How does a family live on 40k a year?

Question

What are people doing to live a more frugal life? Is it possible to save for the future? (ie, College, Retirement, Vacation) Have some fun? Eat healthy? How do you do it with out going insane. Assume that I live anywhere in the US that is considered a second tier market. Assume there is one stay home parent and two kids.

I have read all the responses and this is what I have to say so far.

* Budgets suck the minute you have to spend money on something else your screwed, I use the family CFO for managing finances.
* I am not having problems managing 40k, I am considering moving from 2 incomes to 1.
* I don't have debt other than house and small car payment
* I don't want to eat ramen, I want to have my health.
* We aren't going to move at this point.
* We don't have cable TV.
* We do a bunch of saving.
* I don't really want to work till I am 70+ if I can help it.
* We can only do a garden part of the year, and out soil conditions aren't very good.
* Both cars are used.

I basically know I have to cut out air plane based vacations. We can go tenting, we love the outdoors.

Do people eat out at all?

I am looking for a lot more practical advice.

Like, coupon search everything, never do the following. Make your own of this and that. I am not stupid, I am just seeking practical advice.

Oh and education is very, very important to us. I don't want my children to start life with student loans. I would put this above our retirement. I think it is selfish to do otherwise.

Answer 1

I raised six children on less then that. Somehow we made it. A lot of thrift store clothes, I made some clothes. Buying in bulk and cooking in bulk, (making a big pot of chili and freezing it in individual freezer containers). Brown bag lunches.

My children which are 12 to 30 years of age, had everything they needed, not everything they wanted. At Christmas we tried real hard to get them things they wanted. They did alot of chores. They turned out to be wonderful human beings because they knew how to work hard and they knew if they wanted something they had to work for it. My boys mowed lawns and the girls babysat to earn money to buy the things they wanted.

We also made a lot of home made (Arts and Crafts) for Christmas gifts for relatives.

My children either put themselves through school, took vocational training, or went into the military.

We did without alot of things, cable TV, Cell phones, we never bought any of the latest gadgets. We never had a cordless phone until recently when we had to replace our phone which fell into the dogs water bucket.

Eventually, I went to work, but at that time I had no marketable job skills. I had to work my way up. As I was working my way up, my little birds were leaving the nest one by one. One less mouth to feed, one less pair of shoes to buy, two less mouths to feed, three less mouths to feed, four less mouths to feed and so on. We help them out when they are in a fix for money, but saving for retirement is so important.

good luck

Answer 2

You first have to find a home you can afford with enough room for a garden. The garden will take care of some grocery needs as well as keeping you active. Buy bulk, try cheap beef roast and use it to cut your own steaks(if you can find a good marinade). Invest in a freezer, and buy what is on sale to keep it full. As far as college goes, that is tougher, almost impossible. Retirement means your kids should be grown and gone, use the equity built up in your home for extra income and vacation can be a tent, a cooler, and a fishing rod.

Answer 3

Try living on 23k a year with a family of four. We are buying a house, we have 2 used cars and a small camp trailer. We also have 4 dogs and 1 cat to feed and take care of. We eat out once a week and have plenty of food to eat. Our 10 and 11 year old children already know that we may not be able to help them pay for college and that the options are scholarships or financial aid, and yes they know what that means. There is nothing wrong with kids paying for their own education. It will make them appreciate it more. So stop whining about your "poor" life.

Answer 4

Go to thedollarstretcher.com for some tips

Also, the books 'The Tightwad Gazette' I-III all have good tips. Check them out of your library (that's your first thrifty tip - never buy books!)

Also, don't save for your kid's college until you take care of retirement for yourselves first.

A lot of savings can be made when you change your, your spouse's, and your kid's perceptions of what is acceptable. For instance, some people would never go without cable TV. But it's like $40+ a month, and your kids would be more creative and get more stuff done without it.

Consider shopping at thrift stores for clothing - most of those stores have some good stuff nowadays.

Answer 5

We live on a very tight budget, which means we watch what we spend on entertainment and things that are unneccassary. We rent movies from the library they are free, we go to the park ride bikes etc.. for fun. It is hard sometimes but in the long run we will benefit and so will you.

Answer 6

I live with a lot less than that. One learns not to buy anything unless it is absolutely needed. No way can or could I save for the future, I am still working as 70+. Most our needs now are for drs and meds.

Answer 7

Hey I lived on38k for years and had a home two older cars a travel life and ate lots of food. it ios posssible

Answer 8

I live on less than this as a single parent of two kids. IT IS CALLED A BUDGET!

Answer 9

You make 40k a year and are having trouble surviving??

Answer 10

Very simple...spend less - save more.