Do you live on a budget?

[kwyjibo]

I'm curious about how DUers are handling the W years financially... do you live on a budget? If so...

Does it work?
How do you save money on food?
What's the most difficult luxury for you to live without?
Are you able to put money in a savings account?
Was it better or worse six years ago and how do you feel it will be in the future?

[no_hypocrisy]

1. I borrow books from the library vs. buying them.

I get a lot of good ideas from frugal living websites (including the frugal living group on DU).

I have The Tightwad Gazette (three books) for other ideas.

Coupons and grocery store flyers to advise of sales.

I buy meat on the last day of freshness expiration to save $2.00. Discount fruits and vegetables if a little ripe and brown (but not past the point of no return).

[napi21]

2. Well, yes I live on a budget, but not a REALLY strict one.

I save $$ on food by not buying any premade or ready mix stuff, and rarely if ever any beef. I just make everything from scratch, and you'd be surprised at how easy it is.

The most difficult luxury for me to live without is a good steak or nice roast once in a while.

I do put a little in a savings account, but since gas prices have gone up so much, it's VERY LITTLE!

Was igt better or worse six years ago is such a dumb question it doesn't even deserve an answer, and I'm hopeful about the future IF we can get these criminals not only out of office but out of politics completely...prison would be a good start!

[movie_girl99]

3. we do live on a budget

family of 4 living on 75,000 yr.
It does work but some months are tighter than others.
We have utilities on average billing so that helps.
We have a certain amount that we set aside for groceries each month.
It would be hard to live w/ out cable tv and internet but if push comes to shove, we would.
We are not really able to save much. I mean we have a little set aside for emergencies.
We were so much better off 6 years ago making far less money than we do now. I am a bit nervous for the future as every thing is getting more expensive but the raises we receive are not enough to cover the rising cost of gas and utilities.

[youthere]

4. Absolutely we live on a budget..

It works for the most part. Rising gas and grocery prices make it difficult to stay within our budget guidelines so we've had to rework our budget several times over the last several years.
We save money on food by raising as much as we can ourselves and by avoiding prepackaged or convenience foods.
The most difficult luxury for us to live without...I can't think of one off the top of my head. We've never had a "luxurious" lifestyle. I guess going to the theater, concerts and the like. There's just no money for that kind of stuff.
We are able to save, though a considerable less portion of our income than we were able to put aside in prior years.
It was better six years ago. We made less money but we had more of our income left in our pockets.

[dmallind]

5. Yes and no

Everyone lives on SOME kind of budget. Well almost everyone I guess. Even multimillionaires have to watch the number of times they charter jets or buy yachts.

But in the real world I'm far more fortunate than most. Except for huge purchases (into the several thousands) I have enough discretionary spending potential that I don't need to budget for any necessities or entertainment etc. I am by normal standards underhoused for my income (partly because I'm in a low housing price area and very nice houses here cost the same as 1br condos in Boston or SF etc) and have no car payments (paid cash for them), which helps greatly. Mortgage is about 30% of my net income. Utilities/insurance/gas etc takes up about 20% and food, entertainment and petty cash type spending another 20%, which leaves 30% for savings, donations, and big ticket items as needed.

Savings? Other than an 8% 401K which is obviously not included in the net income, I probably make sure that at least 10% of net goes into decent yield but very liquid and reliable savings such as HSBC and ING type internet banking accounts.

I'm not sure I have done without any luxuries I could reasonably afford, while still lacking Ferraris and Fabergé eggs of course. I do have plenty of room to give up luxuries if my income decreases though. I lived far more spartan a life earlier on in my life and could happily do so again. Things like cable, nice cars, luxury goods and trips are nothing I couldn't do without.

I have a good income in low six figures but I actually live a bit better than that even due to a combination of low cost of living area, some good savings habits and some good luck. I am better off than six years ago, but that's because I'm still in the upswing part of my career due to my age (now late thirties). I suspect that is unlikely to continue at the same pace, and any future increases in income more likely to be incremental.

Probably not what you were expecting to hear, and I know I'm not the median or average respondent, but of good use as a comparison perhaps. Trust me I know many people are far less well placed.

[Horse with no Name]

6. I was on a pretty good budget several months ago

But my husband was laid off of a job after 10 years...gas prices are through the roof...electric bills are high...my hospital has just come up with some nonsense crap of staffing that loses me a minumum of 10-12 hours work loss a week...savings account is gone...and the bills are starting to creep up.
However, we are moving to a new part of the country where at least they have mass transit...better paying and more stable jobs in my profession...and being in a metro area my husband should be able to find a job.
We do without a lot of stuff, but we really aren't that materialistic anyway. There is no money for savings...right now my goal is to finish getting the necessary funds to move with.

