Frugal living or not - two sides of the coin

I came across a website the other day that challenged everyone to eat on $1.50 per day for five days - http://livebelowtheline.com/ . 

So I gave it a shot.  You can see how I did on a thread at the Simple Living Forum - http://www.simplelivingforum.net/showthread.php?2731-My-personal-Live-Below-The-Line-Challenge

Kara (Treehugger on the Simple Living forum) commented on that thread that she budgets $100 a month for both her and her husband.  Wow.  That's $1.66 each per day.  Every day!  She doesn't have chickens, and it sounded like she didn't get much from the garden this year. She explains how she does it on the thread. And I thought I was doing pretty good by staying under $250 a month for the two of us, with a goal of $200 a month. I think she's my new hero.

You might think that $1.66 per person, per day is easily attainable.  What surprised me in the $1.50 challenge was how much all the extras added to the total - things like butter, sugar, seasonings, even tea, coffee or a glass of milk.  It wouldn't be much different in the $100 a month budget, either.

Now then, the flip side.  Some people we know dropped by the other day.  She's definitely not into the frugal living/make-it-from-scratch lifestyle.  Look in her refrigerator and you'll see a wave of take out containers AKA doggy bags, most of them with food that's not exactly edible.  Once in a while she throws it all away and starts over.  I always thought it was kind of comical and I'd tease her about it.

So the conversation was about the guy applying for a better paying job.  I said that my goal was to live well on less than $1000 a month. (A moment of silence - then lots of laughing and 'good luck with that' with some 'you poor dear' insinuated.)  They said that they need $7500 a month to live!  I didn't know my jaw could drop that far.  They don't live in a McMansion and have talked about financial problems in the past, so I know they have a boatload of debt.  What's scary is that they're 65-ish, so time isn't on their side any more.

So she's sitting there eating some of my homemade yogurt, almost yelling in her best 'holier than thou' tone:
I WANT to take my credit card to the store to buy what I want,
I WANT to use my credit card when ever I want, etc.

Me: *blink blink* (thanks, OFG).  I didn't say much but I was thinking that I kinda didn't like her any more.

It's all about choices.  Personally, I'd rather not have the pressure and I don't want Bill to have to work forever.  So my choice is to stay on the frugal side of life, challenge myself to lower the grocery bill each month without having to buy Beano (can I get it to $50 per person??) and pay off debt.  And of course - to enjoy the journey along the way!

Even MORE ways to save money and end up with money

Put your debit card away.  It's pretty easy to grab that thing and use it, huh.  You're less likely to buy impulse items if you have to dig out the check book or use cash.  Vow to never get cash from the ATM that charges you a fee.  If your bank charges you fees for checking, look for another bank.

Now that you have the checkbook in your possession again, there are some things you can do.  First, start a coin can.

Write the check at the grocery store to the next highest dollar so you get some change back.  When you get home, put the coins in your new 'savings' can.  Every time you have a few coins in your pocket, add them to the can.  A lot of people save $300 a year doing this simple thing.

Use coupons?  Rebates? Put that money in your coin can when you get home.

Talk yourself out of buying something extra at the store?  Put that money in the coin can.

Got an expensive habit, like tobacco or alcohol?  Try to cut it in half.  You're already used to the money leaving your pocket, so put the 'saved' money in the coin can.

If you usually have cash in your wallet, can you add a dollar a day to the can? Or even just a dollar a week?

Now that you have your own little stash at home, use it to your advantage. Do the debt snowballing thing to stop paying interest.  If you saved up $30 in your coin can this month, take it to the bank and then pay an extra $30 on your credit card payment, car payment, etc. You can get a good idea of how much your loan is costing you (and how much you'll save by paying a little extra each month!) by using an online 'what's missing' calculator like this one - http://www.hughchou.org/calc/missing.cgi  .  Hugh has a ton of different calculators to help you.

Round up to the next dollar when you subtract the check amount in the register. Write a check for $39.03?  Subtract $40.  By the end of the year, you could have another $300.

You can also write 'saved' amounts on a calendar. This comes in handy when you get back from the store and only used $2.15 worth of coupons, or decided not to buy that bottle of water from the convenience store.  Put that amount on your calendar.  At the end of the month (or sooner!), make an extra online payment on  your credit card.  Seems like another bill going out, doesn't it.  But it's money that you would have spent in your previous lifestyle.  If it's just a few dollars at the end of the month, add it to your usual payment.

Need to buy a car?  Buy a used one instead of the new hybrid you really want.  The money you'll save over all by lower cost, insurance and taxes will more than offset what you'd save in gasoline costs.  I hate this one, but it's true.

Sometimes you have to look at quality over cost.  We could save $500 by buying a used riding lawn mower, but by spending the extra, we'll get a three year warranty and know that we aren't buying someone else's problem. We'll take good care of it, so it should last us for as long as we're here or will need one.

Rent a movie instead of going to the movies.  More popcorn, whatever drinks you want and as much as what you want, plus you won't miss part of it if you need to make a pit stop halfway through.  Write down what you normally would have spent on the calendar.

Try more private label stuff at the grocery store.  Some of it is lousy, but many items are just as good as the name brands. Jot down the price difference, then add it up when you get home.  Put the difference in the can, or write it on the calendar.

Every two years, check around for insurance rates.  Insurance companies have a way of sneaking the rates up.  Look for an insurance broker that doesn't represent just one company or look online.

Ideally, come April 15th, you don't want to have to send a check, but you also don't want to use the IRS for a savings account, either.  But some people qualify for money back that they didn't send to them to begin with.  Don't go buy that new computer!  Pay off your debt or put it in a savings account.

