Today marks the start for the $1,200 Budget Challenge. From now until June 3oth I plan (hope!) to spend just $1,200 for my family of five, plus three dogs and two cats. I've been asked how this is possible, since many people spend just that on their housing costs. I'm lucky to live in an area of the country where expenses are low. Our mortgage is low, our cars are paid for, we have no debt.
This month the bills I expect to pay for are the mortgage, gas, electric, life insurance, and phone. We paid our car insurance for six months so that has not come due yet. The other bill that we won't have to face this month is the city bill (garbage, water, sewer) which will make things easier; it comes due every other month and is typically around $140 so that would have made things a lot tighter this month.
Food, entertainment, and other necessities are included in this total. So I am really trying to only have an output of $1,200 this month on EVERYTHING.
Starting today I am down $461, because I paid the mortgage today. Yikes! That leaves me with a total of $739 left for the month. It's a bit daunting when the first day of the challenge has such small numbers left for the month but I'm hoping that it can be done.
For those who are taking the challenge along with me, how do you prefer to update us with your progress? Would you prefer two posts a week be dedicated to your progress or would updating us all daily in the comment section work better for you? Let me know in the comment section today and the popular vote will win.
Good luck! Boy do I wish my mortgage was that low! Compared to others it is low but that would be amazing!
ReplyDeleteI would love to do this with you but this is the worst month to do this for us. We are getting ready to send our son to college this fall. Right now we are planning a graduation party. I could use some tips on saving money for college. I am buying things that he will need for his room, ie: bedding, etc. as cheap as possible.
ReplyDeleteWow you guys have a great house for cheap.
ReplyDeleteok, how about you & i trade mortgage fairies? no? darn. seriously i could NOT do what you're attempting this month because my mortgage is almost your monthly limit. i don't want that to sound like i'm as frivilous as that statement makes me out to be. we actually have a very modest home, however it IS situated on 7 acres. that's the clincher. we wanted land, and so we're paying for it for sure. Plus, we JUST bought the place...so a ton of $$$ is going out in order to get settled and things in our idea of proper working order (dog runs, chicken coops, utility deposits, etc).
ReplyDeleteall my stuff aside, good luck this month! i'll be watching for more & more pointers that may come in handy for my family as well. =)
LKP-
ReplyDeleteI would LOVE to have 7 acres! Actually, I'm writing a post about our house tomorrow.
But read the post from yesterday to see how you, too, can take this challenge. Just add up all your set expenses and then add $300-$500 onto that (whatever you are comfortable with) and make that your challenge for the month. The goal is to see how low your family can go. :) $1,200 isn't a magic number, just what I thought our lowest number may be.
I am definitely doing this with you! Ours is more of a $1400 budget because after our rent and car payment (which our first payment was due in the middle of May) we're already at just under $1050 and that doesn't include our utilities and insurance.
ReplyDeleteBut I love the inspiration and am actually looking forward to finally being serious with our budget and help curb our needless spending!
That's amazing... we don't live in an area of Canada that allows for that type of change. Our basic monthly expense alone (housing, hydro, heat, insurance, phone/internet) runs very close to $1200.
ReplyDeleteWhen Bill had his last MS relapse, we made a decision to live on an amount comparable to a disability pension or a retirement pension and bank the rest so that we could get our student loans and any other debt. In the even that Bill has a serious relapse, we know we can survive it.