When expenses go up, there are either two options: increase income or decrease spending. There could be three, if one considers buying on credit an option. Dan and I don't, so I don't include it on our list of options. Because we are in a so called "fixed income" category, increasing income isn't a sustainable option. This makes our budget limiting in some ways, but actually keeps it pretty simple.
We basically have two spending categories: bills and household spending. We've averaged our monthly bills, and this amount is kept in the bank to pay as they are due. Household spending is on a cash basis. Since we're paid once a month, we make a cash withdrawal once a month.
To keep track of household spending, we have a set of envelopes with the weekly cash in each one and open them when the new budget week starts. Anything left over from the previous week is put in the "extra" envelope. Granted, this system isn't practical for most people, but it works for us.
A budget analysis looks at our two spending categories versus our income. With prices going up, I'm still working within our original household spending amount because there's no way to increase it. But I've had to stop making some formerly regular purchases plus switch to lower cost alternatives for others. When I'm at the store, I now keep a running tally of what I select from my shopping list, because I know I'll have to make some decisions before checkout. Some items must wait until another time.
The bills category is a little more concerning, because there is less "fudge factor." I can't hold off paying one bill this month in favor of another, like I do with grocery items. Everything goes up, so we have to look to lifestyle changes to keep costs down. Things we've already cut out include: stopped using our HVAC for heating and air conditioning, not having more than one old vehicle, not making more than 2 - 3 trips to town per week, no eating out, no going to movies or shows, no television or streaming service, no subscriptions (of any kind), no buying new clothes, no dry cleaning, no cell phone, no travel and vacations, etc.
All of that leaves only one other category we could give up if we had to - internet. It's sincerely something I'd like to keep, but with a $30 a month jump in cost, it's on the chopping block. So far we can manage, but if prices and other costs keep going up, that will have to be the thing to go.
Hopefully, everybody else out there is doing better than us! Yes, it could be the springboard for a lot of complaining, but complaining won't change anything. Especially, if the country's top tier of leadership thinks the economy is doing great and that we commoners are just too stupid to realize it. I don't mean for that to sound disrespectful, but honestly, the disconnect between the top and bottom tiers of society can be rather incredulous at times.
Evaluating the Budget © June 2024
38 comments:
Not Congress. The Republicans in the House. Democrats were perfectly willing to continue this Democratic initiative.
I've been scrutinising my budget since my husband passed away in March and I too am finding the internet/ browser/ streaming service the most difficult to fathom. I cannot envisage being without social media, nor certain TV channels and I must admit it is something I have paid little attention to until now (which rather belies my Frugal handle!) but goodness those prices are pretty high and I will have to take a hard look at what I am prepared to pay for.
Best Wishes to you
Gillx
Boud, perhaps. But Democrats pretty much control Congress now and seem get what they want. Honestly though, the finger pointing now comes off as just an excuse, and I'm tired of it. So easy to blame somebody else and use it as an excuse to do nothing. Both parties do it, which is why I respect neither of them.
Gill, sounds like you're in the same boat. It's neither a desirable nor an easy place to be in. But, we used to get by with no internet at all! Kinda hard to remember, but life went on without it then, and certainly could in the future.
Leigh, this is timely for our household as well. With the change in location and income, we are having to reassess everything, especially as it appears that costs here in New Home 2.0 are overall higher than the were in New Home but our overall income is lower.
I guess I we would qualify to think about your third option - increase income - but given my experience last year with that, I am not sure if the overall effort would be worth it. My mind says to work on cutting more out first. Arguably there are still things we could do to live much more simply.
TB, that's a tough place to be in - increased expenses with a decreased income. Still, it's nice to have options. One thing I figured out awhile back is that, sometimes, a new income source costs more to maintain than it benefits. The extra income seems helpful, but the extra costs that go along with a job (meals, clothing, transportation) can sometimes take the lion's share of it. Another good reason for a thorough analysis.
I think this pain is being felt all around the Country. Groceries are out of control in our area....Health care and home entertainment just continues to climb. Oh how I worry about the younger generation!!
Shug, hopefully something will correct it!
This 'fixed income' budget is something completely unfamiliar to us. Both of us worked w/fairly decent incomes so didn't pay attention as much as we should have. Now that it's 'fixed' we see what we can & cannot spend in any given month.
Deb, for some reason, it's always easier to scale up than to scale back. We were fortunate enough to see the days of a smaller budget coming, and tried to prepare our spending to it. Still, when the economy doesn't cooperate, it can be worrisome.
Well I have some practice at the budget battle. There are different issues in different areas dependent on where we choose to live , how we have chosen to live, status of employment and so on.
We always lead a fairly frugal way of life. We got more so when we set on homesteading. We used cash, one credit card for emergencies only. There weren't too many even with two children. Yes we had one income as I wanted to be with my children as they grew up.
