An honest look at family finances
18 Sep
Tight Fisted Mister lives on $1,000 a month. He recently laid out the budget of Frugal Freedom who lives on $700 a month. That is so little! It makes me wonder what is the minimum we could live on, if we absolutely had to.
It breaks down like this:
Rent: $855
Food: 300
Electricity: 75
Phone: 20
Life Insurance: 100
Misc. : 100
Total: $1450
How I got there:
If we lived close to my husband’s job we could potentially not have cars. I really can’t imagine the four of us living in less than a two bedroom apartment and they go for about $855 a month, according to Rentometer. I think we would need a phone. Not cell phones but a house phone at least. I cut our grocery budget down from $500 to $300. It would be very hard to feed the family on that, but I suppose it’s doable. Other people do it right? This is supposed to be a bare bones budget. The miscellaneous category would cover anything unavoidable the kids need, maybe a cab here and there if we need one, things like that. I don’t know how much we would need in real life to cover those types of expenses. I just guessed.
I’m happy with that number. I’m not happy with the lifestyle that goes along with that low price tag, but I like knowing I could support our family if I had to. When I was working I brought home $1,800 a month. So I don’t see any reason why I couldn’t do that again. And of course that budget is not using any of our current resources. For example, we could use the equity in our home as a down payment on a small condo and have a payment less than $855. So I guess overall I’m pleased.
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