Author Topic: Trying to live the Mustachian style in Mexico.  (Read 4462 times)

MexicanMustache

  • 5 O'Clock Shadow
  • *
  • Posts: 10
Trying to live the Mustachian style in Mexico.
« on: November 12, 2014, 03:27:52 PM »
Hi all,

Here is a little bit of history.
Proudly Mexican, I'm 37 Yrs. Old, and never been good with money or credit.

I've started reading Mr. Money Mustache' blog somewhere around a year ago.

After reading a lot of Blog entries I got the premise, is not being cheap is being conservative when spending and a monster saving and investing.

A few months ago (about 6 or 7) my wife and I decided to start living the mustachian way, we started small.

Our monthly expenses were: (keep in mind that all of these are in Mexican Pesos)
Our joined income was $38,000

1. Cable TV $890 (It included HDTV package, All movie channels, Telephone, 10MB Internet)
2. Gas for 2 cars $1250
3. Rent $2500 (this is great the house is from my father in law so he will never raise the rent)
4. Water $100
5. Groceries $2000
6. 2 Cellphone plan $1500 - $2000 (depending on excessive use.)
7. Dining out $2000 (depending on the venue, but mostly Junk food)
8. Credit Cards debt ($60000 Mine, about $30000 hers) the monthly payments were between $10000 to 18000 a month depending on the planned expenses.
9. Car Reparations ~$6000 (the cars spent more time in the mechanic than at home.)
10. Miscellaneous ~$3260 I have no idea where this money went for months.


Our total spending on a monthly basis was ~$36740, At the end of each month we were eating Maruchan Soups or Canned Tuna. (These two, even when they are delicious, after 2 of each on a regular basis are not that yummy.)

Once we decided to stop the excessive spending.

1. Cable TV $590 (Reduced the service to just internet and telephone)
2. Gas cars $800 (sold both old cars and bout a family car)
3. Rent $2500
4. Water $150
5. Groceries $2800 (We have a relative living temporally at home so this goes a bit up)
6. Cellphone plan $600 (We canceled one plan and reduced mine, I was a bit reluctant  to the idea, now I'm convinced i need to cancel this plan too and i can in about 6 months)
7. Dining out $380 (Mostly Junk food)
8. Credit Cards debt $90000 Mine, $3000 hers (the monthly payments are $10000 a month). I am struggling with not buying stuff from Amazon. Damn you Amazon why are you so convenient!!!
9. Miscellaneous ~$2690 This are for my nasty habit of smoking and Eating out at lunch time 2 days a week, when we cannot cook lunch to bring to work.

Now the grand total is $20510

You need to take to account that my wife quit her job to pursue a new career path that did not grow as expected, we only invested in this new career path $8000.

At this point our income is about $30000 because i got a raise this year, so we have a bit more room to save about $9490 a month; however, my credit card is killing us.

Now, about 2 weeks ago we found out that we are pregnant and we are to have a baby in about 32 weeks.

In my hurry to pay all my debt before the baby is here, I took a second Credit Card with less interest rate and no annual fee that my first Credit Card. Because of some technical problems in the bank I have not been able to transfer my balance from one bank to the other.

Any advice is welcome.

The Mexican Mustachian (want to be)

CowboyAndIndian

  • Handlebar Stache
  • *****
  • Posts: 1344
  • Location: NJ, USA
    • KOWines: Deep discount wine/spirits store.
Re: Trying to live the Mustachian style in Mexico.
« Reply #1 on: November 12, 2014, 03:47:16 PM »
The exchange rate for USD to Mexican Peso is 13.57 on Nov 12th 2014.

Hopes this helps folks analyze this budget.

DeepEllumStache

  • Magnum Stache
  • ******
  • Posts: 3166
  • Age: 36
  • Location: Hiding under my desk
  • I came, I saw, I made it awkward
Re: Trying to live the Mustachian style in Mexico.
« Reply #2 on: November 13, 2014, 10:40:47 AM »
Congratulations on the upcoming addition to your family! 

