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Living on Last Month’s Income


Last week I told you that we were going hardcore on the debt pay off journey beginning in April! But in addition to that I would really like to get to a point where I am living on last month’s income as Ashley has.  So that is where I am going now…

With the new monthly output of $3000 per month on the hardcore budget we are sticking too, I estimate I will be able to live on last month’s income May 1st.

What this means short time is no big debt payoff for the month of April. But those will resume in May.

For the long term…a peace of mind that I’ve not had in a very long time.

Thank you for helping me to get this place where I have choices and know I can do it.

Thank you.


Follow a single mom's journey to be DEBT FREE while managing this crazy life's conflicted choices with regards to kids, pets, homeschooling days and self-employment!
The sorrow and joys of this roller-coaster overwhelm her at times, but she is committed to this course.
Hope plans to dig out of debt using any resource possible including her small business EPOH, her blog and any other resource that comes to mind!

Latest posts by Hope (see all)


  • Reply Brooke |

    This sounds great! You are making huge strides because of the hard choices you made! Enjoy the feeling of more security every. single. day!

  • Reply Sue |

    Great job!!! We are striving toward that same goal – it is so nice when the entire family is on board!

  • Reply Walnut |

    I really struggle with this Hope. You have interest rates at 12 and 13% and you don’t seem to focus on it for more than a couple months in a row. What happened to paying everything off by June? You could easily take the month after finishing those payments to focus on living off last months income before upping the payments on your student loans.

    • Reply Anon |

      I agree. We haven’t seen a debt update since the beginning of February. I would forget about living on last months income until you’ve cleared those two high interest debts.

      • Reply Theresa |

        I agree as well. The clock is ticking on the debt that you transferred to a new credit card. I would be interested in seeing a debt update as well.

        • Reply AY |

          I agree. I think sticking to your original plan about the next 6 months is crucial to get the momentum of those consumer debts being paid off, and then you can start living on last month’s income.

    • Reply Hope |

      This actually doesn’t affect my timeline to pay off all non-student loan debt by July 1st. It just means I wont’t be living paycheck to paycheck to do it. With no big debt payments in April, I will have the $3000 in the bank to cover May’s bills. And then once I bank an additional $3000 during the month of May, I can put all additional monies to debt without worrying about when contract work pay,nets come in and due dates for bills, etc.
      Still on target for a July 1st – consumer debt free date. Then will only have student loan debt to complete.

  • Reply Marzey doats |

    I think this is a great step towards financial security! Long-term this is much more important than getting the debts cleared in a pre-determined amount of time. This is a huge step towards running the rest of your financial life in a organized and stress-free way.

    • Reply Hope |

      Yes, stress free is very appealing right now! After this past year, it’s like a whole new lifestyle…which I guess technically it is.

  • Reply Scooze |

    I have mixed feelings on this. On the one hand it’s crucial to live of of last month’s income. So i approve of that, and applaud you for taking that step. On the other hand, you have not focused much on the debt. You seem to be getting good at cutting expenses on the things you do, but you’re not eliminating trips or other activities until the debt is paid off. What of you nite the bullet and withmore hours to get extra cash to pay it down?

    • Reply Hope |

      Debt update is coming. Remember, because all my work is contract work, I don’t always get paid on a regular schedule, so debt payments happen as the money is available which can happen anytime through a month/quarter as projects are completed, invoiced and paid. This the push for living on last months income will make a huge difference for me in day to day stress!

  • Reply Joe |

    One interesting aspect of the whole “living on last month’s income” concept that Ashley and Hope have been discussing is that it’s given me a new perspective on the idea of saving up a year’s worth of living expenses, often suggested as the first step after paying off debt.

    I’ve always thought about it as just a “super emergency fund”, which of course it is, but another way to think about it is as enabling us to “live on our twelve month’s ago” income. This is the ultimate in stress-free living in terms of being able to iron out month-to-month income swings over the course of a whole year instead of just a single month.

    We did this a while back and stuck the money in a savings account that we never use for anything else. It’s been so far out of mind that this week I got a notice saying that the account was actually in danger of being closed out of inactivity. While technically true, I couldn’t help but think that the account has actually been working incredibly hard on maintaining my peace of mind but I guess that isn’t good enough for Citibank!

  • Reply first step |

    I think this is an important step for you (as well as Ashley) because your income is irregular. Even while you’re paying off debt, having a month’s worth of income in savings is a good buffer, especially for a family of 5. Having those funds available can prevent further debt in the case of unexpected expenses or delayed payments for your contracts. I think that is a much better plan than a bare bones $1000 emergency fund. Way to go for accomplishing this goal!

  • Reply AY |

    I hadn’t seen your replies so I’m so glad to know this won’t affect your debt payoff! I think it’s great to have that buffer. My husband had irregular I come for the first few years of our marriage and my savings account saved us quite a few times. We get paid now at the end of the month so we essentially live on last months income already which I really love. Good luck with this! Excited for July for you!!


So, what do you think ?