I write for people who earn a good enough living. What a good enough living is depends on many factors, including where you live, how many dependants you have, and how you manage your money.
If you spend all your money every pay check, regardless if you make $50,000.00 each year or $100,000.00 you have a problem. 60% of Americans live paycheck to paycheck. So if you fall into this category you are not alone, sadly. Currently the median household income in America is $71,000.00.
Let’s say you are living with your spouse and two kids. If your combined income is $71,000.00 in and you live in San Francisco, you’re in trouble. The median household income there is $126,000.00. Conversely if you live in Mississippi your doing great. In Jackson, Mississippi the median household income is $39,000.00. Obviously there are a lot of differences in the United States. I used to live in the San Francisco bay area and my income was 20 % below the median when I lived there. It was challenging to get out of debt when rent was very high, everything there is expensive. But I was determined and focused so I did it in 30 months.
You also have a solution, and that solution is living frugally. That means being intentional with how you spend your money. Intentional spending includes-
Only buying what you absolutely need
Finding ways to entertain yourself without spending money (books or free apps, listening to music and going for walks)
Not using drugs or alcohol because its expensive
Taking good care of your health consistently
Preparing meals at home versus getting take out or visiting restaurants
Consolidating all driving to combine tasks in order to save money and wear and tear on your car
Finding the most practical but affordable place to live
Lets review each of these points-
Only buying what you absolutely need. For me this means not getting manicures and pedicures. I don’t dye my hair and I only visit the most affordable hair dresser in my area once or twice a year.
I never get massages.
I don’t buy fancy clothes.
My car is twenty years old.
Finding ways to entertain yourself without spending money For me this means I read books from my library. I listen to books from my library using the free app Libby. I stream using Kanopy and Hoppla available from my library. I stream on Roku and Tubi. I stream with PBS video.
Not using drugs or alcohol because its expensive. I drink sometimes, I don’t use drugs. In addition to being expensive to buy you can have associated costs to your health or if you are drinking or doing drugs and driving you are risking hurting someone or yourself, which is terrible, but also would be mentally damaging and potentially result in jail time or being sued.
Taking good care of your health consistently. Being healthy is more affordable than being sick. Especially in America. If you’re sick you may have to miss work, or you may have high co-pays. It’s not realistic to have 100% perfect health, but you can strive for good health.
Preparing meals at home versus getting take out or visiting restaurants. You can save $3,000.00 per year per person in your household by avoiding restaurant food. Additionally food you prepare at home can be more healthy if you are careful about your ingredients. Get my downloadable book “Few Buck Lunch. Cook Food. Save Money.”
Consolidating all driving to combine tasks in order to save money and wear and tear on your car. I don’t know how much gas is right now because I haven’t used my car much in the past month, but as I recall it was pretty expensive last time I filled up. Consolidating errands will save money on gas when you shop on your way home from work and avoid making trips for one purpose.
Finding the most practical but affordable place to live. I move multiple times over 5 years so I could save money on rent. It sucked. But it was worth it. Rent is a huge expense.
Ultimately when looking for ways to save money it is a sacrifice, which sounds awful. After all we all want to treat ourselves. But when you change how you approach spending and investing money, you’ll adapt and one day when you are out of debt you’ll be so accustomed to being mindful it will be second nature. Honestly I don’t feel deprived at all. I feel that I spend time focused on conversations and connections. Food has little to do with how much I enjoy the company of a loved one. I don’t miss movie night. However I do invest in live theater, because it enhances my experience in life. I take time to manicure and pedicure my own nails. I trim my own hair. My health is managed so I only go to the doctor once or twice each year.
The key is to remember the sacrifice is worth it and its not forever. If you create a plan and do your best to stick to it, you will get out of debt eventually. You have to go at it hard, but when you see your debt going down and you see the debt free prize at the end, you can make that sacrifice.
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