Thrifty Spender – Assignment 1 – Cut Food and Wine

Thrifty Spender Experiment – Assignment 1, Food and Wine

Dear Matt and Nicole Berkus

Peace and grace be with you at the start of the New Year. I, your T.S.E. Handler, have your first spending assignment. You are to stop purchasing any alcoholic beverages: beer, wine, liquor, etc. Second, you are to spend no more than $348 per month on food.

Liquor is a pure luxury. We are not moralizing but simply recognizing the fact that when a family encounters financial set backs and distress, there are some obvious cuts that can be made; cutting liquor from your budget is one of those cuts. For the length of the experiment, you are to purchase no beer, wine, or liquor. (Sorry).

As for food, everyone must eat. But there is wide discretion in how much to spend on food. The $348 number comes from the U.S. Department of Agriculture Official Food plans. The budget summary can be found here (opens a PDF). The research report that generated these food plans and budgets can be found here (opens a PDF). Happy reading! As you are aware, being a bankruptcy and tax resolution attorney, the IRS Collection Standards for food for a household of 2 allow $537 per month. However, we would like to see if you can do better and create a healthy diet on a budget of under $300 per month.

In reviewing your 2010 spending, if you were to cut out all purchased liquor and reduce your food budget to $348 per month, you would save $11,445.25 compared to what you spent on food and wine last year. I hope that is enough motivation for you to make this work.

This assignment will last the length of the experiment. Your task is to implement this budget and describe for readers and viewers the specific steps it takes to live within such a budget. As always, success will rewarded and failure will be punished.

Sincerely

Your T.S.E. Handler.

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