I was 69 when Geoffrey passed and hadn't worked in over seven years as I became his care giver. I live on my own and there are many benefits to that.I eat well and simply bake my own bread, still on occasion make simple cheese. I still cook from scratch and so on.And have a garden.
I have a comfortable budget that has been crunched by a few large increases and I am making up for it by rearranging deck chairs if needed. I have my livestock and working dogs as they are an asset since it keeps me going and they are good company. I do go to see my family members fairly often but the trip is an hour drive one way. I consider the fuel as a luxury expense . Since I don't often have a meal out , I don't buy clothes as a regular purchase and frequent thrift stores when I do. I have a fairly new television but quickly realized that I would rather be outside or spinning, weaving and so on. So I don't turn it on. I do have online services. I have the service through the phone line, It isn't a large expense so I will press on. It also offers me a land line number in case of emergency. In the mountains my cell phonw isn't always 100% reliable so I appreciate that.
Gee Leigh if we did go off line we could use the snail mail. I enjoyed that form of communication may help slow us down. I know that there are things that I cannot or will not purchase due to increased prices. And since I bought my log home I do have a small mortgage which isn't the best idea but I did it and so far I am fine. I know I am very fortunate. But things could change in a moment.
Snail mail! Goatldi, I remember when checking the mailbox was the highlight of the day. Our library offers free internet use, but once a week online certainly changes the usage habits. I'd have a lot more time to spend at my loom and spinning wheel. :)
The abilities to analyze and adapt are an important survival skills, I think. As is the ability to keep one's thought life under control. I choose to be optimistic, which always serves me well as worse case scenarios usually turn out to exist only in my mine.
I've already cut spending pretty close, though I keep trying to reduce more. It's frustrating to give up something like milk in my daily oatmeal (saves $5/month) and then have my internet/phone bill go up AGAIN. Living without a vehicle for the past 8 months is the most extreme example, and although I considered cutting the phone and internet, it seems even more dangerous to do that even though the bill is now almost 150% of what it was a couple of years ago and the actual service seems to be getting worse. Oh well. Onward!
Quinn, that's a big jump! Telecommunications is especially puzzling, because the infrastructure is already in place. What are they actually producing that isn't already paid for? That's sad about the milk for your oatmeal, can't you milk those Cashmeres?
We have been fortunate in that we have earned more than we spend for most of our lives. But I find it a good exercise to watch what we spend and prune a bit here and there to keep things in check. I might not get much benefit but perhaps my kids will benefit from my frugality.
It isn't for everyone, but part of the reason why I got into and keep on investing is to inflation proof my income to some extent since everything will always keep getting more expensive with time.
Amen. One of the predecessors to all of this nonsense is one that made everybody go running and in fear of seeing 1999 go away. Well, there’s a lot of things that aren’t right today but everything is cyclic. Everything goes in a circle that’s why wise people remember the past to prevent it to repeat in the future. unfortunately not everyone sees it that way because they’re too young to have lived through it or simply weren’t paying attention.
But yes indeed that did happen. Yes indeed all those people in Armenia were killed. Yes indeed there was a Hitler. Yes indeed there was a communist state and still is yes indeed not every country in the world wants to be our friend why should we want be everybody else’s friend ?
See you later Leigh.
Ed, it's great you had the opportunity and ability to do that. Very prudent on your part. Learning how to work within what we've got is so important. What makes it challenging is that we've all got different resources and needs.
Anon, well, I'm not really following what you're talking about. I suppose keeping track of world events is important in some sense, but on the other hand, I can only work within my own little sphere of resources and opportunities. The old "use it up, wear it out, make it do, or do without."
I think dissatisfaction is one of the biggest challenges we all face. Complaining is often seen as the solution, but I can't see that complaining does much more than make everybody grumpy. Unfortunately, contentment is often seen as complacency, which is viewed as a bad thing. Yet true contentment really goes a long way in keeping one's peace of mine.
We’re evaluating cutting down all sorts of things; going back to the basics in all sorts of ways. One of the things we’ve been planning to do for our internet budget is to buy our own router and stop “renting” the one from the internet company, drop our Wi-Fi and do Ethernet only. It’ll save us $15 a month! We are just budgeting purchasing a router in the first place. Living successfully on one income with two little kids and a farm means very careful budgeting 😁
Kaelin, what a great idea. Every little bit helps a lot.
I can definitely appreciate making the sacrifice of living on one income with small children. I remember when I first became a single parent and had to figure out a job. I asked my kids which they would prefer - getting to go to McDonalds or me being home when they got out of school. They didn't hesitate in answering - they'd rather have mom at home!
I certainly agree with your wise words about the challenges of dissatisfaction.
I strive for contentment, and find a lot here that provides that, in our new life.
