Let’s start with my monthly salary
“I’d like to live as a poor man with lots of money.” —Pablo Picasso
I get paid $1545 after taxes on the 1st of every month. That’s my salary for working at the university, and being a graduate teaching assistant. Over 12 months that comes out to about $18,540.
For a single person, that places me about $7,000 above the federal poverty line of $11,490. You’d think I live a pretty comfortable, financially solvent life. And for the most part, I do.
I’m not in poverty. I never go hungry for long. I’m afforded incredible learning and writing opportunities. I can pay for shelter without any concerns. I’m lucky not to have any dependents or pets. I’m not on the brink of losing this consistency of life.
A tight monthly budget, but positive
Here’s what my monthly budget looks like:
Paycheck: $1,545 per month
Rent: -$550 (Housing in Iowa City is surprisingly expensive. This price bundles Internet/Cable, as well).
Utilities: -$50 (Varies month-to-month, but on average…).
Student fees/tuition: -$346 ($1251 per semester (x2), and then summer tuition (not covered) at $1650 for 3 credits — all divided by 12).
Food: -$400 (working to lower this, but in the past…)
Gas: -$5 (I don’t drive, but occasionally I give friends money to carpool with them)
Total costs: $1,351 per month
Partial budget: $194 per month
Notice that within this budget, entertainment, travel, and car expenses are not present. It’s difficult to approximate how much I spend on entertainment (going out to movies, playing pool, or bowling), but I’d say it averages about $10-20 per month.
Because I sold my car, I no longer have registration, titling, gas, insurance, maintenance, or car loan payments. Although, flights still happen and those cost about $300-400 round-trip. I fly about once or twice a year nowadays. Conservatively, that’s about $600 per year, or $50 per month. Subtracting these costs, and the following is my total budget:
Total budget: $124 per month.
If I stay within this budget and repeat it monthly, I can save about $1,488 per year. But that’s only if there are no other fees, expenses, or emergencies. For instance, my computer is hugely important to my business, job, and schooling; if that were to fail, I’d be in deep trouble. A single incident could wipe away my savings for a year.
Settling into the low-income lifestyle
While I might not be in poverty, I lead a low-income lifestyle with little room for error. Now that I’m no longer in massive student loan debt, my monthly budgets are real and accurate — not manipulated artificially by financial aid. When I run out of money, it’s gone — there’s no reserve ready. If something happens, emergency funding may be found using title loans or other secured lending options.
As I paid off my student loans and stopped withdrawing additional credit, I developed and settled into a low-income lifestyle. It’s one without exotic vacations, weekend getaways, cars, fancy dinners out, and the latest gadgets.
Now, I hold onto things longer, avoid purchases, and cook at home whenever possible. But it took me a while to adjust down — to slow down, really. I’ve said this before, but debt fostered an illusion of success that I felt compelled to uphold and continue. I wanted to show people that I could “afford” to treat, spend, and enjoy. Unfortunately, it was all a mirage. I was swimming in debt and stress.
Reflecting on the pros and cons
Pros
1. No more debt (or very little)
I no longer take out student loans to cushion my budget. Every month I do have revolving credit from regular purchases, but my balance is paid in full each statement period.
2. Support from family and friends, community
People check in with me more than ever about how I’m doing with my financial goals. Additionally, friends have increasingly begun to ask questions about how they, too, can save.
3. Greater exercise
Now that I sold my car, I take buses, walk, and/or ride my bike. Altogether, I’m getting way more exercise over owning and driving a car.
4. Empathy for lower-income and impoverished populations
Living closer to poverty and working with the homeless population has been an interesting combination. While I have great educational privilege, I do not have any income to show for these “achievements.” For now, this lack of money has helped me try to empathize with those less fortunate than I.
5. Reduced environmental impact
Despite America’s capitalistic ideals, we are doing the planet great harm with our consumption. Without any money or vehicle, I’ve drastically reduced my environmental contribution to greenhouse gases.
6. Eat healthier
To stay within my food budgets — and reduce them even further — I’ve been making more food at home and avoiding fast food alternatives.
