Our Debt Free Family

Commit. Plan. Take action.

Update: Settling Into Our New Home

| Leave a Comment

new home

There has not been a lot of time to stop and reflect on financial or life updates for the blog recently. We have been running around like crazy for about four weeks now preparing for a move, moving, and settling in. Finally, we are starting to have what resembles home and a new routine for our family. Here’s how we are settling into our new home.

Goodbye, Atlanta!

new home

I met some truly fantastic people in Atlanta, but living there was not good for my mental health, my marriage, or my relationships with others. My husband and I started looking at homes to rent closer to our original homes again (back to North Carolina). A few weeks into our search, we decided we would probably wait until March to move so that we could be financially prepared. No more going into debt just to improve our immediate circumstances, right?

Well, the universe had different things planned.

Our tiny 450-square foot apartment got bed bugs (again – the second time in two years). Thinking about having to deal with an exterminator coming in, finding a place to go during COVID, and the multitude of other concerns on my plate, I was pretty close to having a mental breakdown. I didn’t even want to be in Atlanta anymore, why were we fighting so hard to stay?

A few things crossed my mind. “Just abandon the lease, there are bed bugs in the apartment.” “We can sleep on an air mattress for a few weeks.” “We have to call the landlord.” “Oh, God, we are in no way financially prepared for this right now.”

Help From Mom

I started talking to my mom about what was going on. She was there throughout the first ordeal with bed bugs. I just needed to vent to someone, but she offered to help pay for us to move out immediately. Who could turn that down? So, we started looking for a new home as if “money weren’t an issue,” as mom said.

Within a couple of days, we found a cute three-bedroom and two-bath house close to where my husband and I grew up. We were approved within a couple of hours of applying and mom helped with all of the deposits, moving truck, and other moving essentials. Just like that, our lives completely changed (and for the better).

The move, in general, has been an immediate improvement in the quality of life for us. We are happier, there is more space, we can see people we love. More importantly, we have so many things to keep us busy.

Shopping and Gifts

We did not bring a single piece of furniture from our apartment in Atlanta. There was no use in risking us bringing bed bugs into our new home. So, instead, we started saving every penny we could to get some small essential things (i.e. a cheaper mattress, living furniture, new towels, etc). We have furnished the house (pretty much) for under $2,000 out of pocket.

Amazon has some great buys as far as mattresses go. We grabbed our 10″ mattress for about $300. My grandmother had a box spring she did not need that we got for free. We also got a side table for the bedroom for free. The living room furniture took some more digging. We spent $300 on a futon and ottoman for the living space and used our old coffee table, TV stand, and television.

new home

A family friend came by with a glass dining table, four chairs, and two barstools. These were a gift. They need to be reupholstered, but that will only cost about $100 to $120 in total. That isn’t too bad for a dining set and stools. Then, last, but not least, my mom bought us a refurbished washer and dryer set ($750 with delivery and installation).

new home

Today, a new desk arrived for my new office space ($65 on Amazon). A new office chair will arrive within a couple of weeks. By February, a beautiful sectional my grandmother purchased as a gift will be here.

Making This Our ‘New Normal’

Overall, as I sit curled up on my futon which will eventually be in my spare room, I can’t help but think about how very blessed we have been. There is no doubt this year has been hard for everyone, but I am feeling hopeful. It is hard to settle into this space when it feels like there is so much to do – so much to straighten up, so much to organize, so much to decorate – but it is already home.

In the mornings, we open the back door and the dog goes into our new backyard. We have a cup of coffee together, then I go into my make-shift office (photo for the laughs).

new home

We are beginning to have what we never did in Atlanta: a routine. Eventually, this little place will fill up with things that depict our character. Memories will flood the hallways and we will make a wonderful life here. For now, there is still a little bit of settling to be done.

Read More

The Quest for Cheaper Housing

| Leave a Comment

cheaper housing

As I’ve been talking about for a few weeks, we are looking at moving… again. If you have been following the blog for a while, you know we started our financial journey while living in a motel (that is just a step above being homeless). We got moved into our apartment after that, then shortly after got the offer to move down to Atlanta. Since being in Atlanta, we’ve moved twice, and now we are just ready to move away from Georgia altogether. So, we started looking for cheaper housing to start saving more but questioned if it was the right decision.

