After 15 months in AmeriCorps, I'd like to think I know a little about managing my money. I also have a more polished understanding of what it means to be "poor". Often people give me advice for saving my money, or suggestions on how I could have more money. Usually, this is because I've told them "no" to doing something that might cost me money, using the excuse that I am poor. Here's what they say:
#1 advice: Cancel cable.
Why it doesn't work: there are several reasons. Number one, I'm in a contract and if I cancel now, I have to pay $125 bucks. I could reconsider cancelling in October, but I truly enjoy TV (the good stuff and the bad stuff). Currently I do not own a system that connects my TV to the internet, and it's not worth it to me to go purchase one (isn't the point to SAVE money?). Plus, my cable and internet are bundled in a package. I pay $83/month.
#2 advice/suggestion: OMG, do you have an iPhone? I thought you were poor!
Response: Yes, I have an iPhone. Guess what? It cost me $50. It's a refurbished old model. And I pay the same amount per month that I paid with my not-so-smart phone. This month, my bill is $67.
#3 advice/suggestion: stop going out.
Response: Somewhere along the line of human history, it was decided that if someone is poor, then they are not allowed the right to have conveniences or entertainment. It's not something people talk about - but I still hear it. I have decreased my going out spending to a minimum of a work-related happy hour every other week, and a few beers after an improv show (I count it as a necessary expense). I rarely see movies (a bummer! I love movies!). I rarely go out to eat (also a bummer...it's so nice to have other people cook for you, isn't it?). When I'm not out practicing/performing improv or working, I'm usually at home. Which is another reason why #1 doesn't sound appealing.
Here's what I have done to save money:
#1: Use budgeted billing for my gas and electricity payments. This makes it easier to budget my tight funds because I pay the same amount each month no matter how much I actually use. They base this on your previous 12 month history. It's worked out pretty well.
#2: Apply for food stamps. I make about $12,000/yr (before taxes) on AmeriCorps, and government programs like food stamps are in place for people like me. It is designed to be supplemental. I can only use it for unprepared food (no salad bar or hot deli foods, with a few exceptions). I get $200/month. It's usually gone before the month is up because Michael and I cook almost every meal. I will be on food stamps until my AmeriCorps term is complete in August of 2011. People have differing opinions on welfare programs like food stamps, but without them, I simply could not do AmeriCorps.
#3: Add a roommate. Michael moved in 4 months in to my AmeriCorps term, which cut some bills right in half (electric, gas, rent). Plus, it helps us practice for marriage. (Seriously. I do not recommend legally binding yourself to someone if you haven't had a chance to practice living together. I know this goes against tradition...but I sincerely believe the divorce rate would be waaaaaay lower if people actually...you know, try it before they buy it.)
Total Monthly Expenses/My Share:
Rent: $600/$300
Cable/Internet: $83/$41.50
Gas: $62/$31
Electric: $56/$28
Water: $60/$30
My cell: $67/$67
Insurance: $26/$26
My credit card: $66/$66
My medication: $27/$27
Total: $1047 (not counting Michael's insurance, credit card payment, cell phone, and hobbies because I don't pay for them)
My share: $616.50
My monthly income: $834
That leaves $217.50 to cover everything else. Which, isn't very much when you spread it out over a whole month dispersed in two paychecks. It's just not.
But what I've learned most is.... I can totally do it. Fifteen months in and I'm not starving or homeless or bankrupt. I managed to go back to school and get a certification in nonprofit leadership. I have a working vehicle and a warm (by my standards) home. I'm never hungry. I'm never bored. I'm never lonely (thank you house pets!). I have few complaints. Plus, that first $30K job I land will make me feel like a millionaire!
Fifteen months down and six to go!
1 comment:
"try it before you buy it"...i love it! that made me chuckle. but you are so right, you learn all those idiosyncrasies and mental processes of the person with whom you are going to potentially spend the rest of your life. the rest of your life is a LONG TIME, people! (at least, you hope it is.) kyle and i lived together for about 7 months before we got engaged and then of course, the entire length of our 11 month engagement. i figure if i haven't killed him yet, we're set for life. :)
on top of that, it makes financial sense. we i practically lived together in college, but maintained separate addresses. that was quite possibly the dumbest thing i've ever done. i can't even imagine the money i would have saved if i would have moved in with him. maybe i would have $40K in student loans...
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