Over on the Fool, Electrasmom posted a link to a financial makeover article in the Dallas Morning News. Today's story involves a forty-something couple with two preteen daughters and a baby on the way. They're deeply in debt and have very few assets, but she wants to stay at home with the baby.
The Financial Experts have given them a tight budget, which leaves them with $275 of discretionary income for the month. It got me thinking - how would I live on that amount of money in their circumstances? So I thought I'd throw out a challenge: how would you manage living on $275 a month? What 10 things would you do?
Assume the following:-
- Your circumstances are the same as the couple in the article, right down to the baby due in August.
- All currencies are equal. It's $275 or £275 or € 275.
- The money is for food, clothes, parties, hobbies, petrol/gasoline, car repairs, hair cuts, health insurance co-pays, prescriptions, etc.
- Local taxes and other housing costs are already built into your budget.
- Ditto your utilities and insurance which are on a pay-monthly budget plan (you pay the same amount each month for the next year). At the end of the year, you may get a refund.
- You have no emergency fund.
Answer in the comments or post a link there to an answer on your own blog.
I'll give you my ideas tomorrow on what I'd do.
- Pam (taking the challenge too)