7. Provides motivation for stories, articles
Living this low-income lifestyle provides great fodder for stories and reflection. Simply put, I learn every day from it. Comfort can sometimes make us complacent and inure us from others’ struggles. Stripping away income has provided deep insight into income problems in America.
8. Increased appreciation for what I do have
For everything I must sacrifice with my tight budget, there’s far more that I have, which I’m deeply grateful for. From health of friends, family, and myself to comfortable shelter, I am privileged.
Cons
1. Restricted travel
I used to travel all over the country. I loved seeing new places, eating different foods, and meeting new people. Instead, I’m mostly here in Iowa City. Traveling is too expensive — other than to see family a couple times per year.
2. Less time with family
I’ve added hours at work to receive more income. Between that additional time and aforementioned restricted travel, I don’t get to see my family as much as I’d like.
3. Awkward date conversations
While I’ve grown to embrace my low-income lifestyle, I can’t afford to go out with people too frequently. When I go out on dates, I’ve noticed that gender norms about who treats still seem to hold strong — the man is expected to step up.
4. Susceptible to emergencies/unexpected costs
If my computer stopped functioning or I had an injury, I may lose the budget surplus. This precarious balance threatens all my financial goals.
5. Psychological toll and nervousness
Being at this level of income takes a psychological toll. I’m working a large number of hours each week for relatively little pay. That’s stressful.
6. Society doesn’t seem to understand
Graduate students made great progress over the last few decades to have their educations paid for through assistantships and fellowships. But skyrocketing tuition has held back graduate funding. State and federal funding has consistently been in jeopardy.
7. Guilt when overspending
When I do spend money outside of the budgeted amounts, I feel tremendous worry and guilt. This emotional reaction sometimes stems the tide of purchases, but also makes me wish for days of financial security.
8. Tiring, test of willpower
Last, but certainly not least, it can be tiring. Following this strict of a budget takes an immense amount of willpower. Unfortunately, willpower is deeply tied to energy levels. With less energy, willpower tends to decline, as well.
Thank you so much for sharing this! It’s so rare in the PF blogosphere to see low-income budgets, and particularly ones from grad students (with no higher-earning spouse). I love your takeaways as well – I learned many of the same lessons as well in grad school.
Actually, I had assumed you didn’t receive a stipend. You write so often about your student loans, but I didn’t remember you mentioning a stipend at all (maybe I wasn’t reading closely enough).
Wow, those fees are really taking a bite! Do you pay them in monthly installments or only lump sums? I don’t know if I ever mentioned to you one of my other projects, PhD Stipends http://www.phdstipends.com/? It’s a database of what grad students are being paid net of fees. A friend at another university actually convinced me to add the net-of-fees part since it wasn’t a big factor for us but is at many institutions. If you think it is/could be a good resource, would you consider sharing it?
Thanks again for this post! I can see how much of an impact giving up the car had on your bottom line.
Awesome project, I love that idea. I’m off to check it out now.
I’m envious of your lifestyle! Simple, low impact, and fulfilling (or so it reads). Makes me nostalgic for my grad school days. One challenge will be to stick with your core principles as your income rises, a spouse and perhaps kids come along, and your social group is spending money like mad.
Thanks for your comment, Kurt!
You’re definitely right that with wealth comes even greater challenge to stick the principles of frugality and simple living. Thankfully (or unfortunately), I won’t ever make great sums of money as a counseling psychologist; at least, not directly from the career. Perhaps I could enter into some niche work to make more, but generally speaking it’s not an exceptionally lucrative career path (when you include time in grad school).
My hope is that I can hold true to these values — no matter the income bracket. 🙂
All the best,
Sam
Sam, how are you resolving the new health care rules? You don’t have those listed in your budget and the $124 extra each month won’t cover the insurance options i’ve seen.
Hey Jeb,
Thanks for clarifying this point. I’m covered under my employer and have about a $25-25 monthly payment that is automatically deducted from my paycheck. What you see here is what’s leftover. Hope that helps!
