I recently saw an article about poverty levels in the US for 2022. I was slightly amazed. The dollar figures are low, but I then got to figuring, and I live on less.
Please know, I am in no way being disrespectful of people living in poverty. There are many who do and have a very rough time. I hate that for them.
I lived life with a purpose and still do. My purpose was to have a good quality lifestyle and to be able to do good for others, as well.
POVERTY LEVELS - lower 48 and DC
1 - 13,590
2 - 18,310
3 - 23,030
4 - 27,750
Alaska has a slightly higher monetary amount and Hawaii is a bit higher yet.
Years ago, we purchased a smaller and older home (1947) that we paid $29,000 for. It is about 900 sq. ft. and we do have a basement. There is also a detached garage and a decent size back yard - the front yard is tiny. This was purchased in 1985 (right before we married) and I still reside here.
My property taxes are almost non-existent. I joke each year, that soon they will pay me to live here! Actually, this year they did go up a tiny bit.
We bought a brand-new vehicle in 2001 (a 2002) and I am still driving it. It has about 67,000 miles on it. Still looks nice.
I am NOT a shopper. I very seldom purchase things for myself. I keep thinking about new furniture (and I will), but it is not that wildly important obviously. I am not a clothes hog! I spend money on groceries and on my pets and nature. I buy gifts for others. I donate to certain causes. That is about it.
I have utilities payments, a supplemental insurance plan and a life insurance/investment I pay each month. I pay vehicle insurance and property taxes every 6 months. Both are minimal. Basically, I spend less than $800 a month on everything other than groceries. Even with groceries, I believe I live on less than the chart shows for one. Not because I have to, but because I chose to. Sure, some months may be a bit more, depending on gifts and donations (but still quite low compared to most people),
We both saved as much as we could for the future. We knew there was a possibility that hubs would not be able to work at some point. We CHOSE to live a smaller less expensive lifestyle.
I always donated to 401K (max). One place I worked for a longer period had an ESOP plan (employee stock ownership plan). Glen had donations made and added to them in PERF (public employee retirement plan). We always tried to save at least 10% -15% of our income. We invested here and there.
We worked out bums off to pay off the house and the car.
Actually, we had older vehicles (that cost little) until the house was paid off. We made a pact - if the house ever got paid off - we would purchase a brand-new vehicle! Neither of us had ever had one.
Well, that is what we did.
The Blazer cost MORE than the house did! I about had a cow - and swore I was going to sleep in it!! LOL!
We were huge yard sale fans. We hardly ever bought anything new or for full price. G was on board, and loved finding tools and gadgets for next to nothing. He worked for the city garage, and they often brought back things that people had put out in the trash. Being a mechanic, G could fix anything. I used our first lawn mower for over 22 years (it was old when we got it). Since then, I have had to purchase 2 - as nothing is made the same today. Our tiller cost nothing - I still use it.
Oh sure he had tons of expensive tools he purchased for his job, and a huge tool chest to hold them. He paid for those over time and had a payment plan worked out with the tool guy. (That chest and those tools are here).
We were very mindful of our spending - yet we always had a good time. We camped with friends, and we wondered the roads of IN and saw and experienced a lot of things. We still had fun! We would get together with friends for dinners and cookouts or just for patio sitting and having a cocktail and conversation. We never felt deprived.
I still do NOT feel deprived. I live very simply. I really do have a LOT - and I am trying to rid myself of much of it. I mean how much does one person need?
I have all I NEED! I am very fortunate.
Again, I am not saying this in any way to make light of people living below the poverty level. It is a serious problem. I am no way trying to be disrespectful.
I /we were able to make choices in life to live the way we did. Those choices allowed for a good life and a safety net of funds. It meant living differently than many we knew - but we were happy with our decisions. It meant being able to survive on one salary of necessary.
Today I chose to live on less (even with inflation). It enables me to be able to help others when I feel the need. It enables me to have no stress on bills and needs. It enables me to not panic in the midst of an emergency.
I tell this story to maybe help someone younger make different choices. Maybe they can see that living life with a purpose in mind, can be beneficial for the future. It is meant to show that PLANNING and PURPOSE can maybe be better than living large in the moment.
Maybe it will help someone.
What mindful choices helped shape your current situation?
Curious why you would pay for life insurance? As soon as we were debt free we dropped it-each of us could live just fine on our own income.
ReplyDeleteIt is an investment/life insurance with Prudential. Not totally life. Kind of complicated to explain - but it is more investment than anything.
