22 June 2012

Living On Less

I am one of those people who talk a lot, but I also believe in talk should be backed up by actions. So here are some quick tips on how to live on less. It's better for you, your community, and the rest of the world. Ready?

STOP comparing yourself to others. Albert Einstein said, "Everybody is a genius. But if you judge a fish by it's ability to climb a tree, it will live it's whole life believing it is stupid." The quote is applied to intelligence, but it could be anything: beauty, luxury, material items...

START keeping a list of things you're thankful for. And don't just write them down once, write each thing every time you happen upon it. This way of thinking can change your whole life. My short list today: Husband, Critter, friends (specifically on my heart: Jordy, Jenae, Kendall, Rachel, Becca, Nik, Eli & the triplets), early mornings, sunshine, green grass between my toes, sharpened pencils, good playlists, my certificate being in the mail, yoga, a bed with blankets, giving $20 of Safeway money, prayer, my job, hope, love, and my grandma's pickles.

FIND a purpose. Something you are passionate about, something that allows you to utilize your time, your talents, your testimony, and/or your treasure. Whether it's volunteering, doing work pro bono, sharing your story, or giving to those in need? It's important.


Figure out a budget. Do you know how much you make or spend? So many of us just check to see that our bank statement doesn't say zero and leave it at that. Calculate how much you make a month, which might vary if you work hourly or freelance, then work this math:
20-25% - Housing: rent/mortgage, taxes, insurance, interest, repairs...
20-25% - Food: groceries and meals purchased outside the home...
15-20% - Operating Expenses: electricity, fuel, telephone, water, laundry, house cleaning, yard work, autocare, auto insurance...
15% - Clothing: clothes, material for clothes, shoes, accessories...
10-15% - Advancement: School fees, tuition, books, lectures, medical or dental fees, prescriptions, recreation, vacation, contributions to charity...
10-15% - Savings: Savings, assets, life insurance...
Those numbers are obviously flexible. For instance, if you are a total foodie? You might spend 25% or more on food. If you are a shopaholic? You might need to put aside more than 15% for clothing. The important thing is to figure out your budget and stick to it. Once my husband and I sat down and did the math? We had no problem with our finances. This isn't crazy complicated stuff, just figure out the percentages and what things you want to do more/less of.

Downgrade. In a day and age where people are racing to the shelves to buy the latest such-and-such, we are in need of some back pedaling. Your cellphone; the new iPhone is pretty cool, but do you really need so many minutes, texts, and a data plan? You could wait until you got home to get on Facebook. Your computer; with all of the little options now available for those of us who only use computers for Microsoft Office and the internet, it's hard to imagine why you think you need anything larger unless you do serious photo, music, or graphic design editing. Your apartment; find something where you utilize all of the space in a healthy way instead of just acquiring stuff to fill it. Your car; I don't mean sell your beautiful new car to purchase a beater, but consider getting a car with better gas mileage rather than flash. Buy a car that is already a couple years old with low mileage, do research to find out which kinds of cars need more work done on them in the long run and which run themselves into the ground. Or, if you're located in a city, small town, or somewhere with excellent public transportation? You could ditch the car for the train, the bus, a bicycle, or even walking. If I wasn't pregnant, I'd consider a bike.

Count your pennies. I mean this quite literally. Pay in exact change when you can and keep a jar at home for the rest of your coins. Coinstar has "revolutionized" they way people look at coins, but it also takes a rather large percentage. Go down to your bank, ask the nice teller for coin rolls (they are free), and roll your own quarters. You will accumulate a full roll much faster than you think. Keep a stack and when you remember or have an extra minute to go into your bank, take them to the teller and he or she will gladly deposit them for you - without taking $0.09 a dollar or whatever Coinstar steals from you now.

Pay off your debt. I know, you hate to be told that, but it's true. A large corporate bank was informed that if they dropped the bottom 5% of loan holders, those who had defaulted on loans and had significant other debt, they would reduce the number of people who claim bankruptcy by something like 60%. They declined because that 5% are how they make almost 100% of their profit. Those people will continue to pay the minimum balance on an outrageous amount of debt until they die and then? Their children can be held responsible. Can't figure out how to break the cycle? Firstly, stop spending beyond your means. Chop up those credit cards and live on what you actually make. Numbers one and two should help you with that one. Secondly? Pay extra on your balance instead of splurging on something you may not need. Get someone to hold you accountable: a spouse, friend, family member. Can't handle plastic? Me neither. It's fake money. You slide the magic card next to the mystical computer screen and press "accept!" I have to function almost entirely in cash. Before I got married? I didn't have a bank account, I had a lock box. That might sound crazy to some of you, but I wasn't working much and lived on hourly wages. I had a Savings Account that to this day has $5.07, but no card. Now that I'm married and making a regular living? My husband and I share a bank account. But I keep cash in my wallet. Cash is real, it is tangible to me. I can see I have a $20 bill and I know exactly how to make it last for 2 weeks, no exaggeration. If plastic is something you love, but maybe doesn't love you back? You might want to consider a cash system.