All the best,
Sam
After reading your post, I remembered a quote by Jack Kerouac I have always liked:
“If you’re not living on the edge, you’re taking up too much space.”
I decided in 2005 to write a new history to my life. I retired after 40 years with the same company. I gave everything I owned to various charities in San Francisco. I moved across the country to a much less expensive city.
Today, I live in an apartment so small I have to go out into the hallway to change my mind. I own a bed, a desk, and a bookcase. My library card is my most important possession.
Today, at age 67, I know what happiness feels like. I only wish I had started on this journey sooner.
Steven,
This is incredibly inspirational to hear! Awesome that you decided to exchange style of life for another, and gave so generously. Getting down to those basics sounds freeing, too. I know that I have similar pressure and desire to reduce what I own and get down to just a few major items — for living and enjoying.
Thanks for your comment,
Sam
Inspiring, I turned 50 this year and am working about 45-50 hours per week. Working on making some changes. I don’t really have a lot of debt, but housing is expensive. Congratulations.
Sherri,
Thanks for your comment and support! Means a lot. Housing is such a challenging variable to saving more — agreed. Unless we get extreme — live in a camper or van — it is challenging to see how we can save. Hope you can at least share the costs with a roommate or someone like that! 🙂
All the best,
Sam
We’re frugal by choice, so it was interesting for me to read about living within your means from your “by necessity” perspective. Living on a budget has taught me to appreciate what I have too. And has been tiring at times. Being frugal by necessity seems to emphasize those extremes, because there’s more on the line and less of a safety net to fall back into. Thank you for sharing this.
Emily,
Thanks for your comment. You’re absolutely right that my frugality comes out of necessity, but only to a small extent. See, I could keep taking out student loans and buying my way to “happiness.” I decided in May, 2013 to change that direction and now I’m here! At some point I certainly would like to know what it’s like to be frugal by choice, rather than by necessity, but until then… I’m looking to save every chance I get.
Sam
I’ve been in both spots…of our 17 year marriage, most of those years were spent living frugally out of necessity. If we didn’t, we’d have amassed debt in no time flat. But by living simply, we managed to save a little here and there so we could weather emergency expenses.
My husband’s career changed a few years back, though, and now we are more frugal by choice than by necessity. I have to say, doing it out of choice is way more enjoyable because now the fear component is gone. Since we’re now saving a lot of the extra income, we’re not in a precarious spot anymore, and that feels so, so good.
On the other hand, without those years of living simply, it would probably be easy for us to squander away even our higher income now. The habits we built during our lean years are serving us well now.
Kristen,
You’ve hit the nail on frugality and simple living. I agree that with practice, living frugally can be achieved with greater ease. Even when you’re making more money, that training can help to keep expenses modest and under control. Thanks for sharing a bit of your story, too! Means a lot.
Sam
You are making pretty good use of the money you do have. My monthly expenses averaged $1315 a month last year, but I made about double that. Sometimes it is easier to keep your monthly expenses down when you have more resources available.
Thanks Andy! Much appreciated. You’re absolutely right that with more resources this income would be a bit easier to deal with. As a reformed spender and waster, I’m trying my best to improve — slowly but surely. 🙂
“Sometimes it is easier to keep your monthly expenses down when you have more resources available.”
You hit that nail squarely on the head. When my husband and I were young and had two little ones, we lived as frugally as was humanly possible. I can remember telling the little ones no when they asked for a 25 cent treat at the grocery store. That 50 cents would have meant a bare spot in a dinner that week. A one point we went to the bank to try to consolidate the 3 small loans we had. The banker told us that if we would just put aside 3 months salary then a broken AC or car repair wouldn’t put us in a bind. I was stunned. If we could have done that, we wouldn’t have been sitting in his office!
A very low income means you can’t buy in bulk or stock up when things go on sale. You can’t buy ahead because there is no extra money. All of your pennies have already been accounted for. And don’t get sick. That fourty dollar co-pay? Yeah, there isn’t an extra $40 in the bank account.
Had we had more resources available, we would still have been frugal but it wouldn’t have been the soul sapping, emotionally draining experience it was without them.
