Frugal Finds – 3/23/16, Monthly Budget Update

Today’s frugal finds include:

$29.95 (includes shipping) ARRIS / MOTOROLA SURFBOARD SB5101U 2.0 CABLE MODEM (Ebay)
$6.50 (includes shipping) SAMSUNG INTENSITY U450 (Ebay)

So not the sexiest of items purchased but I’m glad to share that the following purchases will help to cut my monthly budget by $50!

Monthly budget:
$1,250 rent (covers all utilities: gas, electric, water)
$60 $18 cell phone
$23 $15 cable
$8 netflix
$200-300 food
$5 laundry (1 small load, twice a month)
$100 miscellaneous (personal care, clothing, others)
$233 school loan payment

Total monthly expenses: $1,979  $1,929

So while this may not seem like a whole lot to cheer about, I am personally thrilled. I had presumed that I had cut my expenses as much as I could but like the saying goes, if there’s a will, there’s a way.

I started to explore my current bills and found I was paying $8/month charge for renting a modem from my internet provider. So off to ebay I went and found a decent modem.

Next came my phone bill. Currently, I pay a whopping $60/month for unlimited talk & text, plus 1 GB of data from Verizon Wireless for my iPhone. It’s the cheapest smart phone plan so I thought I was being thrifty. After some consideration I realized that I hardly ever use my phone except for the occasional phone call and text. For usage of apps, I typically use my iPad with wi-fi as the screen is bigger. So I’m switching to a prepaid account, dumping the iPhone, and will be transitioning to a simple candy bar phone with qwerty keyboard.

Carrying around a smartphone really is a privilege when you think about the cost. Sure $60/month doesn’t seem like a lot, but let’s look at the affects of compounding interest.

$50/month savings comes to $624 a year! Compounded at 1% interest (my current savings rate), comes to $6,565 in 10 years! In 20 years? That’s $13,820!! And in 40 years? A huge whopping $30,700!!

Would you consider living without a smart phone for $30,700 in 40 years?

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