High priority:
Health insurance
Car insurance
Groceries
Gas
Rent
Utilities
Cell phones
Internet
Household necessities
Student Loans
Personal preference:
Gym
Personal allowance
Date nights
Netflix
Good to budget in:
Emergency fund
Saving up for big things in the future (car, house)
Obviously the things in our high priority list are highly recommended. Still, I'm not going to pretend that many live without the things on our high priority list. It is possible to live without a car. Some live in the city and can use mass transportation. Some simply can't afford the required car insurance or the ever-rising gas prices. Many live with the internet in their homes and utilize their school's or public library's internet. It is difficult for me to manage my life without these luxuries, but when you really think about it, cell phones, internet, and personal transportation are a luxuries. So before you decide to buy that new iPhone with the exuberant monthly data plan, first plan your real necessities.
Groceries
How much do you eat in a given month? I know, I know, your hubby is a different story. My hubby eats like Michael Phelps. If you're not on restrictive diets (and if you are, rethink the necessities of that, too!), then I'd recommend stocking up on a lot of cheap rice. My mother in law taught me this trick, and it worked for her when she raised her family of 7 kids! As always, be a wise shopper and figure out which grocery store gives you the best bang for your buck. Buy in bulk if you can. Costco and Sam's Club are worthwhile investments. You can try to piggy-back on a family member's membership, or hitch a ride with a Costco card-holding buddy. Just make sure you understand the rules of the membership, the yearly fees, and how to pay up at the cash register when you get there.
Rent and Utilities
When setting your budget, you don't have much flexibility with rent and utilities. That assumes you already have a place to live. If you are trying to find an apartment, then choose one in a safe location, a central location to work and school. If you can save a few hundred dollars a month by opting to be without a dishwasher and central air or heat, it might be worth it. Then again, using individuals heaters in the winter months might be more expensive than central heating in your apartment. It all depends on the efficiency of your apartment, the age of the building, and your ability to sacrifice. Is water free at one apartment but not the other? Look into these things.
Transportation
My husband and I are a one car family. Thankfully, our schedules allow us to function in our respective jobs and school without many issues. I have my trusty 2001 Volvo, and although it's starting to make noises straight out of Lost, I think (and hope and pray) it will last a while longer. One day we will need another car in our family. Notice how I didn't say "new car". Caleb was taught his whole life that a thing with such depreciating value, like a car, is not worth going into debt over. I'm inclined to agree at this point in our lives. When we do search for another car, we will utilize my brother's expert knowledge of cars. Do you have someone in your family who can help you find the model and make that is best for you? We'll also utilize trustworthy sites like True Car or Honk. There are a great deal of websites devoted to finding you a used car that's safe, reliable, and fairly priced. If you can hardly afford the car you have, then put your effort into maintaining it as long as you can. Try to carpool with work mates and classmates. Save on gas as often as you can!
Insurance and loans
Car insurance is a must if you have a car. Shop around for the best deal and avoid speeding tickets! Health insurance is highly recommended, especially for a married woman. Pregnancy is a possibility, and it's better to have health insurance that can cover that. If you have health insurance already, get to know your policies and what you're eligible for. More importantly, know what you're not eligible for! Is pregnancy covered? Do you have dental or eye coverage? I don't have much to say on loans yet, other than make sure you pay them on time! Students right out of college have a 6 month grace period before they have to start paying their loans.
Cell phone, internet, and other things
There is so much versatility with cell phone plans. If you can resign yourself to a basic phone plan, you can get plans fairly cheap. What is your requirement? My husband mostly texts, so we got him an unlimited texting plan with 200 talking minutes a month from Cellular South for $20 a month. I'm piggy-backing on his parents' plan on Verizon so I can get unlimited texting and free mobile to mobile with my Mom, who is also on Verizon. As much as I would love to have a smart phone, I just don't see the point of spending over $30 a month for mere data, which I can get on my laptop's internet.
Internet is a beautiful thing (unless you listen to Avenue Q). My husband and I can watch TV shows and movies on our TV through the internet, all for a mere $7.99 a month through Netflix. Why spend more money on a cable plan when you can just watch TV on the internet? You can try shopping around for the best internet plan. Nowadays cell phone companies sell DSL or U-verse internet. Negotiate with companies. Their "lowest price" is hardly the lowest for a noncommittal potential customer.
I recommend building in a small monthly budget for household cleaning items and toiletries just in case. It's often a cost people forget about.
This is plenty of information for now. In my next post I'll discuss the other aspects of the budget I outlined!