As a recent PhD student, I feel you. I made significantly more than you but on the other hand I lived in New York City, so my rent and food costs ballooned to match. One thing that really infuriated me every year was the fees; this is all fake money to the university (our “tuition”) so why pay people income that is taxed only to turn around and take it back in fees? Just cover the damn fees already if you’re giving people full scholarships. Another thing that really angers me, in retrospect, is the assumption that if the stipend was enough to live on (it was, and it clearly is for you) it was “enough.” In fact, this way of thinking ejects most graduate students in their late 20s to mid 30s with either no savings for retirement, or very low savings. Since we live in a society that expects everyone to save, it’s pretty irresponsible of universities to pretend that grad students don’t need a retirement plan. Sigh. Anyway: it’s true that living on a low income gives us some (if limited) insight into what it’s like to be poor by circumstance rather than poor by choice, and that’s valuable experience. It also teaches us creativity, another valuable lesson.
C,
Thanks so much for your words of encouragement and understanding with regard to student fees. You’re absolutely right that it makes little sense to leave the student fees unaccounted for in scholarships/fellowships. I can’t quite fathom the reason why these are not covered, unless the universities have some sort of tax obligation with the student fees. Wrapped in these unpaid for portions are fees for new buildings, rec centers, and more… It helps to fund the rat race that is higher education today. Instead of students going to school in relatively modest living and activity quarters, they have the nicest gyms, TVs and more on campus. And that’s fun and great, but expensive too. As graduate students, we have to pay for these things, as well. All on a shoestring budget.
I didn’t even think about creativity! In a way, writing has been my creative inspiration and outlet in this situation. Writing my way through debt, graduate school, and this tricky budget. 🙂
All the best,
Sam
It is so refreshing to read an article that pertains to real life low income living. Though yours is as a student, there are many who just have to live this way as a everyday lifestyle with all these same concerns. It is disheartening to read conversations on other blogs that have comments like “I plan on saving and having $120,000 set aside in the next 5 to 10 years of my budget for a future home purchase, possible wedding or future children….” Though I am glad others are able to hope and accomplish this, others are just managing to work with what they have and stay out of debt and learn to be content as you mentioned you see in your volunteer work with others with low income lives. I also read your article about’How to make and follow a monthly budget’. Thank you for your honesty of your situation and I am glad that you are able to get a little extra help financially from your blog.
Your mention of the poverty line made me look it in regards to my situation. In 2014, I came up at just below $30,000, putting me about $6,000 over the 2014 family of 4 poverty line. Living in a small, Iowa town going without a car is tough, so we still have one. We also have a home loan because the payments are $100/month lower than renting in the reasonable places in the area. But we did choose a smaller house. We are a 3 bedroom family in a 2 bedroom house. Oddly enough, we try to stick close to the same food budget of about $100/week. We have no TV. We don’t have cellphones. We walk that fine line being one small disaster from broke. While the stress of walking this line can be heavy at times, we still are generally happy.
Your conclusion at the end is certainly the most powerful: “we still are generally happy.” That’s the great thing about happiness and wealth; if you can learn to live and buy less, there are opportunities to enjoy what you do have. Choosing a smaller home, as you did, sounds like a wonderful decision — bringing you closer to your family physically and emotionally (hopefully). 🙂
My income is very similar to yours (though I’m hoping to change that this year). I honestly don’t know how people do it on less!
Brave of you to share! I have no idea what the normal costs are in USA, since I live in Europe myself. But posts like these can be very refreshing for people in similar situations.
By the way, do you have a balcony or something? You could lower your cost for food by growing some yourself. Tomatoes, bell peppers and lettuce for instance is very easy. Some of it can even grow inside if you have a reasonable window.
While I don’t have a balcony, there’s lots of natural light getting into the living room. Perhaps I could start growing some tomatoes this year! Wonderful idea.
Thanks so much,
Sam
As a habitual over-spender which has led me into deep debt and much regret, and now a “frugaller-in-training” with a new mission to live within my means, I find your writing very helpful and inspiring. Thank you so much and all of the very best to you.