Sure hope you can find some wiggle-room with your budget.
Rosalea, me too! But not worth worrying over. I heard somewhere that worrying is like paying interest on a debt one doesn't own. :)
I too am missing the ACP subsidize. I am on a very fixed income and budget like a crazy man. I still own my 2000 Chevy 1 ton truck, it is paid for, the insurance is dirt cheap and even with 286,000 miles on the original engine and transmission I only get at best 14 miles to a gallon. Trips are bunched, even doctor visit on the, if they can't accommodate me I will make the appointment for a later date. I have to go into Roseburg at the hospital every Wednesday for wound care and that is the day I set up other appointments. Makes for a busy day sometimes. We have to control costs, that is the problem of most people living way beyond their means and living on a cycle of credit cards and missed payments. I can't do that and I tell people I pinch the heck out of that penny, nickel and dime and quarter. I am even learning to make my own bread, because of the crud they put in bread today and teh cost, my cost of making my own brown bread is about $1.25 a loaf, store bought bread around here is $3.99 and better and my bread is better!
Totally agree with you, Leigh! We have been faced with concerns about our pensions, and the “what if’s” can definitely overwhelm on many levels. We took into account the biggest expenses, and have made some life changing decisions. The farm here on the ridge is beautiful, but the expense of heating this old farm house is enormous! We can have a very large electric bill, or pay the outrageous propane prices…neither option is comfortable. We decided to move back to Florida, where we are more familiar with the growing seasons, and the expenses aren’t nearly as high during the winter months. Moving will commence the first week of July. Drastic change, but one we are certain of, if we should loose our government pensions. Preparation is key, and I have always lived by, “ The secret to having it all, is believing that you do!”
Great post! Thank you!
Kevin, good for you for learning how to make bread! So much tastier and healthier too.
Sounds like we're in the same boat. As bad as Dan's and my experience is becoming, I agree that it must be so much more worrisome for people with credit card debt. Someone else controls the interest rates, which only add to the already difficult squeeze.
Wyomingheart, that's huge! It must have been a very difficult decision, but those are the times we're in. At least in Florida, you won't have such severe cold in winter. No option for a woodstove? The rocket mass heaters are amazingly efficient on wood. Do you find air conditioning in Florida more affordable than the cost of heat on the farm? We're always weighing options and making the best decisions we can with what we've got to work with.
Yes, we have a wood stove in the cellar, and that does off set some cost. The Florida property is in North Florida, about 40 minutes from the Georgia state line. We will be using air conditioning probably four months of the year, and with the mini split systems, we can cool the rooms we want cool, and not the entire house. The house in Florida is 130 years old, and has two fireplaces. We are going to be on 22 acres of oak, pecan and magnolia trees, so wood is not going to be a problem for burning. It is drastic, and somewhat scary, but we feel blessed to be able to make this decision, and I am looking forward to having two harvests in gardening a year!
I've always lived frugally. I tried to retire this spring but still going in to work one night a week and plan my shopping/banking around that morning I'm in town. I don't have any big retirement fund, or pension but did save a fair amount and like you, the internet, and auto insurance has gone up significantly. I am trimming the goat population down to just a few by next winter and will probably send the cow to freezer camp. My truck is a 2000 model with high mileage and I don't drive it much but do need it. I do use a window shaker AC for 5-7hr days over 90°. My electric co-op has reasonable rates but they to have gone up. I feel okay so far but keep close scrutiny to my spending.... Great post, btw!
Wyomingheart, sounds like a wonderful property. The mini-splits are a great idea; zone heating and cooling is so much easier on the pocketbook. I hop you continue blogging! At least on occasion. I'd love to see photos of your new place once you get there.
Annie, thank you! Sounds like you have made some really good decisions in regards to budget and lifestyle. Hopefully, things will get better for all of us soon.
There are government subsidy programs for Internet access costs. I can't vouch for it, but this is the first one that came up when I searched: https://www.internetforall.gov/program/affordable-connectivity-program
For me, Internet service has gone up a lot because the cable company is the provider and it (mostly) has a monopoly. FiOS isn't available in my particular part of town and I can't install a satellite (and wouldn't want to deal with that anyway).
With respect to politics, I have to say, the promises of big tax cuts only benefit the very rich who go on to spend the money on more luxury items. It doesn't help the economy and it certainly doesn't help ordinary people with the cost of living.
Anonymous, I appreciate your taking time do to some research. The link you mention is the program they've just scrapped. I did find another one, but for only $10 benefit per month, and it required a boatload of hoops to jump through regarding the approval process. It just didn't seem worth it to me.
The cost of internet is actually so much higher than just the provider's bill. More and more sites are going to paid subscription only, and if one uses Windows, one has to pay for software and virus protection. Plus, search engines are pretty much useless anymore. We're paying more and getting less.
