Gee…this is long. Brevity is not the word of the day. 

My new raise kicked in this month. I immediately increased my savings (from 5%) and my contribution to my defined contribution (401(k)) plan from 5% to 10% reducing my federal income tax by a few bucks every paycheck. I get 100% matching for the first 5%. Retirement also includes my IRA. Currently we’re not paying anything toward husband’s retirement (if I die and husband decided not to kill himself from grief, he’ll get life insurance proceeds). If I get my expected raise a year from now, I will start contributing toward his retirement account and possibly pay toward his student loan as well, since we’ll be flush with cash. This is the benefit of being extremely frugal. Any extra cash feels like we’ve won the lottery. This is how my income breaks out (numbers based on gross income)

Retirement 17.36%
Savings 14.53%
Student Loan 2.50%
Taxes + Medicare + etc taxed stuff 18.86%
Living Expenses 46.76%

Savings includes my health savings account. I am supporting myself and husband on this salary. Husband’s PT job wages goes toward his student loan payments which is not included in here. If you’re wondering what my salary is: its $39,086 gross.

I notice many people find my blog searching for information on living a tightwad lifestyle. I suppose I better dole out some advice.  So…listen up.

Neither of us feel deprived with our lifestyle or my income. There are days when I feel positively wealthy. Once in a while I feel a bit mopey over my small savings account and the fact that I spent a fortune eating crappy food for so many years…but I guess I had to go through that to arrive where I am today. 

We follow all the usual personal finance advice: brown bagging lunches every day, making from scratch, turning down heat, etc, etc. Basically all the boring stuff that a magazine like Kiplingers comes up with every few months. And I am a nickle and dime type of person, so I strongly believe that all the small actions contribute toward substantial savings in the long run. But at the same time, I will spend alot of money on a product if I believe its worth it…such as a Wüsthof Chef’s knife or a good quality cast iron pan.

So what are the unusual things we do to save money or live a thrifty life?

1. We are childfree. While I made up my mind only very recently over this issue, I think the fact that I used birth control and had an abortion fund for years has been a very significant source of saving money and being aware of the cost of being a parent.

2. We are pet free. This decision has often been made for us as most rental units discourage pet owners from renting in a variety of ways. And my husband and I are just plain lazy. Having to feed another being would take away time from us lounging around being lazy. I don’t think this is going to be a lifelong decision however. I have realized that there are some very practical reasons where I would need the following: dog, cat, hawk, goat, hen. So maybe when we finally get our own land, we might get some critters.

3. We are car free. This too was a decision made for me…or rather, owning a car was never a priority for me. My husband got rid of his car in the late 90s when he discovered that we was paying more in car insurance for his junker than the car was worth. And since we love living in urban environments, a car is often a nuisance. 

4. Our hobbies are free or cheap. So we don’t own a television (we watch DVDs on my computer) or play the latest computer games, anything that requires a steady payment (except for our naked dsl line). We love biking, reading, and talking. Additionally, I actively spend time limiting my exposure to advertisements whether on TV or online. I am weak in the head so I don’t see a need to expose my poor brain to wealthy marketing firms’ gimmicks.

5. We try out crazy experiments. And I use the word crazy only because other people say  its crazy. These experiements don’t save money as much as expose us to a new way of thinking. One of my first experiments was done when I was single and 18. I decided to quit watching television for a month. At the time, I thought that the single worst thing that could happen to me would be missing my favorite television show. I found that sentiment to be disturbing. Plus I was constantly arguing with my younger sibling over what to watch. I spent the entire month locked up in my room reading books and listening to music. And after that month was over, I never had the same interest in TV again.

Nowadays we try other experiments like going vegan or using grey water to flush the toilet or increasing the number of days between showering. Often the main question behind these experiments is how I would deal with my life if I had no: electricity or tomatoes or water or whatever.

But there must be a downside to living on 46.76% of my income right? Why, yes!

1. I live in a crappy neighborhood. However, when I lived in Center City paying the same amount for a small one bedroom apartment in a gorgeous neighbood I also had problems…but never heard gun shots. Although…I did have to deal with bums sleeping outside my building and annoying drunks staggering all over the sidewalk.

I originally moved to my current neighborhood because I was going to take out loans to finish up my degree and I wanted to limit my living expenses as much as possible (husband was also in school and we were working PT). However, the apartment water pipes froze in the middle of winter and our heating system broke, and I had exams and my period and I was going mad with stress. So I moved into the current place after breaking my lease because we needed a place asap. I decided to stay on for a few months past our lease this year because we’re planning a cross country move and moving to a new place would increase costs only to move again across the country. So I decided to deal with living next to abused kids, pets, annoying banshees and practicing bands.

That’s the only downside. This post will have an abrupt ending because its getting too long.