It’s time to wrap this up with the questions I answered on “Afternoon Schmooze” on Rusty Mike Radio. You can listen to the podcast here.
And now, the Q&A:
You went on a spending diet. Why?
As our income has increased, our spending has increased dramatically with it. In short, we’re making too much money not to be saving more. We would like to buy a home in the next year, so a little belt tightening will make the difference between renting for another year or having a sizable down payment.
What’s included in your allotment?
What I like to think of as judgment spending – groceries, furnishings, clothing, dining out, entertainment, and anything else that isn’t non-negotiable.
What isn’t included: rent and other utilities (though we are also trying to be a bit more careful on the utilities and other flexible expenses), business expenses, medical expenses, charity, and transportation.
You actually spent a lot of money on things that one would think you wouldn’t, like NIS17 for iced coffee.
Yes – and it was money well spent. We also had a meal out to eat as a family, and I wouldn’t change that. Frugal shouldn’t be a synonym for miserly.
Did you starve?
Not at all. The reality is that NIS 1000 can probably go a long way toward supporting a family of four (admittedly, the two kids are very little right now) for a month. Meat and poultry are expensive. We spend a lot on milk – we go through 6-8 liters a week. But the vast majority of our other food items can be had for very little. Cakes can be made from scratch (indeed, it’s the only way they get made in this house – trust fund or not). Most of us aren’t going broke on buying fruits and vegetables (though I came close with the watermelon). It’s the processed junk, cleaning products, prepared foods, and toiletries that get us when we’re at the supermarket. That’s what we try and keep an eye on.
Did you actually only spend NIS1000?
Nope – we were attacked by children’s sandals. We finished at NIS 1543.
How did your friends react when you told them you were going to try this? Family?
We didn’t prepare anyone in advance, but we got a lot of positive reactions. Some people thought maybe times were tough. But most people agreed it was a good idea – some even suggested they would give it a shot.
What have blog reactions been?
Interesting to say the least. The funniest thing I noticed is that people would email me or contact me in Facebook, but were leery to comment publicly. Money is still too taboo to discuss. I was also amazed at how many notes I got saying “I’d love to do this but my spouse isn’t on board with it.” Especially when I got that note from both spouses in a couple.
Are you going to do this every month?
No. But I think once or twice a year might be beneficial.
Thanks again for all your comments, emails and feedback! Let me know if I’ve inspired you to give it a shot.
I forgot that I was about to get hammered 
Today, we also got Abby a pair of Crocs – on sale for NIS 100, paid for half with Leumi card points, total spent NIS 50. Chalk one up for the good guys. I’m heading back tomorrow to stock up on Crocs for the whole family.
As the end of the month approaches, it would be fair to say we’ve … uh … fallen off the wagon a bit.