Cheaper Housing vs. Quality of Living

The first thing you really need to decide is how much of your quality of living you’re willing to give up for cheaper housing. Cheaper is almost always going to mean giving up something. You may find it means shared laundry space, small living quarters, or heavily used appliances.

Consider how much money you would be able to save and how that would help the progress of your financial goals. Would that be worth giving up your quality of living for a short period of time? As a family, we’ve done this. We have been in a studio apartment for going on two years now and it wasn’t worth the discomfort we saved moving here. It has sent us running away from apartment living altogether. Giving up space was not the right decision on our part.

Which brings me to my next point, what are your limits when it comes to pursuing cheaper housing? Is it space, is it amenities, is it location? For us, being able to stay the next place we land for a while is important. We want to have a yard for our dog, extra room for expanding our family, and a home office. This way, we can stay put until we are either debt-free or ready to buy a home.

Should You Relocate to Save Money?

Another thing people often think of doing to help them financially is relocating. Especially now, when many people are working from home, relocating may be a good option. For instance, if you are self-employed, you may consider moving to a state with a lower income tax or if you are starting a family you may want to move somewhere with good schools and low property tax.

You may also find some rural areas have cheaper rent prices and even cheaper real estate. Those moves seem enticing when you look at the large savings, but you should also consider how it will impact your day-to-day life. How far will you have to drive to the store? Will you have to pay more for an internet connection?

Bottomline

There is more to making decisions about your life than how much money you’ll save making that move. You should consider your entire life, happiness, and long-term goals when you are making any big decision in your life, even if it is something as small as seeking cheaper housing.

When it comes down to it, making decisions about your everyday life should take more thought and consideration. For us, our next step will be to find reasonably priced housing that our family can grow into and stay in for a while. Somewhere we can reach debt freedom and start saving for our first home. To me, this will be the perfect find over saving (insert amount here) each month.

Readers, what things do you place more importance on when making decisions in your life? Have you ever made a similar choice about housing? 

Read More

It’s Okay to Need Help

| Leave a Comment

need help

Sometimes the biggest thing standing in the way of my own progress is my pride. Over the years, people have offered to help us monetarily and otherwise. In almost every instance (unless it was life-or-death), I’ve turned the help down. Something in me would rather count dimes at the Aldi checkout counter than accept help from a friend or family member. But, through the pandemic, I’ve realized something: It is okay to need help. Even more importantly, it is okay to accept help.

Giving Up Power

A lot of the struggle with receiving help from friends or family is giving up the power behind the situation. If I receive help from someone, they are now involved and I owe them something in return (or at least that is how my mind has always worked). I also have to admit I’ve lost control of the situation at hand and need help.

For those times, I have to step back and give up wishing for power over the outcome. Then they can be allowed to help to the best of their abilities, whether it is monetarily or otherwise.

Reaching Out When You Need Help

That being said, most of the time people are not going to offer up help unless they see you are struggling. You may have to reach out and ask your loved ones for assistance. Here are some things you need to consider doing when you reach out for help…

  • Show that you have tried to help yourself. If you need help, your friends and family will be more likely to assist if you have tried to solve the issue on your own.
  • If they have given you advice, demonstrate that you’ve taken it prior to asking for more help.
  • Think about the timing of your request and consider how it may impact them.
  • Don’t make them guess. Just ask for what you want.

These four tips will help guide your discussion in a productive way. Remember, if the answer is no, don’t be upset. No one is obligated to assist you financially or otherwise. Simply tell them you understand.

Conclusion

When it comes down to it, more people need help now than ever. The global pandemic, in conjunction with several other national crises, has made it difficult.

I wanted to share these reflections with you all today because I’ve spoken with a lot of people who are feeling defeated. More of my friends are being forced to move back home or significantly change their lifestyles just to scrape by. There is no shame in it.

There is no shame in packing up and moving home if that is what you need to do to get further ahead.

There is no shame in receiving money from a relative in a time of need.

There is no shame in needing someone else’s help.

Readers, can you think of a time where you had to rely on others to get by? How did it change you? 

