OuR Side Hustle IS
( y1. Bring your drinks from home, preferable tea, water, and coffee or homemade lemonade. Reuse glass jars and bottles.
2. Workout at home for free with YouTube, walk outdoors, do a video or whatever you have available. Saves time, membership fees, and gas.
3. Eat your meals at home most of the time.
4. Find free entertainment or low cost. When is the last time you walked at the park and had a picnic?
5. Make outfits out of your current wardrobe.
6. Spend some of your free time cleaning your space and sell your stuff. You will make money and you desire less if you live in a clean environment.
7. Pinterest ideas for decorating your space with what you already have. Bohemian and eclectic ideas are your friend.
9. Read a book or listen to a free podcast. Learn something new. You can do all of this for free on your phone. I use the "Hoopla" app for books (call your local library) and listen to podcast for free with a podcast app.
10. Have a friend or friends over for a meal or tea to visit. Or have a potluck. Do Birthday parties at home. Simple meals and a homemade or a box cake cost nearly nothing and is probably more appreciated and relaxed than a restaurant.
Last night while washing my 2015 Subaru I was having moments of regret. Those have been coming in droves as I have to defend my car to potential sellers, fielding questions that feel like suspicions of why I am selling my car. Being outside of the crowd can be hard at times, especially when being pushed to explain yourself and you know you are not mainstream to someone who wants your fancy to you car for their fifteen year old. Wow...I can't even imagine. My kids drive cars as old as they are.
As a single mom I purchased this car brand new...I know... I know... possible "Stupid Tax" as Dave Ramsey calls it. At the time though it made sense to me. It was partially logical and a ton emotional. I was travelling country backroads for hundreds of miles without cell service or a safe place to stop at times. When you are driving through fields of crops in Mississippi and your GPS often takes you down country dirt roads you really want a reliable car that can get through anything, so I got an all wheel drive Subaru, and it has served me well.
At the time I had a 2006 Toyota Highlander and it was needing about $2000 in work and the gas was eating me alive at $4.00 a gallon. I sold it for $10,000 paid a $5000 debt off and put $5000 down on a $25,000 Subaru. Today I have 126,000 miles on the car and it's running strong. I recently retired from the traveling work and have decided to sell it because we have two other cars through a series of events. Selling the Subaru will help me buy my son a car and I will be able to apply $7500 to our mortgage.
The stupid tax. I look at what it cost me to have this car and I do feel stupid but at the same time as I wash the car and clean it up for a new owner I also am having some sadness at letting it go. The car has cost me around $11,000 plus interest for four years and and three months. I'm not counting all the maintenance (I dropped $540 on it yesterday for a tune up and brakes). So why am I getting rid of the car, why not sell the other one? I'm not sure this is great blog post material but maybe it will help someone else make a hard choice. We have had the blessing of buying two ten year old cars with very low milage at a great price. These cars have 1/2 the miles on them of the ones we are replacing. I'll be taking over the 2009 Toyota Camry that has only 69,000 miles. It is a logical decision, the car is far more comfortable than my Subaru and honestly wouldn't matter if I was 28 and not 48. Camrys are notorious for getting over 300,000 miles and needing nearly no repairs. This has been our experience with Lexus and Toyota (The same manufacturer).
I will net about $14,000, pay $7500 on our principal, buy my son a car for under $4000 and and put the rest in our emergency fund. My son will be getting a Honda or a Toyota as well, it will likely be 15 years old. By the way if you look at the research a ten to fifteen year old Honda Civic or Accord or a Toyota Camry, Avalon or Corolla is the best bet for reliability and the safest on bet on low upkeep cost.
Stupid Tax and the 72 Hour Rule
The 72 Hour rule is that you wait 72 hours to make a big purchase. Also don't go to the store and look without doing your homework. We thought about it for days and decided to buy a zero turn mower. We live on a huge farm and my 61 year old husband (who is fit as a fiddle) was push mowing the yard. You can't really give an amount on the size of the yard because it sits in the middle of 40 acres. If you did you would say the front yard it about 6 acres. However we can bush hog most of it. (People if you think owning a farm is the simple life make sure you like farm work and are ready to buy all the things you need to keep it running). After going to Lowes and coming home with a $4400 mower my husband was like "Meh". We had some moments of buyers remorse and then I said "Honey is this zero turn mower thing a new thing? Like I don't remember having these when we were kids, did we?" and he said "Nope, maybe you are right". So we had a discussion about do we need a zero turn? If so "WHY"? That is the golden word y'all, "WHY?" We talked about it and decided that we could buy a really nice lawn mower for $2000 tax and all (Yes we have that saved, no debt required), so we took back the fancy mower and waited with intentions to buy a basic riding lawn mower.
My husband was at the tractor store buying a battery for the bush hog and the 80 plus your old man who runs it had a very nice zero turn mower that someone traded in on a tractor. Long story short my husband got a much nicer (about $8000 new) and bigger mower for $2000 all in. We saved $2400. But we were stupid to go to Lowes in the first place without spending more time researching and thinking it through. Sometimes you win, sometimes you learn, and then sometimes you win again from learning!
There is a lovely saying "All that clutter used to be money". Clutter, cars, mowers, clothes, it all adds up. We all pay "Stupid tax" and that is the lesson. The point is do we learn from it? If we do we can mark it as an education and go on.
