lots of valuable life lessons for her. Picking her priorities, making commitments and sticking to them (even when she doesn't feel like it or something more appealing comes ups that day), understanding that there is only so much money in the pot, so it's important to pick priorities and make sacrifices to do the things that are truly important to her and of course, the responsibility of taking care of a living, breathing animal that is dependent on her. Plus it's great exercise and it keeps her productive and out of trouble.

[Mrs. Dinero]

BTW...that has not always been our income. The expenses, however, have stayed relatively the same. We've added 2 roths and a new car but other than that we've not made that many changes and are content with what we have. As we make more we'll have to decide where to spend/invest. I'm sure we are not the only ones that live like this. What would you do if your salaries doubled over time?

[Deleted]

May 6, 2011 15:55:17 GMT -5 Mrs. Dinero said:

BTW...that has not always been our income. The expenses, however, have stayed relatively the same. We've added 2 roths and a new car but other than that we've not made that many changes and are content with what we have. As we make more we'll have to decide where to spend/invest. I'm sure we are not the only ones that live like this. What would you do if your salaries doubled over time?

I got a 3% raise yesterday. That whopping .44 is going to my 401K. LOL I'm now putting in 11% instead of 8.

[Plain Old Petunia]

<< Some churches/schools ask for W2s and wrap their tuition and donation into one and it's all tax deductible. >>

How slimey. Private school tuition is not tax deductible. It's nice that some churches have no problem having a system to cheat. Makes me sooooo glad not to belong to any.

[trytofindbalance]

I just feel like people never get the point that everything is relative and everyone has individual circumstance to contend with. There are endless life possibilities when it comes to income vs. living expenses. Family size, location, debts, single, married, kids, SAHP etc. all change the picture for each person. That's why I like to see what all different people, with different situations are doing. I like to understand how far their income goes based on where they live and what their expenses are. It's interesting to me personally.

[Mrs. Dinero]

"However, if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution, as explained later under Contributions You Cannot Deduct." - irs.gov So it isn't. Sorry.

[Sum Dum Gai]

Thanks Minnesota. I doubt we'll get our grocery budget down to the same level as yours, but we do need to get back to basic food to keep costs down somewhat. I think the big problem for us is being snobby about canned/frozen fruit and veg. We buy some frozen fruit to make the kids smoothies, but other than that we pretty much only buy fresh.

[Mrs. Dinero]

Everyone have a great mother's day! Talk to you Monday

[resolution]

I gave up the idea of couponing about halfway through the guide that I linked, but I did get one good takeaway lesson that has lowered our food costs a bit. I was normally deciding on a weekly menu, making the shopping list and then buying whatever I needed regardless of it is was on sale or not. What I changed was I started checking the buy one get one free meat sale each week and buying any meat that was half off as long as it was a cut of meat that I normally cook. After I had enough meat in the freezer I would plan my menu based on what meat I had, and when I shopped I would buy the rest of the ingredients plus whatever new meat was half off. It has cut my grocery bill by about 20% without using any coupons. The one downside is I ran out of salmon and it hasn't been on sale the last two weeks. If its not on sale this week I will probably buy some full price because I've been wanting to eat it.

[gooddecisions]

"BTW...that has not always been our income. The expenses, however, have stayed relatively the same."

I get your point, but I think most some people are not especially impressed because you operate on a $6,000+ monthly budget. Most people would be thrilled to get to work with a budget that big. While your income is enough to support it and still have some left over, it just doesn't really translate to the people who will never make enough to support a $6,000/monthly budget.

Disclaimer: My household operates on a $2,500 monthly expense budget ($30,000 annual expenses) and a $220,000 annual gross income, so I do know where you're coming from on your point that it's possible to keep your expenses low even with a higher income.

[Mrs. Dinero]

I'm not trying to impress. Dang - your expenses and income are exactly what I'm talking about. You could easily afford whatever but choose not to. It can be done. I know your not trying to impress but DANG - I'm impressed!!!

[Sum Dum Gai]

Disclaimer: My household operates on a $2,500 monthly expense budget ($30,000 annual expenses) and a $220,000 annual gross income, so I do know where you're coming from on your point that it's possible to keep your expenses low even with a higher income.

Is that $2,500 including housing costs?

[gooddecisions]

Yes it does- my mortgage, taxes and insurance are less than $1000/month and I refuse to prepay the remaining $130K balance. Both the cars are 10+ years old so we haven't had car payments in a really long time. Car insurance isn't cost much either as a result.

