For a personal finance blog, Get Rich Slowly hasn’t been very personal in recent months. That’s partly because of the book project, but also partly because I’ve moved to a stage in my financial life where not a lot happens. I’m not repaying debt, I’m not learning lots of new stuff; mostly, I’m “getting rich slowly”, letting my savings accumulate, and pursuing long-term goals.
One goal that Kris and I share is to take a trip to Europe later this year. We’ve been saving for nearly a year already to make this happen, and I’m sure to write more about it in the future. (In fact, I have one short post about our trip coming up soon.)
But I want to take a moment to get a little more personal than I have lately. In mid-January, I shared a brief summary of my 2009 discretionary spending. I pointed out two things:
- Last year, I spent an average of $286.97 per month on dining out. We typically dined out about six times per month, and paid nearly $50 per meal.
- Despite this, my spending on other discretionary items was down. In fact, I noted that I as experiencing what I called a “waning of want”; I didn’t feel the urge to buy Stuff.
More than in past years, I’ve been thinking about the results of my 2009 discretionary spending survey, and I’ve actually tried to act on them. During January, I did my best to keep my spending in check. How’d I do? Let’s look.
Last month I spent:
- $83.09 on Entertainment ($13.98 to purchase two multi-record sets at a thrift shop; $69.11 on iTunes downloads, including multiple seasons of The Amazing Race)
- $125.69 on Dining Out (we dined out five times, for an average of just over $25 per meal)
- $14.78 on Pets
- $5.97 on Books (again from a thrift shop)
- $12.20 on Cable TV and $45.99 on Internet
That’s it. For me, this is a huge victory. I didn’t feel deprived in any way, but spent less than $300 on discretionary items. (And that’s including cable and DSL, which I don’t usually lump with discretionary expenses.)
To some of you, $300 will seem like a lot; for others, it’ll seem like a pittance. For me, it’s pretty skimpy, especially compared to past spending levels. (Again remember: I spent nearly $300 a month on Dining Out last year alone!)
Now, I’ll admit that I don’t think this level of spending will last indefinitely. The longer I put off buying comics, the more things I want to buy (Dick Tracy and Little Lulu are calling my name at this very moment). Plus, being holed up working on my book for the first three weeks of January played a huge role in my decreased spending. So did saving for our trip to Europe.
But still, the larger point is that it is possible for me to spend less if I put my mind to it. Just yesterday I decided I wanted to play a computer game. I’ve worked hard lately, and I deserve some time to goof around. I considered buying something new (or re-activating my World of Warcraft account), but instead I downloaded the free Battle for Wesnoth. Turns out it’s a fantastic game. Instead of buying new comics, I’ve been going through the un-read stuff I already own. And for entertainment, I’ve been trying to exercise. (My one goal for 2010 is to lose 50 pounds; I’m down five.)
There’s nothing earth-shattering in this article, no profound lessons to be learned. I just wanted to take a few moments to share the personal side of my personal finances. I’m pleased with how things have gone so far this year. How about you? One month into 2010, are your finances where you want them to be?
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How do you distinguish between what is discretionary spending and what isn’t? For example, I would consider pets and cable/internet as mandatory spending.
My dog’s gotta eat and she needs a new bark collar and a new chew toy. I can’t really put off buying that stuff.
I personally dropped cable about a year ago, but I would still consider cable/internet as utilities.
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Do you count all pet expenses as discretionary? Or just stuff like “treats” for the pets? I’ve gotten in the habit of lumping cat food as part of my grocery spending, litter as household (like toilet paper) and cat treats and catnip mice toys and anything else like that as discretionary. Stuff like vet bills I just try to save for, because as optional or discretionary as it may look to other people, to me it counts as a necessity. I plan and save for their yearly visits and use my emergency savings for unexpected vet visits, as I would if it were an unexpected human medical bill.
Also, you are a blogger! Wouldn’t Internet be required spending, not discretionary?
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JD – I’m always glad to know how things are going for you. Since I started reading GRS I’ve gotten out of debt, saved a little nest egg, started school to become a CFP, conquered a subprime mortgage, lost 50 pounds and become a runner. GRS had quite a lot to do with those changes. Thanks for your hard work and inspiration.
