As part of a school fundraiser we get several free issues of Real Simple magazine. I was excited by the title, expecting simplicity and frugality and ways to make your home more efficient. Needless to say I was let down by the magazine. If "simple" means spending a lot of money and hosting parties all day - then I am not interested in being simple.

Disappointment aside, there was a surprising article this month; mixed in with all the ideas for summer pool parties was the story of a single mom trying to reduce her spending and pay off debt. It is only a small one page article, but it is encouraging.

The article was titled "Wallet Matters" and featured a normal single mom who put her entire monthly budget in the magazine to be analyzed by a CPA. She has just under $8,000 in debt, wants to buy a house in the 'burbs, and has two young daughters. She also wants to earn a degree in web design while working full time. Her income is about $50,000/year with a little extra child support.

She has a lot of goals, most of them common. Further education, buy a house, etc. Currently she spends $4,311 on stuff each month. I calculated that $50,000 monthly (pre-tax or retirement) is $4,167, so she is spending more than she earns each month by quite a bit.

Groceries for a family of 3 were high, and she ate out a lot. Food and dining out combined came to $782 each month. She puts $300 in a house down payment fund, which is great - but she only puts $150 into an emergency fund, and only $42 into retirement.

Real Simple's CPA suggests paying off the old loans before taking out more for a higher degree and increasing retirement savings rather than paying for her daughters' college funds. She is only saving 1% of her income now, and "[her] daughters will probably be eligible for financial aid, but no one will lend Tanya money for her retirement."

I have some different opinions on how she may approach this: I would save for an emergency fund first, then pay off loans, and then fund the house payment. I would also rework the smaller things by cutting out going out to eat and reducing the $40 allowance that her older daughter gets. I would stop saving for gifts and increase retirement funds until at least the company match (4%). There is a "grooming" fund (sounds like a dog to me?) that gets $125 each month - I would try to see if that could be reduced somehow. There are a lot of areas where her budget could be trimmed.

It is refreshing to see that Tanya isn't complaining and seeking handouts because "the recession is making the cost of living too high." She chose, instead, to put the details of her situation out there for the world to see and is looking for advice. The article didn't fit in with the rest of Real Simple, but I am glad they included it.