Just got a raise at work?  Lucky you!  Use that extra money to pay off debt or save.

It's all about Attitude - in Life and Retirement

As Bill and I get older, I find myself Googling retirement stuff.  Holy shit!  The bulk of it is people freaking out because they don't have the millions of bucks they have been told they need to live after chucking their jobs.  Right now, I'm feeling rather good about life in general, so I'll be brave and say 'boo hoo'.  You can live quite happily with just a little. I'm glad that I have the brains to know that all the money in the world isn't going to magically make me happy.  I know that we also have choices and options, right this minute and also ten years in the future.  Some of them might end up being ... well, not pleasant, but hey, that's life.  You can still be happy in between plan B and plan C.  You might end up really liking plan C after you get to that step, too.  Some of the happiest people I have ever known have been the ones living in what a lot of us would consider dire straits most of their lives.

Some of the goofball retiree comments I have heard:
I have worked too hard all my life to do with less than what I have now - So you've been miserable for 40 years, working the job you didn't like, but have the big house, two cars, eat out, drive around because you're bored, watch the tube...and stay miserable counting your nickels trying to maintain that lifestyle. 
I'm retired now so I have time to bitch - First of all, courtesy is cheap, so acquire some.  The first step in resolving any problem is communication, not bitching.  The poorly paid person you are bitching at didn't create your problem/issue.  Remind yourself to "be kinder than necessary, for everyone you meet is fighting some kind of battle".
I can't afford a hobby - Finding something you enjoy doesn't have to be expensive.  And you don't have to succeed at it, either.  Try something different!  Try a lot of different things!  Here's a few options:
     1. Don't think you would like to garden?  Then try a tomato plant or an herb in a pot on your porch.  You might discover that you actually do have a green thumb.  Most gardeners will happily share plant starts or extra seeds.  If you don't have a big flower pot, you can probably get a 5 gallon bucket from the deli section at the grocery store or the local fast food restaurants and poke some holes in the bottom and lower sides for drainage.  You can also make your own natural bug spray.
     2. Take up walking - get to know your neighbors.
     3. Do some volunteer work without expecting anything in return - Meals on Wheels, help someone weed their garden, paint their house, repair their fence, give them a lift to their doctor appointment.  The best way to feel good about yourself is to help someone else.
     4. Read a book.  Not the same news in different newspapers, a book.  That's something in print meant to be enjoyed.  If you're reading this, you have access to a computer.  There's gobs and gobs of stuff to read on the web.
     5. If you can afford it, adopt a pet.  As pet owners everywhere know, there's no such thing as a free cat, dog, chicken, lizard, whatever.  But having some living creature to care for will give you hours of joy...and frustration at times.  Definitely not free, but for a lot of us, it's still worth it.

Some things are not hobbies!  If you're doing any of the below on a daily basis, you need a hobby. See above.  For example:

Constantly checking the expiration dates on your food.  Once in a while is good, put the older stuff in front.
When people casually ask 'how are you', you tell them...in great detail.
Holding the store clerk hostage with your lengthy story about your gall bladder surgery.
Calling companies daily and complaining about their product, like the M&M's are smaller now, etc.

You get the drift.  All the complaining in the world isn't going to make you happy. The hobbies may bring you some happiness, but if you start every idea with 'I don't think I'll like this', then you may be doomed.

If you want some changes in your life, you have to be willing to make some changes.

Now then, some options if you're retiring semi broke:
Be willing to live in a smaller place.  Sell your house, rent a smaller place, buy an RV or boat and go experience life while you still are healthy enough to do it.  Go through your stuff, keep what you need and actually use, sell or donate everything else.
ASK for what you need and choose 'used' over new  - Most areas have Freecycle, Craigslist, DAV, Goodwill, etc.  But tell people that you're in the market for a good used ____.  You might get exactly what you need for cheap or nothing.
Need more to eat?  Check the web for groups that forage in your area, local Food Banks, churches usually have some info on where you could get emergency food. Quit buying convenience foods, paper and cleaning products, etc, so you can make your food dollars go further.  Yes, you really can use rags instead of TP if you need to.  Read up on square foot gardening and container gardening.  Tons of forums and blogs about those things.  Yes, you really can produce some of your own food.
Get your vitamins from food, not pills.  My usual diet is so crappy that I need to take a couple vitamins, but overall, I'd rather eat a banana than take a potassium pill.  Do some research online to see what you can eat to get the vitamins you need.  Overall, a more vegetarian lifestyle is cheaper and healthier.  (I'm getting better at that...) 

And while you're checking that out online, check into the free online herbalism courses.  You'll probably still need some big Pharma drugs sometimes, but if you can make some 'food' type medicines, what do you have to lose?  Millions of people have done it throughout the generations, and it's still very common in other cultures.  Maybe not on your block, but it's still practiced.  And a lot of it works.  Just my opinion, as I'm no doctor.  One thing that I do when I have loose stools is drink some cornstarch water.  Yep.  Just a spoonful of cornstarch in a half cup of water, chug it down.  Hold your nose, it doesn't taste the best.  Then drink some water to get the taste out of your mouth.  You need the extra fluid anyway if you got the poops.  Repeat if necessary. That's what they used to use before Kaopectate and Imodium hit the shelves. 

Google everything.  How to make _______.  Frugal living forums.  Cheap living.  Tightwad living.  The full time RV'ing websites have some interesting information, even if you aren't going to do the RV thing. They have some pretty nifty ideas for storage in dinky spaces.  We have friends doing it now, and it sounds like a great community of rich and not so rich.  You can live in an RV for $500 a month, or of course, way more than that.  Again, Google everything.  Then you can make some informed choices of what's going to work in your situation.