Thanks for reading, Laurie! Your comment means so much to me. -Sam
We don’t have a spectacular income either, but can afford few things that we love and can save where it doesn’t matter. One doesn’t need riches to feel happy, one needs to find the right balance, which you clearly have 🙂
Very interesting post. I never thought about my money in this manner before. I always start my budget with my required expenses, but then I still use the rest of my money up with variable expenses. Thanks for sharing!
Sam, your comment about dating expectations stuck out for me. I am long married to a man who is as frugal as I am but I have friends in the dating pool and hear their stories. One friend recently commented (in disgust) that her new date talked only of minimalism, retiring early and living frugally! I asked if his profile (match.com) had mentioned his interests in minimalism,etc and she said it did not and that was the error. She is NOT interested in saving a dime and we have many spirited conversations about the topic.
So here is my suggestion – LEAD with your interests in frugal living in conversations or online dating services if you use them. You will immediately attract like-minded souls and quickly deflect the spendthrift types! Trust me, there are women who “get” your mindset and share it but you have to be as transparent as possible. Will some people just think you are cheap? Sure but who cares? You will attract friends and potential life partners who share your values if they can see clearly who you are. Good luck and thanks for sharing.
That’s awesome advice! As I’ve gotten older, I’ve been more able to do this “informed consent” about who I am. There’s a spontaneity in my dating life that’s lost when I’m living simply and frugally, but at least I’m staying true to self and budget.
Really appreciate your encouragement and honest feedback.
Thanks for commenting,
Sam
I lived much like you when I was young starting out. I have never forgotten that experience. Because of it I am more grateful and happy and empathetic to those living in the poverty wages. I wish our congress would live like that for one year. Perhaps they would have a different take on things. Currently, I am retired and living on a tight budget. But because I learned how to manage over the years I am doing much better than others I know. I did write a book recently about my experiences and hope like you others may learn from it.
Hey Sam,
As a family of 3, we’re in a very similar financial situation. A bit different in particulars of course, but the outline is about the same. I want to encourage your efforts to reduce your grocery expenses. We spend about $400 to $500 per month for the 3 of us. For a single person, $150 or even $100 a month should be doable. Even if you cut your grocery budget in half and could save the additional $200 per month, you could take a lot of that “on the edge” pressure off yourself. I have some hard-won and much appreciated experience with meal planning; if you’d like some assistance with that, I’d be happy to talk with you and perhaps help you create a personalized plan so that you can cut your grocery budget further. Send me an email if you’re interested, and good luck!
I hardly think of that as low income! I get $733/moth disability and my rent in a subsidized handicap senior apartment is $515 of that. After rent, tithing and internet, I have $88/month for doctor and medicine co-pays, laundry, hair cuts, clothes, toiletries, cat food and litter, TP, and every needful thing. I get $101/month food stamps. That’s $1.08/meal. I have been disabled since I got out of college. Now I am 59. It has been a long slog of frugality. At least now I have my power wheelchair to get around town in.
Wendy,
Wow! Thank you so much for sharing your perspective. That means a great deal to me to understand what “low income” seems like from other people’s experiences. It sounds like your budget is very close each month, and as a person with a disability that you are doing an incredible job. It seems like it’s too close for comfort though, and I wish we — as a country — could do more to help.
Thanks for your insight,
Sam
Don’t know if anyone is still reading this in 2019, but I have to agree with Wendy. SSI now pays $750 per month. That’s it, that’s all. You are lucky if you get section 8 or some other kind of subsidized housing. The waitlist here is YEARS! SNAP food benefits are a bit higher, but as mentioned there are a lot of costs that are necessary non-food items. AND, if you manage to make a little extra money on the side somehow, your benefits are reduced. But from questions I often receive, it seems folks are generally under the impression that the government is “supporting” disabled people. Nope. They live the lowest of the low income life. And most would love to work or do more, but they are trapped.
What do you do about health insurance?
Great question! That’s automatically deducted from my paycheck by my employer.