[Sum Dum Gai]

So... um... why? I don't mean like why live within your means. I mean, why so extreme about it? Are you looking to retire especially early, leave behind a lasting endowment, huge inheritance for the kids or a favorite charity, what's the goal that's worth living so lean on your income?

[gsbrq]

Gooddecisions (sounds like an appropriate handle!),

I'm intrigued. Is that 30k for two people? Have you always kept your expenses so low, or did you make cuts at some point?

[gooddecisions]

We don't really go without, I keep an eye on expenses and negotiate where I can when things start creeping- like cable and cell phone. We just haven't had a desire to upgrade the house or cars- and that's what kills most people's budgets. Our family lives out of state, so vacation is spent visiting family members, which doesn't cost much either. Our hobbies are playing in sports leagues, which is also inexpensive. We've talked about getting a housekeeper, but it's not that much trouble to keep the house clean. For now the money gets invested in case of unavoidable loss of income. You never know what tough times lie ahead.

[gooddecisions]

"I'm intrigued. Is that 30k for two people? Have you always kept your expenses so low, or did you make cuts at some point?"

Yes, it's for two of us and we have a third on the way. Yes, I've been tracking expenses for a long time and fortunately found/chose the right person to share my life with .

[gsbrq]

Congrats on the future addition to your family! It's great that you and your spouse agree on finances.

My SO and I agree for the most part...but if it were up to me we would be saving a bit more & spending a bit less.

[Gardening Grandma]

<< Some churches/schools ask for W2s and wrap their tuition and donation into one and it's all tax deductible. >>

How slimey. Private school tuition is not tax deductible. It's nice that some churches have no problem having a system to cheat. Makes me sooooo glad not to belong to any.

This sort of gaming the system is a good argument for eliminating the tax free status of churches. If this were a welfare mom cheating the system, this board would be all over her case....

[dancinmama]

May 6, 2011 15:20:34 GMT -5 Sum Dum Gai said:

You didn't answer the what do you guys eat part. I'm really curious, because I'd love to cut our grocery budget down to that.

DarkHonor: How do you go about doing your grocery shopping now? There are a few basic rules you can follow that will help (if you're not doing them already).

1. Shop weekly from the sales ad. Avoid buying ANYTHING unless it is on sale. Obviously, that is not ALWAYS possible, but as a general rule it will help A LOT.

2. Plan your weekly menu based on what is on sale and what you already have on hand.

3. Know the ingredients for the things you eat regularly and semi-regularly and when those ingredients go on sale, buy enough to last you until the next sale.

4. Get to know the sales cycles at your store and how often the items that you want to buy go on sale at their rock bottom prices (usually every 3 months or so).

You can do all of that you will reduce your grocery bill. If you add coupons on top of it, you can save more.

Don't dismiss the major drug chains and the items that you might be able to get for free that are in their ads every week. This week, toothpaste is free at CVS. In the last year, I have gotten most of my toiletries for free at the drug chains.

[gooddecisions]

"Congrats on the future addition to your family!"

Thank you!

[Sum Dum Gai]

DarkHonor: How do you go about doing your grocery shopping now?

Well, on Saturdays I'll throw a ball around with my daughters, or maybe play a video game, while Loop goes to the grocery store. When she gets back, we all help unload the car and put things away. During the week she'll occasionally send me a text asking me to pick up an item or two on my way home, which I always get from Safeway because it's on the way and close to the house.

[gooddecisions]

<< Some churches/schools ask for W2s and wrap their tuition and donation into one and it's all tax deductible. >>

How slimey. Private school tuition is not tax deductible. It's nice that some churches have no problem having a system to cheat. Makes me sooooo glad not to belong to any.

This sort of gaming the system is a good argument for eliminating the tax free status of churches. If this were a welfare mom cheating the system, this board would be all over her case....

I was thinking the same thing

[dancinmama]

May 6, 2011 15:55:17 GMT -5 Mrs. Dinero said:

BTW...that has not always been our income. The expenses, however, have stayed relatively the same. We've added 2 roths and a new car but other than that we've not made that many changes and are content with what we have. As we make more we'll have to decide where to spend/invest. I'm sure we are not the only ones that live like this. What would you do if your salaries doubled over time?

Just what you're doing!! DH's income has incresed 38% since he got his promotion and raise when we relocated with his company in 2005. Our spending has not changed. We have been living the same now as we did then. We've been banking the extra as he plans to take early retirement (age 55) in 2012 so it has all gone in our retirement "emergency fund".

