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Many people (at least in the blogs I read, if not the real-life conservative hub of Houston) are growing more and more concerned about the environment. After I saw Al Gore’s Inconvenient Truth, I began noticing more and more sites where people would pledge to install compact flourescents, for example, or avoid taking too many long car trips. At the same time, with the economy slowing down, I’ve seen numerous people talking about why it’s ridiculous that everyone seems to think that they need two or more cars for each household, why we need to stop paying so much for clothing and food, etc.
My husband and I are at a crossroads of sorts, financially speaking. Though hindsight is 20/20 and I might have reconsidered quitting my job to go back to school full time, we have done very well on a single teacher’s salary, weathering several expensive car repairs and paying for graduate tuition. We have a pretty good sized apartment that is miraculously cheap, too–we’re right on the edge of a “good” part of town (meaning lower crime than two blocks back), we get to stay in the city instead of living in the suburbs (less money for gas), and we’re right by a nature trail. The apartments are just old, so I think the Energy Corridor engineers and such have somehow missed them. We’re also surrounded by trees, so our energy bill is pretty low, even though we have opted for Green Mountain Energy, a 100 percent solar power option.
Nevertheless, if you look at a 60 percent solution breakdown of what a budget should look like (taxes and fixed expenses at 60 percent with 40 percent savings), we’re still at 70 percent. That explains why we had to stretch to pay for those car expenses and why we have less money than we would like for fun (vacation, etc.) That means we need to cut just under $4000 from our annual budget to be truly “living within our means” at a more comfortable level. We will get some of that back when my expensive cell phone plan is up in October and when I will be getting my own health insurance again (those expenses combined add up to around $2000 a year, and that’s because I have a cheap health insurance plan with a sky-high deductible. Let’s hope I can last until September without getting in a wreck or going to the emergency room.) Still, we have another $2000 to go.
Which brings me to our cars. See, one of the perks about living in the city is that we do have public transportation, however crappy it may be, and my husband can technically ride it to work, though he may spend thirty minutes or so waiting for the bus. His car, though newer than mine, is also not so hot with regard to gas mileage, and we’ve spent more than $2000 on various problems within the past twelve months, not including oil changes and inspections (we’ve spent roughly $600 fixing the alternator on mine, which has been the most expensive problem it’s ever had.) My car can get around 32mpg on the highway, which is what I would be taking to get to work (away from town, avoiding traffic… another perk to living in the city and working in a suburb). That means we spend anywhere from ten to twenty dollars less filling up my tank, and I don’t even have to do it so often as my husband.
So, we may try to sell one of the cars (probably his), and possibly buy a couple of bikes with the money we save. We figure that biking is a little faster than walking on the nature trail, and we can use the bikes whenever we want to go out for fun (triathlon anyone?), then save the car for once a week grocery trips. We’ll have to see how feasible this actually is (my husband likes to sleep in until the last minute before work), but I’m hopeful that it will work. The funny thing is, while we’re helping the environment, we’re also truly living within our means.
Here are a few other ideas we may try which will probably help the environment and our budget:
1) Put up a clothesline next to the bathroom in the back room to dry more of our own clothing.
2) Learn how to cut hair so that I can give Chris a quick buzz when he needs it, instead of waiting until he gets shaggy enough to justify a trip to the barber. We’ll save money on haircuts… and gas.
3) Use our cloth grocery bags. Surprisingly, they are easier to carry than plastic bags, they hold more stuff… and they make it less tempting to go overboard at the grocery store because we have a limited number of them.
4) Continue living in an energy-efficient apartment instead of a house. We figured out that it actually is NOT better to own a home right now, even with a 20 percent down payment. Why? Taxes and insurance are really high in a city, and if we get a 30 year fixed rate mortgage (all we could afford within a year), we will mostly be paying interest, not principal, so we wouldn’t accumulate much home equity that way. Plus, we’d have to live in the suburbs… and I’m not sure that we could get an energy efficient home in a bedroom community. Twice the electricity bill, more liability for home repairs, having to mow the lawn *every* weekend, more driving? No thanks.
5) Plant more stuff on the back porch.
6) Make soap, candles, clothing… everything. Shop at Goodwill and consignment shops (another plus about the city–high end vintage clothing.) Use my sewing machine.
Now, I know I’ll be working next year, so why not just buy the house anyway? Of course, there’s more to life than just number-crunching. But, through all the number crunching, we did discover that we need to be pretty slick in order to achieve our goals of raising a family and continuing Chris’s education. If we have children, we will spend almost $7000 per year in today’s dollars on health care (can’t use my cheap crappy plan if I’m actually giving birth to children who will in turn get sick all the time because their immune systems aren’t up to speed), plus $750 for each delivery. That doesn’t count the start-up costs of a baby (cloth diapers are around $500 for 24 sets, though those could be used for multiple children). Plus, I would like to stay home with the kids, at least until they’re in kindergarten. I’ve honestly seen too many whiny, clingy children who go to daycare… plus by my working full time, we go into a higher tax bracket (ten percent more to the IRS…) and I’d have to pay out the wazoo for someone else to watch my kids, probably not giving them the same attention and care that I could with all my child development education and such.
Though the prospect of paying for children seems foreboding, it was nice to realize that by simply cutting one of the cars and committing to working summer school in future years, we will be able to save for a house and for children, and we should also be able to pay for Chris’s master’s degree. If he gets a PhD, we’ll have to change a few of our goals and maybe live in a trailer instead of a house when we have kids (or have two kids instead of three)… but that’s cool with me.
And now… I’m going to make some banana bread and wake up my husband. I think we’ve had enough of trying to plan the future for one week, especially considering that we really don’t get to make all those decisions anyway. But we can learn habits that may help the shocks of the future.








