The Austerity Project

Well, long time no see! Things have been...busy...around the Coutsoftides house. We have been working hard, we've been pregnant (still are, in fact), we've been stressed, we've been happy. Usually all in the same 10 minute period.

But now, it's time to get serious. Baby girl is due in seven weeks. Our checking account is dwindling more quickly than I ever thought possible. (Backstory: Tony and I have been living on our savings account, plus a little from the business, for nearly two years now. NOT EASY. The business is doing well, but the electric company probably isn't going to start accepting loose change to pay the bill any time soon, so we have to be very careful the next few months.)

Every month, it seems, the budget flies out the window. Tony needs a root canal. Our medical insurance doesn't cover maternity care, so we have to pre-pay for the birth and everything that goes along with it. (Not that I'm complaining - we are getting a heck of a deal, but $400 a month is still pretty steep.) Sarge got sick and racked up $1000 in vet bills. We've been taking some hits, in other words.

So we find ourselves at the tipping point. We know that the business will only continue to grow, but we can't pay ourselves enough yet to cover all our monthly expenses. The savings account is nearly non-existent. So what are we to do?

The answer, it seems, is nothing. For an entire month. At least.

I'm going public with this (which any of you who know me will understand is very difficult because I'm usually loathe to admit that I'm struggling with anything, especially my finances, which I view as incredibly private. But at a certain point "We're doing just great!" starts to make you feel like a fraud.) to keep us honest. I want to chronicle the next 28 days, tracking all our expenses and temptations to make sure that we don't give up and spend ourselves into bankruptcy.

Here's the plan:

1. Tony and I have already paid our bills for February - mortgages, car payments, etc. We know exactly how much is left in the account. It's enough to cover mid-month bills and roll over a bit for March. I'm not particularly inclined to reveal what that is, just because the number gives me the shakes. It's that low.

2. Our budget for groceries is always $400. In the hostel we operate here, we split the grocery bill five ways, but Tony and I front the money and then are reimbursed weekly. We just have to make sure our 2/5 share doesn't exceed $400. Shouldn't be too hard, even though we eat every single meal at home - breakfast, lunch and dinner 365 days a year. No free office lunches here.

3. We have a few prescriptions and over-the-counter medications we take on a regular basis, plus it is cold and flu season, so I'm allotting $150 for medications and potential doctor's visits. I feel that's generous. (Note to Tony: STAY HEALTHY. Note to self: STAY EVEN HEALTHIER!)

4. Tony and I have $49 in cash and two $25 gift certificates for restaurants. That's our fun money for the entire month. We are not allowed to spend anything beyond that. AT ALL. Basically, no dining out, no shopping, no movies, no nothing.

5. Because we don't drive very much, I'm allowing one fillup of the car. That averages $45 with our Kroger fuel points.

In summary, we have $550 for groceries, $45 for gas and a little fun money. And 28 days to NOT spend it. Anything we don't spend gets rolled over for March, because I have a feeling this is going to be a half-year of austerity.

Tomorrow, I'll let you know how I am tracking us and our temptations. Oh, and if anyone would like to play along at home - perhaps we're not the only ones facing a time of sweating it out - let me know. I'd love the company.