How I Survived On $13,000 With Mortgage And Car In 2015
You Can Afford Anything Broke By Frugal Living
I am an honest person, which is why I am writing about my rural money (personal finance) and how I survived on a small income.
By the end of 2015, I was not in a race to reach zero money, I was already there.
There, I admitted it.
You may be wondering am I really making money online?
If so, why am I broke?
This blog wasn’t started until 2015!
I do earn online passive income, almost everyday.
My problem was I started to take it for granted.
So in 2015 I did not win the online passive income/positive cash flow game.
What do I mean by afford any thing broke?
It means that a broke person can afford anything (e.g. consumable items, loan payments) by paying with a credit card… and paying a penalty for the convenience of using borrowed money.
I am grateful I made it in 2015, but my low-income was very distressful.
Therefore, as of January 1, 2016, I am starting from the financial bottom.
If you are too, we’re all here, ready to take action to change our financial reverses.
Before I start answering in-depth questions about my rural money situation, I will state a fresh resolution for my financial goal:
“I expect to jump at least one socioeconomic class, from working poor to middle class, because it is time for me to get back on the path of sound financial self-sufficiency.”
I hope you have written your financial goal for 2016 as well.
The practice of frugality and thrift is my lifestyle by choice and design.
Therefore, I was able to maintain my standard of living on less money.
I am not motivated only to achieve my own financial goal.
If you are on the financial bottom and ready to earn more online passive income, or make money online for the first time for your financial self-sufficiency, read on to learn what not to do and what to do to get on and stay on the right path to reaching your financial goal.
My financial goal also extends to my Rural Money web site where my mission is to help every cash-strapped woman solve the problem of how to start homesteading (as a business), and how to make money from home in rural areas.
If how to start homesteading (as a business) is your problem, then I can help you to break free from getting paid by the hour or as an employee.
As a result, you can gain control over your income and time, by earning money with your homegrown or handmade products and/or digital products and services.
I do this by recommendations that teach you how to package up all of your knowledge into a digital teaching web site, that makes you money online.
Given I have made most of my income online (over… dollars…, over… years sshh) from selling digital teaching products, pay-per-click ads, sponsored ads, services, etc. through web sites and blogs, you can trust my recommendations for a stable online passive income path to your financial self-sufficiency.
That being said, let’s get into Afford Anything Broke: How I Survived On $13,000 With Mortgage And Car In 2015.
It’s Time To Get Fully Banked!
Even regular purchases and expenses such as food and utilities cost me (and you) hard earned rural money when there is zero money, or not enough money in the bank to pay cash.
For example, if I am fully banked, then I do not have to use credit cards or borrow money from an “outside bank” to pay them interest, late fees, etc.
With positive cash flow in the bank, I can pay myself a salary to pay living expenses, and borrow some of my own money when necessary to make a major purchase, e.g. refrigerator, car, etc.
The money I borrow from myself “must” be paid back into my bank account plus interest.
I “must” charge myself a flat interest rate of at least ten percent for borrowing my own money.
As a result, I save money and the money I borrow from myself earn money.
As opposed to using credit cards and/or borrowing from loan facilities, I “must” be fully banked to use my own money that pay me, and make “no risk” investments.
Fortunately, not knowing what to do with online passive income/positive cash flow is not a problem for me.
Since I didn’t have positive cash flow in 2015, I wrote a financial plan for 2016 to serve as a blueprint to help me get fully banked!
There Are Money Pitfalls I Need To Avoid
- Avoid using credit cards, payday loans, check-cashing facilities, and other entities charging exorbitant rates for money services.
- Avoid paying a penalty for not having healthcare insurance.
- Avoid investing in a luxury car or wardrobe instead of getting fully banked.
- Avoid taking out more student loans for additional degrees.
- Avoid traveling, shopping and dining out on credit cards.
- Avoid no retirement savings.
My 2016 Financial Self-Sufficiency Blueprint
- Set a median online passive income goal.
- Pay bills on time.
- Maintain bank accounts.
- Ensure monthly mortgage payment is less than one-third of house-hold income.
- Build a web site that combines a valued skill, product, service or information with a need, and makes money.
