F.U.S.T. (the Bare Necessities)
Saving for retirement, college, an international trip, or a new car/bag/miscellaneous makes you feel good inside. You’re a baller, enjoying the material things in life. These things are obtained from the ground floor unless you cheat by using debt or taking away from a necessity. What do you think your necessities are? I have watched a lot of Dave Ramsey on YouTube. On his show and website, he stresses the importance of making sure your “Four Walls” are covered every month, especially when you have a limited income or aggressively paying down debt. The four walls are Food, Utilities, Shelter, and Transportation.
Food, Utilities, Shelter, and Transportation (F.U.S.T). Take a few seconds and reflect if these avenues are covered for you and your household. Are you ready-set for all four? How about just three or two of them? Firstly, give thanks, blessings, and let out a sigh of relief if you at least can manage with food on the table. Our situations are unique, and the conversation becomes interesting as we learn about finance and how we manage our lives. If you blatantly ignore any one of these, it will set off a ripple effect toward the other necessities. I will go through each one, and also add a 5th factor that is an option depending on your lifestyle.
Food.
I googled the question “How long can you live without food?”. I received various answers, ranging from 21 days, to up to around 70 days with no food but only water. None of us can survive without it. Yes, the cost of groceries is high, but you have no choice but to purchase them. To function properly at work, for athletics, or anything else, (or for your children to do well in school), your body needs the proper sustenance. Thus, a percentage of your money has to go towards groceries. Not restaurants, but GROCERIES. We have heard the stories of households who do not have much, and the kids’ only meal at times can be school lunch. Granted, we have a hunger crisis globally. Food is not cheap, nor is it free. Focus back down to what you can control within your home. Making sure you budget for food is simply a no-brainer.
Utilities.
Should where you live rank before utilities or not? I’m torn on the subject; it does not matter since for full coverage, you have to address both regardless. You may live with your parents still and are responsible for just your cell phone bill, some odds & ends around the home, but no major utilities. For posterity, many listening to this likely have their own homes or are renting. Your electric, gas, sewer, water, internet, and phone bills need to be covered in your budget and paid for. Notice I did not include a “cable bill” since that is completely optional. If you are in your “grind mode”, you can survive with a working iPhone and the internet watching YouTube or Netflix streaming. You need electricity to power the fridge to store the groceries you just bought. You need gas or electricity to heat and cook the groceries you purchased. You need to pay your bills so that the A.C. and heat remain functional during the summer and winter.
Shelter.
Home is where the heart is- or so they say. When your rent or mortgage is current, you can lay your head down at night without stress. Maybe you are renting solo or with other people; living in a home you own; living with relatives and contributing to the household; or even paying to rent a room in an apartment unit or shared house. Whatever your situation, knowing you have a place to house (no pun intended) your belongings, a place to come home to after a long day at work, is the ultimate relief. You don’t want to end up on the street because you have neglected your payments. Let out a sigh of relief because you walk through the door of a place you are currently on — with the A.C. at the right temp. since you paid the electric bill- and about to make some chicken parmesan because you want to Safeway yesterday to restock the fridge and pantry. The basics make you feel all warm and fuzzy inside, right?
Transportation.
I will guess and estimate that around 95% of my podcast listeners own a vehicle. The average car payment in America is over $500. Then factor in car insurance, gas, and routine maintenance. If your vehicle is squeezing you tightly to where you are neglecting the other three needs, then it’s time to reassess. Can you sell the car and buy a more affordable version? Is public transit, bike, or scooter an alternate option? Whatever your situation, ensure you budget for your mode of transportation to get to the money. The work-from-home movement developed as a result of the pandemic, so transport is a non-factor for many people. Working from home reduces time spent on the road, gas used, etc. Make sure your mode of travel is in good standing whenever the need arises.
Clothing (Optional).
This one is not on Dave Ramsey’s list, and I want to add a layer to the conversation. You should dedicate a small part of your budget to clothing. You could budget for clothing bi-monthly, quarterly, or semi-annually. Replace your socks and undergarments as needed. Start your wardrobe refresh with some workwear, activewear, loungewear, and clothes when you are attending a function of some sort. Clothes shrink and rip; sewing helps to a degree to extend the life of garments. You will eventually need clothes to wear. A coat for the winter and shorts for the summer. A rotation of dress shoes and heels. Build your wardrobe slowly with statement pieces and articles that can mix and match. If your gas tank is on E and the fridge is screaming at you to fill it up, then don’t purchase clothes. Don’t buy a bag or some J’s when your kids need school uniforms. There is an order to the madness as you manage responsibilities like a functioning adult.
I have lived in two apartments since I moved out of my aunt & uncle’s home in 2012. I make sure to pay my bills on time. I have grown fond of cooking and creating meals I have not before. I have never owned a car, but get where I need to via transit, scooters, friends/family rides (thanks y’all), and Lyft/Uber. During my debt-free journey, may focus was to ensure my for walls were covered (less so for transportation since my Metro is subsidized by my employer). I try to bend and not break when ensuring my bare necessities are covered. With some wiggle room, I delve into the 5th factor of clothing. I admit that this month (July 2023) has been a mess. I am buying Nike sneakers and fitted hats (my newest fascination) on sale. Assess where you are in life and budget for the four necessities. They are the most common needs for survival. It may already come naturally to you to do so. Your foundation becomes solid when you have mastered the basics.
Disclaimer: I am not a professional financial advisor and this article is opinion-based. Always do your due diligence and seek a professional for guidance.
