How Can you Survive on One Low Salary-4kids?

Petra

Thu, Oct 23 2008, 12:46 am

My question might be too vague but probably any answer is helpful. We'll soon likely be going to a one salary family. Suddenly, we'll be losing our free childcare provider (my MIL) and we can't afford to pay a babysitter for the hours we work. As it is, we don't have any savings and are struggling to pay for the luxury enrichment of sending our two littlest children to "3 hr a day" early childhood program (Jewish day school). We don't eat a lot of meat, don't go on vacations, never buy anything full price, most of our food is generic otherwise and clothes are hand-me downs. This is certainly an unexpected dilema, but we can't cancel the daycare program because the school won't allow it...

Thanks in advance.

alpidarkomama

Thu, Oct 23 2008, 4:27 am

We have 4 kids, 1 not-so-big salary, medium-high cost-of-living area. AND we survived a year of unemployment a few years ago. It can be done.

You HAVE to cancel the day care! No money = no way to pay them. Period. That's really ridiculous if that's what they're telling you. Cancel it anyway. Stop showing up and stop paying. The kids don't *need* formal instruction. Just a family that loves them, and a home full of torah.

Go to 1 or zero cars, depending on where you live. We need 1, and my husband can bus to work. Our car is 10+ years old.

Beans and rice, rice and beans, literally. We have chicken on Friday night. Occasionally, lamb (a delicious treat for us!!!!). Rarely do we have meat during the week. Even cheese has gotten ridiculously expensive. Dry bulk beans are a HUGE bargain by comparison. And beans can even taste pretty good with the right recipe. Smile

We base most of our needs on what what was considered a "need" 100 years ago. Most needs these days are wants, not needs. Each year we look again at what we are paying for and think about whether it's a want or a need. We are always surprised to find there's one more thing we can whittle away. Can you print out the last year of expenses and really examine it? It can be a very interesting process!!

Sell anything that is superfluous in your home. We always joke that if a thief ever broke into our house, chas v'shalom, he would be very disappointed. Smile

Get new quotes on any insurance you're paying for yourself. It's amazing what a difference there can be when you call around!

For groceries, I do so much better if I get an envelope of cash at the beginning of each pay period and just pay for groceries out of that. I tend to lose track if I just use my debit card. Groceries are definitely our biggest expense after mortgage. If I'm able to save more than usual, then for the last shabbat of the month I can get us something special. Or just save the money for something else if there's another need.

We squeak by, and can set aside enough to cover those larger expenses that come up (roof repair, car repair, etc.). We are looking forward to my husband getting a new job soon, BE"H, so that we have another jump in income. But compared to 99% of the world, we are living like kings and queens. I am grateful to Hashem every moment that we have enough and that I am with my children.

Hatzlacha!

Petra

Thu, Oct 23 2008, 7:22 am

well, with one expected income about 40% of income goes to housing. we don't live in a metro area but it's not as inexpensive as Cleveland (just comparing housing prices for instance that last time I checked 2 years ago). our vehicles are paid for so it's only gas and car insurance. our car insurance is pretty cheap. I estimated we spend about 180 on gas per month. IYH, in 2 years, my salary will increase substantially. we just have to get through the next two years, barring that there will not be something that comes up that prevents me to work full time (illness, etc.) I'd love to be the one to stay home with my kids but it doesn't make sense because my potential for income is so much higher than my husbands. Unfortunately in this country my DH's teaching job is not valued. Yet someone can play a sport for a living, be a total outlaw, and get paid handsomely.

Tamiri

Thu, Oct 23 2008, 9:11 am

LeahsEma wrote:

well, with one expected income about 40% of income goes to housing.

The experts would say that's too much of your income, even without the limitations of running an Orthodox Jewish home. If so much goes to housing, something will have to give elsewhere. A lot of something.

LeahsEma wrote:

we don't live in a metro area but it's not as inexpensive as Cleveland (just comparing housing prices for instance that last time I checked 2 years ago).

The bottom-line question is if you are going to be able to hang onto your house (including all the interest and tax payments and maintenance that come along with home "ownership", assuming you borrowed to buy). If not, perhaps it's worth it to move somewhere less expensive, even renting out this home till things are better. If that's a possibility.

LeahsEma wrote:

our vehicles are paid for so it's only gas and car insurance. our car insurance is pretty cheap. I estimated we spend about 180 on gas per month.

Can you get rid of one car, no matter how little the upkeep is, to generate a bit of cash and save? After all, one of you will not be needing it on a daily basis...

LeahsEma wrote:

IYH, in 2 years, my salary will increase substantially. we just have to get through the next two years, barring that there will not be something that comes up that prevents me to work full time (illness, etc.)

Let's say that your salary will increase. What if it doesn't? The world is insane now. Can you be sure of income? What about expenses - won't they increase in two years as well, especially if there are children?

LeahsEma wrote:

Unfortunately in this country my DH's teaching job is not valued. Yet someone can play a sport for a living, be a total outlaw, and get paid handsomely.

Think positive. After all, no one forced him to be a teacher. And there are plenty of teachers who figure out something so they make a decent living, even if it means thinking outside the box.

GOOD LUCK!