Living on $12,000 a year

Daily financial decisions help family to live on less

[August 4, 2008]

Craig Idlebrook has no credit cards, no monthly bills, and almost no income. With his wife and daughter, he owns a home and a car and lives happily on just $12,000 a year.

"We save a lot of money without sacrificing our quality of life," the freelance writer says from his home in Maine.

Idlebrook's austere lifestyle is not for everyone, but the results of a decade of making daily financial decisions show that a family can, if they want, learn to live on less.

Craig's list of money-saving tips first appeared in Mother Earth News Magazine, a Topeka, Kan.-based publication about sustainable living. Here are 30 of his best ideas:

1. Buy raw ingredients instead of prepackaged foods. If you don't know how to cook, learn.
2. Buy in bulk from a local health food store.
3. Help renovate a house in exchange for lodging. (This is how we came into our home.)
4. Buy into a piece of land with another family.
5. Close off unused rooms to save on heat and air conditioning.
6. Have a baking night to reduce oven use.
7. Wash your clothes in cold water.
8. Unplug any unused electric items with lights, clocks or timers.
9. Carpool with friends or co-workers.
10. Drive defensively to keep your auto insurance low.
11. Book airplane trips well in advance to get the lowest possible fare. Show up early and offer to be bumped in exchange for free tickets if a plane is overbooked.
12. Always carry a shopping list; never go into stores unless something is on the list.
13. Before you shop, try borrowing the items you need from family or friends.
14. When buying new, choose high-quality, durable items. It's often cheaper to spend more upfront if you won't have to replace the item in the near future.
15. Scavenge. Watch the curbs at the end of the semester in a college town. If you live near a high school, try talking to the janitor the last day of school when they're cleaning out the lockers.
16. Have a clothing exchange party to trade unwanted clothing with friends.
17. Try sewing. Look for cheap material in thrift stores.
18. Ask a doctor or dentist if they have sliding-scale fees.
19. Look for free or low-cost clinics and/or medical schools for treatment. (Be warned, sometimes you get what you pay for.)
20. Take general education classes at a community college where tuition is low.
21. Buy your college books used online.
22. Watch for unique scholarship opportunities, including those that don't involve cash. (I once received a case of organic macaroni and cheese for making the dean's list!)
23. Discontinue your Internet service and utilize a wireless "hotspot" where you can connect to the Internet for free.
24. Rediscover the library, with thousands of books, CDs and DVDs for free.
25. Volunteer to usher for concerts, plays and other events. (I haven't paid for a play in years.)
26. When at a concert or movie, avoid buying snacks. Some places let you bring in your own.
27. Trade your home with friends around the country to enjoy free vacation lodging.
28. Buy food at local supermarkets when traveling to avoid pricey restaurants.
29. Trade babysitting time with other couples.
30. Give homemade gift certificates for a home-cooked dinner, massage, or babysitting time.

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This article was published in the summer 2008 edition of OSI, the quarterly magazine for STCU members.