Do you live beneath your means?

[rosarugosa]

Jake,
Jeff Yeager was one of my first guiding lights on frugality/simplicity. I'm glad to hear he struck a chord with you too.

[awakenedsoul]

awakenedsoul:

Great question! Most months I do live below my means. Once in a while I will have to tap into savings (dog needs a tooth removed or something) but I try to replace it (the money, not the tooth!) soon after. Though being financially literate is something new to me. I really only got into frugality and such about two years ago. Long story; I'll spare you! haha

But something that your original post here touches on that is quite a captivating idea is this: "I was thinking about different periods of my life and why I was happier at some times than others."

I think back like this too! The answers I get from the wisdom of 20/20 hindsight really informs the future lifestyle I hope to design for myself.

In college I lived in a small apartment (330 square feet) with my girlfriend. We had friends over for potlucks. We walked almost everywhere. We went to the park for fun. I didn't have much more than a sleeping roll, a guitar, and my books for class. Those were amazingly enjoyable years! I worked part time and lived on lentils and rice, fruits and veggies from a nearby farmer's market. Times were good. My life was simple -- not without pain or hardship sometimes -- but simple and overall good.

Now I try to model many aspects of my life along those lines. While my hobbies and interests have changed I think there are some overarching lessons I can learn from this lifestyle. My only regret is all the student loan debt! lol

Yours is an interesting story, UltralightAngler. I think many artists feel that way. When I was traveling all the time as a dancer, I owned very little. I was fine sleeping on a mattress on the floor, listening to music on a boom box my friend didn't need anymore, and eating at a card table with folding chairs. When the contract was up, I didn't have any furniture to move. I just gave it to the next dancer, as it had been given to me. I spent most of my time in dance classes and at the theater, anyway.

I have simplified my diet and it's not only better for the budget, it's better for me. I'm sleeping better, feeling better, and moving with more ease. This diet is far less expensive. So much of what we spend is habit.

Once I bought my house, my spending really changed. suddenly I had a new series of responsibilities. I love having a home, but it has shifted my priorities.

[awakenedsoul]

Awakened, you and several other commenters have really highlighted the way that money and psychology are related. I love your phrase "negative forcefield." That is exactly what debt is.

I have a schizoid money personality. It is amazing to me that I have never been in debt because I have spent awe-inspiring (not in a good way) amounts of money on clothing. Since joining Mint it's become horrifyingly clear to me exactly how much. And I'm trying to do better on that. At the same time, I have always avoided spending money on property and cars, going to almost crazy lengths to avoid buying a car and I think those strategies have saved my butt financially. Also, I never had pets and never had collections of things. AWAKENED, if you can manage to remain car free you will love what that does for your finances!!! Go you!!!

It is just great to see so many people posting thoughtful self-reflective comments here, great thread.

Thanks Rachel. I'm enjoying hearing these stories, too. It's funny, even though I should be spending less, (since I no longer have a car,) in actuality I'm spending about the same amount. I traveled to see my mom when she was dying, and attended a reunion with old friends in New York. I paid cash for both trips. As I get older, I'm realizing that if I don't see people now, I might not get to see them again. It still keeps me in budget to ride the bus, though. I've also had some unexpected expenses like medical bills for my bike accident, and paying cash to see a top doctor for my hip. It's worth it to me, though. Again, I had the money saved in my emergency fund. I'm always surprised at the unexpected expenses that come up each month. As long as I keep a lid on the other stuff, it works out fine.

[freshstart]

freshstart:


An ARP is an Alternative Retirement Plan that the university I work for offers. It vests after one year instead of five like the traditional pension they also offer. I elected the ARP because, when I started, I was 35. I am not married and I have no kids. So I thought: "A lot can happen in five years. It is probably best to select the plan that vests in one year, so if something happens in the next 4 years and 364 days I can still leave and take the money with me."

But I think simple living is part of my "retirement" plan. Have you read http://www.amazon.com/How-Retire-Che...dp/0307956423?

Good book for someone like me.

That you have a pension plus 401k is great, most employers are dropping defined benefit pension plans. Mine did, after 20 yrs full time, it was worth 30k or like $200-300 a month in retirement. I know so many people who never did the 401k because they thought we had a "good pension". They sent a statement every year showing how little the pension was worth and still employees never did anything else until the pension was gone. Scary.

I will have to look into that book, thanks