- Concentrate on increasing online passive income/positive cash flow, and minimizing debt.
- Diversify “no risk” investments to ensure all eggs are not in one basket.
- Use all income tax deductions, and file all 1099’s.
Feast Or Famine, Feast Is Better!
At 63, I survived on $13,000 in 2015 with a mortgage and new car loan.
Fortunately, I have healthcare insurance, and I am a successful homesteader and Digital Marketer.
I have the freedom to work by computer at home in a rural area.
There is no family financial support, so as a single homesteader, I survived from hand-to-mouth.
I have a home mortgage because I choose to have one to live the rural homesteading lifestyle in metro Atlanta.
I had a strong desire to become a homesteader to grow much of my food and raise small animals to eat; and I am loving it!
I have a lot of stuff so I guess I could have had a BIG estate sale.
But, I do not have a desire to live a “bare” lifestyle in a tiny house.
However, I donated a lot of things to the Kidney Foundation that I never used.
Yet, my closets are still full of clothes and six inch high heels, ha!
Nevertheless, I have more homesteading clothes than pretty dresses.
My stuff is not a problem, besides, homesteaders need a lot of stuff.
I lived in a one-bedroom apartment before buying my homestead; and the market rate rent was $1200 a month.
My mortgage payment is no where near that amount.
And, if I had to, I could live in a tiny house after living in a 350 square feet apartment, but I don’t have too.
For what I was paying for rent, I knew I could buy a house and car for less.
How Did I Stay At $13,000 Last Year?
I didn’t predict that my income would be $13,000.
Yet, the two key things that made it possible were my USDA-RD home loan mortgage and escrow payment ($490), and new car loan payment ($408).
Gas was controllable because I didn’t drive if I didn’t have to.
What Did I Eat?
I ate good, but sometimes I had to skimp on food.
My diet consisted of a lot of free foraged wasted food from local food pantries.
As a result, I didn’t spend any money on food.
Some people call it the Freegan diet, but I call it not starving.
Did I Have Healthcare Insurance?
I am self-employed so I purchased my own plan.
It is deducted automatically so I don’t miss what I don’t have.
So far, keeping my fingers crossed against any major illness has worked too—Thank God!
What About Clothes?
I’m a pretty basic jeans and T-shirt kind of gal because I am always working hard on my homestead.
When I go to my home office, I wear pajamas. -:)
My basic wardrobe consists of jeans, khakis, T-shirts… very minimal.
Didn’t do laundry frequently, which saved money on electricity, water, sewer, soap, etc.
Did I Spend Money On Entertainment?
I didn’t go out at all.
As an avid homesteader, I prefer the food I cook to what I get in restaurants, even if I could afford it.
I’m a non-drinker so I save money there.
Love music so I have a wide variety of CD’s and movies that I picked up at flea markets.
Saving money is my entertainment; and I love listening to Bonnie Rait!
Did I Splurge On Anything?
No, unless you call spending a few dollars at a thrift store to buy a few things I need now or can barter later.
Because I am a prepper, I had plenty of the basic things I needed to survive.
The rest of my income was spent on utilities, phone, Internet, web sites, and gardening supplies.
Becoming more involved in Freeganism because there is a lot of free stuff, if you know where to look.
I absolutely love homesteading in a rural area because there’s a lot of beautiful scenery; and it doesn’t cost anything to look.
I am very frugal and this has always been my lifestyle.
I used to be part of the consumer cycle, buying stuff I didn’t need, but I don’t do that anymore.
The homesteading and self-employment lifestyle is liberating!
I can maximize my income and savings, which is true freedom.
I have not gotten to the point where my monthly online passive income is consistent; therefore, I have not built a nest egg.
I am not there yet, but that’s my goal.
Do I Have A Retirement Account?
No and yes.
There is no nest egg to guard, yet.
In terms of a specific retirement account, I have a diversified retirement blueprint that I’m working on.
I don’t see myself ever retiring, even when I’m filthy rich.
I love what I do.
I would much rather do what I love, live small, and enjoy life.
That’s my story and I’m sticking to it… until I write my financially self-sufficient success story sequel.