[Marrah_G]

7. okay I'll play

Does it work?

Sometimes. Emergencies throw a big huge wrench onto things that take months to get out of.

How do you save money on food?

Sales, coupons, bulk buying when possible.

What's the most difficult luxury for you to live without?

presents for my kids (Birthdays, Yuletime, etc) and new clothes.

Are you able to put money in a savings account?

Not for any length of time. Something always happens to drain the account


Was it better or worse six years ago and how do you feel it will be in the future?

Worse, but to be fair it's hard to say how much of that is simply the fact that i'm now a single mother, single income household.

[jojo54]

8. How's this for an answer?

The $1500 a year raise my hub got in Jan was taken away in March when our escrow came up short because our property taxes went up, WAY UP, again! And guess what??? - WE JUST GOT REASSESSED....AFTER 12 YEARS!!!! I fear that come August '08, we may have to put the house on the market simply because of the taxes that this administration drastically cut back on their help. Now we've got gas prices to deal with.

I don' work any more, I watch my grandkids and I'm not sure if that's a good thing or bad. But we shop at the no-name food store, except for things like cat litter and body soap. We also visit the dollar stores a lot.

Things are just so comfy-cozy here in Never Never Land, land of the free (choke), home of the brave (what choice do we have with this lie of a war).

Sorry for the rant.
:rant:

[mrcheerful]

9. I survive on disability benefits. Thats all the disabled and elderly can do

survive. While people complain of the high costs of things we survive on less per month then most make in a week. While others brag about the new car they bought, I survive by making a 30 year old vehicle last as long as I can, then buy another 10 to 30 year old vehicle to get me where I have to go. When people whine and complain that its getting harder and harder to put food on their tables, I survive by eating one time a day and have days where I go without eating. While people complain about how high their electric bills are while sitting in an air conditioned house, I survive by turning off lights and using 15 watt bulbs and a small fan to move air around. While people complain about their house payments going up, I rent and when rent goes up I survive by cutting out more of my wants and needs. Budget? What the hell is that? I survive by streatching pennies and go without.

[AnneD]

10. Shame on you if you don't live on a budget.....

You don't run a company without a budget-and you should not run a household without one either. That is how you wind up at the end of the month not knowing where the money went. A budget is noting more than a plan as to how you will use your money.

Because I have a budget-I don't overspend in one category and fall short in another. Gas prices eat up more now than what I budgeted for last month. Because I went to the Farmer's Market, bought less processed food, ate out less-I paid less for groceries. I know that I can cover a spike in gas. Because I have it in my budget to set money aside in savings every month for an emergency, I can rest better every night.

Add to this the fact that I economize by using coupons, price comparing, and are spared excess interest charges because I cut up my credit cards 4 years ago- I am looking at reducing my debts. It can be done but it takes hard work and discipline.

You never know what life holds. While you can't budget for this, a budget can help you be better prepared.

[bridgit]

11. yes we live on a budget, and it works very well...

in addition we move in small, elegant circles as a matter of course, and that works just fine :)

[MissB]

12. Of course I have a budget.

Our budget works well enough. I sit down at the end of each year and work out what our bills will be for the next year, and make sure that our cash flow and our bills line up appropriately (so if I have a large annual insurance bill coming up, I can make sure I've stashed enough ahead of time to be prepared). I can estimate most of them within a few bucks. The only thing I can't nail down is emergency things like car repairs or an appliance going out. For those, I have an emergency fund. We pay for our property taxes in one lump sum (it isn't rolled into our mortgage) and in order to sleep well at night, I need to know that we'll have enough put aside to pay that bill by the time November rolls around.

I save money on food by cooking a lot from scratch. I mostly shop the outer edges of the grocery stores and buy little in the way of processed foods. Since I'm a stay at home parent, I have the time to plan and cook. When I was working full time with two kids in daycare, I'd do twice-a-month cooking and freeze meals. I also keep a garden during the summer, and grow lettuce nearly year round.

The luxury that I live without (and to me, it is a luxury) is a decent vacation. I haven't left my state in, oh, about six years. Vacations are generally camping trips, either in the high desert or on the coast or in the forest. We may be going out of state this fall, if my brother is able to donate some airline miles to us. Now, we *could* afford to take an extravagant vacation, but we have some significant savings, investing and retirement goals so self-imposed frugality is simply how we get by.

