Living on $12,000 a year

susan1

how can you eat 4 peanut butter and jam sandwiches for breakfast as reccomended in the living on $12,000.

luxor4t

Until I was able to go back to work we lived on OM's money. (This was 10 years ago): 2 adults, 3 kids + mortgage + a very shabby car (owned).

We were trapped as he j-u-s-t earned too much for any benefits. If we had been paying the same amount in rent as we did mortgage we would have been entitled to free milk, prescriptions, school uniform, etc as well as Family Income supplement (as it was then called).

Every time OM had a payrise it disappeared under the price rises and we had to take a step back. As Hester and Larmy said it felt like we were surviving not living. Packed lunches were compulsory - I could not afford school dinners, youngest was in terry nappies so that DD could go to playgroup, I did not have 36p to buy 3 mini milks (cheapest lolly in the park) so my kids had HM biscuits there and a HM squash lolly at home. They wore hand-downs, charity shop and HM clothes. - DD had to have a red jumper not a pink one so that her younger brother could wear it etc etc I just wish MSE had existed then - but we could not have afforded a computer!

It is so hard and I admire and respect your courage and determination.

larmy16

I am not sure but a few years ago I think I read that your accommodation should account for 1/4 - 1/3 of your income. Well my accommodation alone is very nearly 1/2 my income. OK I know that I am a single person but I think the tax allowances should reflect this also. I am all for the tax system aiding married couples, but one person cannot live as cheaply as two - its impossible.

Rightly or wrongly the benefit system is a very attractive alternative to low paid work, which is why lots of couples declare themselves as apart yet live together. All you need is another address and the DSS can do nothing.

I hope they raise the tax threshold soon or I shall be drowning under a mountain of living expenses.

cupid_s

DH and I live on about 13.5k a year between us. We actually earn more (pick up 21k) but overpay our mortgage by about £7500 a year.

Looking at what we afford to do on that amount I can't understand how a couple with no children can spend so much more than us as we don't really go without anything.

Mics_chick

cupid_s wrote: »

DH and I live on about 13.5k a year between us. We actually earn more (pick up 21k) but overpay our mortgage by about £7500 a year.

Looking at what we afford to do on that amount I can't understand how a couple with no children can spend so much more than us as we don't really go without anything.

Please share your secret with everyone else then...

cupid_s

Mics_chick wrote: »

Please share your secret with everyone else then...

this is what we spend in a year:

mortgage 4920
gas/elec 720
train pass 720
groceries 1560
lizard food 416
water 290
mobile phones 180
tv 145
christmas 100
train to visit family 85
birthday presents 100
house insurance 375
going out 1300
clothes 500
holidays 1100
extras 900
broadband 240
contact lenses 120

totalling 13771

We get enough vouchers off survey and cashback sites to cover a lot of our christmas and birthday presents spends and some household things we need, and we use our tesco clubcard vouchers to go out for a nice meal once every couple of months.

Hardup_Hester

Here is how mine works out per month
Mortgage £314.86
Council Tax £120
Home phone Mobile x 2 & Broadband £40
Gas £31
Electric £38
Water £42
Car Ins £70
Car Tax £15
Petrol £4
TV Licence £9
Monthly that works out at £742.16 & Yearly at £8905.92
When I said I earn £12k I meant gross, my takehome pay is £9996pa.
After all the above are paid we're left with £90 to feed & clothe the 2 of us for a month.

ceridwen

to person thinking of setting up own blog - might find few ideas here:

www.homesteadblogger.com/home.php

got this via the USA copycat site of MSE - ie

www.totallyfrugal.com

savingmum

This has been a very interesting thread as I visit US frugal sites and yes they seem to be able to live a lot cheaper than here in the UK.

I have a question though - are people not able to claim tax credits if they earn under £14000/yr as I thought even couples were able to claim?

ceridwen

further thought:

www.alternative.nu/ecologybeginsathome/EcologyBeginsAtHome.pdf

free e-book - all ideas that are grist to t'mill.