I do admire the author who intends to live on $12,000 a year. Our household probably cannot survive for four times the amount -- I know we have some fat that can be cut in our cost structure, but as long as we can grow the top line and still enjoy life ...

My 2007 "income," the money I can actually count on, will be $12,084. I know this because it consists of alimony and a portion of a school grant. (I went back to college last year; the grant covers tuition and books with a little left over.) I already know my big-ticket annual costs, too: rent of $6,300 and $1,200 for car insurance. Subtract these from my income and I'm left with $382 a month for food, utilities, clothes, medical deductibles and co-pays, gasoline, renter's and life insurance and any help I give my daughter, who lives on even less than I do.

Make no mistake: I'm poor by choice, because I needed to change my life. I chose to leave my marriage, and I chose to become a student. I can live this way because I know it won't be forever. I'll have my degree in two more years, and I'll go back to work.

...

If I really am lucky, then I'll make it through 2007 with a positive bank balance. Check back with me next December and I'll let you know how I did.