That is your advice?

Yesterday, I was home a little early after running work errands and I got to see most of Suze Orman on Oprah. She has a 5 Step Plan to help you survive the recession. I'm having trouble remembering all the steps because the first one nearly killed me. Yes, it is 100% right but man...

Step 1: Live on Half

Yep, live on half of your income. If a two income household, live on one income and bank the rest. If a single income household, live on half and bank the rest. This prepares you in two ways. 1) It builds up your emergency fund. 2) It prepares you to live on unemployment. I don't know if we could actually do it...

Yes, I'm about to divulge very privileged info here... these are all approximate numbers
Mortgage $1500
Car Payment $300
Loan Payment $300
Insurance $60
Electric $75
Gas (house) $100
Phone $40
Cell $50
Cable w/ internet $130
Gas (car) $160
Pet Insurance $70
Storage $90
Sewer/Trash $85
CSA $56

Totals $3016... and we'd only have veggies and cheese to eat during the summer and fall months only...

If we cut the storage out ($90), eliminated one of the phones ($40), and cut back internet/cable... We'd have some money available to eat each month. Also, electric and gas (house) are general averages for the year. Electric is more like $50 in the 6 months of winter and $100 in the 2 months of summer. Gas is nearly nothing in the summer and about $250 in the winter.

Wow... we could actually nearly manage it... I'm shocked.

Bah... That hurts. That means we waste away nearly everything I earn... Wait, I forgot childcare... But if one of us wasn't working, that expense would go away.




Step 2: Stash Your Cash

If you do not have 8 months worth of salary banked away in your emergency fund, pay only minimum payments and stash the rest of the cash. Any extra $$ you would have sent to pay down your debt, put in the bank.

So... the others did not shock me as much... And Suze can explain it herself better, but I thought it would be interesting to step through Live on Half with you.

Here is a link to the rest:
http://www.oprah.com/article/oprahshow/20090311-tows-suze-orman/1