What’s it like to live in rural Alaska on $52,000?

This article is part of CNBC Make It millennial money The series details how people around the world earn, spend, and save money.

There are many misconceptions about living in Alaska, and Trevor Barrett has heard them all.

People ask him, “Do you live in an igloo?” Is there electricity? What was the first time you saw grass? What’s it like not to see the sun? (This is “a little accurate in winter,” he says.)

“Most of them are complete misunderstandings,” Trevor, 35, told CNBC Make It. “Alaska has some very harsh winters, but it also has very pleasant summers, and that’s one of the biggest reasons people love Alaska.”

Trevor is a lifelong Alaskan who lives in Haines, a town of 2,000 people in the southeast corner of the state, bordering British Columbia and about a 16-hour drive from Anchorage, Alaska’s largest city.

Trevor made others fall in love with his home state too. He met his wife, Larissa, on a business trip to her home state of Connecticut.

“A little while later, I broke the news to her that I was from Alaska and was probably going back, and she liked the idea,” Trevor says. “We got married and moved, and it didn’t take long for her to completely fall in love with the hotel.”

It’s the perfect backdrop for their outdoor life, young family, and Trevor’s growing career as a cutler who runs his own business. Last year, the Barretts lived on $52,000, including Larissa’s income as a graphic designer for a local newspaper. Here’s how they make it work:

One of the biggest challenges of living in Alaska is travel, especially getting to and from Haines, which may require a boat or plane. Cold, dark winters can also be tough.

But as time goes on, Trevor says, “I appreciate winter even more. One of the best things about living in Alaska is the quiet, privacy, and summer.”

Trevor happily shares that love with Larissa. My son Samuel is 10 months old. and their husky, Nika. The Barrett family spends most of their free time outside at the beach, hiking in the nearby mountains, and canoeing. Trevor wants to raise his son to love the Alaskan lifestyle.

“I grew up with hunting, fishing, hiking, camping, all things unique to Alaska,” he says. “When I was a kid playing in the woods, I always had a stick in my hand and mud in my hair.”

Trevor grew up in Kenai (a coastal town southwest of Anchorage) and believes “Haines is a really good place to raise kids.”

Here’s how the Barrett family will spend their funds in July 2023:

• Housing and utilities: $1,490 to rent a two-bedroom, one-bathroom home with a work shed on a one-acre lot
• food: $650
• Debt repayment: $610 on two credit cards and a personal loan.
• Any: $584 online shopping for household items and more.Essential in a remote location like Haines
• gas: $138
• Auto insurance: $137 for 2 vehicles
• phone: $135 for 2 phone lines
• Subscription: Netflix and YouTube for $34
• investment: $26

Another big and expensive barrier to living in rural Alaska is that most supplies are forced in. At Hanes, fresh produce arrives on Tuesdays, so “if you want the freshest stuff, you have to act fast,” Trevor said. . Barges may be canceled in bad weather, so it’s important to always stock up and be prepared.

Food and fuel prices are also higher than in other parts of the United States, with milk hovering at up to $10 a gallon and gasoline hovering around $6 a gallon.

Trevor says it’s easy to buy essentials within a seven-minute drive across town. But you have to go far to do anything else.

“Several times a year, I fly or take the ferry to Juneau, Alaska, or drive 16 hours to Anchorage,” Trevor says. There, families maintain their cars and stock up on supplies not available at Haines, including clothing, bulk items, office supplies and furniture.

“At the beginning of the year, start making a list of what’s missing,” says Trevor.

Trevor works as a knifesmith and runs his own business called Bullet Knives. His interest in knife making stemmed from the “Lord of the Rings” series, a self-proclaimed nerd.

He has loved books since he was a child and became obsessed with movies as a teenager. Then in 2015, Trevor started looking up how to forge blades on his YouTube and his Google. He gathered basic materials such as old brake drums, a blow dryer, pipes and charcoal and got to work.

“One of my biggest mentors was trial and error. I just made one mistake after another, but eventually I was able to learn how to make a semi-functional blade.” he says. “While I was studying on my own, I really fell in love with it.”

Trevor spent all his free time practicing, aside from his odd jobs as a first aid instructor, auto mechanic, and construction worker.

After a while, Trevor started posting his creations on Instagram for his friends and family. A friend asked how much he would sell his blade for. “I never thought it would sell, so it was new to me,” Trevor says. He put up a figure of $50 there. His friend accepted the offer. “And it just took off from there.”

By early 2020, he quit his day job completely and took on the Barrett Knives job full-time.

Barrett Knives sells a variety of cutlery, including hunting blades, kitchen blades, axes, and swords. A basic blade that takes about a day to make costs about $500, Trevor said, while more complex swords that require weeks of work can sell for up to $12,000.

Between production and social media, Trevor spends about 60-70 hours a week on his business. Working for myself means I have more flexibility with my time and can spend more time with Larissa, Samuel, and Nika.

Trevor said it was daunting to “completely give up a regular paycheck.” “But it really seemed like the right thing for our family.”

“I was able to pursue something that I was truly passionate about,” he added. “Despite all the stress and financial hardship that can come with jumping into a non-essential business like Barrett Knives, it turned out to be very fortunate. I don’t think I would ever change a thing.” However, it took a lot of effort to make that happen. ”

From August 2022 to July 2023, Barrett Knives earned approximately $37,000.

Larissa continued to work for a local newspaper for a while, but quit her job earlier this year when baby Samuel was born. She is currently responsible for financial management and marketing for Barrett Knives.

Trevor says working with Larissa is “one of the best things I’ve ever experienced. We work really well as a team and are very easy to work with. Either I mean, being able to work together like this only strengthens our relationship.”

Trevor admits that he is not good with money, but he learns from Larissa and the needs of her growing family.

“It’s possible to live on an annual income of about $52,000.” [in Haines] It’s comfortable, but you have to live simply and be smart about how you spend your money,” he says.

The family has just under $21,000 in debt on two credit cards and a personal loan. Larissa says that since starting her business, paying off debt and saving has become more difficult.

The Barretts save as much as they can for winter and summer excursions, and someday hope to buy a home close to work.

A move to a larger work shed last year has allowed Barrett Knives to produce more blades with higher quality. Trevor predicts that “the business will continue to grow next year and we will actually make more money than we have in the past.”

Barrett Knives is more than just a business to Trevor. It is part of a heritage created over thousands of years.

“My favorite part of my job is being able to use my hands and be creative every day,” Trevor says. He creates heirloom blades that are meant to be passed down to the next generation, or even become part of other families’ histories by being the centerpiece of a wedding or representing a couple’s marriage. .

“It’s such an honor to be a small part of the most important parts of so many different people’s lives,” Trevor says.

He also wants to introduce Samuel to knifesmithing. “If it works out, one of the big goals for me is to continue Bullet Knife, not only with me but with my son and maybe his son. , it’s not only a celebration of the craft of knifesmithing, but also something of a personal heirloom in that craft.”

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