Speaking of Money

Avatar for rollmops2009
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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Avatar for rollmops2009
iVillage Member
Registered: 02-24-2009
Sun, 03-03-2013 - 3:19am
Empty, I agree: "make their own clothes, shop at thrift store, shop once a month and freeze food, do home repair/maintenance, set a budget for groceries and gas and do not allow the option of going over" ------- Also, especially if you live in a high COL area, the thrift shops tend to have great stuff, sometimes brand new with tags in it. When dd was small, I made all her dresses myself. It wasn't so much frugality, more that I didn't like most of what I found in the shops, but it was also much, much cheaper.
iVillage Member
Registered: 02-04-2009
Sun, 03-03-2013 - 4:15am

With the virtual decimation of home sewing in the US, it's not really cheaper to make clothes for kids, compared to buying off the rack.  HOWEVER, it's cheaper if you're actually comparing like-to-like.   Good quality fabric (aka NOT from Joanns, or Hobby Lobby, or Walmart) is pricy, but take that and combine it with a sewist who has some decent skills and good fitting technique and home made clothes are cheaper than buying clothes from stores with a quality product and definitely cheaper than private tailoring.

That said, going to thrifts and consignment stores in high income areas, you can get awesome deals on kids clothes and save a ton of money :)

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

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 .

Avatar for rollmops2009
iVillage Member
Registered: 02-24-2009
Sun, 03-03-2013 - 4:48am
Puss, yes, true. However, if I wanted a special occasion dress for dd that I actually liked, it would typically cost several hundreds of dollars. The cheaper ones were not necessarily all that cheap either, but were usually made from synthetics and decorated with too many poofs, ribbons, rhinestones and lace for my taste. Usually I made her dresses from inexpensive, but pretty, cotton fabrics and cotton lace. This was my preference, and it happened to be cost-effective as well.
iVillage Member
Registered: 05-31-2011
Sun, 03-03-2013 - 8:15am

Here is an interesting demographics tool that shows median income level by US neighborhood (census tract.) 

Rich Blocks, Poor Blocks

While it doesn't spell out the COL, I would say it reflects it. I thought it might help clear up some of the preconceived notions about the variance (or lack thereof) between one place and the next. 

iVillage Member
Registered: 08-22-2009
Sun, 03-03-2013 - 8:44am

  Looks like I live in a rich block.  The income level is above the middle income range for the state.

iVillage Member
Registered: 03-01-2013
Sun, 03-03-2013 - 8:58am
Rollmops-that is correct, I am pretty sure the military paid for their rent at that point (which does not help the average person with saving as they either have rent or a mortgage so that could be cut out right there). There are many other factors that were not considered (as you can see from my examples).
iVillage Member
Registered: 03-01-2013
Sun, 03-03-2013 - 9:01am
Rollmops-I was using the example of making $14,000-$6,000 for home taxes would leave me $8,000 for the year. Not sure where you think I indicated how much my current salary is from that.
iVillage Member
Registered: 03-01-2013
Sun, 03-03-2013 - 9:05am
Bord-I don't see anywhere that they indicate they are saving for life insurance, retirement, savings or college savings. I did see they mentioned that they saved enough to pay off the husband's car when they knew he was not going to have a full salary (and then that is a whole other story why he is not working full time and only national guard (if I am reading the story correctly) and then saved for a house when he was overseas. No mention of having any other savings, just the things they have cut out or down on (which are the same as every other article I have ever read on things to cut out/down to have more money in your pocket).
iVillage Member
Registered: 03-01-2013
Sun, 03-03-2013 - 9:10am
Puss-I have to agree with you and the making of the clothes and saving money. When we were kids my mom used to make some of our clothes and her own (not much but a few outfits here and there). Once we were into our teens, she said it was not cost effective anymore. The cost of material was about the same as buying a new outfit in the store. It all depends on the thrift shop and the area you live in. Many of them just have junk and you can get better things if you know how to really shop with sales and coupons.
iVillage Member
Registered: 01-08-2009
Sun, 03-03-2013 - 9:12am
It looks like the husband is in school. They may have nothing but emergency savings at this point and counting on beginning aggressive savings once the husband is out of school and full-time employed. It is a risky strategy but sometimes risk pays off nicely.

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