Tight Fisted Miser mentioned that millions of Americans live on an income of $1000 a month. Here’s his budget break down here.
For me, I am on $1500 a month as my bare minimum, but maybe I could cut it down even further.
Comparison time!
Oh no.
There is no way I can cut it down because my rent is too high at $575, which is already split between BF and I. Without a doubt, I’d need to move to a different apartment.
Not only that, it doesn’t leave room for savings, entertainment, and any miscellaneous categories.
I should note that I COULD cut down on my groceries to maybe $150 a month and save $50 from that $1000 budget.
Even my Transportation (Gas) is super cheap because that’s the cost of a monthly pass, but I have a fully paid off car, fully paid off insurance until August 2009 for ~$300 and gas is the only thing I’d put in there.
Well, almost the cost. It’s around $66.25 for a monthly pass in Montreal, but in Toronto, it’d be around $100.
If I was in that position (which thankfully, I am not), I’d definitely be looking to get another job to increase the income, because my budget leaves absolutely NO ROOM for any cost cutting measures.
- February 2009 Budget Recap
- FB’s General Financial Plan for August to October 2008
- Re-jigged FB Oct 2008 Budget
- Bit late out of the gate… but here’s my Budget Roundup
- High Income doesn’t necessarily mean Financial Smarts
Saving Cents in the City:
on Feb 8th, 2009
@ 6:09 PM:
I wish I could have a $1000 a month budget (or even $2000 combined with my husband) but our rent alone costs $1500 a month!
Mama's Ramblings
on Feb 8th, 2009
@ 6:10 PM:
WELL…considering the fact that our house payment is already over that budget amount…I would have to say that there is NO WAY I could live on that budget. Now, maybe if we don’t include the house payment…then we could probably do it, but $$$ would be tight.
Michelle
on Feb 8th, 2009
@ 7:03 PM:
Neither would I, especially if I want to move out in April.
Rent is $602.00 plus, my bills equal to over $500.00 (some will be gone by the end of the year). That doesn’t even leave room for groceries or gas for my car!
Canadian Saver
on Feb 8th, 2009
@ 7:04 PM:
I have no rent or mortgage to pay (and no other debt) so I could manage on $1,000/month, but I much prefer another $1,000 or so to put some into savings and live a little!
Converting A Spendthrift
on Feb 8th, 2009
@ 7:04 PM:
Our house note is $1700 a month. Food for five plus utilities we would never make.
Even if we cut out entertainment, savings etc.
Karissa Dee
on Feb 8th, 2009
@ 7:10 PM:
If I didn’t make any debt payments and was very very careful, we could get by on $1500.
$1200 if we got rid of the car, RESP, life insurance, and had a basic cell phone plan.
$1000 if we moved into a room.
K-money
on Feb 8th, 2009
@ 7:24 PM:
That’s hilarious! Even renting a room in someone’s house around here is around $600/month. My house payment with tax is over $4700!
That said, I could reduce my expenses by several hundred: 1.5 hr bus to work instead of 25 min car ride, cancel cable, cell phone, internet, eating out.
Bird*
on Feb 8th, 2009
@ 7:29 PM:
Rent: 850$
Groceries: 300$
Car w/ insurance (not including gas): 500$
Mobile Phone: 150$
I lose.
Stacy
on Feb 8th, 2009
@ 8:01 PM:
Our rent is well over that amount so I’m sure we won’t be able to do it. Even if we moved 2 hours away, that would still be difficult as it would add in commuting fees, etc..
BTW – I’m a long-time lurker but wanted to tell you that I love your blog! Keep writing!
hklover86
on Feb 8th, 2009
@ 8:10 PM:
well i am currently living on a budget of about $1300 a month (living with my parents that is). If i only had $1000 a month I would probably just not pay as much towards my student loan. I already pay so much more than my minimum payment anyways.
Sunflowers
on Feb 8th, 2009
@ 8:32 PM:
My rent is $1050 (split between bf and I)… so I would already be over budget!