One thing I’d suggest, JD. It will have been 3 years in May that I’ve been losing weight after a lifetime of being overweight. I work with a dietician here in Portland, usually half-hour every other week. She has routinely reminded me that naming a goal weight loss # can backfire. Instead, we talk about what a healthy weight will feel like, my nutritional needs, etc. If a person loses more than .5 to 1 pound per week, it’s generally not sustainable. The body can’t get used to the changes and the person gains all the weight back (and usually more). My weight loss chart looks like a steady downward progression made up of a very squiggly line! 50 pounds is a whole lot of weight to lose in a year.
I’ve made all my money and physical changes by getting rich and fit slowly. Thanks again for your inspiration.
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You can cut down your music downloads spending by choosing mp3.walmart.com over iTunes.
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I always know my month wasn’t great if I hesitate to do the summing-up at months’ end. I haven’t done my January numbers (keeping a notebook works best for me, so it takes a bit of crunching to get information). I am sure I spent less than I earned, but I’d started out January deeming it a no-shopping month, and that fell by the wayside. I guess I’ll go look at the numbers now!
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One month into 2010 and I’m very happy with how the year has started. While there has been a small correction in the market which has hurt my net worth I’ve managed to maintain my savings rate of 60% of gross salary.
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We’re getting there. We’ve got a very basic budget outlined, but my wife is actually having problems getting her paycheck direct-deposited into our joint account instead of her old personal account. Other than that, we’ve given ourselves an “allowance” for blow money that we can use on whatever we want. Eating out, going to the movies, gifts, etc. That money goes into our personal checking accounts that we’ve each had since before we were married. The bulk of our earnings goes into the joint account and goes towards bills. We’re slowly attacking the mountain of credit card debt that we have (now that I think I’ve convinced my wife to not use the credit cards till we get them paid off), and hopefully we’re on our way to a much lower-debt future. *knock on wood*
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Generally, I am satisfied. We paid off the last of our non-mortgage debt in December. Now we’re focusing on building up our emergency fund and trying to find other budget areas to cut, so we can finish our emergency fund more quickly.
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I want to know how you spend $12.20 on cable? What’s the secret there?
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My husband and I were spending $600 a month on food last year – about $250 on groceries, $200 on fast food, and $150 on restaurants. We decided to cut that down in 2010.
We tried out Angel Food Ministries this month and have been pleasantly surprised! They’re grab-bag food program has forced us to cook more at home and try new recipes. I’ve only disliked two items – a Chef-Boyardee-like dinner that had sweet tomato sauce and the salty Baby Back Ribs – but my husband enjoyed both of those. If you eat really healthy and spend time finding the best deals on food, Angel Food Ministries is not for you. If you are pretty lazy when it comes to grocery shopping like me and only use a few coupons once in a while, it’s awesome!
We only ate out (fast food AND restaurants) 5 times last month for a total of $90. We spent $75.50 on the Angel Food Ministries boxes and $175 on groceries. That’s less than $350 on food instead of our normal $600!
We’re ordering AFM boxes again this month to see if we can keep this streak going. We will also spend $250 on a small second freezer for the garage if we are going to keep cooking at home.
The rest of our discretionary spending has been pretty stable at $400 a month for the last year or two. I include our maid service, lawn service, cable and internet, Massage Envy membership, Netflix, and other monthly entertainment in this category.
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I have a 50pound goal for 2010 too.
I’m very optimistic about the way that is going.
As for finance, we are getting on the right track and making positive changes, but it’s slow going right now.
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We’re taking a half sabbatical this year that we saved up to be able to do last year. We’re down to 3/4 of what we’d saved, which isn’t too bad (and we contributed the max to 403(b)s and 2009 IRAs). But after years of saving every month it’s a little difficult to go the other direction, even if it was planned.
I’m feeling very poor this month because we bought tickets to visit the family over Easter and DH is going to Europe in March (part business, part pleasure), so that’s $1400 that isn’t going to be reimbursed. It’s a bit hard because I’d finally gotten our spending equal to our income on one salary and hadn’t had to transfer money from savings for several months. We’re down to half of what I usually like to keep in slush. That means we’ve been eating at home a lot more. (I’m one of those people who doesn’t budget but changes spending based on what’s leftover if necessary.)
I won’t really have an idea of our financial situation until we find an accountant to do taxes. Our situation is very different than it has been in years past (very complicated) so I have no idea if we will be expected to pay or if we’ll get a refund. My guess is federal refund and pay extra to the state. But who knows.
