Living on Less Than $28,000 A Year: How our family of six survives (and even thrives) on an income that’s less than half the national median income for our family size, and what the government calls “below the poverty line” (less than $29,990 annually). [Read other posts in this series here.]
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So far in this series we’ve talked about simple ways to take control of your money so you can spend less and save more, but I’ve personally found that knowing what to do and actually doing it are two completely different issues.
To help motivate you in the DOING part of the equation, I’d like you to meet someone.
“Hi, I’m FUTURE YOU and I’d like to have a conversation.
I realize that you don’t believe I actually exist, but unlike Santa Claus and the Easter Bunny, I really do!
One day in 10 or 15 years you’ll meet me. As a matter of fact, you’ll BE me and as FUTURE YOU, you’ll look back on this conversation and feel one of two things:
a) glad that we had this little talk;
or
b) sad that you didn’t really listen.
So, if you’d like to be glad, there are three important tips I’d like to share with you:
Please be realistic.
Looking through the window to your future, you might imagine it to be completely sunny and beautiful. Right now you may have thoughts like:
“Oh, I’ll worry about that later.”
“When I’m 30 (40, 50) years old I’ll be making twice as much as I am now.”
“Oh, it’s just this once. I can pay for it next month (or next year, or at some undetermined future time).”
“I’m going to be rich one day and I’ll pay off my debt then.”
Yes, I want you to dream, but you should also have a backup strategy because, to be honest, most of the time life doesn’t go as planned. Maybe you’re the exception and your future will always be sunny and bright, but preparing for storms is wise.
By the way, don’t expect FUTURE YOU to be any different from NOW YOU unless you choose to do things differently.
Please don’t steal from me.
Every time you use a credit card or purchase something with a payment plan, you take money from me. I know you can’t feel my pain right now, but you will.
As FUTURE YOU, I have to do without hundreds of dollars a month from my paycheck because I have to pay for items that you purchased on credit.
I would really prefer to have that money to do fun things like eat out occasionally, buy some new clothes or save for a vacation, but it’s too bad because I have to use it to pay for all the things you bought years ago that we don’t even have any more.
Please send money.
Not only should you stop taking money FROM me, you might want to send some money TO me. Because you don’t really think I exist, it’s easy to spend everything you have now. The problem is, FUTURE YOU could really use the money.
I have more responsibilities than you have now, and life costs more. If you simply skip eating out once or twice each week and send me that money, we could have a nice little pile of cash by the time you meet me.
And that would free us to do what we WANT to do instead of just doing what we HAVE to do.
Well, I’ve enjoyed our little chat. I really hope you’ll listen.
Your life as FUTURE YOU depends on it.”
next post: Microwave Mentality
Click here to read other posts in this series.
Hello Kimberlee, I came across your book 5days to Budget Breakthrough when I bought the Homemaking Bundle & oh wow, I so love how God guides me and takes us to the next step of cleansing so we can become more like him & see more like him. I am now on Day 2 of your book which bought me to this post. AMAZING, this has really hit me like a 1000watt lightbulb regarding the intense reality of the way I have not been not controling my family’s money that this isnt only the reason we are not financially stable now, but we wont be financally stable in the future if I continue in this choice. Thankyou so very much for sharing your struggles and how you overcame them, it certainly takes the weight off my shoulders that I am not the only person in the world who has to grow up and take on that responsibility of being an adult. I so look forward to studying the live under $28000 series Again Thankyou and may God continually shine through you. xx
Hi Rhiannon! You are definitely not the only person, as a matter of fact there are many, many people who live without regard to the future. The great news is that now you are aware of what has been going wrong and you have the information and motivation to change your life. Keep in touch – I would love to hear how things are progressing for you. 🙂
Thank you for being faithful to post. Found your site through this post. Have always admired this philosophy… and have lived through ebbs and flows of living it. But with University behind me, but only part-time work ahead of me… will be revisiting this way of life again. To get out of the school debt… Thank you… your message is one that needs to be heard so that we can build more fulfilled lives in (North) “America”….
Welcome Cyndi!
Where was this post 6 months ago? GAH! 🙂 My husband and I got into a 13600 car loan and we are really kicking ourselves now! On top of that we got Iphones, we use those regularly so we aren’t so upset about them but wish we would of gotten something cheaper, we also don’t have a house phone, but the car loan yes! Im going to have my husband read this, I hope it impacts him as much as it impacted me! Thank-you for your blog! I can’t stop reading it!
Hi Saydee! I’m glad you’re hanging out with us. 🙂 I am so glad that I could encourage you. 🙂
I just wanted to tell you that this article is an answer to prayer for me. I am considering buying a house and I have seen several which I could qualify for a mortgage to purchase. However I had no peace about that plan of action. After reading this post I realize that I should just save a little more money and pay cash for a small but adequate house. I think the future me would be MUCH happier with that decision.
I am so happy for your Faye! Thanks for letting me know. 🙂
I am so encouraged by your whole perspective! I also found you on pinterest (today) and have not been able to stop reading (except to take a break to do my Wednesday shopping trip to the local ethnic market that has dirt cheap produce sales on Wednesdays.) My husband and I have been following Financial Peace budgeting for a few years now, but we are now on a tighter income and also trying to save for a house. An uphill battle for sure. I was looking for some fresh ideas on money saving that doesn’t take too much time because I work from home. It was full-time work that just became a part-time workload (Praise God!) for the same pay, so I can finally shift my focus to conserving and saving! Working 40+ hours a week from home with small children to care for really killed my budget when I couldn’t seem to find the time to properly plan ahead (and sometimes even prepare basic meals). We ate out more than we should have, and I felt so much guilt. I finally feel like I see light at the end of the tunnel, and your series is helping with the motivation to kick it into high gear. Thanks for sharing so openly! I wish more people would be willing to share life experience that may not be considered ‘politically correct’ because there are so many out there who need to hear and find hope again. Thanks for all you do!