In terms of budget, you've done a good job trimming expenses. It helps that you and your wife are working together on this.  You two have made a fantastic start.

Can you do some meal planning on your days off so you won't need to go out as frequently?  I do bulk cooking on Sundays so I don't have to worry about cooking lunch for the week. 

Will you have any medical expenses from the pregnancy and birth?  If you need any costs or copays up front, it would be a good idea to start budgeting for those.  There are a bunch of threads in this forum about ways to trim costs with a new baby, so hopefully the two of you can get some ideas from that.

I would recommend putting as much of the extra $9490 a month directly towards your credit card debt.  That will help you knock that out as soon as possible and start building your 'Stache.  Pay the extra on the highest interest rate card first.

Consider starting a journal so you can track your progress.


2ndTimer

  • Magnum Stache
  • ******
  • Posts: 4616
Re: Trying to live the Mustachian style in Mexico.
« Reply #3 on: November 13, 2014, 11:36:35 AM »
Hi and welcome:

The thing I miss most about Mexico is the wonderful fruits and vegetables.  You wouldn't believe how much a sad, withered papaya costs here in the U.S. and it's hardly worth eating if I do buy one.

Regarding your eating out, I find it helps to carry a small snack with me.  Healthier too, since when I do break down and buy something to eat outside the house it's always something sweet and fatty as opposed to a cucumber.

Congratulations on getting your finances organized ahead of the baby.  Much easier now.

MexicanMustache

  • 5 O'Clock Shadow
  • *
  • Posts: 10
Re: Trying to live the Mustachian style in Mexico.
« Reply #4 on: November 13, 2014, 04:13:32 PM »
Congratulations on the upcoming addition to your family! 

In terms of budget, you've done a good job trimming expenses. It helps that you and your wife are working together on this.  You two have made a fantastic start.

Can you do some meal planning on your days off so you won't need to go out as frequently?  I do bulk cooking on Sundays so I don't have to worry about cooking lunch for the week. 

Will you have any medical expenses from the pregnancy and birth?  If you need any costs or copays up front, it would be a good idea to start budgeting for those.  There are a bunch of threads in this forum about ways to trim costs with a new baby, so hopefully the two of you can get some ideas from that.

I would recommend putting as much of the extra $9490 a month directly towards your credit card debt.  That will help you knock that out as soon as possible and start building your 'Stache.  Pay the extra on the highest interest rate card first.

Consider starting a journal so you can track your progress.

Thanks! Yeah it is a huge benefit that my wife is on board on the mustachian lifestyle.

I forgot to add in my expenses my wife's health insurance it is about $900 pesos a month, and i have not started saving for the baby's delivery. Also i need to include in our budget the monthly Obstetrician fee. $300 - 350 per visit + any more vitamins he recommends.

 I will star making bigger payments to the Credit Card, at the end of the day is our biggest/only debt.


MexicanMustache

  • 5 O'Clock Shadow
  • *
  • Posts: 10
Re: Trying to live the Mustachian style in Mexico.
« Reply #5 on: November 13, 2014, 04:20:33 PM »
Hi and welcome:

The thing I miss most about Mexico is the wonderful fruits and vegetables.  You wouldn't believe how much a sad, withered papaya costs here in the U.S. and it's hardly worth eating if I do buy one.

Regarding your eating out, I find it helps to carry a small snack with me.  Healthier too, since when I do break down and buy something to eat outside the house it's always something sweet and fatty as opposed to a cucumber.

Congratulations on getting your finances organized ahead of the baby.  Much easier now.

I just love my country, even with the social problems and corrupt politicians. It is a great place to live.

What i told my wife about eating out is that we should limit it to once a month, that does not mean we can spend more on that occasion but we could treat our selves with some Carne asada tacos! or carne adobada! ;) i love tacos!

expatartist

  • Handlebar Stache
  • *****
  • Posts: 1640
  • Location: The Big Lychee
Re: Trying to live the Mustachian style in Mexico.
« Reply #6 on: November 13, 2014, 05:05:42 PM »
What i told my wife about eating out is that we should limit it to once a month, that does not mean we can spend more on that occasion but we could treat our selves with some Carne asada tacos! or carne adobada! ;) i love tacos!

