Let's Talk Money

So I know I have mentioned that Luke and I live on a very tight budget. I know everyone has their own definition of tight and that's why after much thought, I've decided to share a glimpse into our finances. I hope this can help others in a similar situation see where they can cut costs and consider saving money.

I have always enjoyed budget breakdowns and for as long as we have been married, they have been vital for us to manage our finances wisely. It helped us make the decisions of when and where to move. And it helped ease the worry when Luke's job was literally driving him mad and he decided a change was needed.
For the last 9 months we have basically lived on 2 very modest part-time incomes. There have been months when work was very slow for Luke but mine picked up. We credit that fully to our prayer and perseverance in our service to Jehovah.
We have had a lot of help from family and friends but in general we don't want to feel like anyone is supporting us, so we have arranged our affairs to live within our means. It has meant sacrifices but we haven't once regretted our lifestyle decisions.
So I actually want to start talking specifics in order to show how you can still live a very rewarding and fulfilling life without a lot of moula!
The biggest part of living on a budget while being self-employed, is knowing your expenses! You have to consider business and personal expenses, so you know how much money you need to make each month. Today I am going to focus on our personal expenses.
Here is the the monthly budget spreadsheet I keep updated. We revisit it about every 3 months.

The Parker Family Monthly Budget - Summer 2012

• House Remodel: $125
• Cell Phones: $44 - This is one area that my parents insisted on helping us with. We shopped around for the most affordable plan for our needs and have recently signed a contract with T-Mobile.
• Internet: $21.48 - This is the cheapest we have ever paid for Internet since we are now next door neighbors with my parents, we upped speed and are investing in a stronger router so that we can split the cost.
• Electricity: $130 - This is a monthly average based on past usage. I am anxious to see the new annual averages since this is the first time we are living solely on window units and fans.
• Water/Sewer: $40
• Propane: $20 - breakdown of the annual cost
• Lawn Care: $5 - Cost of gas to mow. We aren't really green thumbs, so our priorities are to just water and cut.
• Gasoline: $382 - This has always been a difficult area for us to cut back in. We live in the country in Texas so there is a lot or necessary driving. While my car sips at 30/mpg, Luke's truck is a guzzling beast. In order to fit within our budget goals we keep Luke's truck parked most the time and practice single car family basics. We have also set weekly mileage allowances for ourselves. A lot of times you don't factor gas costs into recreational activities but it does definitely add up. One month we spent $200 alone in just driving to do fun things O_O
• Vehicle Maintenance: $52 - Since Luke is handy and he does most repairs and maintenance himself, we are able to keep this low. The most we have ever had to spend is to invest in new tires when the time comes.
• Insurance (Renters/Car): $125 - We bundle our insurance with State Farm to get a lower rate plus I am a 4th generation member so we have qualified for a lot of discounts. While company loyalty sometimes doesn't count for everything (we just left Verizon after 11 years), it definitely can pay off in some areas. For us that has been the case with insurance.
• Groceries: $200 - This area includes our food, household, beauty and pet supplies since I buy them all at the same time. I have talked repeatedly about how we try to save on grocery bills and cook simpler/cheaper meals. I have also taken up making a lot of my own household products which adds up to a lot of saving in the long run. Here are some of the recipes I've used or am eager to try :)
• Breaks & Lunches: $48 - This is another area we really struggle to stay within. We allow ourselves some leeway in stressful times when packing ahead just isn't a real option but we are going to be cracking down this summer on only 1 bought lunch and break a person each week. The rest can be brought from home.
• Recreation: $100 - For us this include eating out. We love to do so because it is relaxing and easy and we simply love food. But it can add up to insane amounts at the end of the day O_O So if we want to eat out we can but we need to do so frugally and understand that means less fun things later in the month.
• Allowance: $80 - We do budget for ourselves $10 a week a person to spend how we please. This way we don't feel so restricted all the time. Plus we can save those $10 dollars up over time to get something really special.
• Vet Bills: $4 - Confession: we don't go to the Vet. Fortunately our dogs haven't really needed it. When we first got them we shelled out the one time fees of the initial round of shots and to get them fixed. Now we just go once a year and get their shots updated. We love to support the Kaufman County Animal Awareness Project because it is low cost and is a great organization. Now that we moved, we will still probably use them on one of our trips up to Dallas to visit family.
• Movie Rentals: $18.55 - For a lot of people this isn't necessary but for us it's one of our monthly splurges. We've never had cable and we don't really ever go to the movies so having Netflix with online streaming is a big deal to us. We budget for our netflix service plus one redbox rental a month if we're getting together with friends and want a here and now movie.
• Attire: $50 - This is a variable budget item because sometimes we don't even come close but when Luke needs a new suit we have to be prepared for a much higher price tag.
• Doctor: $20 - So you know how we don't take our dogs to the Vet, well we don't go to the doctor either. About once a year something will come up where we will need to go so I like to plan for one routine visit for each of us a year. I know there is a lot of controversy on living without health insurance and we have considered getting a policy several times. But I haven't had any for 5 years now and given our lifestyle, it's not something we can swing just yet.
• Medications: $25 - This is for my birth control, misc. over-the-counter meds, and my annual Epi Pen.
• Donations: $50
• Credit Cards: $72 - We are very fortunate to not have a lot of debt. We have a couple cards to help build our credit and we are hoping to pay them off within the year :)
• Gifts: $20 - I love giving gifts and anniversaries are a big deal in our family. Plus a lot of our friends are starting families so budgeting for gifts is really important for us.

So there you have it. That how we live on less than $1700 dollars a month while not feeling like we are paupers :) All our necessities are covered plus we get a few splurges :)

How have you managed to cut costs?

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