Hi Erin! You are totally right that a 40 hour work week with small children makes it super difficult to save money, much less get anything done. I am so happy for you that you can work part time for the same pay–what a blessing! Glad that I could encourage you a little. Let me know if you have any questions. 🙂
I found your site today, and I can’t stop reading it. I have recently met the “Future Me”. After retiring from 20 years of military service, I find myself going from a nice, above average salary, to a very (and I mean very) low retirement salary. I didn’t plan well, and in my final year, racked up quite a bit of debt. I pray every day that God will see me through until a job offer comes. I would love to stay at home with my ds who is 6 and home school, but that isn’t an option at this time.
I absolutely love your blogs! I will show it to my daughter, who is a stay-at-home mom with two babies, her husband makes more then I do.
Thank you for your insight, wisdom, and care to share attitude. XOXO
Hi Linda! I am sorry you are in a tight place, but I hope that you can find some encouragement and ideas here. Blessings!
Thank you so much for your prayer.
You are welcome! Let me know how things are going.
Hi Kimberlee,
I found your website through Pinterest and it couldn’t have come at a better time. We have a LOT of debt due to poor circumstances and even poorer choices. I have a strange request. Scripture tells us that the prayers of the righteous are heard by God. It seems to me that you have been very wise in your spending (and other areas of your life). Will you please pray for me that our family can have the right outlook on the money God puts us stewards of? We struggle with that greatly.
Thank you so much.
Hi! First of all, we have made lots of mistakes–LOL! I am just sharing things that have helped us get to a place of spending more wisely. 🙂 I will definitely pray for you (right now and I’ll add you to my prayer list):
“Lord, I lift this family to You and ask You to give them hope for a better tomorrow, diligence to do what needs to be done and stamina to walk out these difficult times. Bless them abundantly as they seek to follow You. In the Name of Jesus–Amen.”
Thank you so much for doing this series, Kimberlee. I haven’t read all of it yet, but I have already been so blessed by the entries that I have. I am single and used to make $54,000 a year. I lost my job and I am now living on unemployment benefits. I am having a tough time, because I made so much money that I didn’t think I needed to budget. So now that I really need to, I don’t know how! It is amazing, though, how frugal one can be when it is necessary. I honestly have no idea what I spent it all on.
Thank you, too, for your spiritual insights. I am a Christian, and my faith was once very strong. I faced a challenge a few years ago that changed that, but God keeps placing people like you in my path to heal my wounds. Thank you and your family for letting Him use you in the lives of so many.
Hi Carol! I am so sorry that you have been through such hard times, but I am so glad you are here. My hope is that my writing will encourage people just like you. 🙂
I pray that God will comfort you and give you grace as you walk through this difficult season. It is hard sometimes to see Him in the midst of our circumstances, but He is there with you and wants to help. Blessings!
Found you through Pinterest. Read the whole series today. Thanks so much for your ecnouragement and ideas. We have lived far beyond our means for a long time and are now reaping the consequences. We have been in a money management program for 2 years and in 2 more years we will have our ridiculously high credit cards paid off. We cut up those cards 2 years ago and plan to never have another. With 2 children in college, times are very rough, I can see through your blog more ways we can cut back. Thank you again and keep those good ideas coming.
I’m so glad you found some ideas you can use Paula. Good for you for trying to find more ways to save.
You are so creative. Awesome post.
Thanks.
I really love this post! I just found this website and I’m really excited to read all the different parts. We are right in the middle of seriously working on our debt!
I discovered your blog on Pinterest and read through the entire “Living on Less Than $28,000 a Year” series. I couldn’t stop until I reached the end I was so intrigued. I grew up in an affluent family, went to college and married an affluent man. We had our first child two years ago and I decided to stop working to stay home with him. Unfortunately, as the economy hit harder and harder things got more difficult. I tried holding on to our lifestyle which lead to us being in debt- A LOT OF DEBT. For a long time I walked around shamed and depressed and couldn’t face my society friends. Things got worse when I re-entered the workforce but couldn’t find anything paying decently due to the lack of jobs.
Now, I am moving past that and I have been scouring the internet for ideas and blogs to help me. This one has been THE BEST and most inspirational I have found. I really thank you for honestly posting your family life and how you make it. It has given me hope that I can do this and the best feeling is knowing that I am not alone. I don’t have to feel ashamed and depressed anymore :). We have been considering a second child for a while but have put it off because of our problems. Now, though, I know that we can do it and make things work :).
THANK YOU!
Thank you so much for letting me know that the blog has helped you Michelle. I am so sorry that you had such a difficult time and felt depressed, but I am so happy that you feel hopeful again. You can do it!
Great post 🙂 I just recently started the debt-free series I’ve been talking about on my blog. This week’s post is our monthly frugal budget…http://www.servingjoyfully.com/2012/05/24/budget-series-our-budget/
I think I’ll print this out as a friendly reminder. I especially liked the “Please don’t steal from me” section — so true!
I really enjoy reading your posts! This is such a great thing to really make you think.
Where was this post 20 years ago? I’m almost out of debt, but it’s been a long road….paying monthly on credit cards that I can’t even use!
“Please send money” really cracked me up. Nice job.
Thanks William. 🙂
Too cute! But the truth.
Very good post!
Thanks!
I love this post!! Such great points about how our current self effects our future self. AWESOME!