We're quite disciplined at putting money into a savings account each pay period. We have a dedicated % that we pull electronically out of dh's check and put into an account that is reasonably difficult to access (no debit card, must order a check via mail and wait for several days). I budget a certain dollar amount for miscellaneous expenses each pay period, and any money above that goes into a different savings account.

We're not any worse off than we were six years ago. Dh's salary has continued to climb steadily. The firm he works for seems to keep its older engineers, so we're reasonably confident that he won't be laid off anytime soon (he's in his late 40's). Plus, he's considered an expert within his company at what he does.

The future looks reasonably bright.

[Tracer]

13. Not exactly a strict budget.

The only thing I "budget" for is my weekly allowance! I give myself $20 per week. And out of this comes gas and the occasional extra jug of milk or loaf of bread.

However, I have an exact sense of what my future bills will be --- especially my property taxes and heating bills --- and for those, each week I squirrel away enough money so that when the PT quarterly bills come in, I have the money to pay (approximately $1,400 per quarter).

My adult children jokingly call me "cheap", but I say I'm "frugal". It's a good feeling to have no debt and money in the bank.

[Individualist]

14. I live on a very tight budget

I save money on food by using coupons, buying needed items on sale (never buy items simply because they're on sale), having peanut butter sandwiches for dinner twice a week.

Most difficult luxuries to live without: a new purse, new handbag, new clothes, clothes dryer, dinette set to replace the old one which is about to fall apart. High speed internet would be really nice, as would a charcoal grill and a scanner for my computer, but savings are for absolute necessities, and none of these are.

Not only do I have no money to put into my savings account, I have to take money from savings to cover property taxes, high electric bills in the winter, Christmas gifts for friends and family, unexpected non-recurring expenses such as home repairs or the thousand dollars I'll have to take out of savings next month to cover dental expense.

[William769]

15. Don't you have to have money in order to budget it?

[Tierra_y_Libertad]

16. Yes. We pay cash for everything.

It's amazing how many things we don't "need" when we have to pay cash for them. Also, how many things we don't "want" enough to save for them.

We've been doing it that way ever since we started seriously saving for retirement in 1986. Now retired, no debt other than our mortgage, still driving '91, bottom-of-the-line Tercel and a bottom-of-line '94 Toyota pickup.

We have more spendable income in retirement than we did while working.

We do use credit cards for convenience (online purchases, large items like refrigerators, TV's, etc) but we pay them off before any interest is charged.

We're frugal but not stingy or inclined to do without. We give quite a bit to various charities, live well, and are happier than we've ever been.

[lildreamer316]

17. This is us except the cc's.

We do ok.
I coupon a decent amount too; both cars are paid for; and thank god the house is too.

[Matsubara]

18. We moved back to Japan so we could live within our means.

We could have moved back to El Paso for the same effect, but my wife being Japanese would have hated someplace so devoid of Asian culture (& greenery), so we went back to Japan.

Our rent is less than half what it was in San Francisco, and we have a bigger, and MUCH nicer place now. Gas is only about $10 a week tops - we don't drive much. Utilities are higher here than they were in the states - About $200/mo total for a year-round average for Gas, Electric & Phone, incl. Internet.

Food is slightly higher here than in the US overall, mainly because I like to eat Western foods that tend to be a bit pricier here. (But compared to 7 years ago, the prices are almost the same. Back then, groceries in the US were much cheaper - since, they have skyrocketed to the point that there isn't that much difference in food costs now) There are no coupons here, so to save on groceries, we use the cheapest supermarket in the neighborhood and buy some items at the local Costco.

There are more costs with sending the kids to school here, even though they are in public schools. There is the uniform, PTA fees (kinda mandatory here) etc.

But overall, we are able to get by on less here without going deeper and deeper into debt.

Oh, and then there's the national health care, which costs us VERY little per month, and office visits are peanuts. We are much better off there than we were in the states.

My only quandary when we came back here was whether to take citizenship or permanent legal residency. I have decided on just permanent residency for now. Who knows, maybe the America I once knew and loved will rise again someday.

[kwyjibo]

19. Really? It's cheaper for you to live in Japan?

I always imagined that it would be much more expensive. Do you live in a big city?

If I could choose any place to go in the world, it would be there. How difficult is it to get permanent residency? Is it easier because your wife is Japanese?

