Can Two Live as Cheaply as One? An Update

IMG_0720About five months ago, Mr. Vega left his career in sales to become a full-time student. In addition to giving him an escape from burnout and a way to experience  himself and the world in completely different ways, it’s also given us a chance to see if we could really walk our financial talk. We’ve taken great pains over the years to design our life together so that we could manage on one income, but we never had to before.

A full-time position opened up unexpectedly at one of my part-time jobs, so I tossed my hat in the ring for it. I was a little surprised when I was offered the job, which meant taking a 17% cut in my hourly rate, but as with my previous full-time employment, we felt that the stability and benefits outweighed the slightly smaller paychecks.

Several months and a few sleepless nights later, it seems to be going well (except for the normal challenges I seem to experience with full-time work). We’ve reduced our spending and savings rate, averaging about $1300 a month less than we did in the six months prior to my husband leaving his job. We go out less than we used to, and we haven’t been clothes shopping in months, but that’s all right. Like most Americans, we have much more than we need.

Before starting school, Mr. Vega built a raised-bed garden, and screened in our back porch. There are also rain gutters in the garage, waiting to be installed, but whenever he’s been free to start the project, it’s rained! It turns out that being a full-time student is a full-time job, so he hasn’t had the time he hoped he might for projects around the house, but Spring Break just started, so those gutters might finally go up this week… if he’s not too busy partying with his new college friends!

We had a weeklong visit from my husband’s parents over the holidays, and we let them know ahead of time that we wouldn’t be exchanging gifts…. honestly, I think they were relieved! Our holidays were filled with food, laughter, and inexpensive sightseeing around town, so we didn’t miss spending lots of money.

Although we’ve had to reduce our savings rate, we are still managing to contribute 10% of our take-home pay to our emergency fund, which is more important than ever now that we no longer have the luxury of two incomes. Currently, we have enough to go about five months with no income at all, but I’d like to grow that to a year’s worth. We have never had to use our emergency fund, and if that trend holds, when my husband finishes school and returns to work, we would be able to reduce the emergency fund again and have our bathroom professionally remodeled… and maybe take a long weekend away!

So far, it’s all pretty okay. I guess all the work we had done to live beneath our means is paying off… literally!

Have you ever had to– or chosen to– live on a much smaller income than you were accustomed to? How did you handle it?

 

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It’s Time: The Grocery Price Book

I first read about grocery price books over at The Simple Dollar, years ago. Not being into spreadsheets… or math… or shopping, it didn’t seem to me to be a terribly sexy project. The other ways in which I managed to trim my expenses were successful enough that I usually had enough room in my food budget to buy whatever I wanted whenever I wanted without much thought. When Mr. Vega and I began to focus more on whole, real, organic foods, our grocery bills went up, and I just felt happy that we could afford to eat the way we wanted to. After all, we were debt-free, saving for a house, and even had money left over for travel and fun.

Since my husband traded his full-time sales job for life as a full-time student, however, we’ve had to tighten our belts a bit. In January, we managed to wrestle our food expenses down to just over half of what we’re accustomed to spending… mostly by eating out much less than we had been. Also, one of my favorite bloggers, Brandy over at The Prudent Homemaker, is diligent with her food expenses: She keeps a detailed price list of food she buys to feed her family of nine, and her monthly shopping lists are terrific guides to seasonal low grocery prices. Simply following along and stocking up on some things when she does has been tremendously helpful!

But each home is different, and no one solution works for everyone. Our household in Austin, Texas, comprised of two adults with full-time outside commitments, two cats, and a nascent garden, is quite different from hers in Las Vegas with seven children, a work-at-home spouse in addition to a full-time work-outside one, and an abundant home garden that is the result of several years’ worth of effort. And both her home and mine will be different from yours, with your brand-new baby, or giant dogs, or busy travel schedule.

And so the time has come for me to buckle down and invest a bit of time and energy into learning exactly what our most-purchased items usually cost, what a good deal really looks like (because fifty cents off sounds great, but what if it’s normally sixty cents cheaper at the store down the street?), and seeing how much more space we can get in this recently-contracted budget of ours.

I’ve sorted through our shopping lists, and created a spreadsheet on Google Drive listing sixty items we purchase regularly (conventional wisdom suggests starting with a list of 15-20 things, but once I started, I kept thinking of more!), and I’m actually looking forward to learning where the best prices are and seeing how much money we can save. Grocery store sales generally run in 8-12 week cycles, so I reckon it will be Spring by the time I have a good handle on this, but check back and I’ll share how it’s going!

How do you keep track of grocery prices in your area? What patterns have you noticed?

 

Can Two Live as Cheaply as One? We’re About to Find Out.

For several months, Mr. Vega has been in slow burnout mode at work. Telecom sales is a constant, high-pressure environment that has been fitting less and less with the person he is becoming. About a month ago, we spent five days camping off-grid, enjoying good food, the company of friends, and time spent in nature. His first day back at work, I got a text from him: I’m sitting here at my desk thinking that I’m wasting my time and my life here… This weekend really did me good.

We spent a week and a half talking about what he wants to do, how we want to live, and how to make that happen. We ran the numbers, and we ran them again. And a few more times, just to be sure.

Ten days later, he resigned.

The plan is for him to start school full-time in January, spending a couple of years training for a career in which he doesn’t have to sell anything, buy anything, or process anything. Or sell anything bought or processed, or buy anything sold or processed, or process anything sold, bought, or processed, or repair anything sold, bought, or processed, you know, as a career. *

For the next couple of months, he will be a full-time homemaker, quite literally: there are garden beds to be built, a porch to screen in, rain gutters to install, and a host of other home-improvement projects to tackle in our Little Hippie House. There is a lot that we’ve been wanting to do, but we haven’t had much time for it.

Building Raised Beds

We’ve spent the past few years ensuring that we could handle a shift like this: We are debt-free except for the house, and we made sure to buy a house that we could afford on one income, if it ever came to that. After we paid off all our consumer debt (and before we started saving for a down payment), we built an Emergency Fund that would allow us to continue our lifestyle unchanged for four months with zero income, or for much longer if we reduce our expenses and maintain some kind of income. Since purchasing the house, we have resumed our Emergency Fund contributions, with a long-term goal of saving a full year’s worth of expenses.

We believe that with the right cuts, we can live modestly on my freelance income, without tapping into our Emergency Fund, and maybe even continuing to grow it, little by little. Mr. Vega has committed to getting at least a part-time job if we find ourselves unable to manage, although we would both prefer that he didn’t have to.

There will be sacrifices, mostly involving entertainment and travel, but we’re excited to have the opportunity to walk our talk to live meaningfully, and happily. We’ll continue to work toward making our home as self-sustaining as possible, and welcome all the friends and family who have the means to visit us in Austin. And we’re grateful to be cultivating friendships here with folks who share our values, and who are just as happy as we are to spend a weekend camping or an afternoon playing board games, instead of doing spendier things.

At the end of his training, Mr. Vega will be eminently employable, with a starting income that will at the minimum match what he was earning at his high-stress job, and with the potential to double in a few years’ time. To our farway friends and family, you can expect a visit from us beginning in 2017, but in the meantime, y’all are welcome to come on down any time you like!

*with gratitude to Cameron Crowe, Say Anything (1989)