Now there's the best attitude! Mexican cuisine rocks. Congratulations on turning your lives around at a great time to do so. Best wishes for your growing family.

resy

  • Bristles
  • ***
  • Posts: 348
  • Location: West Coast
Re: Trying to live the Mustachian style in Mexico.
« Reply #7 on: November 13, 2014, 05:24:09 PM »
Hi all,

Here is a little bit of history.
Proudly Mexican, I'm 37 Yrs. Old, and never been good with money or credit.

I've started reading Mr. Money Mustache' blog somewhere around a year ago.

After reading a lot of Blog entries I got the premise, is not being cheap is being conservative when spending and a monster saving and investing.

A few months ago (about 6 or 7) my wife and I decided to start living the mustachian way, we started small.

Our monthly expenses were: (keep in mind that all of these are in Mexican Pesos)
Our joined income was $38,000

1. Cable TV $890 (It included HDTV package, All movie channels, Telephone, 10MB Internet)
2. Gas for 2 cars $1250
3. Rent $2500 (this is great the house is from my father in law so he will never raise the rent)
4. Water $100
5. Groceries $2000
6. 2 Cellphone plan $1500 - $2000 (depending on excessive use.)
7. Dining out $2000 (depending on the venue, but mostly Junk food)
8. Credit Cards debt ($60000 Mine, about $30000 hers) the monthly payments were between $10000 to 18000 a month depending on the planned expenses.
9. Car Reparations ~$6000 (the cars spent more time in the mechanic than at home.)
10. Miscellaneous ~$3260 I have no idea where this money went for months.


Our total spending on a monthly basis was ~$36740, At the end of each month we were eating Maruchan Soups or Canned Tuna. (These two, even when they are delicious, after 2 of each on a regular basis are not that yummy.)

Once we decided to stop the excessive spending.

1. Cable TV $590 (Reduced the service to just internet and telephone)
2. Gas cars $800 (sold both old cars and bout a family car)
3. Rent $2500
4. Water $150
5. Groceries $2800 (We have a relative living temporally at home so this goes a bit up)
6. Cellphone plan $600 (We canceled one plan and reduced mine, I was a bit reluctant  to the idea, now I'm convinced i need to cancel this plan too and i can in about 6 months)
7. Dining out $380 (Mostly Junk food)
8. Credit Cards debt $90000 Mine, $3000 hers (the monthly payments are $10000 a month). I am struggling with not buying stuff from Amazon. Damn you Amazon why are you so convenient!!!
9. Miscellaneous ~$2690 This are for my nasty habit of smoking and Eating out at lunch time 2 days a week, when we cannot cook lunch to bring to work.

Now the grand total is $20510

You need to take to account that my wife quit her job to pursue a new career path that did not grow as expected, we only invested in this new career path $8000.

At this point our income is about $30000 because i got a raise this year, so we have a bit more room to save about $9490 a month; however, my credit card is killing us.

Now, about 2 weeks ago we found out that we are pregnant and we are to have a baby in about 32 weeks.

In my hurry to pay all my debt before the baby is here, I took a second Credit Card with less interest rate and no annual fee that my first Credit Card. Because of some technical problems in the bank I have not been able to transfer my balance from one bank to the other.

Any advice is welcome.

