Rule #2: Every expense had to be scrutinized by both of us.

So this one is straight forward.  Every household expense had to be reviewed and approved by both myself and my wife. I mean EVERY purchase.  I give most credit for this rule to my wife.  The 1st thing she did was start using coupons.  She was able to cut the monthly grocery budget by 40% or more.  When you can buy used over new. If you don’t use and item for over 1 year it is time to sell. Craigslist and Ebay are your friend.  If you want to farm on a lower income you can not hoard.

One of the hardest things for me was automobile purchases.  I must admit I was spoiled.  I usually got a new car every few years.  Not anymore.  Our last purchase was a new hybrid for my wife. The research was endless and it was finally decided upon.  Now I am a big fan of used cars.  New cars are a terrible investment.  However, there is not a hug market for hybrid vehicles as of yet.  In order to approve this purchase it had to save us money or at least break even.  Gas was $3.00 a gallon and her Chrysler 300C (HEMI) got about 16mpg around town.  She had a 36 mile commute round trip.   With traffic she was using about 3 gallons of gas a day which was $9 per day.  The new hybrid uses less than a gallon a day.  We figured the daily savings was around $6.33 which translates to $190.00 per month.  We also saved about $14 a month on auto insurance.  That meant our savings per month was just over $200.  In the end we didn’t break even but we came very close.  The 0% financing and trade value of the Chrysler put us in the area anyway.  What put us over the top was the idea that we would be lowering our carbon footprint…even if it is only in a small way.

The bottom line is every penny does count.  Think of every dollar saved as a dollar the farm is making in income.  If you approach every purchase in this manner you can win the game. I promise!!!  LOL. One last thing…some purchase have beneficial tax implications.  Always keep that in mind when making large purchases.

Thanks for reading and happy farming!!!




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