Living cheap and retiring, beats having more money and working

I get letters about living cheap...they go like this..."stop using the word cheap, it reminds me of trailer park trash"...mea culpa...let me try and explain.

When I say cheap living I refer to housing options that are less expensive than the house, the lawn, new cars every year, and other stuff that keeps you working instead of spending less and retiring.

It is not oversimplification to say that spending less and be retired is better than working and continuing to earn.

The more you try and keep up with the neighbors...the more difficult it will be to realize..."Hey this is nuts...I'll never be able to retire at this rate."

Living cheap...our story

In 1994 ,when I was 49, we gave up the life of consumption for the simple, cheap life on a sailboat in the Caribbean...say you can't downsize? ...try going from a 1,800 square foot home to a 35 foot sailboat with curved walls.

Some of our friends, who are still working as I write this 17 years later...I should stop here...said, "Why deprive yourself?". I was making good money in commercial real estate, but was spending a lot to maintain "appearences" that reflected my "success". I traded it all for the lifestyle Jimmy Buffett sings about. A tailored suit, custom shoes for swim trunks t-shirt and flip-flops...we have never regretted it a minute and have memories that will stop a where are you from, what did you do conversations, in a heartbeat..."you did what?".

Living cheap what is it?

By living on a sailboat, breathing fresh air 24 hours a day, we were living better than we were and we were spending less, a lot less. If the boat's batteries were charged, fresh water tanks full, beer in the frig we were "rich".

So much better off than the vacationers paying $400 a night to stay at a resort...we were anchored 100 yards from their room and paying nothing (anchoring is free)...guess who had the better view? Guess who snickered at the tourists, when we went ashore?

What does living cheap mean to you?

Living on a sailboat may be too extreme for you...how about living in an RV? If that doesn't appeal to you maybe a small condo on the beach?...see the link on downsizing...or why not live in the same size house you have now...but live in a another country?...think you will be lonely?...over 1 million Americans and Canadians live in Mexico right now.

All of the lifestyles I have mentioned are living cheap, IMHO better than staying "home" and working. Now does "living cheap" equate to trailer park trash...or is it just us.

It really is up to you

This

The next time your snowblower goes on the blink...or when you have to buy 2 new suits for work

Maybe there is going to be a big assessment at the country club...or you are worried about the crime statistics in your town.

The current political climate in the US and the world makes you sick...or you just cannot take anymore days with two and a half hour daily commutes.

Your neighbor is smirking as he or she shows off their new car...You have to work with people you really cannot stand, or a new boss that just does not like you.


Or this
You can say instead, "I am mad as hell and I am not going to take it anymore.", and look into lifestyles that have none of the above components...they are living cheap.


So would you rather be drinking your morning coffee looking at this view , a Mexican beach, from your courtyard or look at tailights...in the rain for an hour and a half...knowing you have the same drive awaiting you , in the other direction, at five PM.

Interesting AARP article

Great article in the July/August 2010 AARP mag, the Leap to Cheap, by Jeff Yeager...link below.

Seems a recent Gallup poll showed that 62 % would rather save than spend up from 48 % in 2001.

But one of these days...please Lord let it be soon...the recession will be over

The question is will people still practice cheap living or will they go back to the old spending habits of 2008?

Free time makes...living cheap...living rich

Some folks that Jeff interviewed repeat the authors mantra that time is more important than money. Thanks for the reinforcement Jeff.

The more stuff you accumulate, the less time you have to enjoy the stuff. You must earn more and more to maintain your stuff.

Tis far better to have less and spend less...and more time to enjoy what you have.

A "secret" the writer found out 17 years ago with the first year fulltime on the sailboat.

Remember...the lifestyles of the rich and famous?

Cheap living was not on Robin Leach's radar when this popular show started many years ago...perhaps it has contributed to the $8,000 in credit card debt the average American family has now in 2011.

Consumption, not frugality has been the rule when we are in better economic times.

What is different in 2011?

The first baby boomers are reaching "normal" retirement age in 2011...they are living with the reality of the recession, poor stock market performance, low interest rates on savings, and out of control Government spending.

My bet will be on continuing the frugal living habits forced upon many. Never have so many been slapped in the face with reality like the baby boomer generation...if the realization that spending less and taking more time to enjoy what you have isn't clear now...I would be very surprised.

Conclusion

Living cheap is not cheap living...it is a lifestyle that costs less to sustain...and I almost forgot...it is less stressful than...This.

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