Good day to all. Here we are mid-week again! It is a lovely morning here. We expect rain tonight, so need to do things outdoors today. Hope you are all well.
There are many ways to live on less, if one has the right mindset. You have to be willing to change a few things, and you have to be willing to TRY! Sure, some things only save a few pennies or dollars - but we all know it adds up. It can really add up quickly. Pennies make dollars.
If not working, you spend less on gas. Less wear and tear on your vehicle. You don't need as many clothes. You can often get your car insurance rate lowered (I did and so did G). No lunches out. If you have children, no day care! Less laundry. The benefits go on and on.
You need to use what you have. If you keep things - use them. Wear the clothes you keep. Use the pantry you have. Use the lawn equipment and do your own lawn work IF you are able.
Eat it, wear it, use it - things serve NO purpose in a closet!!!
You have time to fix things or maintain them. That leaky faucet - easy fix. Air around the door - work on draft dodgers. A room needs painted - do it. There are many, many things that are simple and we can do them ourselves.
Cook at home. Use the pantry, try new things, look up recipes. Make your drinks at home - no daily coffees out. Make tea at home. Don't waste things!
Think of ways to conserve energy - extra blankets on the bed, electric blankets/flannel sheets, maybe a space heater instead of furnace, open/close blinds for sun to heat house, windows for fresh air, work outside/or walk for exercise and fresh air, be conscious of water/light/heat usage (you have time now).
You will have less stress - which generally means better health and well-being! A good mindset is a huge benefit.
You will have time to grow things IF you so desire or IF you are allowed where you live. Otherwise, you will have more time to watch for deals or go to farm stands.
THINK about purchases. You have time to plan and not make binge purchases. No quick decisions. You can look around and buy quality instead of quantity. You can even eliminate fast food - by thinking about your purchases. Make sure your purchases are really going to make a difference in your life and are needed.
Along that vein of thought - know the difference between wants and needs!!! Not only is this important of your dollars but your time. Before maybe you had to go to events, that you may not have wanted to go to. Now you can decide what you want to attend. Make it something you really will enjoy - not just a 'have to go' thing.
You no longer have to be on someone else's schedule - you can make your own. Do things when you want and how you want. It is so freeing!
So, if you are wanting to retire or even be a stay-at-home mom - sit down and think about the things you can do that will save you dollars. Make a list. Think about everything and really work on that budget. There may be many, many more things you can stop or not spend on - each person is different. These are just the general things most of us can do.
YOU CAN DO IT - IF you really want to!
Plan your work and work your plan!!!!!
I read this quote yesterday and think it is fitting. This was from a fellow in China who came from nothing - made a fortune - and lost it all.
I think it says it all!!
"The happy man is someone who has purpose, something to do each day. The value of money is about how you spend it, not how much you make or how much you have."
Im Chae-moo
Have a beautiful day!
The only thing that worries me about early retirement is that so many of my friends parents who need assisted living are running out of money! People are living so much longer, and the cost of those things (or even a home health aide) are astronomical. There will be cuts to Medicare and Medicaid in the next four years as well. My best friend's dad was a very successful Wall Street exec who retired many years ago at 55. They lived comfortably for many years, but now their money is gone and the kids will have to chip in monthly to pay their assisted living fees. It shouldn't be this way :(
ReplyDeleteI understand what you are saying. I guess it depends on where you are and what type of facility. I know people who spent their entire 'fortune' on nursing home living, then when it ran out - well they still received care and pretty much the same kind of care. Medicare paid it and the nursing home took what they paid. Now an assisted living facility would probably be different.
DeleteI have an insurance/investment policy that will cover me for at home care should I need it. Just have to look for those a little harder.
"Pennies make dollars." Yes, they do! Our coin jar was full so I wrapped up the coins and will cash them out for paper bills at the bank. Not a huge amount, but fun to see the coins add up. I had been eying a seasonal fragrance body wash and then decided it was foolish to spend $9 for it. If I had been in the store and saw it, I might have been more tempted to buy it. The idea is gone and I still have my $9. Wants and needs are usually poles apart.
