Jul 6, 2008

Live Within Your Means

While being interviewed for a television news feature about frugal living and saving money, I realized that despite being fully aware of ways to save, I'm just not doing enough when it comes to saving money. With gas prices rising, and my rent being what it was, I was breaking even at best most months, or covering the prior month's expenditures with my next month's savings.

While that's better than going into debt, it won't get me the things I want to save for - getting my teeth fixed ($10k), laser hair removal ($6k?), a condo/house (an $80k downpayment?), and grad school ($120k?). That's a lot of money I have to save above and beyond the basic emergency fund and other living costs.

As many of you know, my rent was skyrocking up to $1300 this year and while I could pay that with my current income, it would basically cost me my savings plan.

So I left my apartment, without knowing where my next home would be. This month I'm staying with a friend for a measly $350, as she's being so kind to let me crash in her spare bedroom. That's helping me make up a little of what I spent on my vacation in Israel... I spent way too much there, figuring I could make it up when I returned and found a cheaper place to rent. That, indeed, is what I'm going to do.

I found a place that I like, and it has a lot of the features I was looking for. And my rent is going from $1050 to about $670 per month, after utilities (except internet/cable). I'll be splitting the internet & cable bill 3 ways, so instead of it costing me $100 per month, it will be just $30. Total savings, based on last years rent, is about $350 per month, or $3750 per year. Based on the rent I was supposed to pay this year, I'm saving $600 per month, or $7200 per year.

While that's not the $80k I need for the downpayment on a house, or even the $10k to get my teeth fixed, it's a lot better than wasting that money on rent.

My new room is small. I'll be sharing a bathroom. I'll be paying a bit more in gas to actually get places since it's close to a freeway but not that close to work. Biking to work is no longer an option. But the place, for the price, is rather nice. It has a washer and dryer in unit, plus a dishwasher, and a nice community pool. The complex is a mix of owners and renters, so the property is well maintained. The owners of the specific condo that I'm renting are supposedly nice (I haven't met them yet) and haven't even raised the rent in a while - much better than the money-hungry apartment management company that took over my last complex and those $250 a year rent increases!

So... while my savings has depleted itself a bit during the last few months, I'm confident I can make back most of that money within 12 months. Or at least I hope I can. And then the real saving will begin.



4 comments:

lulugal11 said...

Yes it is a big sacrifice to be sharing your living space..but then you are saving the money for a better future for yourself.

Think of it like camping and then it might not be so bad.

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JanePlain said...

good luck at your new place! even though i'm not a big fan of sharing bthrooms - the savings sound more than worth it! :)

Jerry said...

Just breaking even is scary. You're right to want a change to have a little insurance with your savings. I hope the move leads to good changes.

Jerry
www.leads4insurance.com

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