My First Attempt at Living Poor...Err...Frugally

My job is still in limbo, so with the looming possibility of my very nice income becoming a teeny tiny income, it suddenly hit me that while I have been pretty careful with my money in the past in order to pay off debt, I really haven't been as frugal as I could or should have been. I could end up (hopefully temporarily) "poor" in which case I really will need to change my lifestyle. So I thought I would start today--both for practice and for the eventual possibility that these change I make really will be necessary.
With everything I did today, I asked myself, "if I was flat-broke poor, what would I do in this situation?" And here's what I did:
--Got up this morning and made tea at home as well as breakfast (an apple and fried eggs). Sometimes I eat breakfast at home but often I skip it which makes me hungry when I'm out and about which causes me to buy stuff, either at a restaurant or store, because I'm hungry.
--Took all of my vitamins. I have been slacking off on this but I really need to keep myself as healthy as possible.
--Went to my favorite place, Barnes and Noble, and hung out for a while. If I really would have had no money I would have had to skip the Starbucks there all together but for today I settled for a $2 Italian Soda instead of my regular $4 frap. Reading there was free.
--Took the bus to Barnes and Noble then hopped on another bus ($2 total for both bus trips) to meet hubby at the casino where we had lunch (free) and where he won (he left with $10 more than he started with). I also had a hot chocolate while I waited for him (beverages are free at the casino). Note that hubby has a "casino allowance" of $100 per month and while I basically think that gambling is a huge waste of money, it's his hobby and his social life and he never spends more than his budgeted $100 and he often is able to pay his bills with his winning each month.
--Went to Les Schwab to get the tires on the car rotated (free, I love Les Schwab!) and grabbed a bag of popcorn while we were waiting (free).
--Stood outside for a bit and enjoyed the wonderful warm, breezy fall weather (free...and quite enjoyable).
--Stopped by the store to get a bit of fruit to tide me over until we leave next week on vacation ($1.24 for two bananas and three apples). We have spent very little on food these past couple of weeks because we are trying to eat everything perishable before we leave so we don't have to throw it away.
--Mowed the yard. Not my favorite thing to do but it saves the cost of the gardener and gets me some exercise and sunshine as well. I think this will be the last time we will have to mow this year (I hope!).
--Made dinner at home (we're down to making tuna macaroni and cheese because we have hardly anything left in the fridge). This was an oddly satisfying meal as we rarely eat such simple food and it tasted pretty good.
--Baked oatmeal raisin cookies. While I was at the grocery store today, the snack aisle was calling to me but I resisted. From now on, I'm making my own snacks at home.
--Flossed my teeth. Again this is something I often slack on but I really do need to pay more attention to my overall health.
--Hubby "practiced" packing for our trip and was able to squish everything into one carry-on bag. Hooray for hubby! I always travel with one carry on but he has a hard time not taking a ton of clothes and shoes with him when we travel. He thought it would be impossible to travel for a month and a half with only what he can bring in a carry on bag but it looks like this might just work out (and save us $100!).

Overall a pretty simple day but these were important lessons nonetheless. I think whether by choice or circumstance, more and more people are having to live like this. It's all in the attitude, however, which my grandmother taught me so many years ago. They never had a lot of money but my grandparents always had cash on hand simply because they didn't spend unless it was absolutly necessary--certainly not daily like I spend--and they did most everything for themselves. I remember one time my grandmother told me that if she was able to pick up a pair of socks at the dime store, she was happy; she didn't need to buy a whole shopping bag of clothes in order to feel good about herself. Grandma was eternally optimistic and was always happy no matter what her situation. I need to be more like that. I will never be poor but, rather, frugal by choice.

I Think I'm Losing My Job...Shouldn't I Be In a Panic By Now?