Just chiming in that I completely relate to all of this! I’m self-employed, and after taxes I probably make around $23,000. Enough to live on, right? Yes, but…I’m living in Los Angeles where my small, modest 1-bedroom apartment is $1100 a month, which is on the low-end of the spectrum. Luckily my boyfriend and I are splitting rent down the middle, but for two and a half years I was single and paid for the entire place myself, all the utilities, cell phone bill, health insurance out of pocket, $150/month for food, incidentals, and my family lives across the country so I’d fly to see them twice a year. I was earning about $1800/month and spending about $1600/month with rent, utilities, and incidentals, so I’d have $200 leftover at the end of the month to cover every other thing I may need or want (and I only buy new clothes or other things if I really need them), social life, plane tickets. I have a wonderful group of friends and tried to attend every birthday celebration, every house party, lunches and dinners, but oftentimes I just had to come up with some excuse because I couldn’t drop $20 on another dinner that month. Many of my friends can’t relate – they’re still supported by family (we’re all in our 20’s/early 30’s) or have higher paying jobs, and they didn’t really understand when I couldn’t join them for activities or had to turn down their Vegas bachelorette party. They simply encouraged me to “save more”….can’t save when there’s not much TO save.
Since my guy moved in we’re splitting the rent, but the grocery bill has more than doubled, so things are still tight, but I’m at least able to save now and don’t feel that sheer terror as I did those years when I was paying for everything alone. The stress it caused and in turn damage to my physical health was incredible – I don’t think people know how closely the two are tied.
Sorry…long-winded! All this to say that over the years I’ve been frugal, both when I was able to save a lot and when I wasn’t, and I couldn’t imagine another lifestyle now. In fact, my frugality over the years allowed me to save enough to travel to different countries around the world…because I chose not to have a car (in Los Angeles that’s a pretty big disadvantage), cooked 90% of my meals at home, and didn’t treat myself to “stuff.” Not a fan of “stuff” anyway – smaller home, less stuff, less to deal with, happier me. Even if I someday earn three times what I’m earning now, I’d still choose a modest place to live, and my spending habits will stay the same
Oh, and on the dating front – my guy is extremely frugal, was a student getting by on only financial aid when I met him, and he snagged me. 😉 (For the record, we met when I was 30) We’re both minimalists and got rid of a lot of our stuff, and both live below our means (though our means are pretty low, ha). He’s still paying off student loans, so I pay for all the utilities, most of the groceries, and more than half of our dates, though we still mostly just cook at home and do a lot of free stuff around the city. It’s certainly not an even split financially, but he steps up in other ways – financially isn’t the only way one can contribute. Gotta find a woman who gets that.
Thanks for the post!
Omg Renee thank you so much for your post! I can SO relate to what you’re going through, or what you WERE going through.
I just moved from cross country to Southern CA (Orange County to be exact), and I took a HUGE paycut moving out here. I had to move out of my roommate’s place and so now I’m living on my own paying rent that is a bit more than $1100/month for a 1bd 1ba apartment. 🙁
I know exactly how you feel because my salary now does not even really begin to allow me to save up money like I used to. Before, I was making more than twice the amount I’m making now back in my homestate, so I could afford to take two lavish vacations a year, get my hair done at the salon every 2 or 3 weeks, get manis and pedis every 2 or 3 weeks, get massages once every two months, buy new clothes whenever I felt like it, eat out with friends every week, and really was just living the high life lol.
NOW??? My way of living has REALLY changed. I cook 80% of my meals at HOME now (which is probably a GOOD thing because I find that I’ve been slimming down some lol), I do my OWN hair 99.9% of the time unless I need something “special” done to it, thankfully my car has been paid off for years so I haven’t had that on my back, but I switched to a lower cost insurance instead of continuing to stay with Allstate (had been w/them for 10 years!)….why stay with an insurance company that will charge you $40 MORE per month when you can get the exact SAME coverage with another (cheaper) insurance company? , I now bring my breakfast and my lunch to work with me instead of buying/eating out, I don’t just buy a ton of “stuff” (and boy did I have some “STUFF” before I moved out here to CA!) “just because” I want it and it looks nice…now I ask myself: “Do I REALLY need that??”, I stopped eating out as much with friends and opt to do more “free” things with them (parties, walks in the park, game nights, movie nights, etc), I stopped going to movie theaters that charge you $12+ to see a movie…now I go to the $5 movie theater by my house which is JUST as good, and is sooo much cheaper!, I’ve cut back on manis and pedis and do my nails at home (I’ll only get a mani/pedi for a really special occcassion now), etc.