DeleteI have a similar life insurance/investment policy. It's an investment that continues to grow while I'm healthy, will cover long-term nursing home care, should I ever need it, and will pay out any remaining balance as life insurance. And it protects my other investments, should I ever need to go into an extended care facility.
DeleteYep - that is exactly how this works as well. Thanks, you explained it well.
DeleteLong term nursing care costs over $7000/month. You pay all of your bills including this policy that will cover the rest of your life for under $800? That is shockingly hard to believe. Who is the policy with?
DeleteThank you for sharing your story and the positive outcome of your decisions. It is a good lesson and I hope some folks will see the benefits and make adjustments. I was a manager and gave my employees (6 of them) a copy of a Dave Ramsey book. 5 of 6 never made any changes, but one did, and it changed his family’s life…I sometimes get frustrated that people don’t want to change, even when their current course is heading for a cliff, but we can only do so much to help them see alternatives. Thanks again, hilogene in Az.
ReplyDeleteThanks. What a neat thing to do for others. Glad that at least one figured it out!!! No, you can't change people, who have no desire to change. I used to work with folks that were always broke and in debt, and I would watch them walk across the street at lunch and breaks and buy cigs and big pops and lunch out every day. Then would ask to borrow money from me - 'cause you always have money'. Yep, they couldn't figure it out - and no amount of trying to help them ever worked.
DeleteSome folks just don't want to change. Those are the ones that could win the lottery and be broke within a year!
I think about this often and set goals in January to help me live within (and preferably below) my means. Do I really need it? What can I substitute for [that higher priced item]? Can I wait until it goes on sale? How can I adjust my cooking to save money and eliminate waste? Might there be a "like new" of that item I want on Marketplace or at Goodwill? It's become a game, in some ways.
ReplyDeleteI agree. It does become a game. The 'what if' game. I really enjoy it - as the outcome is a win!
DeleteThere are just so many ways we can 'change' a little and make a big difference.
What an inspiring story, Cheryl. Thank you for sharing it.
ReplyDeleteAttitude is everything when it comes to personal finance. Yes, there are people struggling mightily today. Some always have been. Student loans. Medical bills. Rising rents and/or higher mortgage payments than are comfortable or feasible. Then there's the, "I really NEED a new car...computer...cell phone (with all the latest tech)..." or fill-in-the-blank.
The thing is, it can be easy to justify too much, too often. Right now back to school sales are on. Inevitably, parents will buy high priced tech their kids really don't need, but think they need. Ditto new clothes. Shoes. Backpacks. And I get it. But maybe they don't know that you can get the same jeans--in good shape, because kids grow fast--at Goodwill or Salvation Army? Or maybe it's that shopping thrift stores carries an emotional stigma? Maybe they're unaware that inexpensive products are available to boost the tech they already have? I'd be willing to bet on that.
Still, I read a report recently that said pre-pandemic, 70% of mothers were working; post-pandemic, that number has dropped almost 20%. Which tells me some young families ARE figuring it out as they've reevaluated their lives. And they aren't alone. Our nephew and his bride just bought an older A-frame house, their 1st home buy, and though there'll be projects ahead, it looks in good shape. Just like our youngest son went well under the price he "qualified" for when buying his 1st (older) home. And he shops the way he always saw me shop.
Thanks again for encouraging your readers, Cheryl. You are such a blessing! --Elise
Well thank you for your kind words. Yes, attitude is a lot of it. Knowing what you want out of life, long term, versus instant gratification'
DeleteI had a gr. niece that thought her mom was awful for going to thrift stores - then she was MADE to go with her one day. She saw all the items (name brand) she could get for little money. She was an instant convert (as a teen).
It seems instant gratification is the thing now. I don't get it. I don't know if people re-evaluated how they live or just got used to not working.
Your son and your nephew are both being very smart and practical. Stat small and move up later if desired.
P.S. Please forgive me, but a thought just came to mind that ties in with today's (wonderful, informative) post. Frugal habits can become ways to generate extra income, too. More on that some other day, but I'm sure many of your readers can share their own experiences.
ReplyDelete--Elise
They sure can. Many people make good money doing things from home, shopping for others (at least they used to). I just recently saw a post of FB about that. It can be done!
DeleteA couple of things you have on your side as a single person is your age and your lifestyle in your younger years. Sadly, it isn't as easy for a young person to manage on such a low income. Here in my city, a one bedroom appointment is at least $900 - taking up much of their after-tax income. My son lives with me for a couple of reasons, he pays a smaller amount which helps me out but also so he can save in order to purchase his own home. It's a win-win for us though I know it isn't as easy for others.
