Open Mike

Re: Living on $12,000 a Year

Deborahmichelle — Sun, 22 Jul 2007 15:29:49 GMT

Wow! You did great on that bargain!

Re: Living on $12,000 a Year

latenightleader — Sun, 22 Jul 2007 02:51:44 GMT

Deb- wanted to tell you I got the books Raised on Sunshine and Raised on Rainbows on Amazon- one was 4 cents and one was $2.23- so with shipping they were a little over $5. i do like them- thanks for suggestion!

Tracy

Re: Living on $12,000 a Year

saliro — Sat, 21 Jul 2007 19:15:23 GMT

I, too, am not sure where to click, but here goes!!!

As a widow, this past year I've lived on a little over $13,000 a year. I've been unable to work following an auto accident, and I used most of the accident settlement to send my grandson to barber college. He's now 19, and came to live with my husband and me when he was 10. My husband passed away a little over four years ago, and my grandson was quite ill for several years with Lyme Disease. The Lyme left him with chronic fatigue syndrome, and he has occasional flare-ups. It's a dreadful disease!

But, living on a just a little can be done, and done comfortably. I receive $1132 in social security survivor's benefits, and $229 as my part of a payoff from the sale of our business. The $229, which I'll receive until 2009, goes into a money market, and is used to pay auto insurance and property taxes, as well as savings.

As for monthly expenses, groceries (this month) have been $75 at the supermarket, $26 for Angel Food Ministries. That's about average. I cook from scratch and we rarely eat out. My grandson works a second job as a fill-in dishwasher/host/whatever they need at a local restaurant. He's given meal tickets along with his hourly pay, and so he uses them to treat us. Works for me -- I can't tell the difference between a "free" meal and one I've paid for.

When my husband and I sold our big house and downsized, we put almost all that we made into the new, smaller home. Therefore, my house payment is only $228, with $40 for home insurance, and around $1000 per year property tax, for a total of about $350/mo. Although my house needs some repairs, it's still a roof over our heads. As soon as my grandson is on his own (it's taking him some time since he's been quite ill), I'll be moving to live in an apartment my youngest son has built for me as an addition to his home.

Even though we live in a hot, humid area, we "zone" our air conditioning with small, 5000 BTU a/cs in living room and bedrooms. If we aren't in a room, we turn the a/c off. Same with heating in winter. I don't have a clothes dryer and don't want one. I have four solar dryers in the back yard, and racks to use in the house in bad weather. My highest electric bill this summer has been $250, while around me, my neighbors are paying $400. We also use LOTS of fans. We're careful with our water usage, as well, and that bill is generally about $45.

We don't have a landline, and I long ago got a cell phone program that includes a "buddy" second phone for my grandson for $10/mo. Total phone bill for a month is $85.

We do our own yard work, shop at the dollar store, garage sales and thrift shops. Basically, if we don't need it, we don't buy it. Also, our vehicles are paid for, so we don't have car payments. Auto insurance is much cheaper since we don't smoke, have clean driving records, have taken driver's ed (my grandson) and carry the insurance with the same company as my home insurance.

I can't afford health insurance, so I have a $50/mo. medical discount plan. Actually, when you consider co-pays and deductibles, I've many times done better with the discount than I would have with an insurance policy. I do have quite a bit of medical debt due to some health problems, but I pay a bit on them each month, and they seem happy as larks to get it. My grandson's father carries him on his insurance policy -- thank God!

We use the library for books, movies and internet. My grandson's girlfriend is as practical and frugal as he, so they can have a lot of fun with a bit of nothing. We occasionally take in a movie using discounts (Harry Potter tomorrow -- sorry, but I can't wait), and I splurge on basic cable (less than $19/mo.) since we live too far from any city to get reception otherwise.

I have four dogs -- a rescue, a stray, a roadside find and a dumpee -- so they're included in my budget. I spend about $300-$400/yr. on shots, heartworm meds and yearly checkups. Food, treats and flea drops run about $20/mo. Fortunately, they're very healthy, and they keep me in good shape, too, since they INSIST on being walked a mile or two a day. Like people, pets who are well-maintained (exercised, fleas controlled, teeth brushed, kept out of harm's way in a house and yard) aren't terribly expensive to keep, but, according to all the studies, they'll keep me healthy and alive much longer. Also, they provide much-needed and valued security in an "iffy" neighborhood.

We live in a small town, which helps on gasoline expense. Many places we can walk or bike. Both vehicles are serviced and have the oil changed every 3000-4000 miles for an average cost of only $35-50 each. This saves a fortune in repair bills, or even having to invest in a new vehicle. As proof, my vehicle is 22 years old, and runs like a charm, thank you very much.

I haven't asked my grandson for room and board payment because I want him to be able to save enough to give him a good start when he leaves to be on his own. In return, he does a lot for me around the house, keeping up with the yard, washing the cars, house and dog sitting when I'm away, etc. And he's not expensive and he is a good saver, otherwise I wouldn't do this. He is, however, responsible for his own vehicle, gas, clothing, etc.

I have no credit card debt, and, other than core living expenses, the only things I owe are my mortgage, taxes, auto and home insurance and medical bills.

