Multi Part Series: Spending to Save

We spend a lot of time talking about ways to cut back on ALOL. I'd like to step back and tell you things that you should not eliminate from your budget. Several life experiences come to mind and each one is a story in itself, so here goes the first.

When I graduated college back in 1989, it took about two months to find a job. With each passing day I became more and more desperate. I had spent 17 years acquiring an education and I didn't see why I should waste another day unemployed. Finally I found a job, but at a salary that was much lower than what our college counselors told us we should be starting at (to the tune of 20% less).

Regardless, I was determined to save. I would not be on my own without a nest egg. I was determined to never ask anyone for help with money and honestly that spirit still haunts me today. So I moved to Houston a mile from my employer near NASA and found an affordable apartment. The apartment cost just under 20% of my monthly salary so I knew I was ahead of the game on housing (which today costs about 35% of the average family budget).

Next was food. I rarely ate out and limited my diet to some basic economical items. I easily spent less than 10% of my salary on groceries and dining out.

I had cable TV for a couple months but dropped it when the cable company started charging for a channel I never wanted in the first place (ESPN). The cable bill was about $30 but I never missed it.

Before I go onto the lesson of the day, suffice it to say that I was saving 40% of my salary; a salary that my colleagues considered too low for my profession (software engineering).

Utilities
If you've ever lived in Houston you're going to laugh. If you've not lived in Houston, imagine living in a steam bath 24/7. I did not use the air conditioning in my apartment. I knew how much my parents spent on A/C and I was determined to live without it. I turned it on when guests came over, but never when I was alone. So sweat I did. My clothes were wet. My sheets were wet. Everything was wet. I had no problem living a Spartan life, until...

One night I started feeling little bites and stings in my bed. They were infrequent, so I eventually went to sleep. Next night the bites became more frequent. This went on for a few days until I finally started sleeping on the floor. Then I noticed that my clothes had holes in them; holes made by ants. I called the apartment office and asked them to rid my apartment of the pests. They obliged but told me that there was a lot of moisture in the apartment and that the ants would be back. They recommended running my A/C.

So finally I turned on the A/C. It was a small apartment and I never went below 78 degrees. Much to my surprise the electric bill only increased $10/month.

In spending $10/month for A/C, I no longer needed to replace expensive work clothes or bedding. I no longer deprived myself of sleep. Had I lived in my own home, I would have been paying for the exterminator as well.

So, sometimes spending a little can save you a lot and make you comfortable as well. :-)