As far as politics, that's just a grown-up version of 'King of the Hill,' and we have decades of empty promises to prove it. Yet people love the game, so there you have it.
I talked to my hubby about your situation, as he is fantastic about finding good deals on things. If Spectrum services your area, they are supposed to be offering internet for $30 a month, regardless if you have cable with them or not. Also, you can look at the websites of T Mobile and Verizon, even if you don't have cell phone accounts with them, and if they service your area, you may be able to get affordable internet service through them. This can be done online or by phone. The third option is that you can call the internet provider you currently have, and tell them you are having to drop your service. They often have what is called customer retention departments, that work with people so that they don't lose customers. They'd rather have some of your business than nothing.
I hope you'll look into these options and maybe something will work out for you. Please let me know if you have questions about this.
Daisy, wow, thanks. That's a lot of good information to look into. Spectrum is our current company, and while they've been sending out updates and links to contact our representatives, they have only told us our internet is going up. The $30 a month is likely a special for new customers (Specturm is good at that). They may offer something if we do quit the service, likely another limited time discount.
I'll have to look at the other ones. I've looked around from time to time, but usually, their idea of affordable is miles away from my idea of affordable.
First, I find that the one person commented that Spectrum is $30/month??? That is crazy, because we pay $84.99 which is $10 up from last year, and the bill was never $30/month. I may have to call about that deal. Oh, and we pay for internet only. No cable. It's the only service we can get all the way out here.
Grocery prices are absolutely horrible. We planted a garden, but we lost all of the 60-ish planted already. We are going to replant, but not as many, because it's all we could find in greenhouses right now, but buying stuff cost more than growing it. The cost of blueberries is a head shaker. Next year, I plant to try and grow them in pots, as we cannot in the ground here. I'm already calling around, and going in and checking prices for lower costs at other stores such as our Aldi's for things like blue cheese. Our kids, who live in apts are struggling to get bills paid and food on the table right now. It's a very scary world.
Kristina, we don't have cable either, but we do pay for VOIP phone from Spectrum, which is still cheaper than most mobile.
I think the trouble is that the policy makers don't live where the rest of us live. Most of congress are millionaires, so they don't understand what it's really like down here. Of course they're going to tell us it's getting better, because they certainly can't say it's getting worse! Besides, telling people what they want to hear is a tried and true way to get votes.
I have spectrum now too and yes, it was $44xx a month for the first year. 5 or 6 years in now and its $90/no just internet, no tv service. I used a straight talk hot spot for several years and I think the unit was $99 and monthly for everything was $45. But it was slow and only short videos worked on it. There was some ... Gigabite? Limit. Not sure of the terminology. But I was traveling some and was nice I could get online even camping in the woods or mountains or plains.... I'm also toying with dropping it (spectrum)in favor of a hot spot for a bit and see if they have a "welcome back" plan
I had originally checked out hughs net and another satellite plan and they were about the same with complaints from locals using them.
Annie, I hadn't thought about a hot spot. I've heard of them but know nothing about them. Might be something else to look into.
The other big IP around here is ATT, which we originally had but they pulled a lot of stuff so that I would never trust them again. There are a few smaller companies, but so far they've been more expensive than spectrum. I can always go to the library to keep essential communications going. It seems that a lot of people around here do that, but it's nicer to have internet at home.
We use Mint Mobile for our cell phone, and have the lowest amount of data which costs us $15 per month. When we travel, I use my phone as a hotspot all the time on either my laptop or iPad. At home we do have internet, so I have not tried using this amount of data (5G) for all my internet use in a month, but it seems to me that using your phone as a hotspot would be a great option even if you had to purchase the next plan up that has a larger amount of data with it. You could check out their website for different plan prices. Of course, I am not watching shows and such. If you do, that can eat up data amounts quickly. But the hotspot suggestion sounds very viable to me.
TN Quiltbug, firstly, welcome! And thank you for taking the time to comment. I appreciate your ideas. I actually have no idea of how much data we use each month. Of course, with a flat fee, there's no need to keep track. But it might be a starting point to evaluating the hotspot idea. Something else I'd have to learn about!
I am not sure that I could live without internet, but there are work-arounds when necessary...like a trip to the library to use theirs. Luckily I'm walking distance from my library.
I was going to tell you before you got to the cutting the internet bill that I use my grocery store's website to see what's on sale and how much our needed groceries are going to cost me. While I haven't done it, but I could also go to the websites for other stores to see which ones have what I need for the best price...of course factoring in the savings vs gas spent going to other stores.
This current economy is making things rough for everyone. Praying that it gets better soon.
Renee! So good to hear from you!
Good idea about the websites. I miss the days when we got weekly sales papers for all the stores. And coupons. And double coupon days. Things just aren't set up to help people save nowadays.
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