ReplyDeleteRents were VERY high where we used to live, so our son lived with us, too, for 5 years after college, paying minimal R&B each month. I told him it was his once-in-a-lifetime opportunity to sock away a large amount of money in order to be able to buy his 1st home. Which he did this year in the state we've moved to. In fact, we stayed with him for nearly 3 months waiting for our own house to be ready. --Elise
DeleteMaebeme you may right. But I do remember a time of being alone and single at around 30 - and I had to pay rent and utilities and other things on what I made. I had to take a second job - to make ends meet - but I did it. Back then rent and pay were proportionate - like today. I paid smaller rent, but sure made a smaller salary. I did it.
DeleteI know a couple of younger gals (friends daughters), who are single mom's and working in the food industry. I amazed at all the things they do and the trips they take. One has even bought a house on her own for her and her daughter.
I think it depends on each person individually.
I love that your son is staying there and you are both benefiting. That is wonderful.
Elise, that is kind of neat that the whole situation went full circle! You helped him and he helped you out.
DeleteI like that families are sticking closer together - it reminds me of the older day!
Since I was a teenager watching old movies and browsing antique shops, I've said, "I was born in the wrong era." LOL!
Delete--Elise
We live way below what most do too and have all we need and much more. We only buy what we need and little else because we are just tired of managing all the stuff. No matter how much we get rid of it seems to multiply! We are debt free and so glad for that after Hubby came home on disability. Any raise we get goes straight in savings. I figure we are more likely to need it later than now. We are quite content and just fine with our 11 old vehicle and well loved belongings .
ReplyDeleteGood for you! No debt is wonderful - it just gives such a great calm to life. Very smart to bank those raises. It is very nice to not need for anything, isn't it? I agree the stuff sure does multiply!!!!!
DeleteIt's so funny that you posted this today. As I was taking my walk today, I thought, as I do daily, how much I love my simple little life out here in the mountains. I don't spend a lot of money or do a lot of traveling, but I wouldn't trade my life for any of the fancier lives of my friends. I'm delighted they have the lives they want, but those lives aren't for me. Lynn Ewing
ReplyDeleteLynn I agree so much. I am thankful my family and friends can do what they do and have fancier stuff - That makes them happy. Simple makes me happy. My days out in the yard with all of nature and pets, makes my day a delight. Doesn't take money at all. I imagine your days are delightful!!!
DeleteIF we had the house paid for and no truck payment Hubs and I would live below what they call poverty as far as our expenses are concerned. Even now with payments we live well below the food projections for two.
ReplyDeleteIt really is more widespread than we think, and it doesn't mean that we are all doing without or that we are poor. We are making a choice. You do so well, and you are a great example of what Elise talked about earlier about making money staying frugal at home.
DeleteIf I could offer one piece of money management advice to younger people it would be to choose your life's partner wisely. I ignored my intuition when I married my first husband nearly 40 years ago, and it is by far the biggest regret of my life. I will not go into the details.
ReplyDeleteConversations about attitudes regarding money are a start, but observing the other person's behavior is far more important. Are they employed in a position suitable for their age and education? Do they have a checkered employment past (repeatedly quitting/being fired)? Do they pay their bills on time every time? Do they have a lot of debt? Do dates always have to involve spending money? What is their attitude if you suggest doing something specific that is free/low cost? Do they appear to live beyond their income? Do they always need the latest electronics, new car, new clothes, expensive vacations? How do their parents live? Sometimes people raised frugally go overboard the other way, but you don't want someone who has never had to think before spending. Yes, people can on rare occasion change, but do you want to be the person who has to teach/force them to change? Does this person have any addictions or behavior that appears to be escalating toward an addiction? Do they take responsibility for their actions and the consequences or is someone else always bailing them out of trouble? Can this person delay gratification? Must they have everything their way and right now?
Set your feelings aside. Women especially tend to make decisions based on feelings, and choosing a partner is a time for THINKING.
Know the person well before you ever become intimate. Do NOT put yourself into a position where you might make a baby with this person if you have any doubts whatsoever.
It is far better to be alone in life than to be attached to someone who is so wrong for you.
Frances that is excellent advise. You basically said it all and I can't think of a thing to add to it. At least not on that subject. Been there and done that as well - it didn't end well. Learned and got wise and found the RIGHT one in all ways!