Read More

It’s Okay to Call It Quits

| Leave a Comment

call it quits

If you have been following the blog, you know our move to Atlanta has been less-than-kind to us. From the job we moved here for going out of business to relocating again within the city to the craziness going on everywhere in the world, our fight-or-flight instinct is kicking in and everything in us is saying flight.

What Now?

That being said, we’ve decided to move again to somewhere cheaper and somewhere that has been calling to us for a while: The great state of Tennessee.

We’ve made it a personal goal to be moved by the end of the year. Currently, Chattanooga is looking like the top pick, though we have looked farther north in Eastern Tennessee as well. After doing some research, the cost-of-living there is much less and our taxes will be lower there, with us both being self-employed.

On top of that, the move all-around will buy us some happiness. We have always loved Tennessee and the mountains. Not to mention, we would be able to leave Atlanta behind and truly get a fresh start, with better financial prospects on the horizons (seriously, at least $400 in savings in rent per month alone). At the same time, we will only be about an hour and a half from our new friends here in the city.

It’s Okay to Call It Quits

I’m not going to say calling it quits doesn’t suck in some ways. It definitely does. We moved here in March of last year with stars in our eyes, thinking Atlanta would be life-changing for us and bring new opportunities. It just hasn’t been what we thought it would be or what we needed it to be.

You know what? That is okay.

What isn’t okay is continuing on in a place and mental space where you are mentally drained constantly. So, if your sanity relies on it, and (in our case) your finances also benefit from it, it is okay to call it quits. You aren’t a failure. This experience, place, thing, plan wasn’t for you.

Lessons Learned

Before we do move, we have discussed some overall lessons learned from this…

  • Don’t move anywhere that you’ve never spent time. At least go check it out for a weekend before making the decision.
  • Just because you can afford it doesn’t mean you should do it. This is especially the case with housing – we are overspending in Atlanta in a huge way.
  • Don’t be afraid to say no and also don’t feel like you owe anything to anyone. A lot of our problems here in Atlanta were due to us giving loyalty to people that didn’t deserve it.

Final Thoughts

This can be a hard thing to swallow, especially when you have put a lot of time and effort into making something work. However, it applies to just about everything in life: relationships, jobs, situations. It doesn’t make you a quitter or a failure. It means you know you want something different.

One thing we are both looking forward to is what this move will mean for us in terms of our debt freedom journey. I can’t wait to keep you updated on preparation for the move and how we continue to tackle our debt in the months to come.

Readers, have you ever moved to improve your lives financially or otherwise?

Read More

COVID-19 and Mental Health: Are You Checking in With Yourself?

| 1 Comment

COVID-19 and mental health

The topic of mental health is no stranger to this blog. For our family, the debt freedom journey has been very much so a mental journey but it has been nothing like the mental journey we’ve been through the past few months. (And we were homeless at one point.) I knew if it was impacting me so significantly, it had to be having a huge impact nationwide. So, I decided to take a look at COVID-19 and mental health.

COVID-19 and Mental Health Numbers

There are a lot of things that can come up when you are urged to spend most of your time indoors. For many people, depression is one of the first things that starts to set in. In general, humans are social. Most folks look forward to human interaction. So, without it, it is easy to start to get depressed.

For individuals with pre-existing mental health disorders, the threat of a mental breakdown during this time is even higher. Add the struggles of the COVID-19 era into that, and you have the perfect recipe for personal disaster.

“We’re talking about a population that struggles with being housed, being able to feed themselves, being able to take care of medical issues, having enough of an income,” Dr. Fumi Mitsuishi told Healthline.

How Coronavirus Impacted My Mental Health

I struggle with anxiety and depression anyway (typically seasonal), but this entire ordeal has had me out of sorts. I’ve noted more mood changes recently and definitely more low/sad points. It hasn’t been a fun time and my life hasn’t changed that much.

There were a number of things I was looking forward to that were canceled (two stand-up shows, one concert, two trips). We also weren’t able to celebrate our first wedding anniversary the way we would’ve liked. Also, because we are stuck in a 500 square-foot studio apartment, we spend a lot of time right on top of each other.

