3 ms·

It's actually surprising how little you can live on given small lifestyle changes. I haven't gone down to 10k/year but my expenses each year range from 14-17k.

by patcho 10y ago

It's actually surprising how little you can live on given small lifestyle changes. I haven't gone down to 10k/year but my expenses each year range from 14-17k. And that's on a salary about 7x that. It's all about little things that add up. If you go to Starbucks 5 days a week, that could easily cost you 1k a year. I mostly buy clothes at thrift stores, you can find furniture/kitchen appliances/etc on Craigslist. Instead of going out, buy a six pack and have some friends over. Another big killer is driving. I live in quite a bike unfriendly city so my car expenses are more that I would like them to be, but insurance + regular maintenance + unscheduled maintenance + car payment + gas really adds up. Other random expenses do come up, so I budget for them. I make sure I have about $2k/year to spend on things I can't account for. Some years you go over, and some years you barely need to tap into it. This isn't to say I don't spend money on things though. If I want something I will buy it, I'm just conscious about how much I'm spending. If you are interested in learning more about this kind of lifestyle, Mr. Money Mustache is a good place to start. http://www.mrmoneymustache.com/category/mmm-classics/ http://www.mrmoneymustache.com/category/mmm-classics/ All that being said I realize I am in a very fortunate position. I don't have student loans, I have a well paying job, no disabilities, etc. Some people are in situations that make financial independence very difficult to achieve.

pc86 10y ago
Not sure why this was flagged except maybe the link to MMM (which is generally garbage advice for 80% of the population).
- artimaeis 10y ago
  Isn't the core idea behind MMM just spend less, save more? Not sure how that's garbage advice. The particulars of some of the things he advocates aren't possible for everyone, sure. But reducing debt and increasing your savings is a goal that probably everyone who hopes to live another 10+ years should strive for.
  - pc86 10y ago
    Like most finance blogs, the core idea behind MMM (spend less, save more, retire early) is fine. It's the specifics that are either completely ineffectual (don't use AC because you'll get used to the heat anyway), or unrealistic for most people (walk or bike to work; spend $1k on a 20 year old Corolla and be your own mechanic). Edit: And (3) a lot of the advice is the same old thing rehashed in a different way (never lease a car! index funds!); (4) A large part of his income is from shilling credit cards and other financial services
    - cmdrfred 10y ago
      Also if you are anything near minimum wage in most of the united states its useless advice. Saving that 9 dollars a month won't lift you out of poverty only growth will. Invest in yourself.
      - artimaeis 10y ago
        Sure, but given that the median income in the US is $51,939 (2013) I think it's safe to assume that most people (in the US) can gain a lot by following the simple tenant of spend less, save more. But even MMM has suggestions for people who make too little - I suspect most finance blogs do. MMM advocates getting into a profession where you can make at least the median income, because that's obviously the easiest way to increase your potential savings if you're low-income.
        JamesBarney 10y ago
        That's median household income. Median personal income is $32,000
    - deleted 10y ago
      [deleted]
    - FTSI_Engineer 10y ago
      MMM makes a lot more sense if you view it as an environmentalist masquerading as a early retirement blogger. Take a recent post that starts "If you’re going to become rich, you need to either earn way more money than you spend, or spend way less money than you earn." The rest of the post focuses entirely on spending less. Arguments like point 4 are sort of silly to me. Most of what he preaches he was doing well before he had a blog that could be monetized. Also, he seems to be pretty up front about commissions on the "MMM recommends" (though he could be more explicit about referral v non-referral links).
- dasboth 10y ago
  Interesting, what makes you say that? I haven't read MMM in depth but have a feeling it might be down to certain circumstances (e.g. if you're renting in London, you're pretty much guaranteed you can't save 50% of your income)

by patcho 10y ago

pc86 10y ago

Not sure why this was flagged except maybe the link to MMM (which is generally garbage advice for 80% of the population).

artimaeis 10y ago
Isn't the core idea behind MMM just spend less, save more? Not sure how that's garbage advice. The particulars of some of the things he advocates aren't possible for everyone, sure. But reducing debt and increasing your savings is a goal that probably everyone who hopes to live another 10+ years should strive for.
- pc86 10y ago
  Like most finance blogs, the core idea behind MMM (spend less, save more, retire early) is fine. It's the specifics that are either completely ineffectual (don't use AC because you'll get used to the heat anyway), or unrealistic for most people (walk or bike to work; spend $1k on a 20 year old Corolla and be your own mechanic). Edit: And (3) a lot of the advice is the same old thing rehashed in a different way (never lease a car! index funds!); (4) A large part of his income is from shilling credit cards and other financial services
  - cmdrfred 10y ago
    Also if you are anything near minimum wage in most of the united states its useless advice. Saving that 9 dollars a month won't lift you out of poverty only growth will. Invest in yourself.
    - artimaeis 10y ago
      Sure, but given that the median income in the US is $51,939 (2013) I think it's safe to assume that most people (in the US) can gain a lot by following the simple tenant of spend less, save more. But even MMM has suggestions for people who make too little - I suspect most finance blogs do. MMM advocates getting into a profession where you can make at least the median income, because that's obviously the easiest way to increase your potential savings if you're low-income.
      - JamesBarney 10y ago
        That's median household income. Median personal income is $32,000
  - deleted 10y ago
    [deleted]
  - FTSI_Engineer 10y ago
    MMM makes a lot more sense if you view it as an environmentalist masquerading as a early retirement blogger. Take a recent post that starts "If you’re going to become rich, you need to either earn way more money than you spend, or spend way less money than you earn." The rest of the post focuses entirely on spending less. Arguments like point 4 are sort of silly to me. Most of what he preaches he was doing well before he had a blog that could be monetized. Also, he seems to be pretty up front about commissions on the "MMM recommends" (though he could be more explicit about referral v non-referral links).
dasboth 10y ago
Interesting, what makes you say that? I haven't read MMM in depth but have a feeling it might be down to certain circumstances (e.g. if you're renting in London, you're pretty much guaranteed you can't save 50% of your income)