I’m doing the 50% Project. It starts today, with my most recent paycheck. And the goal is simple – save 50% of every penny that enters my wallet. Don’t let my expenses exceed my means.
So how will the project work? If you want to join in, here’s what I’m doing:
- Put away 50% of all income, whether it’s from work, gifts or tax returns.
- Make it as difficult as possible to spend the money you’re saving, so you’re less likely to spend it. This can be putting it in a locked savings account, or just giving it to a more responsible spouse to keep safe. Safety deposit boxes work well, and old fashioned piggy banks are good too.
- Keep track of how much money is coming in, how much is going out, and where it’s going.
- Every once in awhile I’ll post an update here on the blog of what I’ve managed to save, a glance at where my money went, and any suggestions I have or lessons I’ve learned.
- Doing Christmas for as little money as I can possibly manage. This year we didn’t have time to make gifts, so we set very low budgets and will be doing birth announcements for our Christmas cards. We will spend less than $300 for the entire holiday.
- Staying accountable – I promised my husband that I’m going to stick to this, and now I’m promising you.
- Stay positive – if I mess up, I’m not going to beat myself up. I’m going to keep moving forward, and so should you. Reflecting on mistakes helps me make better choices but ruminating on regrets is unproductive.
What do I hope to accomplish with this project?
- Move into our own apartment.
- Credit scores over 600.
- Trade in our current car for a safer one.
- Have an emergency savings of $1000
- Pay off our debt.
- Develop self-discipline and better money-managing skills.
- Learn to live minimally.
- Be financially independent of others (not needing to rely on help from family or welfare).
But it’s Christmas.
I am very aware that it’s December, the hardest month for almost anyone to save. But I also believe that it’s the perfect time to test this, to try and stretch the limits of our self-control and practice delayed-gratification. For more information on a minimalist Christmas, I highly suggest this post over at Zen Habits. Christmas doesn’t have to cost you.
I wish all of you luck with your own financial journeys; thanks for sticking around to read about mine.
I’m going to be straight up here, partially to help dispel a lot of the misperceptions and stigma surrounding poverty, but also because I believe by being honest about my husband and I’s journey I can help you and learn myself.
We’re poor. Like, we would have starved to death years ago without public assistance, poor. So while other bloggers might do the “SNAP Project” – that’s been our life. And it’s actually how we both grew up, too. But we have no intentions of staying this way – we’ve bounced on and off the system as our life circumstances have changed. But the goal has always been stability. Self-sufficiency. We could definitely be in worse situations, too.
So whether you’re trying to escape poverty, survive a family disaster such as job loss or illness, or just want to save money so you can do awesome shit with your life, this project might help you. Please feel free to share any suggestions you might have.
We are starting out fresh again this month, just in time for Christmas. My husband just landed a new job after being unemployed for almost two months. I’m 39 weeks pregnant. We have an older, high-needs dog. We don’t use our credit card – we’re trying to pay it off. We currently stay for free in the bedroom of my husband’s uncle’s house, with their family of four people and four fur babies. We’ve been homeless for over a year, off and on unemployed for various reasons for 18 months, and our credit reports look pretty bad.
Every family’s needs are different. Every lifestyle is different. The transparency here is meant to serve as inspiration and encouragement.
(In order of priority)
$400 – Groceries/Food
$100 – Work uniform for new job PAID
$85 – Storage Shed (This has all our belongings and all of my husband’s mother’s belongings) PAID
$196 – Phone bill
$160 – Gasoline
$289 – Car Payment PAID
$100 – Auto Insurance Premium PAID
$31 – Credit Card Minimum
$15 – Web Hosting Service
$100 – Household expenses/Personal Care/Baby needs
$40 – Oil Change (Required by our loan agreement)
$150 – Christmas
$50 – My birthday
$25 – Date night
$400 – Brakes
$7 – Crunchyroll subscription
$35 – Birth certificate (the hospital no longer provides these – we have to order it from the state)
$588 – Cash Assistance for November and December RECEIVED
$357 – SNAP (Can only be spent on food) RECEIVED
$275 – Daycare Wages for November
$250 – Toys R Us Wages for December (Joseph’s new job – we don’t actually know how much to expect so we’ll see)
$87.99 – Checking Account
$682 – Fall Term FAFSA
$120 – Cash
Frugal Accomplishments for November
- My husband finally quit smoking!! This was something he promised me he would do before our son was born, and I’m so grateful he was able to do it. He started smoking when he was 10 and he didn’t want our son to go down the same path.
- Pre-Baby Meal Prepping: Stocked our freezer with 11 dinners, which is enough to feed us for a month (we share cooking duties with the house) and stocked our cupboards with a week of easy foods for after baby. And saved $50!!
- Ibotta rebates earned – $23.50
- Started couponing again.
- Packed lunches from home for the majority of the school days.
- Under spent gas budget – saved $30 by the end of the month.
- We budgeted $13 for most of the people on our Christmas list – and only spent about $8 on most of them but still got awesome gifts.
- Took the city bus or carpooled multiple times.
- Bought Halloween candy the first of November, on discount, with coupons. Over $100 worth of candy for less than $40.
- Switched to making my coffee at home.
- Moved in with family – this saved us $800+ a month in camping fees from staying in our trailer.
- Almost all the baby things we needed were either acquired for free or as gifts. We spent less than $150 on baby items – and most of that was on the Co-Sleeper Pack n Play and the diaper pail.
- Went back to the cash envelope system because the debit cards were getting overdrawn too easily and the credit card that we aren’t supposed to be using got taken out a few too many times.
- Black Friday is a giant scam. I’m glad I didn’t actually do any in-store shopping – I did it all on online and it saved me from impulse purchases and overspending on the items I was intending to purchase.