Living Life on the cheap and loving it!

If you are looking to become the next Warren Buffett or even the next Jimmy Buffett, this may not be the blog for you. But if you are looking for a way to simplify your life, like I am, my thoughts may interest you. Perhaps it is the result of result of my upbringing, but then again it may be simply a belated product of my ancestry. Whether by nature or nurture, I have come to the conclusion that I like to live on the cheap! Not that I deny myself any of the greater pleasures in life, but it pains me to pay more (or in fact anything) when I am looking to purchase anything, be it a necessity or a luxury item. Makes no difference at all. My wife, a woman of vast knowledge as well as a certified public accountant, calls me cheap. I have always maintained the position that I was just extremely frugal. My sister has taken to calling me the "king of yard sailing" and it has become a badge of honor that I am proud to pin on my breast.

It's funny, but until recently, you had to hide your sense of frugality as if it were some unspoken social dilemma. But the recent economic downturns have made it somewhat trendy to be thrifty. Factor in the seeming endless pleas to go "green" and we have the beginning of a movement that will finally put some extra money in my pocket as opposed to taking it out. Now don't get me wrong, I have always firmly believed that what was good for the ecology was good for you but being in fashion is somewhat new territory for me.

In the real estate profession, they live by the axiom of three L's- Location, Location , Location. In the world of living on the cheap, we have our own rule of threes. Three R's. Re-use, Recycle and Renegotiate. Follow these three rules religiously and you can easily knock off 10 to 20 percent of your annual cost of living. Think that's enough to get you started on a life of frugality? Well, think about it from another angle and you may really want to move on. Let's say you can save 7500 dollars by changing your lifestyle and coming over to the cheap side. But how much do you have to work to earn that additional income? Add 25% for taxes and another 10% for incidentals and you have really saved around 10,000 dollars. That certainly is a substantial savings.

Getting Started

If I was to write a course on living on the cheap and loving it, the first chapter would most definitely require the reader to step back and examine their lifestyle as it currently exists. Somewhere along the line, we have evolved from a society in America, which once looked for a value to one that demands instant gratification, regardless of the cost or quality. I can't put my finger on when this shift occurred but believe me the shift has most definitely taken place. Was I a victim of this paradigm shift? Without a doubt, I would say yes. Looking back at my formative years, I was obsessed with property and possessions and do not ever recall a time when the price seemed to matter to me. I would simply work a little harder to attain my goals. But as I matured , I examined my needs and found that I wasn't really satisfying my needs but more so the expectations of others. The final straw was the loss of a sibling who, in my opinion, passed up on a lot of the fun that life has to offer. All too often postponing vacations on the premise that he would do it next year. Well, next year never came and his loss served as a serious wake up call to me. You may not get that next year, so take advantage of the what the world has to offer today, while you can still enjoy it. Evaluate your wants and needs and develop a realistic plan to reach to attain those goals. One of the first discoveries that I made was that with some adjustments, I could live just as easily and in most cases better, on a portion of my previous income. How could that be?

Defining lifestyle

Having spent a considerable amount of time in the corporate accounting world, I was somewhat surprised by my findings at the beginning of my trek towards a cheaper lifestyle. While not a shopper by nature, I shop for items I need and only as a last resort. Witness the shoes in my closet, some of which are decades old. But I have learned to identify a "good deal" when I come across one. Rule number one, buy items you need and at the best price available. Seems simple doesn't it? But I have found that there is a strong american tendency to impulse purchase. Impulse purchasing is cardinal sin number one. I keep lists in the garage of items I need around the house. When heading out to do some yard sailing, my first stop is always to review this reference list. It has paid off handsomely over the years.Rule number two - perishables are a no-no. If the item has a shelf life, whether it be a fad item or a food item, chances are you are going to waste it! Stick to purchases that you have a current need for and you will find less clutter and complication in your life.

The Goal

As I mentioned earlier, my ultimate goal is twofold. To reduce my living expenses to a minimalist level and to enjoy life on my terms. This is my first attempt at blogging and hopefully your feedback will help me attain my lofty (if not inexpensive) goals. I enjoy qualty items, from my sporting equipement to my tools and toys. But it pains me to spend more than I absolutely have to for these assets. As I go forward, I will attempt to share with you some of my better strategies and with luck learn some of your tricks for living life on the cheap. Any help I can get from you will be greatly appreciated.