But, we have a lot to be thankful for. We’re able to get by financially and we are both in good health. However, it is so easy to slip into depression or even fall back into bad habits with everything going on in the world.

If You Need Help

No one should let COVID-19 and mental health take over their lives. If you need help, there are resources available to you.

  • Have a friend or family member to check-in with on a regular basis.
  • Reach out to the Suicide Prevention Hotline if you are having suicidal thoughts or feel depressed. The hotline number is 1(800)273-8255.
  • The Mental Health Hotline can help you talk through your feelings. They can be reached at 1(800)950-6264.
  • Individuals with a substance abuse issue should call their sponsor or reach out to the Substance Abuse Hotline. Their number is 1(800)662-4357.
  • Call your health-care provider or therapist. Ask for their recommendations on how to handle your condition and feelings.

Remember, your own mental health and well-being is the most important thing. This will pass with time and you will come out on the other side stronger. Readers, how are you dealing with COVID-19 and mental health? 

Read More

Picking and Choosing What to Pay During the COVID-19 Pandemic

| 4 Comments

COVID-19 pandemic

Jobless claims in the United States have reached more than 6.5 million as of last week due to layoffs amid the COVID-19 pandemic. Because of this, many people are falling behind on their bills, despite the stimulus package. In our home, our monthly income has been sliced in half, leaving us picking and choosing what bills get paid now.

Establishing a Financial Cushion

If you’ve been keeping up-to-date with our financial journey, you know we just recently established our $1,000 emergency fund (again). Well, due to my husband’s layoff, we needed to use a chunk of that to cover expenses of moving his tools and covering bills. After doing that in March, we are re-evaluating how we are going to tackle the COVID-19 pandemic financially.

Initially, I was just going to maintain all of my payments across the board, but that leaves us essentially paycheck-to-paycheck (which is a little iffy in the current environment). However, after seeing our EF drained, I reconsidered that and decided to take a break from 2 larger monthly payments just to refund our emergency savings. Having cash saved and on-hand right now would provide our household with some peace of mind.

That being said, my student loan is under forbearance until September and my car company is giving me a three-month break from payments. This will allow us to bank $768 each month for the next three months, which will be a nice emergency savings fund.

Consider What You Need

For us, having that buffer cash on hand is going to be key in keeping us financially stress-free during this time. Believe me, the last thing you want to do is to be stuck in the house with your spouse fighting about money. You may be thinking, “well, we HAVE to make payments on the credit card, car, etc.” That may not be entirely true.

Many companies are offering breaks on payments or lower payments in order to help individuals impacted by the coronavirus outbreak. Call and discuss your options with each business. Get your bills as low as possible.

If your available cash still doesn’t cover what’s due, consider what you need. Tiffany Aliche, aka the Budgetnista, told NPR in an interview, “then I would ask myself, is this something that I must pay for because I have to maintain my health and my safety? That comes first and foremost.”

So, if it doesn’t pertain to your health and safety right now and you don’t have it, take a breath. It is important to remember what you do and do not control at a time like this.

Putting Plans on Hold

COVID-19 pandemic

This photo will be us for a while: at home. Unfortunately, many of our plans have been put on hold, postponed, or canceled for the next few months. It is not yet clear whether some events will be refunded or not (I wish!).

We’ve put plans to visit home (Charlotte) on hold indefinitely. Hopefully, by mid-May, we can decide on a solid date to re-plan that trip. On top of that, just about everything else has been postponed or canceled in some form. This will likely help save us money and, in the long run, staying home will too.

Finding Ways to Stay Busy at Home

I’ve thankfully been able to continue working because I’ve worked remotely for more than five years. That isn’t to say being indoors isn’t driving us a little crazy! We have been able to find ways to stay busy though.

COVID-19 pandemic

I, for one, have been cooking a LOT. We recently discovered Sam the Cooking Guy on YouTube and his videos have me looking in my pantry to see what I have and what I can make. Here’s one of his quarantine recipes…

In addition to cooking, we’ve also been taking Enzo on a lot of walks (and he certainly isn’t complaining). Remember, you can still get some fresh air. Just avoid contact with people and if you can wear a mask!