Even though I am self employed, my biggest client (you know, the one that pays my mortgage and all of my other bills) looks like it will be going toes up within the next week. I do have a handful of other clients that I make small amounts from each month and a few others that call me up occasionally for random projects, but this particular client has given me a ton of work over nearly the past decade so this is where I have focused most of my time and energy. (Note to self, don't put all of your financial eggs in one basket!).
So anyway, I was at a meeting yesterday with said client when she got a call and then left in a hurry. Fast forward a couple of hours when she called to say that her Board of Directors had put her on administrative leave and it didn't look like she would have a job by next week. Since my contracts go through this particular lady, there is a slight possibility that the company will continue with my contract but a really big possibility that they won't. I feel like I should be panicking right now but for some reason I am not. Here's my take on the situation:

• We have our vacation already planned and paid for. We will be leaving next week and won't be back until mid November. It seems insane to leave when everything is up in the air but on the other hand, everything is paid for (airline tickets and cruise) and when we aren't on the cruise, we will be staying with family so our expenses will be minimal. We also incur zero expenses while we are on cruises since we don't drink, go to the fancy restaurants, go to the spa, etc. We decided to just go on vacation no matter what happens because everything is paid for, because a month plus of no work will give me lots of time to focus on other projects that could turn into new business for me, and because a change of scenery may provide for more/different opportunities for us.
• I still have a mortgage payment to pay and some tax debt but fortunately, the huge list of debts I had just a year ago have been mostly paid off. If not for that, I really would be panicking about how to pay my bills should I end up without this lucrative contract job.
• Unfortunately since I am self employed, I won't be entitled to unemployment. Bummer. However, since I have worked as a contractor with this company for nearly a decade, I will certainly wrangle with the Board for a significant bonus of some sort if I do leave.
• I have been doing this sort of work for nearly 15 years. I like it, I am good at it, but I certainly don't love it. This may be just the shove from the universe that I need to follow my bliss and find work that I absolutely love to do.
• If we needed to, we could sell our house and move to a smaller/cheaper place. We would have to sell for less than the amount we want due to the current home values in our area, but at least we would make a profit because we have a good amount of equity in our home.
• I have a good husband that will support me no matter what I do. Although he is retired and has a set pension/income which pays our household bills so there isn't extra to pay ALL of the bills, moral support from him is a super good thing to have.
• I am, in an odd way, kind of looking forward to living minimally. We've had our big house, and our nice lifestyle for years and years but now that the kids have all grown up and moved out, I have often thought, "what's the use of supporting this lifestyle?" I think I would be much happier with a smaller home, a smaller income, and lots more time to enjoy simple things like going to the library, hanging out with friends, doing yoga each morning instead of running out of the house to meetings, and having time to cook really simple, yet really good meals.
• We may be "forced" to move overseas. We have toyed with this idea for a few years but it has always come down to what would we do with the house and how could I leave such a good job. This may be another push from the universe to try something new and we could easily live on just hubby's pension in his home country in southeast Asia.

So I guess, oddly enough, I am looking at this drastic situation as more of an opportunity for an exciting change than as a threat to our current lifestyle. I hope it pans out as such.

Link Round-Up: Useful Links Edition

Here's some great links you may find useful:

• 8 Funding Contests to Kick Start Your Big Idea
• 25 Useful E Books Every Blogger Should Read
• How to Run Your Online Business with $10 and a Google Account
• Buy Nothing Month
• Dave Ramsey and the Power of Community
• 18 Things You Are Wasting Money On

65 Ways to Simplify Your Life

Time and again, I notice that when I simplify my life, it has the side affect of also saving me money (and usually stress too!). Here's 65 ways to do just that:

1. Start your morning off my making coffee or tea at home...no parking/waiting at the drive through, no waiting to order, no finding change in your purse, no getting the wrong order...you get the idea.


2. Make your breakfast choices simple: fruit, yogurt, eggs, oatmeal...nothing fancy, just a nourishing start to your day.


3. If you can't list your day's meetings/activities in a small calendar book, you are too busy! Cut back on your obligations.


