There is one limitation to the Thrifty Spender Experiment. For practical reasons (stay married), the experiment will not include actual modification of non-discretionary spending; which really means the experiment will not include major down-sizing. What do I mean?

For most families facing financial distress there are expenses that must be incurred in some way such as expenses related to housing, transportation etc. However, even in those categories, it is often possible to downsize. One can go from a $2,400 mortgage to a $1,200 rental. T.S.E is not going to require me to sell my house and move into a cheaper residence.  But, if I had to do it, I would, and I have done it in the past. So, for purposes of T.S.E. there will be certain Non-Discretionary Expenses (N.D.E.)  that are not subject to the experiment but that in reality would otherwise need to be evaluated as part of a budget. (more…)