COVID-19 pandemic

When we aren’t doing those two things, I’m fully reaping the benefits of some of our subscription services. Amazon has a plethora of free Audible books, Kindle reads, and things to watch right now. I’ve listened to about six books in the past week and a half (ha!).

No matter what you do to keep busy, it is important to stay inside and stay healthy. Remember, you have options when it comes to your finances. The most important thing is your health. Stay well. 

Read More

10 Frugal Date Ideas for Valentine’s Day

| Leave a Comment

frugal date ideas

Part of being on a debt-free journey means finding ways to cut costs and spend less. With Valentine’s Day coming up, my hubby and I are brainstorming ways to celebrate. Here are a few frugal date ideas we’ve come up with.

Frugal Date Ideas for Every Couple

We both have trouble not spending money on each other. When we have extra cash, we love buying one another gifts and treating each other to something special. However, this can cause serious budgeting issues. Because of this, we’ve had to get a little creative to save money.

1. Make Pizzas at Home

Something my husband and I love to do is make pizza at home for date night. It only takes about 25 minutes and keeps you from spending too much eating out or ordering in. Plus, we have a great recipe that keeps costs low too.

For the dough: 

  • 1/2 cup of greek yogurt
  • 2/3 cup of self-rising flour

Mix these together to form pizza dough (it makes a single-serve pizza). Roll the dough out on a floured pan and bake at 400 for 10 minutes. Take the baked dough out of the oven, add sauce and your desired toppings. Put the pizza back in for an additional 15 minutes.

2. Pillow Fort Movie Night

Because we are kids at heart, we still enjoy a good pillow fort. The best thing about that is it literally costs nothing. We also have Amazon Prime and other subscriptions that don’t cost us anything extra. So, we can pitch our pillow fort, curl up and watch a new movie or binge a TV series. Super cheap and so much fun!

3. Play Games

Both my husband and I love to play cards. We also own several video games we can play together. Find a game you both enjoy, buy it (and some snacks) and just play around for the evening. If you’re competitive with each other, like we are, you can even hold small tournaments. It can be great fun.

4. Go Hiking

I love going for a good hike or a nice walk. Grab your significant other and head outside. Walk around your neighborhood, drive to the park, or find a nearby trail to hike. It is a great way to spend time together and chat.

5. Get Ice Cream

Ice cream is personally a favorite treat of mine. If you live close to a creamery, set out on a walk for some ice cream. You can also hop in the car and grab a sundae to split. Either way, ice cream is a delicious and frugal date.

6. Find a View and Enjoy it Together

This is one of my favorite frugal date ideas and something we do on a regular basis. Normally, we grab food at a drive-thru (usually super cheap) and drive somewhere with a great view. We eat together in the car, listen to a podcast or show, talk, and enjoy our surroundings.

7. Head to the Dog Park

frugal date ideas

You all know we have a pup who loves going on walks and being social with other dogs. If you’re a dog lover too, consider heading to the dog park for a date. You and your partner can enjoy the company of all the dogs, get your pet some exercise, and meet other people. It is a fun date that you can do completely for free.

8. Have a Nerf Gun War

Nerf guns are fairly cheap and something you can keep around. Grab a pair of guns (and ammo) and stage a war in your home or outside. This is unbelievably fun and relatively cheap as far as dates go.

9. Scope Out Free Things in Your Area

Chances are, there is something free going on nearby. Look for festivals, fairs, museums, and free events to visit. You and your partner will be able to walk around the event, have fun, and spend little-to-no money.

10. Treat Each Other to Massages

Massage oil can be purchased fairly cheaply. All you need is that and a couple of candles to set the mood. Treating one another to massages can be romantic and give you a chance to talk to your spouse or significant other about their day.

Readers, do you have any fun frugal date ideas you enjoy on a regular basis? Share them with me in the comments. 

Read More

October 2019 Update: Searching For Relief

| 1 Comment

Relief

If you’ve been keeping up with us recently, you know we’ve had some unexpected expenses, including my being in an upcoming wedding this weekend. We haven’t made any huge progress where our debt freedom is concerned, but we are looking into things that may help us in the near future.

