Thursday, December 10, 2009
My husband makes less than $1000 per month.
Our monthly expenses are under $1000 per month.
Our annual household income is higher than $12,000. I currently make money mystery shopping and from ad revenue. My monthly mystery shopping income rarely puts us over $1000 per month, but my ad revenue has for the last few months.
No matter how much money this blog makes, it would be counter productive for us to spend more than $1000 per month. Here are three reasons why:
#1) We don't need to.
We have everything we need on my husband's income. Our basic monthly expenses are taken care of. These include food, shelter, gas, electricity, car maintenance and any odds and ends that come up.
#2) It goes against our long-term goals.
Our long-term goals involve drastically reducing our expenses. We are practicing now and are getting better and better at cutting our expenses. Increasing our standard of living to match a new income is not the best thing for us in the long run.
#3) It is a catch 22.
If I spend more money, the information in this blog becomes obsolete and the blog income goes away. To me, this reason is not valid alone, which is why it is third.
What are we doing with the extra money?
We are building our savings. We had to take some money out of savings to pay for our midwifery bills and it is still at a level below what we are comfortable with. I can usually throw $20 into our savings each month, sometimes more, but when I threw a little over two hundred in from Adsense and Amazon last week, that felt good. That is not money we want to touch, as it is counter productive. It doesn't help us to spend that money.
Don't you want a better life ?
Of course I could find things that I could justify as "needs" to spend extra income on. Since our true needs are met though, we are using extra money not to increase our standard of living and level of luxury now, but to invest in our goals for the future. That is having a better life.