Cutting Costs - When There's Nothing Left

I've been really hard on myself lately about my PF progress. I spent the last year as a spendthrift, after all. Even though I'm back to my more frugal ways, after reading and taking to heart a lot of what Jacob at Early Retirement Extreme has to say, I'm even more determined to squirrel away more of my income. So I took to my budget, red pen in-hand, desperately trying to find an opportunity to cut back on something.

Our largest expense is rent. The number ($850/person) is a true horror to behold, especially since not 2 years ago I used to spend only $500/month when I had more roommates. Meanwhile, my income is holding steady at $45k gross, which yields a little over $33k net (after federal and state taxes and a meager 3% 401k contribution), so I'm not getting any richer with this setup. We live in a 2-bedroom apartment now, when all we really need is less than or equal to 1 bedroom, so I perused craigslist with visions of a relatively inexpensive studio apartment in or near the city. I couldn't find anything at a reasonable price point that didn't require 2 additional roommates, or a 30 minute trip by car. Turns out our insanely expensive unit is actually quite a steal in this part of town. Until I can live the dream in a Tiny Tumbleweed house, looks like I'll have to make do with this place.

So I moved onward, looking for some other fixed cost to cut, but besides the Netflix subscription we just signed up for (it's winter in MA - I'm sure I'll get my money's worth), I couldn't find anything. Here's a list of things we already do without:

1. Car (and therefore, no car insurance, gas, etc.);
2. Cable television;
3. Cable internet (we use dryloop DSL);
4. Landline phone;
5. Gym membership; and
6. Haircuts, apparently - similarly, I do all my own bodily upkeep, including my nails.

The fees I do pay monthly are (i) an unlimited train/bus pass, which is less than $60/month and (ii) my cell phone, which is $45. No, there's no extraneous monthly fee to cut (except Netflix, but we just signed up, and already we've watched probably over 20 DVDs). Looks like I just have to track every penny to lessen my OTHER spending. I'm not shopping anymore, but I do spend $2 or $5 here and there for a coffee or a sandwich sometimes, and it really, really adds up. Groceries are also very expensive (duh), and we do shop sales, clip coupons, and eat a lot of lentils and tuna fish.

Maybe I'm missing something. Maybe I really do just need more of an influx of cash. Anyone else out there in a similar situation or want to share some "necessities" you do without?

New Budget

I did some budget tinkering, and this is what I'd like to shoot for:

Housing: $850
Medicine: $200 (cc)
Food: $200 (cc)
Internet: $25 (cc)
Misc: $150 (cc)
Loan: $200
Total Expenses: $1625

Clothing purchases: $40
Doctor/Dentist: $75
Future Fund: $100
Emergency Fund: $400
Checking Cushion: $100
Roth IRA: $200
Total Savings: $915

Total/mo: $2540

cc= Charged to credit card. The point being that I'm trying to keep my credit card bill under $600 a month, if at all possible, and these are the items I charge.

Any amount left in my checking cushion at the end of the month will be divided and saved as I see fit. Same with any ebay sales. Although I imagine that the majority will go into the Future Fund, as I now have a wedding to plan... ... ... because I got engaged this past weekend!!!

Prospective Budget

I'm sure I don't have to say it, but I haven't even attempted to adhere to or even rework my budget in a long time. So here's my tentative reworked budged:

$2,540.00/month after taxes.

Rent: $825 (up to $850 in June)
Loan: $500 (the required monthly payment is actually $90, but if I keep paying this much, it'll be paid off by the end of 2010, instead of the suggested date of 2026. After payoff, sweep to E-Fund. OR, maybe I should contribute $400 here, and $500 to my E-fund. URGH.)
E-Fund: $400 (after it hits $8,000, decrease to $300 and sweep extra to F-fund)
Utilities: approx. $45
Food: approx. $100
Checking cushion: $200 (this includes incidentals, going out)
F-Fund: $100
Medical/Dental: $100 (after it hits $500, sweep to F-fund)
Clothes: $40
Investing: $100
Vacation/Airfare: $60
Tiffany necklace: $35
Gifts: $35

And I'll say it now before I convince myself that it's not true: I DO NOT NEED ANOTHER PIECE OF JEWELRY (...except for one of those Tiffany key necklaces (oy) -- I can't decide whether to get the vintage oval key in silver or the trefoil key in gold).

I will go home tonight and return as much as I can. I can't even say it outloud, but I'll try to believe it when I write that except for on my birthday on Thursday, I will not visit QVC.com or HSN.com at all. Seeing that in writing reminds me that I am my mother's daughter. Please God, never let me succumb to Quacker Factory...