Sunday, August 2, 2009

Home Economics 101: A Month On $40 For Family of Four Part I

The Subtitle of this part (part 1) could also be "Disclaimers."

Over the next week, I will post a very basic home economics lesson on how to survive a month on $40 for a family of four. That works out to $10 per week, approximately, or $10 per person.

I know there are folks who have this figured out even better than I ever will-- much better (especially folks intentionally heading off the grid)-- so this blog feature won't be anything new for some of you.

But, hopefully it has a few tips someone can make use of. What I can promise is that my methods, as basic (and for some perhaps, common sense) as they are, have been tested by experience. I have been able to survive on $40. In this economy, I realize many people are experiencing financial hardships they have never faced. I hope this blog post is useful for people who are going through a rough patch or are anticipating an extra lean winter.

So, now, the explanations, disclaimers, and rules:

What I Mean by $40

  • Your rent or mortgage is paid, and this is what you have leftover to get to the end of the month.

  • You still need food, gas for your car or other transportation, and additional life basics. You may or may not have managed to pay your utilities, yet.

For the Novices

As would be common sense, having a meager amount of money is going to be most difficult for those who are used to a lot more. I won't claim that I am perfecting the notion of "surviving comfortably" because the truth is that if you are used to something else, $40 or $50 won't be comfortable. But it can be done with minimal ill-effects. Your kids may not even know the difference. So for those of you who are new to having so little cash, here's a primer with the basics:

  • Pay your rent or mortgage FIRST. Even if you have to go to churches and other charitable organizations and beg for $20 here and $30 there to make the payment. Everything else can be figured out, but going homeless is really hard on people.

  • Buy your food second. You need to be well-nourished if you are going to make smart decisions. Yes, feed your children first. But feed yourself too in the best way you can.

  • Your health and the health of your children is still first priority. That includes dental health. Inquire with your state about subsidized health care programs, and if you need health care, go get it. If there is one type of debt that is worth it, it is medical debt. And you may be able to get help paying it later. Remember that hospitals can't turn you away for treatment due to an inability to pay. You can work on payment plans later.

  • Don't let your utilities slip. Trying to feed a family without electricity (let alone trying to keep depression at bay) is really tough, especially on a tight budget. Getting on a payment plan with utility companies sometimes is your best bet, but if there will be some months where you can't make even the small payment you've arranged to make (say $10 or $20), you may lose the utility faster once on the plan. In some cases, if you believe you may have more money the next month, it is better to let the bills slide. Generally one month won't cause alarm with most companies. Even if you can just pay one utility every month, pay that one and let the next slide to the next month. Or better yet, pay a little on all the utilities. If you are paying *something* the companies will generally want to be helpful to you. But pay as often as you can, as much as you can.

  • If you need to, get help. Don't be ashamed to visit your local food pantry. You likely won't receive much (many pantries these days will give out one boxed meal, such as an instant pasta, a can or two of vegetables, plus something like a jar of applesauce as a typical offering), but it might be enough to ease the hardship a bit. If desperate, go to a soup kitchen or see if a relative is willing to clean out their pantry.

  • No, you can't eat out. No, not even fast food. If you seriously only have $40 that is not an option. Do not use credit. You don't need it, and it will just dig you deeper in your hole. If you have credit of some type, rip it up...make it inaccessible as far as you are concerned. You *will* feel deprived if you are used to, say, being able to do things like grab some drive through after a late night at work. It *will* feel crummy, but you will normalize to it if your situation doesn't change (or in the case you are doing this to prepare for possible financial collapse) and it won't feel so bad later.

  • Finally, don't do anything stupid like driving your car uninsured. It will cost you more in the longrun.

The Groundrules

Everybody has their own groundrules about surviving on low cash. You may have your own. These are a few of mine:

  • Everybody still eats fresh fruits and vegetables, and sources of protein. One way or another, we will not eat Ramen for weeks on end. I am the provider in my family. No one in my home is going to be malnourished. Period. (In fact, when money is tighter, it is probable you'll eat healthier than you ever have. You'll start planning snacks instead of grabbing processed junk. You'll make more homeade food. Etc.)

  • Foods are not rationed out. We eat until we are filled, and we don't judge one another about it. However, taking three servings of the same dish is not usually an option. If after you eat one (or in some less frequent cases, two) servings of something you are still hungry, you may eat more of something else, particularly foods that we happen to have a lot of at that moment.

  • Done well, living poorer (or for those who have a choice, more frugally) should mean living better. It really should.

Stay tuned for part 2: "FOOD"

1 comment:

sf said...

Weird, I tried to leave a comment, but it refused to accept?
Anyhow, nice post, SM, very practical and thoughtful.