So it can be done. I budget strictly to include savings for the unexpected, and the way I see it, our bills get paid, we have a roof over our heads, more to eat than what's good for us, and the wolf just passed up our door and headed down the street.

But more importantly, we enjoy life. There's so many things to do that don't cost a fortune, many of which benefit others. Since I don't work, I'm able to serve in my church and community, visit (with my dachshund) the local nursing home, and spend much of each summer with my two smaller grandsons. These are the things I most love doing, so I consider myself blessed. . .

At a little over $13,000 a year.

Re: Living on $12,000 a Year

lviall — Fri, 20 Jul 2007 00:52:23 GMT

It's been a while, but I lived on about $5K the year before I went to grad school in 1979/80, and about the same the next year, when I was in grad school. Prior to grad school, I worked in a temp clerical role in several companies, paid $80 a month to rent 2 rooms, and eating frugally. In grad school, I had an assistantship, which meant there was no tuition to pay, and I made about $3800 over the school year. I ate a lot of ramen noodles, and french-cut green beans, made my own bread, and paid a whopping $180 a month in rent. My parents did finance some of my expenses, which probably added another $2K, to cover things like car insurance (health insurance was through school). But I got through okay in a better position than some of the other students, who also had assistantships but seemed to need extra cash for rent and utilities. I guess I focused on the necessities, and that kept me on track.

Re: Living on $12,000 a Year

Deborahmichelle — Tue, 17 Jul 2007 16:37:03 GMT

Angie, Those are good ideas, but of course, we should get the books out of th Library! If we like the book, tehn look for it at a thrift store ....

Re: Living on $12,000 a Year

Angie — Tue, 17 Jul 2007 15:58:39 GMT

Lorrie

I have worked full-time for almost two years now. I worked part-time for 5 years prior. Child-care is not an issue for me, either, as one is in college and lives at home and the other will be in 11th grade. I am working full-time because we made the mistake of buying a too-expensive house to support all of our bills on my husband's income. The ironic thing is that by going full-time more bills were created because I lack the time to do all of the thrifty things I used to do to stretch those dollars. I can't go back to part-time at this point yet because the increase in my wages makes a big enough difference. My family misses me being at home, and I miss being at home a lot more than any of us realized. Our solution? We are house-hunting and we are anxious to unload the huge house and the huge mortgage.

Your children still need you. Keep looking for more ways to stretch those dollars. My first suggestion is to track every penny that comes in and goes out of your life. Determine what is important to you by looking at and putting personal value on all the ways you spend your money. This is an eye-opening experience. Purchase and read "The Complete Tightwad Gazette" by Amy Dacyczyn and "Your Money or Your Life: Transforming Your Relationship with Money" by Joe Dominguez and Vicki Robin.

Re: Living on $12,000 a Year

bourgr — Tue, 17 Jul 2007 01:45:19 GMT

Since you've had pain for so long I thought I would mention EFT to try to help heal it. If you go to their website you can download their free manual and it shows you how to tap on acupressure points to relieve pain and help emotional issues associated with the pain. Since it is free and you can do it in your own home it is a great resource for frugal-minded people. The website is www.emofree.com.

bourgr

Re: Living on $12,000 a Year

Brandy — Mon, 16 Jul 2007 12:03:39 GMT

I find that lack of resources (be it savings, credit or income) is one of the biggest obstacles to getting into permanent housing here. I know what we have done and the frustrations we have felt as a family of five with my husband working. I can't imagine trying to find a home and care for children on my own.

I am very glad she was chosen for a Habitat home. Oh, I'd like to add that I read someone also donated a mini-van to be given to her.

Re: Living on $12,000 a Year

Kidsnbutterflies — Sun, 15 Jul 2007 15:07:34 GMT

That is wonderful that they did that for her!

Re: Living on $12,000 a Year

Brandy — Sun, 15 Jul 2007 13:39:46 GMT

I was thinking more of the financial aspect than the physical one when I said "build her a house". I should have used different wording. My understanding is that she is a widow with six kids and did not have the financial resources to build or buy on her own.

Re: Living on $12,000 a Year

Kidsnbutterflies — Sun, 15 Jul 2007 13:06:01 GMT

Brandy, if she is able-bodied, and has family and friends she helped build her own home. thats what we did, it was hard hard work, a lot of blood sweat and tears, thats why they call it sweat equity.We started out in July of 98,thru the heat, and thru the cold and had a blitz built, for two weekends and finished up our home, in January of 99'. We got to move in April 99' after all the paperwork and inspections were done, they had to reorder the cabinets because they were not made properly, thats what took so long. I've lived in my home for 8 years now. when you've been thru all of that, hammering, hauling trash clearing the lot, putting down the sod. ect, actually seeing and participating in building your own place,and helping the other homeowners build theirs too, the feeling is undescribable, even to this day. Living in the places I have, living in a shelter a couple of times, it's like a miracle to me. I pay less than $400 a month for a 3br,2ba. with a lot. That includes the insurance, and homeowners assoc fees. There are no interest payments. I'm hoping to find work real soon and since I live so frugally, I want to double up my payments and pay off my mortgage sooner. I don't own a credit card so I have no credit card debt.

