Danielle Wagasky American housewife living with family on $14,000 per year Country: USA

1. American Housewife Daniel Vagaski: Living on $14,000 a Year
2. Embracing Frugal Living
3. Homemade Everything
4. Controlling Impulses

American Housewife Daniel Vagaski: Living on $14,000 a Year

Financial crisis forced many people to seriously reconsider their lives and significantly reduce expenses. While the incomes of most families plummeted, various expenditures did not seem to follow their example. In the United States, the annual income of the average family dropped to about $50,000. However, some managed to live on much smaller amounts. For example, the annual income of Daniel Vagaski and her family is only $14,000. Currently, 28-year-old Vagaski lives with her husband and two children in Las Vegas, Nevada. Her husband, 31-year-old Jason, recently left the military and enrolled in university. The only source of family income is the military allowance he receives. Interestingly, Daniel and Jason not only did not get into debt but also managed to save money for buying their own house in Henderson, Nevada.

Embracing Frugal Living

Daniel began taking control of her expenses in 2009. She regularly shares chronicles of her incredibly frugal life on her blog. According to Daniel, the book "America's Cheapest Family Gets You Right on the Money" helped her take the first, and perhaps most important, steps towards saving money. Through this book, Daniel realized that she could significantly reduce her expenses. The first step for Daniel was mastering kitchen skills. Previously, she did not know how to cook at all and simply bought ready-made food from the nearest store. Thoroughly studying culinary books helped Daniel learn many useful and relatively inexpensive dishes. Now, she only buys healthy and nutritious food. Daniel prefers to borrow culinary books from local libraries and has received some interesting guides as gifts from friends.

Homemade Everything

However, Daniel's frugal living didn't stop at just food. Currently, much of what is in Jason and Daniel's home is handmade. They learned to make their own clothes, furniture, and even soap using readily available materials and inexpensive supplies. They also managed to save a lot by giving up cable TV and only subscribing to the minimum number of channels. Transitioning to using cash played a significant role in organizing their thrifty household. Almost completely abandoning credit cards helped them gain better control over their expenses. Unlike many American families, Daniel and Jason are not afraid of unexpectedly high monthly credit card bills. They only use their cards in extreme cases. Daniel goes shopping once a month, and she spends approximately $400 on food.

Controlling Impulses

Naturally, Daniel can no longer afford sudden impulses or unplanned purchases. According to her, controlling such impulses turned out to be relatively easy. They only refuel their cars once a month, and they had to significantly reduce their outings and social activities. Gasoline is the only automotive expense for Daniel. They resisted the temptation to buy a car on credit and paid in cash, which greatly eased their lives. The absence of monthly loan payments significantly eases Daniel and Jason's lives. Daniel Vagaski's story is a shining example of how determination and the ability to give up excesses, even those that seem essential to life, allow for a decent existence on a relatively modest amount. Perhaps if more people followed her example, the next crisis could be avoided.