In terms of weight– I’m glad the solstice has passed! I’m right on the edge of fitting comfortably rather than uncomfortably in my size 8 clothing. More sunlight means more exercise.
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On a similar note, following an interesting post that I read on Darwin’s Finance, I posted a discussion today over on LifeTuner about places where I could cut discretionary spending in the event of a layoff: http://www.lifetuner.org/discussions/399-layoff_budget_cut_analysis
Would be interested to know what’s the first to go from your discretionary budget when your income suddenly decreases.
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@Randi Dawson (#9)
We’re able to spend $12.20 on cable because we have only the basic channels. Nothing else. (And I’d get rid of those if Kris would let me.)
RE: Pets
Though I count the spending on our four cats as discretionary, I don’t really think of them that way in real life. Does that make sense? I mean, Kris and I don’t have kids, so the cats are our children. (Yes, we’re those people.) But still, discretionary.
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While I realize that Angel Food Ministry does not have an income requirement, its purpose is to help people who are poor or struggling, “practical way to give people a “hand up” during difficult times.” They are not targeting those who can afford to eat out constantly. The people who give out this food are volunteers, and it seems a little distasteful to use volunteer’s time so you can spend more on maid service and massages. The point is to get you through a rough patch, or some churches say to buy the angel food and use the money you saved to donate to other charities. So while I do not want to discourage anyone from buying Angel Food’s packages, just realize what the company’s mission is.
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Battle for Wesnoth is an excellent game!
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Here’s the way we handle our discretionary spending…
Our entire budget is divided into two main parts: Fixed and Petty. All of our bills that are pretty much the same every month are in fixed (mortgage, car payments, utility, cell phone, etc). Fixed is by far the larger part — it is all the money it takes to “run the house”.
Petty is more close to “discretionary”, and of course since it is discretionary it has a high probability of getting out of hand if we don’t control it. So the things that our petty budget pays for are things like gas, groceries, money-in-the-pocket, eating out, random trips to Target/Walmart/Home Depot/etc. This is all “consumption” based spending.
For our family, this is usually around $650 every two weeks (my bi-weekly paycheck schedule). So when I get paid we start with a fresh $650 and proceed to live the next two weeks on this amount. To keep ourselves in-check, at the end of the two weeks, we take whatever is left-over and split it in half (say we only spent $575 and have $75 left-over, so half-n-half is $37.50/$37.50). I put one half in our “petty savings” to supplement when we spend over our $650 limit in the future, or for when my wife and I agree to an uncommon expenditure (like buying a new bike for one of the kids). The other half of the left-over we give away. The give-away half we split again 50/50 — we give half to the local foodshelf, and the other half we loan out to someone on kiva.org (micro-loan service to help the poor).
This system has worked very well for us. It forces us to not be driving all around town burning gas. And in the summer time it works even better with regard to gas, because it gives us incentive to ride our bikes around town for errands. It forces us to consider that if we *choose* to go out to eat, that’s probably going to be $30 that won’t go to the local foodshelf or to someone in Uganda on kiva.org. Sometimes we deem it worthy to still go out to a restaurant (we’re not totally beaten-down by guilt
, but most of the time it gives a healthy dose of “is this really worth it, when others are in such need?”.
This incremental systematic method has allowed us to give $1250 in loans on kiva.org in the last year. That feels really good!
To figure-out how much to budget for petty each pay period, just look at your historical data (bank statements) and tally-up the “petty” spending. Then set the amount just slightly higher so that you have some padding. Tweak it for a few months until you get repeatable spending. Then you can relax at the fact that *generally* you spend about $200/wk on food without having to be draconian with yourself, keeping detailed record of the spending. If you have money left-over at the end of the pay period, you did good! Now give some away to someone else in need.
Hope this helps someone!
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I should also note that we have two other “compartments” to our budget besides Fixed and Petty. They are our tithing to our church and our straight-out savings. So there are four parts, but Fixed and Petty are the two main components for the purpose of balancing living & spending.
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Like you JD, we’re at a stage where we’re sort of on autopilot. Other than a one-time purchase of a DVD recorder that will replace our satellite DVR (and cut $75/month), a new twin bed for our son, and home improvement items we planned to buy, I can’t think of anything that stood out in January. I’ve quit devoting too much time/effort to tracking our finances to the penny, I’d rather spend my time elsewhere.
Instead, we have a monthly estimate of what our credit card bill should be (basically all our expenses other than a mortgage and a couple utilities that don’t take credit cards). If we are too far over on that, we take a closer look. For January we were right there when adding in all the unusual items listed above.