On the car I am going to have it detailed, and have the few car dings and scratches removed, put a backup camera in it because that is the only thing I feel like I'll be missing, except all wheel drive but that's okay for now. I will enjoy it knowing we will have no mortgage in a few short years. For me and my husband the emotional toll that debt puts on you simply is far worse than having the fancy car or mower.
As a side note at our age I did the calculations and even with compound interest it's a far better choice to pay off your mortgage than to put that money in a brokerage account. If you put that money in a brokerage account (IRA or 401K) at the 4% rule of withdraw your monthly income would be far less than your house payment. I'd rather not have a $1250 house payment versus having $400 in income for thirty years. That is simple math to me.
Love to all of you frugal friends out there! Happy frugaling!
So why a new blog? Well quite simply life changes, a new marriage, kids are grown, facing retirement, and new challenges and discoveries with age. I plan to do throw back post to when I had small kids with new commentary and some of my more recent post I will also share as my life transitioned from mother of small children to single mother of teenagers to mother of young adults and living the daily routine towards early retirement.
I have always been frugal, for fun, out of necessity, as a way of life, and because I believe it is our job to be stewards of our resources and not take more than what we can use so others may live freely.
So thank you for being here. My plan is to share one weekly post with you and I would love to hear your comments.
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I am on Instagram as the Frugalarian.
Using What YOU Have Creatively
For a while I was feeling panic rise up in my body. I knew that I had the ability to save, cut back, make changes, be resourceful, but it had been so long since I had to do black belt creative tightening I wasn't sure if I could remember.
Reflecting on this I was thinking about what I have learned over the years and what I have been doing to make this hurt a little less until things pick back up.
1. First of all live under your means. I cannot stress this enough. It feels somewhat hypocritical because right now I own two houses. We have one for sale and one we are building. The deal is both payments are less than what we could afford by industry standards. This goes for my car as well. If you take your income and you take out 30% your consumer debt should be under this, this goes for your car, house and any other debt. When it came time to build we built a house that is smaller and more efficient. When it came time to buy a car I did get a new one but I did not buy the most expensive, I chose one that met my needs but was substantially less than what I could afford. I also put down a large down payment and have paid it down substantially by paying more on the payments when I had the money.
2. Save when you have money so when you don't you are not forced to go into debt. I teach meditation for a living and one thing I tell people is we meditate when things are going well and when things are not we have that resource we can call upon to deal with stress. Meditation allows us to look at our thoughts and actions objectively so we slow down and make good choices and at the very least it helps us deal with stress. Saving money is something you do when you have it so when you don't you don't end up borrowing money and getting into trouble.
3. There are always ways you can cut back. See it as a challenge almost like a game and it becomes rewarding not a punishment. When financial stress happened to me this year I got out my budget and took a good look at my monthly bills. For years I had to use a paper budget because money was tight enough that I had to know where every dollar went. Over the years I had gotten to a point where it was automatic and I could just pay the bills and balance my checkbook without worry of constantly looking at a budget. I also had an idea of how much I could spend and not spend, it was automatic. However now it was time to get back on board with a stricter plan. I took a hard look at my budget and was able to free up $333 dollars a month in bills that were not mandatory. I was paying for an extra insurance policy that was not something I had to have and I temporarily stopped payment to my retirement. I can always make a lump sum payment when things pick back up. I also started being mindful of eating more at home, we eat vegan at home and this saves a ton of money as meat is expensive.
4. Be creative and look at your current subscriptions and what you have. I have a membership to a gym that is only $20 a month and it's on contract for a year so I can use that for no extra cost any time. It included perks like chair massage so that is another thing I can do if I want to do something fun and not spend extra money, bonus healthy and happy! I also have a membership to Amazon Prime which gives me movies as well at Kindle Unlimited benefits. These are benefits I paid for already are not something I am paying for monthly. I can read tons of books at no extra charge, watch many movies and documentaries for the one time I cost I paid for at Christmas time. The fact is most of the time when I go out and pay for a meal at a minimum of $22 with tax and tip, I think to myself "I could have cooked a simple meal at home and it would have tasted better". When we go to the movies (they no longer have our cheap movie night or we would do that) it is always about $40 to $50 and it's just not worth it. Jim makes popcorn on the stove and we cut up some fruit and enjoy a movie on our couch for pennies.
5. Take time to enjoy the fact that you are resourceful and creative and you have mad survival skills. It's a handy skill and eventually leads to financial independence. It also leads to a higher sense of self esteem as you take control of your life. If you are struggling I suggest listening to, taking a class on, or reading Dave Ramsey's Financial Peace University. I started with his mentor, the late Larry Burkett, when I was younger and have followed FPU for years now. I credit it to helping me stay the course or get back on when I get off. Sit down and add up all that you owe then add up all that you make and the value of what you own. Then come up with a plan to pay it off. I won't go into details here but you can easily find "The Baby Steps' online from FPU. When you take charge you lose that feeling of floating in the financial abyss. Money doesn't have feelings, where your money goes or doesn't go is part of our choices. We will and do make mistakes but nothing is not recoverable. Even in the worst of times you can take control and you can figure it out. Believe in yourself.
To see my online interview on resourcefulness please see the video below. I was interviewed for coaches, business and individuals.
I was born into frugality, simple living and I love it. It is fun for me, challenging and gratifying to feel that I can care for myself and my family because of my resourcefulness. For most of my life I've been on the simple living path. Here I share with you tips, ideas and musings from my life in hopes that it will encourage you.