SO much has changed, and YES it has been VERY stressful at times (in fact, I’m looking to move to a cheaper place or at least get a roomie), but I agree with you….I wouldn’t go back to the type of spending that I used to do back when I had an abundance of money coming in. I think that even if I start making double what I’m making now, I would STILL save more money and live a more frugal lifestyle. 🙂 I still have student loans to pay off, credit card bills to pay, and medical bills that I owe. So there’s no way I’ll be spending a ton of money on frivolous things like I used to in the past. Plus, I find that my quality of life hasn’t changed as much as one would think. I still hang out with friends, I still have a roof over my head, I still visit my mom down in San Diego when I feel like it, I STILL visit my family on the east coast (in fact, I just went there last month!), and I STILL have a very good time and happy lifestyle. Again, it CAN be stressful living paycheck to paycheck, and sometimes it DOES bug me that I cannot save money anymore (there’s really none to save after I’m done paying my bills every month arrgh!), but at least it’s not as bad as it could be.
The main thing that bugs me about Southern CA is that they don’t pay you near enough what you’re worth. Back home, I was making 2x what I’m making now….I’m college-educated and after taxes I’m making what I was making back when I FIRST graduated college back in my homestate back in 2006!!! 0_0 Tell me there’s not something wrong with that! You would think the jobs/salary would be equal to or at least somewhat near what the cost of living is out here, but it’s NOT! That’s my only gripe with SoCal.
Thanks so much for your input! I really appreciated it because I’m going through the EXACT same thing right now.
Well done, fellow UIowan. It’s funny how you describe rent being “expensive” in Iowa City bi paid about the same when I was a student there in 1996. In Seattle now and — holy cannoli — rents only go up. Purchasing is out of the question for anyone non-tech. Stick with your plan and hold onto that willpower. I agree 109% that fatigue can undermine the best intentions. End of semester can be brutal on a budget. Thanks for sharing!
Elaine,
Haha! Right back at you Hawkeye!
Really? You paid about $550? Wow, that’s incredible to me. I started my graduate program paying just under $400, and now the rents have been raised about 3-4 times.
Thanks for reading and commenting,
Sam
Great post Sam and thanks for sharing!
I live a simple life as well on about $13,000.00 a year and do quite well. Your Pros are pretty much equal to my own and – not bragging here – I have no Cons that I can think of. Much like Steven above, I am happy and want for nothing. I’m glad that there are at least a few like us out there and I dare assume that there are most likely a lot more that we don’t know about.
Thanks again for sharing and take care.
All the best.
Lyle
Good article! I’m glad to see you’re finding this to be a learning experience for you. I once read that everybody should be able to live an austere lifestyle, and it sounds like you are right there.
Being back in school has also been a very big adjustment for me in having to give up so many “luxuries.” The good thing is that now I think I appreciate things like home cooked meals and time with friends and loved ones more than ever. It has been challenging, but incredibly centering. It’s amazing how quickly we can lose our true selves.
Thanks, Christian! Really appreciate you checking in on the latest articles and providing some commentary. I hope you know it’s much appreciated. 🙂 Likewise, I’m glad that you’re feeling centered again, too. You’re in good company!
Hello Sam,
You are doing an admirable job with your money management. I’m one who took minimal student loans (to get the grants) and loathed every minute of it until the last cent was paid (early). Congratulations on earning your freedom early. I wish all college students could find your level of courage to shun loans and try living a life on the edge. Abundance and gluttony go together in my book –as anesthetics to prevent feeling one’s way through the real experiences of life. By choosing to live frugally, you are truly conscious of the consequences of your choices and decisions –fully awake and fully alive.