[Matsubara]

22. Fairly big city - 1.4 million.

Things are not as expensive here as in Tokyo (although gas is cheaper there, and people who live there tell me that outside the trendy areas like Shinjuku, Roppongi, Azabu, etc., the apartment rents aren't as bad as we think (but then there is the space issue - I'm sure space is at more of a premium there)

Permanent residency is easy for me because I have lived here on and off since 1995, and because my wife is Japanese.

It's great in many ways, but not without drawbacks, and takes some getting used to.


Oh, and to be fair - San Francisco was a very expensive city. We paid $1300/month for a basement hovel apartment. In El Paso, I could have bought a beautiful new home for half that payment, easily.

But that's a big problem in the US - housing in the bigger, more appealing cities has gone through the roof. You gotta live in Bumfuk Egypt anymore to live cheap in the US...

[Tierra_y_Libertad]

20. Lucky you. I loved Japan when I was there.

Way back in '61 & '62 as a young marine. Even as a GI whose mind was more on women and booze I fell in love with the country and the people.

[Sanctified]

21. We live on a budget.

To save money we do the following:

Food - We buy only whole and bulk foods. We also eat very little meat, for a family of 4 we spend $400 a month and 90% of our food is organic. We also converted our entire back and front yards into vegetable gardens where we grow a lot of our own.

Home Energy Use - We keep our thermostat at 62 degrees in the winter and do not use AC in the Summer. We also limit showers to 3 minutes per person.

Gas - I work out of my car so there is very little I can do about my gas usage but all of that cost is pushed onto my customers anyways. For the family car, we schedule our trips so that we can hit everything close together in one outing. We also walk or ride bikes to entertainment, (parks, events, libraries, etc) we also ride bikes to the grocery store.

Books - We get everything from the Library.

Clothing - We either make them or buy them second hand.

Furniture - We buy it second hand.

Toys for Kids - We will buy them art stuff, musical instruments and sporting items all of which are second hand.

Entertainment - We go to the park, get together with friends and do BBQ's, go for bike rides, hiking, camping and our current favorite is Fishing.

The hardest part of living the way we do is you always have to be on the lookout for something you need, when my son became old enough to ride a bike it took us 3 months to find one in perfect condition at a second hand store, we could have bought it new for $60 but by picking it up at a second hand store we saved $55. We usually hit up 4 different second hand stores by us at least twice a week.

For savings we put $300 a month into our savings and $100 a month into each of our children's college savings funds, so total savings is $500 a month.

[shanti]

23. not really

but it's the first time in my adult life that i haven't had to. give thanks...

[Rydz777]

24. Sort of.

I don't break it down, but I know the totality of what my income is and what my outgo is, and I don't let outgo exceed income. I have also set a goal to simplify my life insofar as possible. Among other things that involves getting rid of "stuff" and distractions.

This has been rewarding in many ways, not just financially, but in stress reduction, and in general enjoyment of life. I've come to believe that people who unnecessarily complicate their lives are making a mistake.

[monmouth]

25. Prior to my retiring, two things happened. All credit cards were paid

off and scissor-cut in half. Since I live alone I moved to a studio apartment (a large one, I love it). I gave my car to one of my sons since I live in a metro area with trolleys, trains, busses and 10 minutes from the airport. I enjoy a movie with friends about once or twice a month, no need to clothes shop since I'm no longer working and my wardrobe was great prior to retiring. My only overhead is the rent and phone (which includes my DSL). My DirectTV is included in my rent. I do eat very well, and thank you God am in good health. Since retiring I have been able to add to my already healthy savings. I watch my pennies and take a second look at any big expenditures.

[Coyote_Bandit]

26. I used to live on a budget

That was four and a half years ago when I had a job. And a steady income. Shit canned the budget when I got laid off and went into crisis management mode. That means I don't spend money for anything that I do not deem absolutely necessary. And it means that I pick up whatever income I can by doing consulting work out of my home. I keep track of every single penny I spend - and what few pennies I somehow manage to earn. By most standards I am fortunate. I own my home and there is no mortgage payment. I own my car and have no car payment. I have some savings and investments on which to fall back on. Much to my dismay, I have accumulated some credit card balances during the past several years which I did not carry when I was working full-time. They are not excessive and I am incrementally reducing those balances. I am definitely not accumulating resources. My "net worth" (HA!) today is about the same as it was five years ago - even though the purchasing power of those dollars has decreased.

