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When my husband was accepted to medical school last year, I gave up a good paying job as a full-time technical writer and moved across the country with him. Here in California, the cost of living (especially rent and gas) is much more expensive than what I was used to living in Tennessee. As a freelance writer, I have to pay my own insurance and other expenses my employer used to subsidize. Work is not steady, and tuition is expensive. This year was especially rough because I took a three-month sabbatical from my freelance work (minus two small projects) to be with my sister for the birth of her first child and to help care for him until my brother-in-law returned from Afghanistan. We had to make some lifestyle changes to live with low income. Here's how we made it work in 2011 on less than $35,000:
We grow and make a lot of our own food.
The California weather makes it easy to have a garden almost all year long. We grow zucchini, green beans, broccoli and tomatoes in the spring and summer; pumpkins in the fall; and lettuce, arugula, garlic and peas in the winter. I recently learned how to make my own bread and purchased reusable bread bags to keep my loaves fresh. I even grind my own wheat, rice, and oat flour in my BlendTech. Supplementing rice and oat flour keeps costs down. Now we're thriving by eating more healthier than ever!
We use credit cards with a purpose.
We never carry a balance, but rather profit from our credit cards. For example, one of our credit cards gives us two percent back on all purchases and another gives us five percent back on categories that change each quarter. We use the cards for everything we can to maximize our profits.
We don't drive much.
We sold my husband's car before moving out here. It's smart to have just one car insurance payment, and we chose a location close enough so that my husband can walk to school. We walk to church, the bank and the market also to get exercise and save money. When we need to go out, we try to run all errands during one trip.
We do not pay for toiletries.
Seriously, I have not paid for toothpaste in years. Drug stores like CVS and Rite Aid are always running sales where they'll give you a rebate or Extra Care Bucks when you buy toothpaste. I combine a promotion like that with a coupon and end up getting the toothpaste for free. I have found similar deals for feminine hygiene products, body wash and shampoo. I stocked up during three particularly good sales and have not bought these products in six months.
I get free stuff.
I am a frequent visitor of freebie websites. I get free samples on a weekly basis. Wal-Mart, Target and Costco (members only) also have a section on their websites dedicated to free samples.This week I received lotion, shampoo and tea. I am also an avid survey taker. Not only do I get paid to take online surveys, but I get to test and keep products for some survey companies. Most recently I got cereal, deodorant and a full-size bottle of face wash.
We use and sell coupons.
We signed up for the "L.A. Times" when they were running a special. I also bought a subscription to "ALL YOU" magazine, which is full of coupons (and tips for saving money). I clip the coupons I need and sell the rest on eBay. I use coupon websites like Southern Savers and Coupon Mom to match coupons with sales. Sometimes I just do it myself. For example, I found a coupon for $1 off cereal and then noticed that Target was running a sale on the same cereal for $2.75. I have a Target Red Card, so I got five percent off immediately and brought a reusable grocery bag for an additional five cents off my bill. Sometimes I print coupons from Inbox Dollars because I get $0.10 for each coupon I redeem. So that $1 coupon I just mentioned was kind of like a $1.10 coupon. I also print coupons from MyPoints for points, which I later redeem for gift cards.
We pay just $1 for cable.
That's right: $1, but it's just basic cable. We signed up with Time Warner and got an introductory offer. When the introductory rate was over, my husband called to cancel, and they asked if we'd keep the service for just $1 a month. We said "yes." Try calling some of your utility providers to cancel service and see what deal you can get. This works with credit card companies too. My husband called to cancel a credit card, and they offered him $50 worth of points for him to keep the card.
We keep our electric bill very low.
Last month we paid just $9.55 for electricity. No, California does not have cheap energy. We just don't use much. We do not turn on the lights during daylight hours, and we rarely have the light on in more than one room at a time during the evening. I hang up most of my clothing to dry, so we don't use the dryer as much. We use ceiling fans and a swamp pump to cool the house down. (We have gas for heat and cooking.)
We exercise discipline.
We eat most of our meals at home unless we are invited to someone's house or the school provides a meal. When we do eat out, we either have a coupon or a gift card that one of us earned by taking surveys (which we can do while watching TV, so it's not that boring!) or redeeming coupons. We rarely see movies in theaters, but rather wait for them to come out on DVD or streaming and watch on Netflix. Rather than a night on the town, we'll have game night with friends.
We have fun.
We still have money left over for fun stuff. The catch is that we do not do everything we want to do, but save up for what we want most. For example, we still went on vacation to Canada this past summer and drove across the country in a rental car for an adventure during Christmas break. We bought a time share while we were both still working full-time jobs, and now we just pay the taxes and maintenance fees. We can go on a relatively cheap vacation twice a year. In fact, we're planning a trip to Alaska right now. We know how to thrive on a small budget.
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