I’m also paying over $1000 every month to pay off my debts. :\
If the debt was gone, and we moved a couple cities over, then MAYBE I could do it.
Broke In Michigan
on Feb 8th, 2009
@ 8:58 PM:
I would love to have a $1000.00 a month budget! But for now it is just not possible. Maybe when we are debt-free. No mortage, car payment, student loans, and credit cards would certainly help.
Sheena
on Feb 8th, 2009
@ 9:10 PM:
I wish; our house payment is more than that.
CelticBuffy
on Feb 8th, 2009
@ 9:18 PM:
My children and I live on roughly $1600 per month. If it were just me I’d like to think I could do $1000/month.
Meg
on Feb 8th, 2009
@ 9:22 PM:
My husband and I could do it, but it’d probably mean sacrificing our health and well being — which we’re not willing to do unless we were in the worst of jams. It would be a lot easier, though, if we weren’t in debt. Fortunately, that’s changing slowly but surely.
Meg
on Feb 8th, 2009
@ 9:24 PM:
It would also help if we got another roommate after our current one moves out later this week. After her rent, our mortgage/taxes/insurance come out to about $500 — and we could probably charge someone else more than we’ve charged her.
At this point, though, I’m looking forward to having the place to ourselves. It’s going to be a nice Valentine’s Day gift to ourselves.
Rebecca Rodgers
on Feb 8th, 2009
@ 9:43 PM:
I lived on a $1k budget for a long time. It doesn’t leave much wiggle room for anything that isn’t a basic necessity.
Tom
on Feb 8th, 2009
@ 9:54 PM:
wow that is a tight budget.
I don;t live on my own and I almost made my mistake of moving out on a similar income with 4K in debt plus needing stuff to buy in when I move in.
I don’t really know how it is living on your own, but by rushing into it, aren’t you restricted now in terms of what you can do?
Such as switch jobs, careers, start a business or take up education?
Debt Dieter
on Feb 8th, 2009
@ 10:26 PM:
My monthly rent is $1477 a month, so I’d be stuffed right from the start!
Emma
on Feb 8th, 2009
@ 11:28 PM:
Well, if it’s $1000/person, my boyfriend and I would be ok (We spend under $800 each for shared expenses):
Rent: $550 each (utilities included)
Cable, Internet, Phone: $50 each (we could cut that back to 30-35 each and drop the cable though)
Groceries/toiletries, etc: $150 each (though groceries seem to be around $250, but we budget for $300)
Entertainment: $50 each (but now that we have cable, we aren’t spending as much on movies, which were getting expensive!)
Personal expenses: the rest of the budget, including:
Transportation: $100 each (metropass)
Debt
Savings
Entertainment with own friends/hobbies
Shopping
Now as for the downside to that budget…
1. I would have to change the amount I pay on my student loan (and take longer to pay it off – the $250-500/month would turn into something more like $100-$175, with the 5 year payoff closer to 15)
2. I wouldn’t be able to put as much into my savings (currently between $250 and $600, depending on the month, since my loan gets extra most of the time, but I’m not sure about my job right now, so I’m maxing out my savings ASAP)
3. My personal budget of going out with friends and treats for myself would be cut back dramatically (I set aside around $250 for monthly personal expenses outside of debt/savings and metropass)
4. Vacation plans wouldn’t be realistic, whereas they are currently a plan for later this year.
So, while it would be possible (and I think it would be possible because the only debt is my student loan), it wouldn’t give us much wiggle room in case something were to happen.
One thing I found surprising with your grocery budget was the $350 you have – that means you and BF spend $700 together for food in a month and that seems a little high, given my experience.
Anny
on Feb 8th, 2009
@ 11:45 PM:
I could do it…and soon will be
I just got laid off but rent (with utilities, internet, cable) is $500, insurance is paid off for a while and the car is too. My only recurring bills are cellphone ($50) and groceries.