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I wish there was a “like” button for M.W.’s comment – that is great. Going to talk to my wife about trying it out in our household.
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Cats are people too!
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Kat–
Angel food ministries is not as angelic as it sounds. They’ve undergone a lot of controversy and FBI investigations in the past year (look up “angel food ministries investigation” or “lawsuit”). They’ve been making a profit but not paying taxes because they’re listed as a nonprofit. I would not feel guilty using them. Personally I wouldn’t use them because I’ve heard some pretty disgusting horror stories from people who have.
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I am on track with my half of the household finances. 401(k) and HSA contributions are in place, rollover from old non-performing Roth IRA to HSA is underway, my debt repayments are on schedule, and I got a small unexpected bonus which permitted me to replace the front wheel bearings in my ’95 Accord way ahead of schedule. And I’m about to pay off the semiannual car/renter’s insurance bill.
Over Presidents’ Day Weekend, I’ll hit the Quickbooks with DH’s half of things and find out what’s happening there. Last year was atypical (due to my disemployment) so I don’t expect to see much action on *his* debt repayment, but it’s always good to get that balance sheet done.
Only $14.78 on pets, huh? Yours must not demand Fancy Feast.
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I have to buy 2 different types of cat food that costs around $30 for a big bag ( its around 4-6 times as expensive to buy the smaller bags), and we go through about a bag a month. We had one cat who only ate canned food at a cost of around 88 cents per day, but she passed away. Litter costs around $10 per week. We have 3 adult cats and 2 kittens. I won’t even get started on the rabbit.
I am not a big pet person, but they are part of my family and the rest of the family is. So it’s required spending here.
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Hi JD. I liked this post – it’s always nice to hear about the personal side of finance. My January was all about belt-tightening. I spent $5 eating out and $2.50 on gifts (I took a gift card to Barnes & Noble and got birthday presents for two people in my life – and that was the balance). I also spent $12 on concerts and $8 on clothing. I was trying to save as much as possible because I am living off a small stipend currently. All the saving came in handy when my car got towed yesterday. It took almost $300 to get my car back, but at least I had that money in the bank plus enough to pay my upcoming bills. Now I’m back to saving for February. Thanks for the good advice your site provides.
Oh, and as an alternative for some of your iTunes purchases: do you know about Hype Machine (http://hypem.com)? It lets you search for mp3′s by indie bands that have been posted on blogs. You can find great songs on there and save some money.
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Not quite where I want to be–I’ll just have to save twice as much next month.;-)
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This January has been interesting. Though I’m a careful spender and a big saver, we have never had a budget because our income has always been unpredictable. For years my husband worked so much unpredictable overtime that his checks ranged anywhere from $1000-2000 every pay period. We moved to a new state 4 times in our first 5 years of marriage. I’ve had more jobs (full time, part time, internships, and odd jobs) than I care to remember, at everything from $7/hour to $25/hour plus overtime. A couple times a year we get 3 paychecks instead of two. And to top it off, for the past 3 years I’ve owned a small business with monthly sales that vary dramatically depending on the season.
This year I’ve taken a lot of steps to even things out and get a sense of stability. My husband and I are both in stable jobs so we’re using our 4 paychecks per month (2 each) to pay for all purchases, utilities, student loan payments, and, well, everything. We’re training ourselves to live on a regular income instead of one that fluctuates by as much as 100% from one month to the next. We also make 401k and 403b contributions and a small contribution to both short- and long-term savings accounts from this basic income.
If we get an extra paycheck (4 months per year) it goes straight to savings.
The income from my business goes to make an extra student loan payment, and the rest goes straight to savings.
So far it’s working fine and we’re having no trouble living off of our most basic income and I’m hoping that as we become more and more accustomed to not getting big unexpected bonuses on random months, we’ll get better about targeting our savings and knowing where our money goes.
There’s no telling what state we’ll live in or which of us will be going back to school or starting a new career in the next few years, so I’m going to enjoy this predictable life while it lasts!
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For music lovers, try grooveshark.com. Free music, much better selection than pandora. You can create your own playlists or just listen to what’s most popular, newest, etc.
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I’m off to a slow start. This month I will pay off my house mortgage and become debt-free!!!
