The Money Diaries: The Frugal Giver

Lyndsey Payzant Wells
Age: 23
Home: Los Angeles
Job: Public-Relations Asscociate
Famiy: Married no Children
Monthly Spending: $2,058
Goal: Save for a down payment on a house

Lyndsey's Monthly Outlays

Rent .................................................... $551
Car payment and insurance..................$301
Church donation..................................$230
Savings................................................$200
Gas.......................................................$153
Groceries..............................................$130
Phone, Internet, Cable...........................$96
Eating out..............................................$89
Health Insurance and expenses..............$80
Household and laundry..........................$78
Gifts.......................................................$59
Clothes...................................................$39
Grooming and beauty.............................$39
Utilities..................................................$13

The Story:Thanks to personal discipline , Lyndsey, who earns just $30,000 a year, managges to spend the bare minimum on almost everything. She packs a lunch most days for herself and her husband, Brandon, who is as frugal as she is. And she rarely shops for new clothes or indulges in beauty treatments.Still, she is willing to set aside money for things that are meaninful to her. She gives nearly 10 percent of her income to her church and puts $200 a month into savings for a down payment on a house. (Brandon is saving an additional $300 a month) she knows she should invest in the 401(k) retirement plan her employer offers but she just hasn't gotten around to it yet.

The Feedbacl by Certified financial planner Peggy Cabaniss: "Lyndsey should be really proud of her frugality," says Cabaniss. If she and Brandon continue to save $500 a month, the couple will have $25,000-enough for a down payment on a modest home-in about four years. If Lyndsey wants to have the down payment sooner, she might have to reconsider tithing 10 percent of her income until she reaches that goal, since the rest of her spending is so lean. "it's about choosing her priorities," says Cabaniss. The planner sees no major problem with Lyndsey's delaying 401(k) contributions until she and Brandon buy, especially because she's so young. Meanwhile, She shouldn't be afraid to spend a little on fun once in a while.