The Mexican Mustachian (want to be)
Hola! Just wanted to say hello and welcome as a fellow Mexican Mustachian!(although living outside Mexico)
Just curious...where about you in Mexico are you located? I ask because I am from a major city and know public transportation, although not great in the customer service department, is widespread ... i
what about where you live? Cutting car out or buying a small used one might be a better bet. I'd also either cut the home or cell phone.
For sure get rid of the eating out. Its hard, I know. Its been hard for my family as well but it will make a huge difference. You are probably spending more on this than you realize, I know that's what happened to me! Google will be yout best friend for practical ideas...I have been getting into salads in glass(mason) jars for work lunches.
congrats on the baby :)
 

MexicanMustache

  • 5 O'Clock Shadow
  • *
  • Posts: 10
Re: Trying to live the Mustachian style in Mexico.
« Reply #8 on: November 13, 2014, 05:48:50 PM »
Hola! Just wanted to say hello and welcome as a fellow Mexican Mustachian!(although living outside Mexico)
Just curious...where about you in Mexico are you located? I ask because I am from a major city and know public transportation, although not great in the customer service department, is widespread ... i
what about where you live? Cutting car out or buying a small used one might be a better bet. I'd also either cut the home or cell phone.
For sure get rid of the eating out. Its hard, I know. Its been hard for my family as well but it will make a huge difference. You are probably spending more on this than you realize, I know that's what happened to me! Google will be yout best friend for practical ideas...I have been getting into salads in glass(mason) jars for work lunches.
congrats on the baby :)

Thanks for the best wishes!

I live in the pacific side on Baja California, In my town the public transportation is slower than biking. I started biking to and from work and short trips around the house as MMM does, but i got a knee and a back injury that stops me from time to time.

Also the public transportation is expensive, its $10 pesos per connection, to get to work i need to take 2 buses so that is $40 per day round trip, and that is about 3 liters of gas per day, our new-used car gives out 490 km per tank, i commute about 30 km a day, also i carpool. I take the car to work 2 weeks out of the month and still filling the tank every 3 1/2 weeks or so.

If my math is not wrong is better to drive than to take the bus

 My wife commutes less than 5 km but due to her condition i rather have her drive than Bike to work.

resy

  • Bristles
  • ***
  • Posts: 348
  • Location: West Coast
Re: Trying to live the Mustachian style in Mexico.
« Reply #9 on: November 13, 2014, 06:06:50 PM »
Ah yes, forgot how expensive it gets. Also know that big commutea are quite the norm.
You are doing great! Stay on it and best of luck!
I second the suggestion to start a journal to track your progress.

DeepEllumStache

  • Magnum Stache
  • ******
  • Posts: 3166
  • Age: 36
  • Location: Hiding under my desk
  • I came, I saw, I made it awkward
Re: Trying to live the Mustachian style in Mexico.
« Reply #10 on: November 14, 2014, 07:29:25 AM »
What i told my wife about eating out is that we should limit it to once a month, that does not mean we can spend more on that occasion but we could treat our selves with some Carne asada tacos! or carne adobada! ;) i love tacos!

Now there's the best attitude! Mexican cuisine rocks. Congratulations on turning your lives around at a great time to do so. Best wishes for your growing family.

I love Mexican cuisine.  We had a great weekend in León and Guanajuato a couple of months ago.  Tacos all weekend... so glorious.  Traveling to the Baja area has always been on my travel list.

MexicanMustache

  • 5 O'Clock Shadow
  • *
  • Posts: 10
Re: Trying to live the Mustachian style in Mexico.
« Reply #11 on: November 14, 2014, 09:28:17 AM »
We have the Baja 1000 race this weekend, it gets a bit crowded but that leaves a lot of revenue to the city and its commerce.


MexicanMustache

  • 5 O'Clock Shadow
  • *
  • Posts: 10
Re: Trying to live the Mustachian style in Mexico.
« Reply #12 on: November 14, 2014, 09:29:38 AM »
As an update to my semi-frugal living, will try to switch from regular cigarettes to Electronic cigarette to help quit the nasty habit!


2ndTimer

  • Magnum Stache
  • ******
  • Posts: 4616
Re: Trying to live the Mustachian style in Mexico.
« Reply #13 on: November 16, 2014, 10:54:32 AM »
Don't know if you have this option where you live but one of the Hub's coworkers buys the liquid in concentrated form and dilutes it.