With my weight (I’m trying to lose 35 – 45 lbs this year), I’ve only lose 3 lbs. I was hoping to have lost 9 by now…
We want to go to Europe (my wife really wants to go to Paris) too, but we need to put a few years of savings under our belts first.
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The first month of the year was good for the budget. I started using a “zero based” budget in January and so far it is working great.
I basically set aside the amount of money I plan to spend for the month into my checking account. Any money that comes in during the month is deposited into my money market account.
Any money left in the checking account at the end of the month is transferred back into the money market to zero out the checking account. On the 1st of the month, it starts all over again.
I have a post coming up this week with the actual numbers.
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The zero based budget is the only way to get laser focused on actually paying off debt. Too many people who write a budget don’t know why they are really doing it. The purpose is to find out where the rest of your money will go AFTER paying yourself. Remember, pay yourself first-I say 20%.
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JD,
$25 per restaurant meal is great! My husband and I really like going out, but I’m extremely frugal and we’re new (6 months) to PDX area. Do you have any restaurant recommendations that keep my husband’s tummy happy without making the vein in my forehead bulge?
Thank you,
AB
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I second the Two thumbs up on MW’s comment. We may move that direction soon! Thanks for the wonderful idea!
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We were a little over on discretionary spending in January (which is really covered by the last half of December and the first half of January) but DH and I were both sick the second half of January so I think it will average out in the end. We are switching over to a new budget next month for my new job, so it will be interesting to see how it starts to work out.
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We are doing well. Trying to get more of a handle on our grocery budget as I tend to spend more than I’d like to. I’m not great at budgeting. But, fortunately, since I handle all of our finances, I am great at saving. Almost half of our net income (after 401k, charitable giving, etc) goes into savings (some into Roth, other into other savings) and we live from the rest. I figured out what all of our expenses are on average and what we could save and just started moving that money at the beginning of the month so it’s not even ‘there’ for us to spend. It’s much easier that way for me than ‘budgeting’.
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I agree with Cely, grooveshark is great for streaming almost any music there is.
J.D., you say that no great lessons were learned. I think that finding new ways to optimize your spending when seemingly there is not much to change is a great step forward.
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J.D.
Do you purchase your comics second hand?
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How do you track your spending/budget? Do you use a certain software program or recommend one?
Thanks!
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There is certainly room for improvement with our discretionary spending, specifically in the area of groceries and take out. One thing I’m especially proud of is that I have been binge reading personal finance classics this past month, including Millionaire Next Door; Rich Dad, Poor Dad, The Richest Man in Babylon, The Wealthy Barber, Orman’s Women, and Money, etc. I come from a family with a scarcity mentality when it comes to money. Money was something that had to be stressed over, every ounce of a check was allocated to a bill, you’re constantly robbing Peter to pay Paul and lying to Steve about when he will get his dough, substantial savings or retirement fund was just a pipe dream.
Those books and this blog are helping me to challenge this perpetual sense of lack. It is not even about a disparity in income as it is about a disparity in the choices we make every day. Everything in life should not derail your budget and leave you scampering. The knowledge I’ve gained leaves me feeling empowered. I did a 2009 snapshot XL spreadsheet where I examined major and minor categories of spending; DH and I could readily see where our budget was hemorrhaging. Another fruitful exercise was to review add up and determine our aggregate income over the course of our working lives, the data was picked up from tax returns and Social Security Administration statements, – I did this for me and my husband as a couple and as individuals. It forces you to recognize how much money has really come though your hands. Some people in the most improvised places in the world live on $2 a day. When you are staring in the face of hundreds of thousands of dollars over the course of your lifetime it forces you to think about were you a wise steward?
I graduate in May and have a six month grace period on a very intimidating mountain of school loans – so I want to do as much as I can to put us in a nice position before that very big line item is assumed by our household!
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Um, I don’t want to be Mrs Buzz Kill, but I don’t know how one can lose 50lbs AND dine out 5-6 times a month. What am I missing?
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@ AB (#32), if you dine out frequently, the Entertainment Coupon book might be worth your while to look into:
http://www.entertainment.com
I purchased my Entertainment book at a local Borders bookstore this year for about $20. I have also purchased them at the local grocery store and Walgreens in the past… Look around. For my $20, I got $30 in coupons for the local grocery store which will all be used, so I’m already ahead $10. But in addition, there are tons of coupons for local resturants, most of which are “Buy one meal, get one free.” There are also discounts offered for movie tickets, museums, skating rinks, ect. If you dine out a lot, this book will definitely save you lots of money! I don’t even dine out that often, but the other savings it offers still make it valuable to me.