4. Simplify your wardrobe...both the number of pieces you own and the color assortment of your clothing, it will make getting dressed in the morning faster and easier.


5. Pay your bills online. Once you have done this a few times, it becomes quite quick and easy.


6. Pick one or two hobbies/volunteer positions/activities and do them really well instead of spreading yourself too thin and trying to do a dozen different things.


7. Clear your desk and only put back the things that you absolutely need...clear workspace, clear mind!


8. Write down a "to do" list of the five things you absolutely must do the next day...no writing down 50 things that will stress you out and that you won't be able to complete anyway.


9. De-clutter your home. Make it as spartan and a third world orphanage. No clutter, no knick knacks, no junk, etc.


10. Make your bedroom an oasis of tranquility--a bed and maybe a plant and that's it (no computer, no desk, no TV!).


11. Go for quality--in your spartan bedroom, have 500 thread count sheets on the bed along with a down comforter that makes you feel like you are sleeping in a cloud.


12. Clear out your bathtub. A friend has no less than 20 hair/body products lining her bathtub. It makes me stressed just looking at it! Pick a couple of quality shampoos and an olive oil soap and maybe a nice conditioner and that's it.


13. Clean out your fridge every week and minimize there as well. If a food is just lingering there and not being eaten, toss it out rather than looking at it every time you open the door.


14. Recycle as much as possible.


15. Move closer to your job so you can walk or bike to work.


16. Take the bus! You can't do 25 energy-draining and time-wasting errands when you are at the mercy of the bus schedule so cut down the number of places you need to go, hop on the bus, and relax.


17. Instead of printing out everything on your computer printer that you think you may need in the future, save the info on your computer and keep a digital copy instead of a paper copy.


18. Scan all of your important documents into your computer. When you need this info, it is easier to search you computer instead of running to the safe deposit box.


19. Back up your files weekly (the stress-saving value of this simple thing alone will save you when your computer goes toes up).


20. Consolidate! If you have eight email address, shift down to two. If you have six social networking sites, determine to only update one or two.


21. Be "in the moment". If you are exercising, focus on your body and your exercise, not on your "to do" list or the big presentation at work.


22. Read a book instead of being tethered to your computer or Kindle.


23. Build family unity by working together: wash the car together instead of running it through the car wash, do yard work together instead of hiring it done, etc.


24. Make up a fairly comprehensive first aid kit so you don't have to run to the store for provisions every time someone gets a sniffle.


25. Make templates for things you need to do often (ie: a grocery shopping list, meeting agenda templates, etc).


26. Don't use shopping for entertainment...it is expensive and it doesn't provide any educational/inspirational experience.


27. Put your cell phone away when you get home. Unless you are waiting for a kidney, you don't need to be available 24/7.


28. Have a garage sale, and sell more stuff than you usually would. When we were preparing to move we sold lots of stuff including furniture. We didn't end up moving and we didn't want to buy furniture to replace the stuff we sold, so we ended up with a more open, less cluttered home. Now we can throw a dance in the family room because we have no furniture in there, only rugs and huge pillows...simple.


29. Make meal time a relaxing experience at home instead of a sprint through the drive through.


30. Set aside work time, where you actually work. This is easier to do if you are self employed. I find that I can hammer away at work in four hour blocks and get lots more done than if I set an eight hour block of time to work where I get distracted with internet surfing, TV watching, calling friends, etc.


31. Become a one car family. You pay less in insurance, you only take one car for service instead of two or three, you only wash one car instead of two or three, etc.


32. Exercise simply. Walking, biking, and playing with the kids at the playground are free ways to exercise and much less stressful than waiting for a piece of equipment to become available at the gym.


33. Wear sensible shoes. They are better for your feet, better for your posture, and better for taking the unexpected hike through the woods.


34. Live in a smaller place. The time to clean a smaller place alone will save you untold hours of your life. Decorating and maintenance costs go down exponentially as well.