ReplyDeleteNice day but a bit chilly. Made my morning run outside to cut cilantro for breakfast eggs.
So many things I think about getting, then I go in and see the cost - and realize I really don't NEED it at all!! If I needed it, I would buy it.
DeleteYep, a little cloudy, but temps aren't bad.
So true. Since retirement, I drive a less expensive car b/c I'm not on the road every day. There's more time to read the fine print in the insurance policies & reduce as necessary. There's more time to shop around so that the eye glasses cost $300 vs $900! When working, I went to town to make money. Now, I go to town to spend money 'tho the trips are much reduced. I've learned to like what I can afford. I live a good life.
ReplyDeleteI got a really nice drop in car insurance when I quit working. I don't even drive 50 miles a month, let alone a week! LOL
DeleteYes mam, you can shop around and not overspend.
I plan my trips out and do the 'circle'. Trying to get it all in an efficient manner.
I do to and sure is nice to be able say that!
I was told that I wouldn't be able to afford to stay at home once we had kids, but I did. People laughed when my husband told everyone that he was going to retire in his mid 50's, but he did. In both cases we did practice runs. Before I had my first child we lived on my husband's pay for a full year and put my earnings into savings. Before he retired he upped his pension payments for the last few years so his actual take-home pay was what we planned to live on in retirement, while his pension pot got a big boost to help our plans along. If anyone is thinking of taking the leap to being a stay-at-home parent or retiring early I would advise them to try to do the same thing. By the time you hit the actual date you will have a lot of practice at making do on less and may actually find that you like it!
ReplyDeleteGood for you. I love to prove people wrong when it comes to my decisions!! LOL
DeleteWe had less of G's retirement once he got it - so that I could have it for the rest of my life. He made that decision. We lived just fine on that and his disability, and live even better on it, as I don't spend much at all.
I love the idea of a practice run - very smart. It helps you learn where to save and where you HAVE to spend. It is amazing how little we really need.
Living within or below your means and knowing the difference between needs and wants will save a LOT of money over time. Great tips for people wanting or needing to lower their budgets. It's funny but my grandmother (who never worked outside of the home) told me when I was in my 20's to always make sure I have money put aside because she told me it must be horrible to go to a job everyday that you don't like. Have a great Wednesday.
ReplyDeleteIndeedy do!!!! We always lived below our means - even when our means wasn't a lot! It was a good lesson.
DeleteI think we have probably all had a job we didn't want to go to - and it sure is nice to just have the peace that staying home gives. That is worth a lot.
We did the same thing that Tracy and her husband did. We planned ahead and did practice runs. We also read two books, "Your Money or or Life" and "Debt Free Living". We made spread sheets to see how much we really accrued by working after all the expenses it cost to go to work, i.e., clothes, gas, food. That exercise was a real eye opener. Cookie
ReplyDeleteLove this. You guys were very smart doing that. Keeping track of EVERY penny is smart. We used to do that as well - G had a spread sheet he used. It was very eye opening where money was wasted. Sure helps change some bad habits!
DeleteI've thought about this for my son and his family, and I'm pretty sure they could live on one income if the other stayed home and did kids. But they both *love* their jobs, and now the kids are in school, so it doesn't matter as much. But those pre-school years were budget killers for sure.
ReplyDeleteI was a stay-at-home mom, and only went back to work part time after everyone was in school. I've been happy with that decision.
MaryB
If you LOVE your job - then work. That is great. As kiddos age, it is easier to work as well - no day care (although there are activities and sports).
DeleteI had a stay-at-home mom too - until I was in junior high. Then she worked.
I know people today say it takes 2 incomes to make it - but I think so much depends on your choices in life.
I speak as a former accountant: I don't think many people pay attention to the money they spend and simply spend until the paycheque is gone or the credit card is maxed out.
ReplyDeleteLearned to reduce spending requires putting in the effort (and the honesty) to track one's spending for a few months to get a good idea of where the money is going. Being the bean counter I am, I continue to do that even now and while I have categories called miscellaneous, I keep notes that tell me what I'm spending those extra dollars on.