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Slackerjo @40: By choosing healthy options from the menu, and if you go to one of the restaurants that serves you humongous portions, by taking part of it home for a further meal. Also, many chains have their nutritional information posted on the Web.
I tend to prefer locally-owned restaurants that are a cut above chain restaurant fare, but if I go to, for example, Chili’s, I can order their 12-oz ribeye and toast (1070 calories) with black beans (110 cal) and mashed potatoes (120 without gravy) on the side. As one meal, that’s enormous. I cut the steak into 3 pieces immediately and eat one, then eat half the black beans and mashed potatoes for a total of 500ish calories (I tend to over-estimate because I assume they under-report). Take the rest home, have steak, potatoes, and beans for another meal, and then eat the third piece of steak with vegetables cooked at home for a third meal. I don’t bother with dessert or appetizers when going out, and I drink iced tea. Saves both calories and money.
And I *did* lose 50 pounds while still eating out 2-3 times a week, back in 2007. I just worked out how many calories per meal, and factored that into my overall eating plan: if I splurge on a meal, I eat more healthfully for the other two meals of the day. I’m gearing up to lose more weight and get more fit this year, following my previous plan.
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Dreamchaser– That sounds great! Good for you! I think you’re going to be just fine.
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I reviewed my spending for 2009 and found lots of areas where I can cut back. I tend to spend on conveniences; these are often smaller amounts, but add up FAST. For example, taking a cab to the airport instead of light rail.
I am flying to the East coast tomorrow and will be taking light rail to the airport, and having a friend pick me up when I get home. Total cost: $2. I would normally pay $30+ each way for a cab. If I can keep making changes like this one I’ll have hundreds more dollars in my travel fund by year’s end.
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While I consider dog toys and the like to be discretionary, neither food nor vet fall into that category in my house. If you spent $14 on toys, WOW! If it’s food and/or vet, what is discretionary about it?
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We are actually in the different position of needed to relax our spending a bit — after years and years of carefully managing, we could be spending more now, and this month I tried to buy a few things rather than saying, “I don’t need this.” It worked a little — for the first time in years I bought a pair of shoes that weren’t on sale — but it also failed. When I tried to get myself to buy a new paper shredder, the cost of the “good ones” (according to the salesperson) triggered my “too much” button and I’m sticking with our old machine, which I guess I’ll run until it dies, even if I do have to declog it manually far too often…
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@A.Keller: In my household we use pearbudget.com which is a really easy budgeting system that allows you to personalize as much as you want. You can try it for free on their website to see if it matches your needs. Also, on the pet subject that’s been brought up so many times, we have our kitty supplies as a line item in our budget. With 2 cats we know that we’re going to need food, litter, and a prescription medicine every month. It’s helped us a lot to make sure that we break things down into specific categories so we can get a better idea of how much we’re spending on what. It makes forecasting our monthly budget much easier.
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@Kat
The church we spoke to about Angel Food Ministries encourages EVERYONE to use them since the chirch gets a box of food for the needy for every x boxes ordered. AFM also gets better deals on food based on how many orders they receive. If I make an order, it is not taking food away from anyone else.
It’s basically a food co-op in the form of a non-profit business…I wouldn’t consider them a charity other than the free boxes they donate to those in need.
That is the way the church explained it to us and they understood our financial situation. I even offered to volunteer but they were covered.
I don’t spend more on our maid service or our lawn service because I use AFM…I spent that money before anyway. As the church near us explained it, I’m saving money and helping them out at the same time. I’m cool with that.
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On the pet subject, we consider all of our dog expenses as discretionary – food, vet, toys, and everything. We chose to think about it like this since we don’t have to have pets…they are a giant entertainment expense.
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After spending the bulk of 2009 hunkered down and getting rid of over $17,000 in credit card debt I am having a hard time even justifying an extra $20 to go out with friends. I paid my car down from $7594 on Jan. 1st to $6389 on Jan 31st. I plan to have it gone by May 6th. I want that paid for car feeling and intend to drive it for many more years. I have prepared my budget through October and I cannot believe how much money I can save without payments. We have established a life without payments policy in our house. By Sept. I will have enough of an emergency fund and extra to pay off my spouse’s car. Perhaps then we will take a real vacation…without a credit card.
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