Over the Cubicle Wall
on Feb 9th, 2009
@ 12:01 AM:
Here’s mine. I actually live this, it is not theoretical. My house is paid for, or it would be impossible:
Groceries $135
Entertainment $100
Pets $35
Toiletries $10
Cell Phone/Internet $114
Charity $100
House Taxes and Insurance $145
Car Insurance and Registration $67
Gas fund $75
Utilities fund $99
Car Maintenance fund $20
Travel fund $25
Medical fund $15
Gifts fund $40
Clothes and Shoes fund $20
Sometimes the fund amounts vary, but the total always adds up to $1,000. I also have saved up money to handle irregular home maintenance costs.
Lucy Grey
on Feb 9th, 2009
@ 12:27 AM:
I couldn’t do it. I could maybe get it down to $1300 a month, but that would mean only paying the minimums on credit cards and not saving.
Frugal Dreamer
on Feb 9th, 2009
@ 12:47 AM:
Hell no! Simple as that.
Kaitlin
on Feb 9th, 2009
@ 12:49 AM:
Impossible – my rent is $625 a month.
FrugalCityDweller
on Feb 9th, 2009
@ 1:39 AM:
My goal is to actually be under $1000, since I only make about $1600 each month and try and pay a little over $700 a month towards my student loan debt.
Saved to Save
on Feb 9th, 2009
@ 1:43 AM:
Hey FB….did you change your page. I thought for a minuet I was going a little looney? anyway I’m back in the game finally…layoffs had me in a two week hiatus from blogging…fyi eeww on the big breast and I live on 1000 roughly a month.
Mama Bear
on Feb 9th, 2009
@ 3:10 AM:
We probably could live on that sort of budget if we absolutely had to – but there wouldn't be any saving going on.
What a challenge though – I love reviewing our budget to squeeze every last penny. >nerd<
Fabulously Broke
on Feb 9th, 2009
@ 7:55 AM:
Emma: BF and I love to eat. I mean, REALLY eat. So we buy organic, gourmet ingredients and we cook all the time. We could pare it down to $300/month but our bellies would be too sad
Everyone: I think it’s really tough for all of us to survive on $1000 a month EACH. But I think if it were together, $2000 a month, it could be done.
Of course, we’re all living in a city though.. so the cost of living will be higher as a result. I think I’d move to a farm if I had to live on $1000/month so that my room and board gets paid for, and I just work with animals and on the land.
Megan
on Feb 9th, 2009
@ 1:47 PM:
I wish I had $1,000 a month to live on, but my hours keep getting cut. My bare minimum monthly expenses are $750, and most of that is debt repayment (school, grrr) and I don’t pay rent as I live with family.
Slinky
on Feb 9th, 2009
@ 2:22 PM:
Rent – $300
Electric – $50
Internet – $30
Gas(heat) – $60 (rough average, might be high)
Phone – $45
Groceries – $150
Car Insurance – $100
Gas(car) – $100
Car Payment – $375
Student Loans – $175
Total: $1385
Hmm…a bit over, which I knew. Of course, if $1,000 was my budget, I never would have bought the car I did (or could sell it and pay off the loan). So let’s say I bought an older car with my down payment money instead and have no car payment
Car Payment – $0
Car Insurance – $50 (in between my new car and my junker seems reasonable)
New Total: $960
Not a lot of wiggle room, but I made it. If I really had to I could get rid of the car completely since I car pool and drop another $150 off of that. Once I used that extra cash to pay off my student loans, I’d be golden!
asgreen
on Feb 9th, 2009
@ 3:40 PM:
It wouldn’t even cover my mortgage.
LL
on Feb 9th, 2009
@ 3:45 PM:
I’d be screwed…
Auburn Kat
on Feb 9th, 2009
@ 10:00 PM:
That would be extremely difficult to do, but I’ve done it before I’m sure I could do it again…
Mary
on Feb 11th, 2009
@ 10:00 PM:
My goal is to get my budget down to $3500 a month and I’m almost there. That includes very few “wants”, almost all “needs”. So, to live on $1,000 a month, I’d have to make a drastic change in my lifestyle, which I’m glad I don’t have to do. I suppose I could, though, if I had to.