Speaking of Money

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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: 10-01-2010
Tue, 03-05-2013 - 3:24pm
Hopefully he will be able to find a good paying job after going to school as I don't know how long they will be able to live way below the poverty level, especially with 2 growing children.
iVillage Member
Registered: 01-08-2009
Tue, 03-05-2013 - 3:25pm

mycherubs wrote:
$38,000 to $40,000 a year for a family of four------ My bad, it is more than that so that is even worse according to the difference between Vegas and my area. They are way below poverty level then. Again, not sure why anyone would CHOOSE to live that way.

People make that choice in order to prepare themselves for something better.  Graduate School stipends run in the neighborhood of 15K a year.  Some grad students are able to supplement that with part time employment during school breaks, but many grad students have to use summers to work on their theses and dissertations.  The hope of course, is that after the degree is completed, the candidate will be able to make a decent living in academia.  The reality is that making a decent living in academia is becoming harder and harder these days.

iVillage Member
Registered: 10-01-2010
Tue, 03-05-2013 - 3:30pm
I agree Bord that some people do choose that to prepare themselves for something better. IMO you don't do that AFTER you have children though.
iVillage Member
Registered: 12-07-2003
Tue, 03-05-2013 - 3:31pm
I imagine that they will be able to live that way for quite a while. Since they don't have lots of debt that they are accumulating, they are in much better shape than a lot of other people-- even people who make significantly more.
iVillage Member
Registered: 12-07-2003
Tue, 03-05-2013 - 3:32pm
Why not? As long as the kids are being fed, clothed, housed, and loved, I can't see why it matters what their income is. They are certainly in a better financial place than a family that makes twice as much, but has a mortgage and two car payments would be.
iVillage Member
Registered: 10-01-2010
Tue, 03-05-2013 - 3:37pm
She did say Geschichtsgal that they do use cc's for emergency things. With 4 people, anything can happen and that could add up too. Again, this is just a snippet of their story so we really don't know every.single. thing in their life.
iVillage Member
Registered: 10-01-2010
Tue, 03-05-2013 - 3:39pm
Kids get more expensive as they get older (you will see (which I hate people saying that to me) lol)). If they are homeschooled, they could possibly get away with a lot of things, I guess.
iVillage Member
Registered: 01-08-2009
Tue, 03-05-2013 - 3:43pm

mycherubs wrote:
I agree Bord that some people do choose that to prepare themselves for something better. IMO you don't do that AFTER you have children though.

Why not?  Unless the kids are actually suffering, isn't it better to live a little close to the wire for awhile so that you can do better in the future?  If you are going for a career in something where you need to take eight years or so of post-graduate education, you will be thirty or so when you graduate.  A lot of people prefer to have their kids in their late twenties.

iVillage Member
Registered: 12-07-2003
Tue, 03-05-2013 - 3:43pm
Why would we need to know every single thing about their life? Why is it so important to you that they must be doing something wrong?
iVillage Member
Registered: 12-07-2003
Tue, 03-05-2013 - 3:47pm
What would they get away with if their kids are homeschooled? If anything, I would think that could be even more expensive that sending kids to public schools. It's not like only public school kids go on field trips or do extracurricular activities. And like I said, let's say a family has a $1500/mo. mortgage, $300/mo. student loan payment, and $600/mo. in car payments for two cars. They could be making $42,800 and still be in the same situation as this family is as far as discretionary income goes.

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