We’ve made paying down our debt and rebuilding our savings our top priority. In order to do that we really focus on keeping our expenses low. By moving a little further out, we were able to rent a house that met all of our needs (my husband had some non-negotiable garage requirements) for $1295/month versus paying around $2000/month for a comparable house in our old community. In addition, the house we rented is on a well and has a septic system so we don’t pay for sewer or water which saves us roughly $100 a month. Downsizing from 2800sf to 1400sf has also cut our energy costs significantly. No more setting the thermostat at 62o and sucking it up. We now set the thermostat at a decadent 68o! Warmth is good!
In total we’ve cut our housing costs nearly 60%. We’re now able to save about 20% of our earnings each month. We currently have enough in our Emergency Fund to cover three months worth of expenses, our goal is to set aside 12 months. We’re also making extra payments on the boat to shorten the time to payoff that loan. And with all of the financial stress gone, my income has started to improve again. I’m also looking at other ways to bring in additional income.
From here on out we have decided that we will keep our expenses in line with (or well below) my husband’s salary. Any income I earn will go toward debt reduction, savings, retirement and investing…in that order. We are determined to live simply and work towards our goal of financial independence.
Welcome to our journey…
“The art of living easily as to money is to pitch your scale of living one degree below your means.”
~ Sir Henry Thomas
Read My Story from the beginning here.
Hi, I’m Cathy! I’m a former career-driven professional turned stay-at-home mom. Living on one salary has its challenges, but it is possible to live the good life while spending less. Cool to be Frugal is all about how we’re thriving, not just surviving, on a single income.