Our Update For October

The last detailed update we provided on the blog was in August and we were completely stalled. We have made some progress since then, but not a ton. In August, the numbers were as follows…

  • My Car Amount Owed: $21,333
  • Drew’s Car Amount Owed: $0
  • Credit Card Total For Both: $483
  • Student Loans (Mine): $24,002
  • Matco/Snap-On: $7,543
  • Amount in Collections: $679

About two months later, we haven’t seen a whole lot of progress. Here are the updated numbers…

  • My Car Amount Owed: $21,302
  • Credit Card Total For Both: $502 (interest is a KILLER, folks)
  • Student Loans: $24,184 (I had this pushed off until the beginning of the year because my husband has been out of work)
  • Matco/Snap-On: $7,449
  • Amount in Collections: $679

If you do the math, you’ll see our overall debt has actually increased to $54,116 from $54,040. Unfortunately, this is due to interest rates and, where my student loan payments are concerned, deferring payments.

Despite us still being stalled in many ways, we’ve both been looking for ways to increase our earnings. As you know, my husband was out of work for a bit. He has gotten more steady work and is beginning to get paid regularly again. I was also lucky enough to score an Instagram influencer gig that will bring in an extra $1,200 later this month. That will all go towards paying off some kind of debt.

IRS Tax Debt

One of the biggest things weighing us down currently is my payment arrangement with the IRS. Because I largely freelance for work, no taxes are withheld and I fell behind in 2017 with saving to pay for those. Additionally, I filed for an extension for 2018, which is due later this month. This will only add to my IRS bill.

That is SUPER stressful. Right now, I am paying about $129 per month to the IRS. It will increase slightly once I file for 2018. I’ve been looking into tax forgiveness programs that may be able to assist us, especially since my husband has been out of work so much within the past couple of years.

Total tax debt forgiveness is a myth, but there are a few options you may want to consider if you’re in a similar situation.

  1. Innocent Spouse – This can give you the ability to claim deniability if your spouse owes a lot of money. It will get you off the hook for the tax bill, but your spouse will still need to pay. This program isn’t for forgiveness but helps ensure the person responsible is the one being billed.
  2. Offer in Compromise (OIC) – An OIC agreement with the IRS can help you decrease the amount you owe significantly. However, not many people qualify for this type of program. Less than 25 percent of those who apply for OIC each year are approved. You also have to provide very detailed information about your finances, which can backfire on you with the IRS.
  3. Currently Not Collectible (CNC) – If you really can’t pay anything back at the moment, you can try to request a CNC. To qualify for this program, you will need to be in a situation that would put you in financial hardship if you made the payments. The IRS will revisit your status after some time though, so you may end up having to pay down the road if you become able. Your tax debt “lives” for 10 years.

I’m not moving forward with any of these options yet. I will be consulting a tax professional, however. My husband and I are hopeful we will be able to get some help from a client of his for next to nothing. He has experience getting people off the hook for their tax bills (or finding more write-offs to make the amount owed much less).

For now, we will continue to have our sites focused on becoming debt-free, including this looming tax debt. Readers, where are you in your debt-free journey? I’d love to hear from you in the comments!

Read More

How Much Does It Really Cost to Be in a Wedding?

| Leave a Comment

Cost to be in a wedding

I was recently asked to be a bridesmaid in a friend’s wedding. I’ve never been asked before, so I was thrilled. She and I have become extremely close and I was honored. However, I didn’t realize how much it may cost to be in a wedding.

Debt-Free Living and Big Events

Sometimes I’ve found that our goal of being debt-free keeps us from doing things. Many of our friends and family don’t hesitate to swipe a credit card or take out a small loan for just about anything. (Seriously, one friend has $20,000 in credit card debt because traveling is more expensive than financial health).

Oftentimes, this means we turn down invites to go to larger events that may cost more money. We’ve turned down group trips and music festivals, which can run in the hundreds of dollars for a single ticket.

When my friend asked for me to be in her wedding though, I had months to get things ready and didn’t have to worry about swiping a credit card (because we aren’t doing that anymore).

How Much Does It Cost to be in a Wedding?

