Thursday, April 21, 2011

How Do You Do It? Money-Wise

I was running the numbers yesterday to see when Todd and I will be able to go down to a one income family.  I got so sad, because I dont see how it is possible for us to ever be a one income family.  I hate to think that we spend everything that we earn...even when we are debt free (but the house). 

By the end of March, we will owe mid $2,000 on our last credit card debt.  We have paid off nearly $900/month in revolving debt in the past year and a half which is a huge feat! However, even with that $900/month nearly freed up, we still have alot of things we want to do.

After our last debt is paid off, we will secure 1 year's worth of the bi-yearly & yearly bills ($5,000).  We will also save up an additional $6,000 to use as 3 month's living expenses.  Between the "bi-yearly" payments and 3 month's living expenses, we will have enough money to actually live off of if something were to happen for 6 months. 

Once that is taken care of, we want to:

1.) Start investing $500/month into a Roth IRA (this along with what we contribute at work with our employers would be 15% of our income)
2.) Save for our next vehicle (Goal: $12,000)
3.) Add a 1 1/2 car garage onto our house for hubby to use as his "workshop" and tear down the house next door. 

On top of all this, start a family. question is, how do you do it?
I know there are a few stay at home mom's out there that read the blog, and some with very limited income.

I understand that we dont NEED a $12,000 vehicle.  We most likely wont even "NEED" a vehicle for the next 5-10 years (hopefully)! But this is still looming in my mind, especially seeing as we drive so much.

And the house next door houses alot of hubby's tools and welding materials.  There is a hole in the roof and it is caving in.  Before long, the house will fall down around all of hubby's equipment.  We need to really consider getting it taken down, but we also need to find a home for some of our belongings and his equipment.  We are planning on going through and getting rid of alot of items, but we will still need to store some items.

Any suggestions and criticism is welcome.
I just dont see how all of this is possible on ONE income.


  1. Fix the house with his equipment rather than build a new structure. Assess once again how you are spending money on clothing, food, and media material. If you are spending money of mags, papers, dvds, etc., you can probably cut ou that category completely. Start a little side business, one for each of you. These can be morphed or expanded when you need to quit work to stay home. In the meantime, you can use the money for whatever. The next may not be a welcome suggestion, but your animals are expensive. I would not suggest you get rid of any. Just don't adopt more. Let them stay around. Be steadfast and don't let anyone talk you into anything to do with replacing animals. Yes, you love them. But, you will really love a baby. Choose! Over time won't the Roth pay off better than paying down debt or building a cushion? No, you don't need a $12 car, but if you are keeping cars for a long time and buying new, it seems prudent to spend that much money. I know you like your cute little cars, but you have no idea how small a car can become with a baby and Most families can live off one income. It is two tvs and dvd players, multiples of everything that will eat your money. Remember, families did have only one tv and survived. It is the extras that families try to justify as necessary that cause many women to have to work. You seem determined and willing. Look again at the budget. My daughter lives in a three bedroom house with eat in kitchen, living room and one bath. Yet, she finds three tvs necessary. Okay, I cannot convince her, but she is finding it too hard to support herself and two children, even with child support. To her credit, she is not buying them right now. All three were in place when she divorced. She has given up expensive phone plan and gone to better plan for less. With her permission and blessing, I get on the phone and pretend to be her and reduce payments and balances, correct errors, get her good deals on services. She and her friends are amazed at the money I save her.

  2. You can use the money for the addition to fix up the house next door which can serve for a place to stash garden supplies, a place to germinate seeds, and storage that a garage will provide.
    I can only assume you are taking lunches to work, not buying coffee out, not cooking with expensive ingredients. Yes, I read your blog regularly, but right now, I am not going to reread to I can become absentminded so quickly. Really, not trying to insult you by telling you things you already do.

  3. Very good points, Practical Parsimony. Yes, I love my little car, but that is the one that will most likely have to be replaced if we have a little one. It is only a 2 door, and I remember getting my niece into it when she was 3 in the car seat - NOT EASY! I think my head still hurts from whacking it on the door!

    Great point on the animals too. :-) I have realized that as well. It seems like we are always buying food for the cats, puppy and chicks!

    If it were my choice, I'd get rid of $225 worth of satelite and cell phones every month. We have no phone line in the house - just the cell phones. Hubby insists on both.

    I will try to find ways to cut back even more than we already do. Yes, I take lunches to work. However, I get an "allowance" of $20/week (so does hubby) to do what we want with it. If we want to go out to eat for lunch a couple times while at work, we use our allowance money. We also have $100/month for entertainment. That is for us to go lunch once or twice, a dollar movie, or whatever we want to do. Bowling, putt-putt, whatever.

    At any rate, as I said, you have alot of great points. Thank you. I will definitely see what we can do.

  4. You need a phone of some sort. Look for a better company or plan. Satellite? Maybe you can cut back on that service without cutting it off entirely. Cut back all the allowances. Find cheaper entertainment, free if possible. at home if possible. Invest in badminton, etc. Just go bowling less. You don't have to give it up. Supplement chick feed with free food. Honestly, mine are healthy and give me eggs, and I spend $0 for food. Remember, hens give back. If you happen to have roosters, give them away.Every dime you cut out of the budget, is a dime closer to your staying home with your child. Look for a bargain, a coupon, a cheaper time for everything you do. If you do need more income once you have a child, you can do like lots of us--find a part time job when husband can keep your child at home. If either of you has a hobby that brings in any income, funnel most of right back into the budget.

  5. Well, Meg...sometimes you simply can't make it on one income! We can't! I babysit to bring in extra money for the groceries. We cut everything down and live REALLY simply...we just make it work...when we crunch numbers it is a stress, but we somehoe make it all work...that's God! If it is in His plan for you to be at home, He will provide what is needed. Yes, you have to plan and work things out..but you also have to take a step in faith. Faith is believing without seeing. The Bible promises He will care for our advice is this...just do it! Start your family...stay home and love your hubby and future babies! If we all waited until things were perfect to do something...chances are we would never do it at all! If Rob and I waited until things were all "worked out" to have kids and for me to stay home..we still wouldn't be able to do it! And here I am...homeschooling mommy of 7! It can be done! I'm praying for you, and I know you will find peace with this :0)

  6. Kim,
    Yes, I said, "Start a side business."

    Hey, I was thinking about the satellite your husband will not give up. Focus on cutting out other things. Get him in the saving groove before you face the things he will not give up. In the meantime, keep up, mentally, with what he likes. I hear you can find options to all this that is cheaper. Just don't talk about giving it up and quite possibly he will cut back cheerfully on other things. Is he the husband who made money from his hobby? If so, maybe it is time some of that money goes into savings or paying off bills.