Daily writing prompt

Write about your approach to budgeting.

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I was seventeen when I joined the U.S. military. I didn’t begin serving until I was 18. Frustrated with life, I wanted to see the world and find answers.

Military pay didn’t go far in 1974. $344 a month was my starting salary. Desiring to make it go further, I sought guidance as I do for everything: research. Back in those days, that meant mostly hitting the library.

Finding books on budgeting, two things were stressed: one, pay yourself first. Put money into savings. Have at least a few months worth of living expenses to fall back on in case of emergencies. I married, and my wife and I made it a goal to have and keep at least six months of expenses on hand in savings.

The other thing was to always pay off your credit card. Not doing so meant that you were losing money on the interest you were paying, and that would only get worse because it would be compounded. Part of our process was that anything put on the credit card would need to be budgeted to be paid off when the bill came in. We’ve never varied from that and always have a dialogue about was, and is, going on the credit card.

Every month, we brainstormed to list all of our expenses and listed them in a notebook. Some were fixed costs; we knew what they were. They were entered first. Next, the things which needed to be but fluctuated in price and need, depending on multiple factors. This included gasoline and haircuts. Everything was listed, added, scrutinized, prioritized. We didn’t have cable TV because that was $12 which we couldn’t afford. We went to the library, checked out books, and read.

Our final pole for budget was to be frugal shoppers. Back then we saved pennies to buy an occassional dessert. We scoured ads for sales. During that time, coupons in newspapers came out on Wednesday and Sunday. We always bought the newspaper on those days, and then went dumpster diving on the coupon sections that others threw out. Most months we saved over a hundred dollars with coupons.

Later, when IRAs began, we grit our teeth and maxed contributions out. First, IRAs were savings which would earn money and be deferred for taxes, but it was also money which we could deduct from our income tax, enabling us to get the most back in taxes which we could. Likewise, when we started working for corporations that offered a 401 K, we maxed out our contributions.

And doing taxes, of course, which I always did, and still do, I hunt for deductions.

It was tough. Although we’re much better off financially, we still adhere to many of these tenets. I keepa spreadsheet of our savings. We monitor our credit cards and bunce Now, as tariffs, cutbacks, and shortages threaten supplies lines and possible high inflation looms, my wife reminds me, “We know how to live poor. We did it before. We can do it again.”