Posted on 08/16/2010 9:15:33 AM PDT by CSM
Have you considered satisfaction with less things throughout life?
Despite being the most affluent generation the world has ever seen, 54% of Americans have saved less than $25,000 for retirement. We're sacrificing our retirement to support our lavish lifestyles—big houses, cars, boats, flat screens, you name it.
Few people can embrace the idea of cutting back their lifestyle and settling for the basics. But, if you're going to "do what rich people do," as Dave says, forget about impressing your neighbors. Instead of seeking satisfaction in what you buy, why not consider gaining satisfaction from a simpler lifestyle?
Proof That Simpler Lifestyles Work For more than 30 years, Dr. Thomas J. Stanley has studied the habits of wealthy people, revealing his findings in several books, including Stop Acting Rich and The Millionaire Mind. His groundbreaking research has uncovered the truth about the lifestyles of the wealthiest Americans.
Dr. Stanley posted a letter from "Mrs. C.C." on his blog, thomasjstanley.com. Mrs. C.C. has a net worth of more than $1 million, but she has never made more than $60,000 a year. "I have accumulated most of my net worth by living below my means," she said. "I have everything I want, but I have learned not to want too much."
In another letter, "D. Termined," who, at age 55, has a net worth of $2.4 million, describes his family's lifestyle. "I think I paid $67 for a pair of shoes once, and my watch is a Timex," D. Termined said. "My wife has shopped at thrift stores for many years and uses coupons extensively."
There are no granite countertops in his $200,000 house, which was paid off more than 10 years ago. Money saved on the house payments went into savings.
Mrs. T, who is also financially independent, gives 10% of her income to charity, put four kids through college without debt, shops at T.J. Maxx, and drives a Ford Taurus. She told Dr. Stanley, "I am extremely happy with my life."
"Here is yet another case to support my strong contention that satisfaction in life does not come from what you can buy in a store, but rather from the values, beliefs and behaviors that most wealthy people possess," Dr. Stanley concluded.
Finding Balance
While it is important to save and invest for the future, it is also okay to enjoy nice things. Denying yourself the pleasure of new gadgets when you can truly afford them is no healthier than buying gadgets you can't afford.
Some people will be compelled by fear to save more than they need to. Instead of spending money to feel good, they save money to feel good. But the effect is the same—you can never save enough money to feel totally secure if fear is driving you.
I was able to save about 30% of my electric usage by unplugging all unnecessary electronics when not in use. For example, microwaves, washer/dryer and coffee pot. I have taken it so far now that I unplug my alarm clock on the weekend.
Are you wearing your yellow suitjacket with dollar signs all over it on the cover?
“How many of my motorcycles do I have to sell?”
All of them that you do not own outright. Otherwise, DR advises that when you add up the total value of all of your “engine driven items” that the total not exceed more than half of your annual income.
The idea is that you don’t want to much money wrapped up in things going down in value.
That only works if you are an illegal.
bump
My motorcycles are going up in value (some of them).
Hmmmm. I’ve been wondering about that. I recently read an article in Mother Earth News- I bought it for the recipes, don’t judge LOL- about putting a timer on an electric hot water heater so it only runs about 11 hours a day.
That sounds interesting. Do you have a link to that article?
This might work for two income couples with no kids, but for a single person, no way. Where I live, you’d be lucky to find an a 1 bedroom apt. for less than $800 a month. Add utilities, car payment, gas, taxes, food, and you’ll never make it.
>>I worked with a guy that had excess of 1 million when he retired. Also has a great pension and medical retirement benefits. He died six months after retirement.<<
I retired when I was 50 and the money I had saved wasn’t money that I had put my name on, it was for my family first, I came second. I am confident the guy you knew thought the same way.
>>unplugging all unnecessary electronics when not in use.<<
An extension cord with an off/on switch is the easiest way to do that.
I turn off my electric WH during the summer except when I use hot water.
It’s on about an hour a day for showr and dishes.
Only saves about 30 bucks a month, and a household of more han 2 would find it impractical, but it works for me.
I also have pork shoulder for breakfast instead of bacon, saves another 30 bucks... hey this stuff adds up!
Now, when my tobacco plants come in I’m gonna save some big money!
“car payment,...”
There’s part of your problem Eeyore. The “poor widdle me” mindset is so ingrained in society that you don’t feel like you can get by without a car payment. No matter where you live, you can always live on less than you make.
In other words, act your wage!
BTW, I am a single person and the rent in my area is about $700 a month for a small 1 bedroom apt. So, I am not without the knowledge of what you speak.
It was in the actual magazine. They do have a website: motherearthnews.com
I’ll warn you, they’re greenie weenies.
I’ll post what the article said about it after my son goes to bed.
OUCH! That’s awful! Guess I won’t visit Seattle anytime soon! (Not that I had any immediate plans...)
Why do you think I use Craigslist? :)
Also, I can get a fimily sized bottle of Cuervo tequila in Costco by CHicago for around $27. In the Seattle area it is closer to $46.
I suspect CA is even cheaper. HEY! I just figured out how Arnold can save the state!
By serendipity, I traded a big box of vine-ripened tomatoes and an armload of Sweet Basil to a restauranteur for 2 buffet breakfasts yesterday morning (ticket price $24 with coffee). I’m pleased with myself, although I had more money into those veggies than you can imagine because it was a first year endeavor (new soil, new planting boxes, new fence, etc.) But, I started the from seed in my basement in March and somebody appreciated my efforts.
I gave away a lot of tomatoes in the last few weeks, but trading my tomatoes for breakfast was unbelievably pleasurable.
We’re not too good at this thrift business, but we’re working on another wrinkle: good will. Earlier this year we had to buy a new wheel for our 25 year old Sears power mower. We had to drive all the way across town and paid $20 for it.
Last week my husband was browsing though the rummage at our church annual rummage sale. He found 2 identical brand new wheels marked down to $1.00 for the both. We don’t need 2 wheels, but we might need one in the future. So, he bought both to put on his shelf of “spares”. Then, he stopped in to our small Sears (equipment and appliance only store) and asked one of the managers if he’d like a wheel for his spares collection of out of date parts. The man just about flipped out with joy.
My husband is now the man of the hour at the local Sears, and he feels good about that. That good will might come in handy some day.
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