Poverty Challenge: Day One
I am participating in the “Poverty Challenge,” sponsored by the Homeless Alliance. Poverty is the greatest cause of homelessness (even though drugs and mental illness get most of the blame). Having seen what a poverty budget is like, I can understand why people with limited incomes lose their homes.
Today, however, my task is simply to set a “baseline,” recording my normal eating/spending habits. I plan on updating this as I go along.
But thus far today, I have purchased nothing, and consumed:
- A breakfast of Leftover tofu spread (last night’s dinner) and a glass of milk, valued at approximately $1.50.
- Three cups of coffee. ($1.50).
- Lunch: Frozen Salmon and bag salad ($2–really! I got the fish from Aldi’s)
- Snack: A cookie ($1–it was a big cookie)
- Dinner: Scalloped Corn and Tomatoes, with a side of pears and a glass of juice ($3)
- Evening extras: A movie from blockbuster, and a beer ($3.50)
Total expenditures: $11, plus driving my truck, using the internet, my mobile phone, and having insurance.
The questions that I am supposed to think about (and will answer here this evening) are as follows:
What do you think will be the hardest thing to give up? How do you think your meals will change? What daily routines may change?
Somethings will definitely have to change. This is the budget I will live with:
The federal poverty guideline for an individual is $866/month.
Rent utilities, and repairs for a one bedroom apartment averages $513/month (I share a bigger house with my wife and my pets, but for the purpose of this exercise, I will use the one bedroom number. I already go over the guideline with just my monthly mortgage payment!)
That leaves $353/month for everything else, which breaks down to $11.76/day.
The cost of clothing was predetermined for me, too, at $2.51/day. (In reality, I spend far less than this one, but for the sake of the experience, I won’t change the figure). This leaves $9.21/day.
Because I have health insurance, I have to subtract an extra $1.60/day. Using the internet will cost me an extra $1.05/day. I plan on not driving or using my mobile phone, so that I can have enough money left over to eat ($6.56). For the sake of this exercise, I will count the value of all the food I eat, even if I paid for it earlier or somebody else bought/buys it.
Check back here for updates on my experience, and follow the whole challenge at the homeless alliance blog.
TinyPliny said:
This is an interesting challenge. Quite surprisingly, I am taking on a similar challenge. Though somewhat dissimilar in goals, both stem from a common principle of living a more simple and uncomplicated life. I deeply appreciate the fact that you are taking on not only the challenge of experiencing what a frugal life might be like, but also taking the pains to maintain a personal record. It is a hard thing to do.