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Personal austerity spending

November 25th, 2010 at 06:17 pm

The reality of buying a house, taking a loss on my current one, has sunk in. I am planning to implement an austerity budget in anticipation of our move, to build up cash reserves and money available for our next house.

Our plan, as always, is to borrow as little as possible and to pay off the loan as quickly as possible. We prefer to live mortgage free so that we can have more flexibility.

We are currently mortgage free, and it's been a huge blessing. We may have to spend anywhere from $50,000 to $100,000 more than we have in this house to get what we want in the best school district in the area. Much smaller price tag than $150,000 plus for private school.

So, I guess the plan is to stick to our $400 weekly budget for all expenses, sock as much as possible into savings. Save all of our tax refund (usually about $10,000). I plan to start selling online again, via Etsy and Craigslist, and funnel those earnings into the savings account. It's not much, but hopefully it will add up.

I am also hoping to take on more freelance work, to the tune of another $300 or more a month, and I will funnel that into savings, and to pay off the car loan as quickly as possible. The goal is to be as debt free as possible before house buying.

2 Responses to “Personal austerity spending”

  1. Homebody Says:

    Wow I know you can do it. Look what you have accomplished so far (sidebar!).

  2. FrugalTexan75 Says:

    Do you already do Mypoints, ebates, etc? It takes time to build up, but that extra $20 here and there can be helpful.

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