Re: Living on $12,000 a Year

Brandy — Sun, 15 Jul 2007 12:50:53 GMT

That's a rough spot to be in. I hope you can find some work to do that you can handle.

There is an article in the paper about a woman who recently had Habitat build her a house. She is one of those that I mentioned hearing of that has more than 5 people in a travel trailer. I so glad that she was able to get some help.

Re: Living on $12,000 a Year

Kidsnbutterflies — Sun, 15 Jul 2007 12:17:07 GMT

I am not exactly sure where to click to post a reply so I clicked the last message....

I use to be in subsidized housing too, and section 8 when my kids were little, even though the rent was cheap and all, I hated it so much, my landlords were pigs, they wouldn't fix anything and they were dirty old men, they thought they had the right to just walk into my apartment anytime they wanted, they wouldn't fix anything that went wrong. The neighbors were drug dealers, even the kids, it was horrible. That was over 10 years ago.

I live on less than 12,000 a year, I just figured it out on my calculater, it includes my food stamps. including my child support and alimony, and the Room and Board my son pays, it totals about $70 under 12,000. I have a Habitat home, so the mortgage is way under what people would pay for a 1 bedroom apt. but it is mine... I don't have to answer to a landlord. I will never give my house up. I have done so much to be frugal, and to sacrifice to keep this home. My biggest finance other than my home is that darn electric bill. Living in Florida, and having all electric is a struggle, the summers are the worse, my bill went up over $40 last month. Every month I call up the electric company and get my bill payment extended to the next month, so far thank G-D I haven't had a problem with that... It's just thats when I have the money at the beginging of the month. and I'm going to have to find another homeowners ins, because the company we have is backing out of Florida, and it's going to be tripled for what I pay now. I am still trying to find work, it's hard though since I ride the buses.I also have chronic pain in my Rt arm and shoulder, I have been going back and forth to the Dr's and they haven't given me a deffinate diagnosis, they say it's tendonitus, but I've had pain for almost 3 months now.I am on county, insurance, and they take forever. I am glad my youngest is almost grown, I wont have to worry about leaving him alone, or having to worry about day care expenses.I am great at shopping frugally, but I wish I had a green thumb and the resourses to grow a veggie garden, that would save me so much money. I am really getting concerned, especially since my alimony ends next year, and the child support ends in a little over 2 years...Then what...

Re: Living on $12,000 a Year

Tanyajoh — Sat, 14 Jul 2007 17:53:30 GMT

We live in an apartment with a sleeper sofa, and we live in subsidized housing that goes according to our income. It is a waiting list, but worth getting on as things come up all the time and you may find yourself at the top of the list quicker than you think. We did. The rent $400 dollars is not the amount we pay. I live in a two bedroom apartment, and yes both have closets. My children all except Princess catch the bus at the end of our parking lot. We live in a area that has inexpensive housing, but not a lot for families just college kids. I made due with what I could get and my county HUD worker lets us, because she knows it is hard to find housing for a family of 10 me included. I now have two foster babies to take care of too. Princess doesn't seem to mind, as the state and county is allowing me to homeschool her. Our rent is $185. a month this year next year it goes up. Before HUD I lived on a temporary housing provided by the city called Bridges Program. They also subsidized until you can get into subsidized housing of your choice in my state of Minnesota.

Tanya

Re: Living on $12,000 a Year

This Old Housewife — Sun, 08 Jul 2007 13:33:35 GMT

I never went THAT low, but I currently live on about $15k/year. I buy organics with a short shopping list--in, out, and gone in less than 20 minutes with no parking hassles, no abandoned kids, and no clogged aisles like at WallyWorld. Cleaning products consist of bleach, alcohol, and vinegar I get from the local dollar store. I use high-oleic sunflower oil for food and furniture polish. My clothes and textiles are mainly provided by the laundry room in my apartment complex--the manager collects loads left behind (and amazingly, there are many), then after 2 weeks with no claims, gives me first crack at them before donating them to charity. Since I don't work, I don't need to dress especially well--a t-shirt, shorts, or sweat pants is good enough for around here. A year's worth of shampoo comes from Sally Beauty Supply in the form of a 1-gal. jug (sale priced). Furniture (when I need some) comes from evictions--residents have 48 hours to remove their stuff or it goes to the dumpster enclosure (not INSIDE the dumpster, but next to it in the dumpster corral), and people are free to take it from there.

Speaking of the dumpster, you wouldn't BELIEVE what people throw away! I've found garbage bags full of perfectly good clothes, towels, sheets, shoes--you name it--and donated to charity what I couldn't use myself.

If my rent hadn't gone up $100/month for each of the past two years, I'd probably be at $12k myself. Also, the IRA and 401(k) contribution limits have increased, so I put more away. I'm still waiting for my first "summer" utility bill reflecting A/C use--usually, I go from a norm of $35/month to about $105/month for A/C use, but it hasn't happened yet (probably because I put car windshield shades in all my windows). Maybe next month.