BTW, I have been buying the Starbucks “small” (off the menu) coffee for years. Some Starbucks in the US will say they don’t have it — but most do, as you’ve found, if you ask. I live in Japan, where the small size is ON the menu, so it is easier here to treat your self while economizing. The cost of living in Japan (I believe Tokyo is still #1 in the world) requires everyone to be mindful and careful in their purchases, so, psychologically speaking, we encourage each other to live a frugal life here. Good luck to you! Suzanne
Great article, you speak my language as myself being PhD student and working toward my 5th year, I totally changed my lifestyle throughout! It is tough still, but I did appreciate more about what I have! I still try to understand the math behind student fees (it is not a small number in my school plus it increases wit tuition every three years…). In addition, health insurance…( I hear $$$ falling out of my pocket) I still cannot afford the out of pocket expanse to get a full diagnose of my back pain (cost NMR plus all fancy instruments, you know….those instruments which I can explain half of them about how they work and feel awful to see my doctor just for pain med)… All I can say is, good luck… I believe it will be bigger reward at the end of this road!
Jenny,
I can only say that your story seems exceptionally familiar. It’s a sad reality for graduate students, but the fees, insurance, and miscellaneous expenses add up! Big time. I’m happy you’re trying to work on this with me! You’ve got good company.
Sam
This article is amazing! I feel the same way being enlisted in the military. I’m 23 and have a goal to retire super early by living a frugal lifestyle by managing my yearly expenses to $8,500 a yr. I make around double that now and have managed to save around $24,000 in 2 yrs by sticking with my budget. Being grateful for what you already have is definitely key when saving for your goals. Thanks! Your article is inspiring!!!
Nadine –
Loved your post. “Being grateful for what you already have is definitely key when saving for your goals.” What a beautiful remark!
Enjoy the journey.
Steven
Join the miles & points blogs/groups that will take care of your travel.
Wow, thank you for sharing your story. I wish I could be half as Disciplined as you are with my budget. I just turned 51 this year and I still struggle every month to make ends meet. I make a good salary and have great benefits, but the cost of living here in south Florida is very high. I also still pay on students loans, credit cards and personal loans. Rent here is off the wall, I pay $950 a month, that does not include anything! I pay for water and trash, cable and electric. Car payment, insurance, gas and any repairs. You have to have a car in south Florida, public transportation is a joke. I can’t remember the last month I was able to pay all the bills and not put things on credit cards or overextend myself. I don’t live lavish either, its work and home work and home. I visit my elderly mom once a month, a four hour drive one way. I only eat out if I have a groupon or other discount. A big night out for me is Soup Plantation, You are doing so well! Be proud of yourself and stay with it. You will have such a stress free higher quality of life! Godspeed
I am currently researching for a book idea. Essentially it is about what it is like to live on a low-income…stories of struggles and inspiration. I would love to chat with you about your experiences.
Can’t believe I didn’t see this before!
You list a surprisingly high cost of living for the Midwest! I got paid $12,500 [http://froogalstoodent.blogspot.com/2015/06/grad-student-blues-how-i-live-on-less.html] –I’ve since gotten a raise! Woo! — but in any case, nobody will be confusing our graduate student salaries with those of engineers or CPAs anytime soon!
*mutters to self: it’ll pay off in the future, it’ll pay off in the future, it’ll pay off in the future…
I fully agree with most of your pro/cons of the low income lifestyle. I’ve been there, Have higher income now but still live below my means. One point,” America’s capitalistic ideals”, I’ve traveled some, no matter the rhetoric or commonly held believes, its a capitalistic WORLD.
How does one survive on two thirds of 1500/mo? When they take out my medicare payment I have $950/mo.
This is the way most people should live their life. It’s not about the paycheck that you get every month, but the spending habit that should be considered when it comes to lifestyle. I started out as a low-income earner in early 2000 and after the 2008 crisis, was lucky to emerge out with a better prospect because I had stayed away from real estate. Living below your means always helps, no matter how much you earn.