One of the ways that people can get a handle on their spending with a visual aid, is by using jars for cash for specific categories. (This isn't for recurring payments like mortgage or rent, loan payments, etc but is good for groceries, vehicle fuel, meals & entertainment, clothing and other discretionary spending). When the dollars are gone, the spending is done for the month, unless one can rob from one category to another. While I'm not keen on having large amounts of cash at home, it's the visual empty jar that hits home.
Pre-retirement, I calculated the after tax income I would need excluding all of the work expenses: fuel for the vehicle, occasional lunch money, elimation of the savings to my personal retirement fund, union dues, parking, etc. It allowed me to retire a few months earlier than originally planned.
As I always say, do the math!
I do believe you are right. That is probably why I am like I am. I worked an accounting specialist for over 30 years. It was ingrained in me to watch the dollars.
DeleteYes, jars or envelopes or whatever you want to use can be a good tool to use. I also believe tracking every single expenditure is important for a while. Most people don't realize how frivolous they really are.
Today I do keep cash at home - because I just want a cushion if banks are down with electronics. It is very hidden and basically forgotten about.
Your last sentence is sure valid! Do the math!!!
After this hurricane, I was delighted that I had cash at home. The shops would not take cards: there was no electronics to work the cards, so cash it was. Banks were open for limited hours, and cash available there was limited also.
DeleteWhen I got my first *real job* my brother taught me the "envelope system". What a great gift that was, and it surely kept me from blowing my whole paycheck on some frivolous thing! :)
MaryB
Mary that is my whole reason to keep cash on hand. Whether the systems go down, or for buying from an individual, an unexpected repair, etc. Unless I need it, I don't even think about it - but it is a comfort to me.
DeleteIf you don't know where your paycheck is going (all of it!), you'll learn the hard way when something happens. Hubs and I lived a very comfortable lifestyle, he in retirement and me thinking about it, but still having a ways to go (5+ years younger than he was). We each had a car, we traveled, ate out together several nights a week, coffee on the way to work, etc. And then it all changed, and you don't know what you have and can afford, until it's gone. When he unexpectedly passed, I found out that the survivor's pension was 50% of the employee's pension, yet the bills remained the same -- no change in mortgage, home equity, utilities, payment on the credit cards ... And, while dealing with burial expenses, I was trying to figure out how / if I could make ends meet. If you haven't done so, track every purchase -- I did mine in my Day Planner, on one of the worksheets that came with it for recording business travel expenses. At the end of every week, tally things up and plug into categories -- morning coffee/breakfast, lunch at work, meals out, groceries, gasoline/commute costs (train tickets, parking, as well as gas), etc. And, then tally it up for the month. Look at what expenses are essential and which ones are "nice." Cut back as much as possible -- maybe take your lunch 4 days, and go out with colleagues only once a week, similar for coffee -- take a travel mug from home 4 days and drive-thru once a week. Learn how to cook your favorite meals at home, using "copycat" recipes, trial and error until you've mastered that dish. Leftovers for lunch, if you have a microwave at work. Do a dinner swap with friends, rather than going out to a restaurant -- once a month, I dine with friends at their home, and the next month I host them. Good conversation over a great meal, with no time limit for seating, and we can eat at our leisure. And, for 6 months before retirement, live with your projected budget for retirement living and make sure the numbers work. If you think you can live on $50/week for groceries, try it and make sure that figure is accurate; $100/month for gasoline, try it and take into account increases in fuel prices. Factor in your health care premiums, as well. It just takes advance planning, testing your theories, and adjusting until you've got it right. I opted to freelance (within Social Security guidelines) after retirement, where I could dictate the days and hours spent, to accommodate MY needs. And 5 years later, it's working. :-)
ReplyDeleteThank you so much, Cheryl. It certainly took its toll on me at the time and made me immediately re-evaluate my spending habits. I had never stepped foot in an Aldi until it came to paying $0.39 for yogurt vs. $0.75 at my regular grocery store! If it meant eating or not, Aldi fit the bill. In those scary days, I used extreme caution in spending. And, I set a plan to pay down our debt -- on a tablet, I listed highest interest rate to lowest, what the balance was, divide the balance by the number of months I wanted to allow for repayment (based on what I could afford each month), and that became my new payment. I also pulled all credit cards except one (for emergency) out of my wallet. It was tough, but I had to be tough. No one to bail me out, I had to do it on my own. Within 24 months, the mortgage, line of credit, and all cards (store and Visa/MC/AmEx) were paid in full. To this day, all balances are paid in full each month. I don't ever want to be in that situation again. And, it's why I am so open about this stuff, in the hopes that it helps someone else, or at least plants the "what if" seed for thought.