Well over one half of my annual expenditures result from: homeowners insurance, auto insurance, minimal health insurance coverage, real estate taxes, professional dues and continuing education. I do carry high deductible catastrophic health coverage. I'm afraid to see a doctor and have not had even routine preventative medical care since some time before I lost my job. I simply cannot afford to lose the coverage I have and do not believe I could secure other coverage for a comparable premium. I saw the dentist for the first time in at least five years after breaking a tooth - something which required a crown and root canal. Although I am only partially sighted in one eye I have not seen the optometrist in nearly five years. I also have a hearing impairment which is diagnosed but untreated.

I rarely buy clothing or shoes. My de facto uniform is twill shorts, t-shirts, and tennis shoes. Sweats when the weather is cooler. Jeans or khaki slacks when I go somewhere. I have a closet full of clothing appropriate for an office environment. I'm afraid to get rid of them - for whatever crazy reason I am hopeful that someday I might need them.

I do all my own yard work and lawn care. I quit doing weed and feed and most other chemical lawn treatments. I only water if things are truly in danger of dying.

I bathe and groom my dogs (Japanese Chin). I used to have them groomed at least every other month. Now I have them professionally groomed twice a year. I take them in early summer to have their bellys shaved and again around the holidays.

If something breaks I try to fix it before I consider replacing it. If it becomes necessary to replace something I try to look at the overall value of the transaction. Earlier this year I replaced the heat and air system in my home. It was over 15 years old and had required minor repairs each of the last several years. Since doing so I have consistently realized a 25% or greater reduction in kilowatt usage compared to last year. I'm hopeful that will enhance the saleability of my older home should I relocate.

I don't throw things away unless they clearly have no value. I will first try to sell the stuff or donate it or give it to somebody. I shop at outlet stores and thrift stores.

I minimize my driving as much as possible. I combine trips and plan ahead. In the past three years I have put less than 15,000 total miles on my car and well over one third of that was from trips out of state to visit aging parents.

I forego most entertainment. No shows, concerts, movies or theater performances. I rarely rent movies. I dropped my gym membership. I quit going to church. Social activities generally involve a grill and a cable movie. A few times a year we might splurge and go to the dollar movies. I don't buy books or CDs or videos.

I do have cable tv and a broadband connection. My computer is four years old. The printer is nearly seven years old. And the monitor is over ten years old. I try to keep stuff backed up. I'll repair or replace as necessary. The single tv is also old.

I read ads and shop sales and use coupons. I cook from scratch. I make detailed meal plans in advance. I buy in bulk and freeze for future use. I patronize a nearby canning company and a national bakery and often buy directly from their stores bypassing the distribution network, the middlemen, and the retailers. I buy ONLY what is on my shopping list. I grow some of my own veggies. I have changed my diet and become semi-vegetarian - for reasons that are only partially related to finances. I do not use frozen dinners, pre-packaged or prepared foods. I don't eat fast food. And I don't dine out more than once a week. When I do it is not at one of the national chain restaurants. I prefer the smaller locally owned restaurants.

I have become quite content with my lifestyle. I really don't feel like I am doing without. I have everything I need - with the exception of health and medical care. If I were to become gainfully employed again with a regular steady generous paycheck I would hope to maintain most of the lifestyle changes I have adopted.

In strictly financial terms my life today is much worse and much more stressful than it was six years ago. I personally have changed a lot in that time. I have become extremely resistant to sales and advertising efforts. I am much more cynical and skeptical. I no longer give much of a damn about the expectations of society and community. I feel no sense of loyalty to either because I believe many of our social institutions have actively undermined my interests and my well-being. I do not donate to or otherwise support not for profit endeavors - although I wish I had the income to enable me to contribute to some of these organizations. I am politically active and aware.

My expectations for the future are mixed. I believe that the national economy faces many serious issues that are not being addressed. I don't expect that to change anytime soon. I am very pessimistic about the financial future facing most middles and working class Americans.

On a personal level I am somewhat more optimistic. I have determined that there is no longer a place in the traditional work environment for a single, forty something, highly educated female who finds it necessary to begin a new career. I've shit canned my education and traditional work experience. It no longer has any practical value for me. I am learning new skills which will enable me to produce tangible services and products. I have identified a potential market where few folks are currently offering these services. I have hopes of relocating there and starting my own small business. Given my circumstances I need only recoup my investment and generate enough income to be self-supporting. I believe I can do that.