Frugality is finally in vogue. Gone are the days of the MTV Cribs lifestyle, and it couldn’t have come at a better time. With our recent economic downturn, people in my generation are making discerning choices, and hopefully these suggestions can help you live better, wiser, and save more.
People are not working harder, longer ours, for less pay and much less recognition. The price of gas is not dropping anytime soon, and available credit is at an all time low.
Living in a large city like Seattle, rents are high, home prices are higher, and it just seems like everything is more expensive. This didn’t matter too much to many people a few short years ago, but few can argue they haven’t attempted to tighten their belts.
Previous to any economic crash, my family and I chose to live simpler, and here are 5 tips that we have followed. Not only have these choices saved us money, but have also given us a freedom we had yet to experience.
#1. Live close to where you work – Acting on a gut feeling in early 2006, my family sold our home which was a 20 commute from work, and moved into a home that is 3 blocks away from my work, and her work.
Obviously this gives us more time, and as everyone knows, time is money. This time was not only created in our commute time to work, but also to the grocery store, to schools, to parks, and some of our favorite restaurants. This also allowed us to sell our expensive(and luckily paid off car), so we are now a one car family. That mean our gas budget is approximately $50.00 per month instead of $400.00, and the maintenance/insurance for the second vehicle is non-existent. Selling this vehicle also gave us a small nest-egg which we were able to help pay off some of our home.
#2. Get out of debt – To many this is an impossible goal, and simply easy to say. However, with the simple tips and goals you can receive for free from Dave Ramsey’s website, you too can start to live like no one else, so you can live like no one else.
While searching to purchase a new car(with credit) I luckily came across a Dave Ramsey video. It gave me the idea to check this guy out, and I came across his 7 free Baby Steps on how to live, and our lives have never been better, or the same. This included student loan debt, credit card debt, and a home equity loan. Creating the suggested deb snowball and targeting your smallest debt allowed us to make some quick headway.
18 months later, we have a small amount of our HELOC left, and have fully subscribed to the no borrowing way of life. If you don’t have the cash, you do not buy it. This can be followed even further, if you have the cash, you may not want to buy it either.
#3. Renting out any extra space in your house – This might not apply to everyone, since you might rent, or your house might be a little tight to be renting to anyone. Since we had some extra space, we made the frugal choice of renting it out as a non-conforming mother in law apartment. Our debt was lessened, and quicker headway, and now it is just extra income.
My wife was able to receive her masters degree without a student loan payment. We actually paid for it in cash.
I must admit, it did take some getting used to, but every month we know it was worth it. Other options that can be available if you do not have a separate area to rent, are renting out a room to a college student, or for a nanny/au pere to save on child care.
#4. Clip those coupons – As Granny as this may sound, I think clipping coupons are one of the best ways to pay less for everyday items. Once you become efficient at it, and realize the commonly bought items, this can cut as much as 90% from your bill.
Unfortunately, many of the coupons I have seen are for junk food I am not interested in for my family. However, there are fantastic sites like thefrugalgirl.com and moneysavingmom.com that have helped out in finding better quality items, and suggestions.
Other tips that are non-coupon related. Buy 100 rags for like $15.00 and use them instead of paper towers. Washing these rags can help you save hundreds of dollars a year, and still get the job done.
#5. Build a free standing garden – You may even have the space to have a garden, but many people living in a city do not. Using pots or boxes to plant vegetables can be a huge money saver, and better for your health.
If you have extra you can even share with your neighbors. We have done this with zucchini, tomatoes, squash, peas, and strawberries.
It saves us a ton of money, and we know where our food comes from.
Our most recent streamlined budget, based on tips from daveramsey.com, showed us we are better off being in the city as opposed to moving where property and taxes are cheaper. How to Survive Frugally in a Big City
With all of the changes we decided to make, it made no fiscal sense to make a move. Being in a large, metropolitan city has become affordable by making a few keen decisions, and dedicating ourselves to getting our of debt.
Graeme Gibson is a Seattle chiropractor who lives and works on Queen Anne Hill. Along with loving to practice chiropractic, he loves to spend time with his family, exercise, and help people in any way he can. If you would like to know more about Dr. Graeme please read his blog about Chiropractic in Seattle. Queen Anne Chiropractic Center 1905 Queen Anne Avenue North Seattle, WA 98109 (206) 282-8275