DeleteLori you are one tough and brave gal. Thank you for sharing, as it helps others see what CAN happen.
DeleteThat is amazing that you did all that in 2 years - that shows real moxie. I do the same if I use a CC - it is paid in full at the time of getting a statement. I have never had a debit card.
You are a very good example for 'we can do anything we put out mind to'.
Thanks again.
I lost my husband unexpectedly in June and the comments about paying for the funeral are so important for people to consider. Luckily we had sold our house and moved into our (mortgage free) cottage a year ago. This move meant I didn't need to worry about money for the funeral or everyday expenses. My monthly expenses are very low. Don't get me wrong - I am only 47. I can't retire right now, but am able to cover all of the everyday expenses on my salary. Losing a spouse is difficult enough. Adding financial worries on top of that would be debilitating.
DeleteChristy - so very sorry for your loss. It is such a difficult thing to go through. So many of us have had to make that journey, and it is so sad to learn of others.
DeleteI am glad that you had made good decisions beforehand, and had the funds available. It is nice to own a smaller home, as there are generally less expenses. Mortgage free is huge.
Take care and know you have friends that will listen here. Thank you for adding your experience and advice.
Christy, my heart is with you. If I can offer any guidance, feel free to reach out.
DeleteThank you Lori and Cheryl. I am in Canada so a lot of the US specific advice shared on blogs doesn't apply to me, but the general principles do. I appreciate the tips I have gained through this blog and others.
DeleteYou make great points. I love that you only look for an extra when you find a deal. Nice to be prepared. I use less than 1/2 tank of gas each month - but do fill it up at the end of each month using points I get from the grocery. That saves money.
ReplyDeleteLove it - no you don't need to spend money to have a good life or be happy. I think many do that, trying to fill a void.
Disability removes all abilities sometimes. It is not as easy as just do it.
ReplyDeleteNo it is not as easy. I loved the words of my late husband, who was disabled and could not even walk for a few years - There are no disabilities- just different abilities.
DeleteYou do what you can and sometimes in new ways.
For Christy and Lori K, I know the sudden change in finances while hit with the pain of being suddenly without my husband. My heart goes out to you both. Nearly two year and I'm still trying to figure out the finances but am moving forward with early retirement at 59. My own health, physical and mental, are being impacted from the stress of it all. Yes, to everything Cheryl and commenters have said. Needs must come first, and wants are fleeting. Security and peace of mind is my biggest want.
ReplyDeleteSam, I am glad that you are moving forward with an early retirement. Yes mam, the stress can do bad things. It is better to have peace of mind and health over extra things! You have got this - I know you have been planning and working hard toward your goal.
DeleteThe loss of a spouse takes a toll and much time to get through. Each one handles it differently - there is no right or wrong way!
Thank you for also relating your story to help others.
Sam, know that my heart is with you, and with Christy, as well. The saying "time heals" does have some merit. At first, it was just living day-to-day, one baby step at a time. It took about 2-3 years to get finances in order and feel comfortable that I was going to make it, by year 5, I had my confidence in my daily/monthly finances. This past May was 10 years since my hubs passed and I'm still plugging along, but feel I made solid decisions along the way. Reach out, if you feel the need. I'm willing to help others who are in the same boat I was.
DeleteThank you Sam. Luckily I am a career teacher nearing the end (within the next 5-6 years), so will have a solid pension. While I was the main breadwinner, making all of the decisions on my own, will be the most challenging part of this journey I think.
Delete