35. Take simple vacations. Visit the family or go camping instead of going to Disneyland or Vegas...these places are much more stressful and cost lots more too.


36. Focus on one thing at a time. When you are playing with your kids, don't be answering your phone, when you are working on a project, don't be tempted to surf the net or update your FaceBook status.


37. Figure out how to use diet and exercise to cure "lifestyle diseases" such as diabetes, high blood pressure, and high cholesterol instead of taking a handful of pills each day.


38. Make annual dental and physical exams a must. This simplifies the process of fixing problem that can become major issues if they are allowed to fester.


39. Eat simple food. If you need a snack, eat a peach instead of a bag full of chips or cookies.


40. Be your own therapist. Journal, talk to your dog, talk to your friends, get in some hard physical exercise or yard work, focus on others...


41. Use only cash and cancel your credit cards.


42. Pay off your debts. It's simpler to pay a few bills instead of a dozen or more.


43. Spend time building relationships instead of surrounding yourself with stuff. $500 shoes will be so out next season but the time spent with your grandmother will be priceless.


44. Realize that anything you buy will have initial costs, maintenance costs, cleaning costs, updating costs, time costs, etc. Buy accordingly.


45. Have a date nite with your hubby and with each of your kids regularly. You don't have to do anything fancy, even baking cookies with your daughter will create nice memories of quality time spent together.


46. Spend time on activities that have a payoff. Watching TV only results in a larger ass and a dent in the couch cushion. Knitting, baking, working in your garden, reading a "how to" book, and other such activities result in something tangible at the end of your efforts.


47. Pray or meditate. This is free, it clears your mind, it focuses your thoughts, and it's relaxing.


48. Buy clothes that don't need special care. If clothes won't pass the washer/dryer test, I don't buy them.


49. Walk until something interesting happens. I have often heard travelers say this and it's true. If you just walk, something interesting is bound to happen whether you run across a patch of wild blackberries, stop and chat with a homeless person walking down the street by you, or you find something interesting to photograph.


50. Focus on being a happier/nicer/better person. Good manners and a good attitude are free and make everyone around you happier.


51. Eat your main meal at lunch. Breakfast should be super simple and dinner should be super small so lunch is where you can really shine with your cooking.


52. Find free stuff to do in your community--you'll have fun, meet like-minded people, and enjoy some new experiences.


53. Travel with only one bag. It's easier to keep track of your stuff, cheaper since you don't pay additional baggage fees, and easier to carry.


54. Breathe. Go outside, inhale deeply, exhale deeply...this is an instant relaxer, it's free, and it's good for your health.


55. Use simple (and natural!) cleaning products in your home. Marketers have people thinking that they need dozens and dozens of cleaning products for their home when you really only need a few things like rags, bleach, baking soda, vinegar, etc.


56. Donate your books to the library. If you have stacks and stacks of books that you will probably never read again why not donate them then borrow them back again if you really need to read them (which you probably won't do because you have already read them!).


57. Spend time at the library--read, take your kids to story time, borrow a video, use the internet--all free, enjoyable, simple things to do.


58. If something bothers you, fix it or replace it. A squeaky door? Instead of listening to it squeak, put some oil on the hinges. A super slow, nearly dead computer? Replace it instead of babying it along.


59. Make memories for people. Bring flowers from your garden to a neighbor, bake cookies for a busy single mom, take pictures at an event and give copies to friends who were there, etc.


60. Disengage from people who make you angry, tense, stressed, or feel bad. Some people just won't be happy no matter what you do. Keep them as far away from you as possible.


61. Have one inbox--for mail, kids school forms, work, etc--and clear it out regularly.


62. Enjoy the holidays...simply. I have a few friends whose holiday preparations would put Martha Stuart to shame. You don't need to change your entire decor according to the season, you don't need a 20 foot Christmas tree that bulges under the weight of the decorations, doing simple things like carving pumpkins or putting a string of lights in your window will show just as much holiday cheer as something elaborate. Understated is good.