[dancinmama]

May 6, 2011 16:50:52 GMT -5 Sum Dum Gai said:

DarkHonor: How do you go about doing your grocery shopping now?

Well, on Saturdays I'll throw a ball around with my daughters, or maybe play a video game, while Loop goes to the grocery store. When she gets back, we all help unload the car and put things away. During the week she'll occasionally send me a text asking me to pick up an item or two on my way home, which I always get from Safeway because it's on the way and close to the house.

Okay, so you guys don't pay attention to the sales ads when they come out on Tuesdays?

[Sum Dum Gai]

Okay, so you guys don't pay attention to the sales ads when they come out on Tuesdays?

Loop might, I obviously don't.

I'm trying to change though. Up until recently I didn't pay attention to anything. I worked, spent time with the kids, and all the bills and stuff just got taken care of. I'd go six months without even logging into the bank account to see how much we had in there. I just saw one of our water bills for the first time last week, we've been in the house ten months.

[dancinmama]

May 6, 2011 16:35:06 GMT -5 gooddecisions said:

We don't really go without, I keep an eye on expenses and negotiate where I can when things start creeping- like cable and cell phone. We just haven't had a desire to upgrade the house or cars- and that's what kills most people's budgets. Our family lives out of state, so vacation is spent visiting family members, which doesn't cost much either. Our hobbies are playing in sports leagues, which is also inexpensive. We've talked about getting a housekeeper, but it's not that much trouble to keep the house clean. For now the money gets invested in case of unavoidable loss of income. You never know what tough times lie ahead.

Excellent job!! When I got my Verizon bill (land line, Direct TV, and internet), I noticed it had gone from $107 to $122 as Direct TV had increased several things. I got on the phone to Direct TV immediately and got it down to $112. It's only $10 bucks a month, but that's $120 in savings for the year. It took a while. The CS gal kept offering me a nickel here or a dime there in savings and I told her it wasn't good enough. FINALLY, she offered to give us our DVR receiver for free for a year. Okay, I'll take it. So a half hour of my time for $120 - I'll take it.

[dancinmama]

May 6, 2011 17:00:41 GMT -5 Sum Dum Gai said:

Okay, so you guys don't pay attention to the sales ads when they come out on Tuesdays?

Loop might, I obviously don't.

I'm trying to change though. Up until recently I didn't pay attention to anything. I worked, spent time with the kids, and all the bills and stuff just got taken care of. I'd go six months without even logging into the bank account to see how much we had in there. I just saw one of our water bills for the first time last week, we've been in the house ten months.

Okay, it doesn't sound like you do. You'd see her looking at the ad and making a list. If you try to gradually incorporate the tips that I mentioned in my previous post, you'll find that you'll reduce your bill.

I saw your previous post about the braces so I know what you're trying to do and watching it on the groceries might really help. It will take more time and effort for Loop, so you'd have to sell her on it.

[muttleynfelix]

May 6, 2011 15:55:17 GMT -5 Mrs. Dinero said:

BTW...that has not always been our income. The expenses, however, have stayed relatively the same. We've added 2 roths and a new car but other than that we've not made that many changes and are content with what we have. As we make more we'll have to decide where to spend/invest. I'm sure we are not the only ones that live like this. What would you do if your salaries doubled over time?

I've already answered this, because as a couple we did make as much as you guys and would probably get close if DH went back into the job market. Spending increase would be for daycare, probably diapers since most daycares don't allow cloth diapers and increase in meals out. If it was just my salary that doubled, probably nothing. Ok I'd probably get a smart phone and DH would probably get some cool lawn toy. But the vast majority would go to our savings. I'll probably be getting a very small raise in June and I intend on banking it, like I did before DH was laid off, we went to a single income household, and then had a baby.

That's why the comments of oh those posters are jealous are really silly. Some or most have had a higher income at some point. Would I trade the higher income for DS? That is a big fat no. Even the trade off of DS going to daycare isn't worth it to me. It has been especially prevelant these last couple weeks when I get home from work and my little country boy is walking all over the place, chasing our dogs, saying hi to the neighbors cows, and eating dirt. I'm sure he would have a blast in daycare, but it would be a different type of fun. Besides there is a whole lot that DH does around the house that there just wouldn't be time to get done if he worked outside the home. There is barely time to do it now.

I posted my budget to show there were no hard feelings. I get that the OP didn't mean anything by it.