Living on a Budget: Digging Out the Woman I had Buried

BACKGROUND

Until very recently, I lived a life that made me go, “meh.”  Don’t get me wrong, I had a very good life.  Amazing partner.  A home we own.  Good career.  Wonderful friends.  But something was missing.  As a young woman, I fiercely believed that my life would be unique.  I knew I was capable of big, wonderful things.  But soon after my 18 year-old-self jetted off into the world with just the clothes in her backpack, my adult self graduated from college, became an accountant, finished graduate school, got married, studied and sat for the CPA exam.  The wild young woman got lost beneath responsibilities, a career, and debt payments.  Then I got pregnant.

In the spring, a month after Moon was born, I looked myself square in the eye and admitted I was ready to do something dangerous.  I wanted to walk away from my job as a CPA and raise our daughter.  This meant we would go from living on an annual income of $70,000 to $25,000.  I am sharing this odyssey with whoever cares to listen because until very recently I didn’t believe I could change my life into one I was more excited to live.  The reality is the only things standing between us and our dreams were our spending habits and my job. 

The looming question was how. 

How will our family live off of one income?  Nipping at the heels of that initial question were other, equally important questions.

What are our goals as individuals, partners and parents?

What does it mean to be happy?

What is holding us back?

After several long talks, which made my heart race and my gut churn in a way I hadn’t felt since I was a teenager, Josh and I began formulating answers.

• We will live off of one income by minimizing our life.  Minimizing means different things to different people.  (If you are interested in learning about minimalist living, check out Becoming Minimalist and The Minimalists.)  For us, living a minimalist lifestyle means cutting out the excess and embracing more experiences.  We will be more aware about what we consume.  We will buy food less impulsively and use it more thoughtfully.  We will drive less and walk and bike more.  We will reign in our love of eating out at restaurants. We will stop purchasing things we don't need. 

• Goals.  In the here and now Josh and I want the freedom and flexibility to live in the place we love (Missoula, Montana) and travel for extended periods to the places where our roots are buried (Alaska and Pennsylvania, respectively).  We want to give Moon the opportunity to smell rain on the tundra, feel waves of the Kuskokwim River under a boat, eat dried pike and seal oil at her granny-granny’s, plant potatoes on her PopPop’s farm, and catch fireflies with her Schuylkill County cousins.  We want her to know that our roots are also her roots.   Ultimately, we’d like to continue to cultivate the things that make us real.  For me, this means digging out the writer, doodler, artist, and outdoorswoman I had buried.  For Josh, this means working outside, fishing, hunting, being on the water, plowing dirt, and building with his hands.

• Happiness.  I want a life that is both ordinary and extraordinary.  I want to build a healthy, loving, and adventurous family.  I want to nurture and evolve meaningful relationships.  I want experiences that make us feel strong and real.  I want a life that my 15 year-old self would be proud of.

• Hold-ups.   Jobs that require us to be in one place all the time.  The belief that I need to make enough money to buy crap I don't really need.  

With all of this in mind, we realize that by making small but meaningful changes to our lifestyle, it is possible to start living our ultimate dream, now.

BUILDING A BUDGET

Our first step was to identify basic survival costs.  Home.  Transportation.  Insurance.  Food.  Heat.  Water.  Debt payments.  When you break down what it actually costs to survive, you learn it isn’t much.  We must be safe.  We must eat.  We must have a roof over our head.  We must be warm.    We can exist without Netflix.  Beer…as much as we love beer, beer is a luxury.   Gas is not a necessity.  Under our terms of survival, it costs us $1,425 a month to live a basic lifestyle.  (Keep in mind, this includes cell phones, ample food, car registration, insurance, internet, and dog food.  For many folks, these things are luxuries.)

Then come the things we want.  Netflix.  Fishing licenses.  Gas.  Eating out.  Beer.   Fun Money. 

Fun money?  Thank you Katie and Paul for introducing us to the concept of Fun Money.  On the first of every month, I go to the bank and withdraw $200.  Josh and I each get $100 in cash to spend on whatever we want for the entire month.  This stash is for whatever we want to buy that isn’t budgeted.  Once the fun money is gone, we better learn to have fun without any cash. 

In total, our discretionary monthy costs are budgeted at $690.

Curious what our actual budget looks like?  You can check it out here:   Download Budget

In total, including contingency, we expect to spend, on average, $2,115 each month.  This means we need to make $25,390 a year to cover our costs.   For 2013-2014, Josh’s two teaching jobs bring in that amount.  

TRACKING OUR BUDGET

At the end of each month, I access our online accounts and download our transactions into an excel document.  I categorize each expense.  Totals are compared to budget.  Each month I share whether we met our budget, where our fun money went, and any lessons we learned along the way.   Follow along and if you feel inspired, think about what your own goals are, create your own budget, start tracking your spending habits.   Embrace the questions that you find yourself asking and enjoy working your way towards the answers.

Comments

[Tony]

Good stuff! Thanks for sharing it all... Not sure if you have heard of Mint. But it is an excellent online tool for budgeting. It connects directly to your bank account and would save you from the spreadsheet work!

[Greta]

Thank you Jamie! I AM inspired...In many ways. Every time I go back home to Kiana, there's the woman in me that reveals herself again :) Your blog post helps remind me of a very important piece of myself I oftentimes neglect while we lead the fast paced Anchorage life.

[Rise Up Rooted]

Thank you guys for your interest!

Tony, I'll definitely give Mint a try and will let you how it goes. I dabbled with Buxfer but it was taking me so long to categorize expenses that I realized a spreadsheet was actually quicker for me.

Greta, I totally know what you mean. Being home in Bethel always seems to remind me about what's REAL. It's all about family, being outside, and things that make me feel good inside. Although challenging, I try to hold on tight to that mentality when I'm back in Montana. Give Lewis a big hug from us, oh yeah, and COlin too.

[Debbie Herring]

Love it..totally agree... realized a long time ago happiness isn't in things it comes from within.,

[Jamie]

Yes! Debbie, did you read Katie's recent post about choosing happiness? YOu two are totally on the same page.

http://riseuprooted.typepad.com/rise_up_rooted/2013/11/the-silver-streak-i-choose-happiness.html