OK, so what do you get when your expenses go down by quite a bit per month, but your wife stops working at the same time?
An interesting financial situation that you hope benefits you.
At this point in time, I am trying to figure out what our expenses will be starting July 1 in our new house in New Mexico, as they will be dropping by quite a bit. At the same time, however, my wife is going to unemployed for a bit as she contemplates what she wants to do once we arrive. She has been in touch with several schools and some other institutions she is interested in, but nothing is set in concrete yet. And while I am not worried about the long term loss of her income (it will only be short term), I do want to get a handle on what living in our new house is going to cost us. So far, I know we have the following major expenses each month:
Rent: $1,000 – This is down from $1,949, so a savings of $949 per month
Car Payment: $300 – Stays the same
Car Insurance: $97 – Down from $138, a savings of $41
Health Insurance: $210 – Although I have not firmed this up yet, I am hoping we can come in at this rate, about $110 less per month than we pay now. Of course, if my wife gets a job with benefits, that would be even better!
Cell Phones: $110 – Stays the same
Internet: $50 – This is about $11 more than I pay now, but I guess not bad considering we are moving somewhere so remote
Groceries: $400 – We checked out the natural food store in town, and the prices are about the same as we pay here
Student Loan: $117 – Stays the same
I could go on and on, including cable TV, phone, water, trash, gas, electric, etc etc, but I am not sure what the difference in pricing is going to be at this point – I am only just now getting them switched over to our name. But let’s concentrate on only the items in the list above:
$2,284 for those fixed expenses in our new house
$3,373 for those same fixed expenses in our current apartment
That’s a savings of $1,089 per month just on those expenses. By my wife not working we will be losing about double that amount of income each month, but having this much of a reduction in expenses will certainly help to not strain our finances too much. And when she goes back to work, we should have much more money to both pay off her student loans and to save for retirement. Ah, the joys of moving somewhere less expensive that includes views like this: