Oh yeah, First Name reminded me: We both shower at work, do all our laundry in cold water, wear the same clothes until they really need washing, bring our own lunches, buy in bulk, rarely eat out, buy dry goods in bulk, don't have a dish washer, and ditto about not having kids. We get all our reading material from the library, so don't buy books and magazines. We own our own home, (paid it off in seven years by getting a floating mortgage and scrimping everywhere we could), so no mortgage or rent. Phew. I take home the US equivalent of $27500 PA, and my partner works half time so earns half that. On paper, we shouldn't have even been able to but a home, much less pay it off in 7 years. But it really, really was worth the scrimping in the long run.

As usual, I seem to have the contrarian point of view.

Develop a skill and a profession you love, and that pays well. Today you may not know what that dream job is, but make it a priority to find it. It may require you to develop new skills or obtain additional knowledge. I work a lot, because I want to. My wife wants me to retire, but I will continue to work until it no longer is fun.

Pay yourself every pay day first. That is, save your money and invest it wisely. Let your money work for you, instead of you working for money. It appears that I save more money each year than most people earn. Our percentage of take home pay that goes to savings and retirement is very high. But I worked hard to get there, while still setting aside ample time for liesure activities. Start out by saving 10% of your gross income.

The time it takes to grow food, make things, etc. may cost you more in time than money saved. I can work a couple hours per month to pay for my gardener, but it would take me 16 hours per month to perform the gardening tasks. And the gardening tasks would need to be accomplished on the weekend, when we want to be/are out enjoying our life.

Spend your money on quality items. Items that will last and do the job intended. Otherwise you will be making repeat purchases over and over.

"Neither a borrower or lender be."

Love your life.

I do not want a simple life. We are intelligent complicated creatures and I want a challenging life, full of adventure and challenges. We need to be productive individuals, it is in our DNA.

Disclaimer: Just my opion for what it is worth.

I’m 57 and have never owned a television, have a 13 year old car, don’t buy much except for gear and the occasional pair of pants and something similar to a dress shirt. I have not bought a tie or sport coat in 13 years and am an “executive” in what might be considered a very traditional non-profit organization. I save or invest 35% of my salary. I made the decision to live simply and close to where I want to play 13 years ago, which was about 10 years too long in coming.

Move to Alaska and teach if you want to have a simpler life-style, have the time and proximity to be outdoors, make some decent money and – depending on what your tolerance level is for isolation – live in the wilderness, not just spend your weekends trying to get there. In some districts you get almost free housing, live on the water and can’t drive because there are no roads.

Take a look at this website and email me before making any life changing decisions about which job you want to take.
http://www.alaskateacher.org/jobs/

Though I would have to turn you in if you broke a current contract. Maybe next year?

Leading a simple life does not mean living in an intellectual vacuum. It's great that you found a job you love AND that pays well. I also love my job, but it doesn't pay well. It is, however, one of the most intellectually challenging jobs I can imagine.

For me, the little jobs around home such as gardening and repairs are some of my ways of relaxing. It is enjoyable and often quite meditative. And much of it can be done through the work week, before or after work, especially with a partner who only works half time. It doesn't have to spoil my weekend, but having a job that means working long hours with little time off WOULD impinge on my peaceful lifestyle. It's just like HYOH, except the trick is to find a lifestyle that suits you. I would not be without my garden to play in for all the money in the world.

"As usual, I seem to have the contrarian point of view."

Nick - that may be true, but we need you here. I always appreciate what you have to say.

"Pay yourself every pay day first. That is, save your money and invest it wisely. Let your money work for you, instead of you working for money."

+1 - when I said "save for retirement" I didn't mean a savings account. I don't find investing particularly interesting or exciting, but- like bike maintenance- I learned about it so I could deal with it and give me the outcome I wanted.

Edited to add quotation

Edited by JoeFish on 07/22/2010 18:42:26 MDT.

barter system.

you want 3 bell peppers and 1 lb of lamb? then paint my shed, and its yours

you want me to change the oil and filter in your pickup?
then do my dishes for a week.

this give and take can be fun, and save money. time is not an issue, its a manmade idea to begin with. make time to make time, and you end up with plenty of time.

"I want a challenging life, full of adventure and challenges."

+1

Those adventures and challenges can be found in the mountains, or learning how to make a new kind of cheese or grow a rare mushroom or make perfect compost. Money is important to me only as a means of supplying my necessities and desires. Sometimes not having enough money to just buy the newest bestest gizmo can be an adventure too. It can involve figuring out how to make your old gizmo work better, or figuring out how to live without the gizmo. But I am also coming from a more global perspective, so living simply for me involves also trying to minimise my impact on the environment. This means reining in consumerism driven choices, which comes with the bonus that less money is required.

Easy! Just spend less than you earn.

Not to minimize the real difficulties that some of us face (unemployment, underemployment) -- but for the majority of us, it's a matter of prioritizing our spending. Always save some of what you earn. And except for my house, I never charge anything to my credit card that I can't pay off at the end of the month.

Adjust your life style so that you:

a) Avoid or minimize debt
b) Save a portion of every cent you make

Find a job doing something you don't hate and with pay that is not bad
(it's tough sometimes to find a job you love that also makes you rich)

Happiness is extremely important.

Loving someone is a better than counting your money

Don't have a long car commute to/from work.

Live a healthy life style. Eat good food. Hike often.

I agree with Ron. The big stuff, especially relationships, affect us tremendously.

When you buy a house, try to buy something low maintenance in an area of likely appreciation and try not to do a 30 year mortgage. Take the time to learn about amortization and how most of your payment goes to the bank in the form of interest for 15+ years. The difference in your pocket after 5 years of owning a 15 yr mortgage vs a 30 yr is astounding.

Drive the least expensive reliable vehicle you can and pay cash or pay the loan off quickly.

There is quite a bit of thought on this subject among the sailing/cruising community. A read that you might enjoy is The Cruising Life by Jim Trefethen. Bumfuzzle.com and bethandevans.com are great websites of two couples that have had some pretty incredible adventures while living very minimalist lives.

" I would not be without my garden to play in for all the money in the world."

+1 again. If you thrive on complexity and challenges, gardening is certainly one place to satisfy your craving. I could go on about the complexity to be found within a tablespoon of healthy soil but I'll let it go at LYOL.

You would have to keep an average Hybrid over 20 years to make your money back. Don't be fooled by the hype. Not only that, but the environmental impact is far greater than a fuel efficient car. Stay away from the Hybrids.

I won't set and preach to you about saving money. I spend way more than I should, but I have a lot of fun doing it. ;)

Nick makes some good points.

Money is not the enemy, the need for more things is the real culprit. The more you can make AND SAVE the more independence you will have. Don't ignore using the markets to accumulate wealth. Even though they have been horrendous lately they will, over time, allow you to accumulate much greater wealth (freedom). Just don't be greedy there - established mutual funds may be your best bet unless you are a dedicated student. Read up.

Also, when you do purchase, choose carefully. Often the more expensive item off the shelf is the better deal, but not always.

That said, as a teacher you will make a modest salary, but if you love what you are doing, go for it. It will be enough if you are disciplined.

I have almost a daily internal conflict determining the value of money.

I save a good portion of my salary. However, I could save a lot more. I try to spend my money on things of quality that will last a long time. Things that I have spent a lot of time researching. This all but eliminates impulse buys.

However, determining the value of my time and my experiences is difficult. Is it worth it to travel around eastern Europe for 3 weeks and spend $1500. I think so. However, I could have skipped that trip and saved even more.

The struggle for me is determining how much to save when it comes down to travel, experiences, and things of that nature. Having your significant other, family and friends share similar beliefs about saving money is also important.

Jeff:

To me, saving is a necessity -- not a "good" in and of itself. Life is to be enjoyed -- just that we don't want to outlive our financial resources.

Here's what I did -- back in my mid-20's:

1. Draw up a plan. I assumed I will live to 90. I also assumed I will buy a house of my own -- and keep that house as a contingency in my old age. YMMV on any and all assumptions, of course.

2. Determine how much I spend per year. Add a buffer to it. Then multiply by some percentage point every year for inflation. So now I have a string of yearly expenses between age 25 and 90.

3. So working the figures back will tell me how much I need to have in the bank (and/or investments) to pay for all those yearly expenses. Every year for the next 20 years, I dutifully added to my bank/investment accounts.

As a "salary man", I was able to retire early (age 43) simply by saving a chunk of my take-home pay. YMMV, of course, but drawing up some sort of plan will help you gauge how much to save. It will also help determine what you can spend -- without undue worry. It's all a balancing act.

I suppose I alluded to it in my first post on this thread, but the more I think about, the more it strikes me as strange or crazy that the "simple life" somehow has something to do with money and possessions (or the lack thereof).

What is this "simplicity" everyone is seeking? It seems that most people are really only talking about financial independence.

Whether it's through curbing one's wants and needs to balance the budget or focusing on making ample money to support them, all the talk here has been centered on income, cost cutting, savings, and investments. I think that certainly says something about how people measure life.

Ever met a "rich" poor man? You know...the kind that have all of their dollars and possessions and accounts in order...but inside, have nothing?

How about the "poor" rich man? The one that has little, but lives in a state of content and happiness?

And then there are all the types in between.

Certainly we need money to live.
But financial independence, whether through cutting back or making enough to support all material wants and needs, it has little to do with whether or not one is comfortable in his/her own skin.


That's what I think about when it comes to "simplicity". Not money, not financial independence, but being a healthy, whole person. Being grounded in one's relationships, interests, and most importantly, a healthy identity.

So all your accounts are balanced. So what.
Does this insure that your mind, life, and relationships are not full of chaos, want, and poison?

Simplicity does not come through money.

"Simplicity does not come through money"

This is very true, however, peace of mind due to not having to worry about your next meal or where you will live,does come through money.

My entire military retirement check goes in savings as well as 3/4 of my wifes income. We live, day to day, on what I make in my present job and play on the other 1/4 of her income. Our home is paid for and I am happy driving a 19 year old car. For what we bring in togather, we spend very little and have ample materal goods.

Edited by djjmikie on 07/23/2010 11:48:03 MDT.

Simplicity is a way of living that comes from a state of mind. Money is a tool. There is no causative relationship between the two.

The OP expressed his desire to save money AND live a simple life.

My contrarian post indicated that I did not want to live a simple life. As to money, it is just a simple method used to exchange goods and services. And what is unique in our modern world is that we can "create" (not print more) money, meaning that the amount of money/weath is not static.

Centuries ago, most people had to work every day of their pitiful lives to exist. When then could not longer work, they died or lived on the charity of their family or community. Because we can accumulate money/wealth, we can continue to live a quality life, without the need to work until the day we die.

If everyone lived a simple life, we would still be hunters and gathers. No airplanes, no cars, no space exploration, no iPods, no computers, no Internet, no silnylon or cuben fiber, no titanium, no BPL, etc.

As to material goods, that is up to the individual. I am in no position or willing to judge people on the material things they purchase. If someone wants or needs something, then they decide its value. For example, a car is just transporation to me. But in my job, I have driven just about every vehicle made. I can appreciate the workmanship and engineering that goes into a Rolls, Bentley, Austin Martin, etc. They are amazing machines. But for me, it is not worth the time (money) it takes to purchase one. However, I can understand why someone who can afford it would buy one.

It is not up to us to judge the merits of a simple life versus any other alternative. I post my opinions only for consideration as an alternative, for what has worked for me. The only caveat I have, is that if one should choose a simple life, and at some point cannot survive due to a lack of money or a job, I do not consider it my responsibility to assist or support them.

Stay single.