63. How many phones do you need? Some people have an office phone, home phone, and cell phone when they could really get by with just one cell phone.


64. Throw potluck get togethers instead of footing the bill at a fancy restaurant.
65. Limit your online time--it can complicate, rather than help simplify, your life.

I Want You to Be Rich

And no, that isn't the title of some cheesy book or money-sucking infomercial. I actually want you to get out of debt and start accumulating wealth because:

• It will give you options. When you have cash, have absolutely no debt, have an emergency fund, and your bank account is nice and plump, you have options. Lots of them. Want to start a new business? Want to take the hubby on a surprise vacation or give him an amazing present for his birthday? Want to support your child's dream of becoming an Olympic gymnast? You can do basically anything when you have the financial resources that wealth gives you.
• It will cut down your stress considerably. When you have wealth, the number one cause of stress (and divorce!), namely financial problems, go away. The daily stresses of worrying about your job/bills/debt is replaced with relaxation and enjoyment of the day. Your health will probably improve as well.
• You will be a role model to others. How many people do you know who are debt free, have plenty of money for all of their needs and many of their wants, and are very content with their financial life? If you answered "no one" or "not many", you are like most average Americans. We simply have so few good financial role models that we don't have anyone to teach us how to be good stewards of our financial life. Once you are debt free and building wealth, you will be an inspirational role model to others.
• You will be able to buy what you want. You will also not want much. When you go from broke to rich, you learn the value of money and you also get to learn what is important, namely that the steps to getting rich--paying off debt, paying cash for what you want, and saving and investing your money for the future--teaches you that no material item feels as good as being debt free feels. So that while you may have the money when you are rich, to buy anything you want, the general materialist temptations that affect most people in our society will cease to tempt you.
• You will be able to give to others. It's hard to give to others when you don't have much. Financial entanglements and drama often occur because while you want to help someone out financially, you also need your money for your own debts, so if you give a loan you NEED the money back at some point in time. When the money doesn't come back, you end up with all sorts of drama. How much better would it be to have money that you can simply give away as a gift to a friend, a donation to your church, or a new car to your mother, without the problems that giving a loan incur?
• You will be able to "live like no one else". I love that quote from Dave Ramsey because it is true. I would hazard to guess that 99% of the people I know simply can't live exactly the way they want to live because they are in debt and have no wealth. They are tied to jobs that stress them out, huge mortgages that keep them working like a hamster on a wheel, and an ever present fear of total financial meltdown. How much more creative and happy would people be if they could live like no one else?

Anyway, my wish for you is that you become debt free, then become financially free. Free to do what you want, when you want, and live exactly as you want. I bet that once you pay off your debt, and have plenty of cash in the bank, Labor Day will have a whole new meaning to you. Happy Labor Day!

10 Happenings this Weekend (Along with Money Lessons)

It's starting off to be an interesting weekend...