DeleteThank you for your wise words.
Excellent post, excellent conversation! When my girls were small, we would go to the Carter's Outlet in Franklin and purchase items that would mix and match. Erin would wear Alana's hand-me-downs. As they got older, things changed but I still bought mix and match clothes. I hate to think how much moms are spending on their tween and teen girls' clothing. I mostly shop at charity shops for myself, except for personal things and shoes.
ReplyDeleteWe are still driving a 2000 Buick and a 2001 Chrysler van. Folks are flying around us in their newer, fancy cars. The house is paid for, it could use a little spiffing up, but you know, that's not really important. As long as things function properly, it's all good.
We have no desire to travel so there is money saved. Most restaurants aren't fit to eat in so more money saved.
We had our first corn today! There are several more ears, not enough to preserve but plenty to enjoy. The Urban Farmer planted more green beans today and there should be plenty of time to harvest. The cooler weather today was bliss!
So glad to see I am not the only one out there still driving an over 20 year vehicle. Why not? If it works - it keeps going.
DeleteMy home is not fancy - but it is mine and sure it could be spiffed up as well. In time.
You are being so wise. You have what you need - that is what is so very important.
YUM on the fresh corn!
I read Dave Ramsey's book and it changed my life.
ReplyDeleteI love the conversations on this post.
I thought I was alone driving a old used car,growing veggies ,shopping
Yard and barn sales. It truly takes little to be happy.
It's the people and animals we love..
Watching the sunrise over the garden,the peace of a walk in the woods.
Enjoying home baked bread and tea.
I would like to recommend another wonderful book called frugal luxuries.
Thank you for todays post and all the comments.
Savannah, I love the Frugal Luxuries books!! That's why I started a gift closet!! I would also recommend them.
DeleteThey're on my frugal reads bookshelf.
Savannah you are not alone at all. There are many of us who live the simple life and love the simpler things in life. It is a wonderful and calm place to be. I need to find that book. Have never read it. Thank you.
DeleteDebby, never heard of the books/book. Will look that up. Sounds wonderful - I still love to read self help books. Never too old to get new ideas.
DeleteYeah, so much is about attitude. Until I read TTG, I never would've believed it could be done. My friend and I talk that if you want to, you can make it fun!! I know it sounds strange, but the challenge of 'how low can we go?' does make it fun. If you look at it as deprivation, you'll never make it.
ReplyDeleteI hope you're all keeping cool and drinking plenty of water! Medical bills are NOT frugal lol!!!
I agree 100% - it is attitude. I look at it as a game of sorts. I try new things and always have - and like a challenge.
DeleteCooler here at the moment and at this very moment it is POURING! Staying healthy is huge!!!
Love your post today. I have always been a thrift store shopper, some people thought eww. But I think whatever. Where we moved too there are almost always Estate sales or garage sales. I have made a convert of my husband. Makes me very happy!
ReplyDeleteThanks Laurie. It is so fun hunting for that great bargain. I haven't done much of that in a couple years - need to get back out (not that I need a thing).
DeleteEstate sales would be neat - hardly ever see them around here. I have always found the best deals at them. It is wonderful when hubs gets into it as well!!! YAY
Oh that's so good Cheryl! We are very frugal so we can have things we need or want, or help someone. So when the time comes to get something we have the money to get it. Our boat was one of the things we bought used and in great condition. If only I could tie knots like I'm supposed to!
ReplyDeleteBeing frugal has many perks! We are frugal, so we can afford other things that we want and not be in debt. Your boat is a great example. Fun times.
DeleteGet to learning them knots matey!!!!!!
I made a point of showing my 12 year old daughter how to 'stretch' her money. She got it, and loves this concept. Now she is 14 and has just received her first pay packet from an after school job in our local Supermarket. I am eagerly watching to see how she spends this, or saves what she has earnt.
ReplyDeleteWonderful! Great job mom. You have taught her an invaluable lesson for life!
DeleteI tell my husband all the time I wish we could go back and make better choices. You have done a fine job of setting yourself up for living a great life while being financially sound. I hope many others will read this and heed your good advice of living like no one else so later you can live (and give) like no one else, as Dave Ramsey says.
ReplyDeleteThanks. That is a great quote. I strive to not worry what others think about how I live. I live for me and do what makes me feel secure and happy. That is what we need to remember. Everyone will come and go - you answer to yourself and God.
DeleteHindsight is always 20-20!