Dine in. You probably hear this on a regular basis, but do you actually know how much more eating out costs? Do some research. Don't have time to come home and create a nice home cooked meal? Brown bag it, sucker. A deli sandwich costs cents to make and will probably be chalk full of all the sandwich toppers you love, instead of half-assed. Make your complicated Starbucks drink at home, purchasing a cheap espresso machine can pay for itself in less than a month, assuming you only have caffeine once every other day. Invest in that.


Learn more about your groceries. I am a fruit addict, and in December? Strawberries can cost as much as $8.99 a pound. That's ridiculous. So purchase your fruits and veggies in season, because that adds up quickly. Then teach yourself to can/jar and freeze. Jarred nectarines are not as good as fresh ones, but they are better than none. It's actually really easy and you can make probably 100+ jars in an afternoon of all your favorite produce (assuming you have the shelf space for that, I do not). Make a meal plan. It doesn't have to be specific, "Here is what I'm eating Monday for breakfast, lunch, and dinner!" I know I don't function like that. Just make a general list: Here are 7 breakfasts, 7 lunches, and 7 dinners I want to make this week. And if you can have them tie into each other or do leftovers, great. Check your cupboards and fridge for what you already have and make a list of what you'll need to accomplish those 21 meals. Then shop from it. Adjust as you go. Oh and coupon. From your newspaper or online, shop the sales. It's a learning process, don't let yourself get overwhelmed. There are hundreds of blogs entirely for this purpose - utilize them.



Befriend thrift stores. Goodwill might seem tacky to you, but I've purchased a pair of True Religion jeans with the tags still on for $7.00. Granted, that was an awesome find, but assuming you are that picky? There are hundreds of designer boutiques that will only sell high quality label brands. And if you're not that picky? You couldn't ask for a better venue for shopping. Make sure you're also purchasing clothing out of season. Buy all your winter gear after it goes on sale in the Spring or Summer, get your swimsuit in November. Savings, savings, savings. There is a thrift store just down the hill from where I live that has "half-off Saturdays" which makes their already low prices of $1-7 impossible to beat. Plus, all the mocking of ridiculous items for sale in second hand stores is worth the trip in itself.

Plan for fun time. That's what you wanted to hear! And it's important. My husband and I set aside $50 a month for "date night." Maybe that means we get one ridiculously extravagant date or several little dates. If we don't use all the money one month? It rolls over. This month we spent our date night money on books at Barns & Noble and Thai food. Both were well worth the money. If you have money specifically for the fun things you want to do, odds are you'll stick with that amount rather than raiding your bank account every time you need to go shopping or whatever your vice.


Give. Trust me when I say, you have too much stuff. Get rid of it. Whether by Goodwill or a garage sale, you do not need your life to be so cluttered with material things. I'm not asking you to live on $2 a day, I'm just saying that you should stop spending frivolously on things you don't need when there are people who do need what you take for granted. Spend your money that way. No one has ever said "I regret giving a child an education." Or "I wish I hadn't sent money to that family so they could purchase a goat and create an income." Or "I hate the fact that I helped fund a well to be built so people in that community could have good water." No one. Do your research, find a cause you can get behind, support it. Maybe it's financial, but maybe it's with your time volunteering with struggling students. It will boost your self value as well as the worth of someone else.

Some more food for thought:
I get that I am on a "save the world" kick, but bear with me, dear reader. I am perfectly aware I will never save the world, but that doesn't mean I should be content in doing nothing. It doesn't mean I can't do something. It doesn't mean I can't encourage others (you) to do something as well. This week I went for a walk in a neighborhood that has gated culdesacs and 12ft fake rock fountains outside false brick 8 bedroom homes at the suggestion of a friend. Tell me the person living inside that home deserves those things while children die of HIV because someone else made a poor decision and the medicine is not available to them. Then tell me it's okay that we throw away (not recycle) 26 billion water bottles as a nation when our tap water is of the same or better quality while mere millions of people drink polluted water everyday and many die because of it. Tell me I deserve to have gone out for lunch today when there are children who won't eat this week.

I want to be clear that I do not believe everyone is called to live in the dirt on the worlds minimum wage. I don't even mean to guilt trip you, I really don't. I just believe so strongly in this, that we should all be equals on this earth and when there are those who have so much less than we do? We should help them. It doesn't have to be huge or life altering, but it can be. It doesn't have to rearrange your life, but it might. It can be so simple; living green or remembering to smile at everyone you see today or spending $25 one time to buy 2 chickens for a family in Southeast Asia or sponsor a child to go to school in Uganda... the possibilities are endless. Need some ideas? I've got a million. Feel free to ask.

There are plenty more ways to save money, but most of them start with scaling back from the consumer driven America we live in. Recognize your blessings and be satisfied, the first three tips are by far the most important.

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