1. A friend had breast cancer surgery yesterday and it looks like she will be fine. The lesson: catching medical problems early will save you money and could possibly save your life. Also, having health insurance is a very good thing, especially when major problems come up--it could save you from ending up bankrupt.
2. Another friend's daughter ended up in jail a couple days ago. Stupid teenager. When my friend called me in a panic, we took care of the basics and eventually the kid got bailed out. The lesson: you never know when your emergency fund will come in handy and in this case, if my friend hadn't had a good sized emergency fund, her daughter would still be in jail.
3. I heard about this local story and was horrified. Vancouver, WA is not a big city and the people there are pretty laid back. I would expect this hideous crime in a big city, not a smaller town where such things "never happen". The lesson: this young girl was going to Starbucks like many of us do every day. She had no idea that her entire world would be turned upside down and that she would not be able to go back to work the following day and that she would incur medical expenses and...you get the idea. Another example of why having an emergency fund could come in handy when you least expect it.
4. There are blackberries and apples growing wild all over the place so this morning on my walk I picked some of both. The lesson: foraging for wild food can be fun (and can save you a lot of money over paying for the store-bought stuff).
5. As I was walking this morning I had kind of an epiphany. I was really happy for the opportunity to get out in nature and walk. It also dawned on me that I am perfectly happy without a car. The lesson: a two person household can easily get by with one car if you arrange things well. Hubby and I have been sharing one car for more than two years and it has saved us LOTS of money and also makes us work together more to efficiently coordinate the use of said car which I think is good for the marriage.
6. I'm getting ready to go on a month and a half long vacation. Right now I am trying to cram 45 days worth of clothes into one carry on. Yikes. The lesson: layering clothing is a good idea. A more important lesson: when I first started shopping for the clothes I would take, I was so hung up on brands and having lots of clothes to take that I didn't buy anything because the cost was so overwhelming. Fast forward to this week when I decided I better get busy on this project. For some reason I came to my senses and realized that the most important thing that I am looking forward to about the trip is exploring new places, being with the hubby, and meeting up with family and friends along the way. No one will care, five years from now, if I was wearing a North Face Jacket. So I went to Ross and the Eddie Bauer outlet and for less than the cost of the NF jacket I really wanted, I was able to get a cute purse (instead of the Coach purse I wanted), a huge carry on (instead of the Timbuk2 one I had been eyeing), a pair of pants, three tank tops, a nice Eddie Bauer rain jacket that will pack away real small, six pairs of sox, a cute tee shirt, a comfy long sleeve shirt, leggings, and a dress. Wow.
7. A friend called from out of the blue saying she had just got into town and asked if I wanted to meet her for lunch. The lesson: I realized as I was waiting for my friend at the restaurant that if I hadn't scaled back my lifestyle and changed my spending habits that #1 I would probably have been working this weekend instead of having a flexible job that allows me to work when I want. And #2, before I would have made up an excuse and declined because--back then--I often didn't even have $5 to my name and what if I needed to pay for lunch and didn't have the money? Now, with cash on hand and an emergency fund, this is not a worry and I am often happy to treat friends to lunch or Starbucks simply because I can. Today my friend paid which was a nice surprise and a nice way to spend a Saturday afternoon.
8. We are "eating down" our food supply. The idea is to have no food left in the refrigerator and minimal stuff in the cabinets when we leave so we won't have to throw away any food. The lesson: if you will be gone for a period of time, instead of continuing to shop for groceries like you usually do, get creative with the stuff you have and clean out your fridge/cabinets. This will both save you money on grocery shopping before your trip AND it will keep you from throwing out all of the perishables before you leave so you don't come back to a whole bunch of green, fuzzy stuff in your fridge.
9. I'm going to end up with a free Christmas tree this holiday season and a clean, de-mossed roof. I do some freelance web design as a side business and a friend of a client called to see if I could make him a website. He has some money to spend but not a lot and as we got to talking, I learned about some of his skills (namely he repairs roofs and has a Christmas tree farm). The lesson: don't hesitate to barter! After chatting for a bit and getting an idea about the amount of the work I would put into his project, I made him a great deal (which he accepted). He would pay a lower than usual fee for the work I would provide AND he would give me a free Christmas tree this winter and clean up our roof this fall. Cool.
10. I got a nice deposit of AdSense revenue into my bank account from the handful of blogs I run (it's free to set up blogs and add AdSense ads), I connected with a bunch of friends and family via Twitter and FaceBook these past couple days, texting allowed me to send out messages to a few friends who I know are looking for jobs when I came across "help wanted" signs at some local businesses, and because of a notice on a travel blog I follow, I will be attending a free "Meet, Plan, Go" event week after next. The lesson: technology--especially free technology--rocks!

I can hardly wait to see what tomorrow brings!