Speaking of Money

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iVillage Member
Registered: 02-24-2009
Speaking of Money
928
Sat, 03-02-2013 - 3:33pm

Here is a SAHM who takes careful budgeting to new heights. It must, of course, be noted that since her DH is military, the family is probably covered in terms of health insurance. 

http://finance.yahoo.com/news/how-a-family-of-four-manages-to-live-well-on-just--14-000-per-year-174803218.html

"Wagasky, 28, lives with her her husband, Jason, 31, and their two young children in a three-bedroom family home in Las Vegas, Nevada. While Jason, a member of the U.S. Army, completes his undergraduate studies, the family's only source of income is the $14,000 annual cost of living allowance he receives under the G.I. Bill. Despite all odds, the family has barely any credit card debt, no car payment, and no mortgage to speak of."

[...]

"By the time Wagasky's husband came home from Iraq, they had managed to scrape together the $30,000 they needed for a downpayment on a home. 


"But we decided the best option would be not to have a mortgage payment at all," she said. "We found a fixer-upper that didn't have a kitchen ... and we paid cash." "

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iVillage Member
Registered: 03-01-2013
Sat, 03-02-2013 - 4:46pm
Very interesting read. The only discrepancy I see in the article as they don't mention once about military housing and the danger pay her dh would have gotten by going overseas.
iVillage Member
Registered: 08-22-2009
Sat, 03-02-2013 - 5:08pm

  Any danger pay he received while in a war zone would have ended when he left the war zone.  I assume that money is what was used to save up the money to buy the house and pay off the car loan.

  While the article does say he is in tha Army, it also says that they are living off money from the GI bill.   He is not actvive duty (or his income would be more).  He may be on some form of reserve status, most likely inactive reserve.  In that case he would not qualiy for any housing assistance either base housing or BAH (basic allowance for quarters).

iVillage Member
Registered: 03-01-2013
Sat, 03-02-2013 - 6:35pm
Thanks Emptynester for the info. I thought the same thing for the danger pay, that is what they used to save for the house. I think there is a lot missing to that article as it seems very hard to believe that a family of 4 can live on $14,000 a year (even very frugally).
iVillage Member
Registered: 08-22-2009
Sat, 03-02-2013 - 6:47pm

  Not having a mortgage/rent or vehicle payments helps.

  Also at that income they would have no income tax.

  It would not be a life that I would want to lead but I think that it would be doable.

iVillage Member
Registered: 03-01-2013
Sat, 03-02-2013 - 6:55pm
I guess it all depends on where you live and your expenses (especially home). There are homes right in my own area that the taxes are $14,000 alone a year. lol. Scary. I would only have about $8,000 left over from salary from my home taxes. Then utilities would leave me $800 for the year. What about food, life insurance, retirement, savings, gas money, homeowners insurance, car insurance, car maintenance, clothes, entertainment, spending money.
iVillage Member
Registered: 08-22-2009
Sat, 03-02-2013 - 7:02pm

  I do not think the taxes and insurance on a $28,000 house would be very much.  The last house that we bought we paid $38,000 for and our taxes were about $300 per year.


iVillage Member
Registered: 03-01-2013
Sat, 03-02-2013 - 7:11pm
Again, that all depends on the area and the taxes there.
iVillage Member
Registered: 02-04-2009
Sat, 03-02-2013 - 7:31pm

rosenylund wrote:
Again, that all depends on the area and the taxes there.

Do feel free to show the locations in the US where a $30K house will be taxed at nearly 50% of its resale value. Nothing in the article suggests that living on $14K is possible *everywhere*--only that it's possible.

************

Kitty

"If you can't annoy somebody with what you write, I think there's little point in writing."-- Kingsley Amis, British novelist, 1971 t .

iVillage Member
Registered: 03-01-2013
Sat, 03-02-2013 - 7:35pm
Again, it all depends on where you live. They purchased a home in an area of a declining housing market (and not a very desirable place to live). You can be taught the right values, bad values or no values and still put your long term financial goals ahead of your day to day wants. If you live in a high COL area, the amount of salary you bring in will make a difference. If you see from my sample, there is not much "extra's" (no cc debt) and you could still not live in my area making only $14,000.
iVillage Member
Registered: 01-08-2009
Sat, 03-02-2013 - 7:36pm

I think that what we have here is a smart family that is willing to put their long term financial goals ahead of their day to day "wants" and this is to be applauded. They sound like people who were raised with the right values.

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