So far, the wedding will be costing me about $512. That isn’t including any additional money I’ll need during the bachelorette weekend for food, bar entry, etc. It also doesn’t include the wedding gift. When all is said and done, it will probably wind up costing me close to $800 to be a bridesmaid.

After doing some searching, that’s about the average cost for anyone to be a bridesmaid these days (seriously). Of course, I said yes before we had a TON of financial changes in our lives and pulling everything off has not been easy. If you’re thinking about being in a wedding and want to remain debt-free, consider these tips to keep cost low.

  • Be honest about your financial situation. If something is too expensive, speak up about it, but don’t be negative. Come forward with more affordable solutions.
  • Suggest the bridesmaids get different dresses in the same color. This can help you shave down the cost of your personal dress while still having uniformity.
  • Consider skipping out on the spa day and doing some of the beauty items DIY. Do your own hair and makeup. Skip the nail appointment and do them yourself. While it is fun, it isn’t necessary.
  • Stay in an Airbnb. If you’re traveling for the wedding or bachelorette party, stay in an Airbnb. You may even want to consider getting a group together to do so.

Lastly, don’t be afraid to say no. While the bride may be disappointed, if you can’t afford the cost of being a bridesmaid, it isn’t worth the stress you’ll put yourself (and the bride) through.

Readers, have you been part of the wedding party? How much did it cost you? How did you plan for it?

Read More

Learning to Live on One Salary

| Leave a Comment

live on one salary

In my last update, we celebrated having paid off $20,000 or so in debt within one year. However, there have been a lot of changes with our cashflow in the house that has hindered the speed of that continuing. Mostly, we are down to one (main) salary.

My husband is breaking off on his own a bit and has been considering starting his own business. Because of this, cash flow on his end hasn’t been consistent. We’ve lived on one salary multiple times in the past, but every time it is different. Here’s how we’ve learned to live on one salary (and benefits of doing so).

Learning to Live on One Salary

Living on one income isn’t as hard as it sounds. First, you have to come up with a budget that only requires a single budget. For us, it is my income because it is more stable. Your family may want to choose the larger (or smaller) income, depending on your financial goals.

If you are over budget when you tally up your expenses, see where you can cut costs. Do you really need Hulu, Amazon, and Netflix? Or, if you’re looking for a bigger decrease, consider downsizing to a smaller home to better fit your new one-income budget. Others may find it beneficial to move to a more pedestrian-friendly area to cut down to one (or no) car payment or walk more places. If you’re comfortable doing so, you may even consider taking in a roommate or renter.

Consider giving up your indulgent behaviors like going out to eat, junk food, and other items as well. You certainly don’t need to eat out every Friday and spend tons of money on junk foods. This will help cut down the cost of food in your budget as well.

Why You Should Live on One Income

You’re probably thinking, why would anyone willing to live on a single income? It can be difficult and, at times, hinders you from being able to do everything you want to. It can also help you achieve some of your financial goals and feel more secure with your finances as a result.

  1. It makes saving money easier. Simply save your spouse’s income instead of spending it. If you can live on one income, why not bank the rest? You can create a strong emergency fund.
  2. You can use the cash for debt repayment. If you want to focus more on your debt payoff plan, living on one salary can make that more doable as well. Learn to live on one spouse’s income, then use the second to pay off what you owe.
  3. Financial security increases when you have a surplus of cash flow. You have more money than you need, why wouldn’t you feel more secure? You have the ability to invest in your future, pay off debt, and increase savings. It can truly pave the way for financial freedom.

Not to mention, if you live on one salary, you will always be ready if something happens to one of your jobs. You’ll have some savings, and you will be able to continue your current lifestyle until your spouse finds a new job (or starts earning more).

Our Debt Freedom Progress

live on one salary

So, while we are adjusting to living on a single income again, our debt freedom progress has been slow. However, today we paid the final $175 payment to completely pay off a credit card. That will free up an additional $175 for us each month to redirect towards other debts and savings.

In the next few months, we will be paying off other accounts and see our debt freedom progress continue. I will be in a wedding in October, which will be a small cost (around $200 total). We have prepared for that cost though. Both of us are planning to spend the holidays at home as well, to cut down on travel costs.

Readers, have you lived on one income? Tell me about your experience in the comments!

Read More