A lot has changed over the last couple of months, and I am finding myself adopting a very frugal lifestyle. Now, I have never been the best when it comes to saving money. I usually attend at least a couple happy hours each week, buy something if I want it, and while I always put away a portion of my paycheck in to savings, it probably isn’t as much as it should be.
This all began back in March when I started thinking more seriously about traveling; oh, and I got a 20% pay cut. Yeah, that will wake you up from your rogue spending habits! Since then, I have been extra conscious about the things I spend money on. Purchasing my iPod a few weeks ago, was actually a BIG thing for me, although just a year ago I wouldn’t have thought twice about it. I have realized that if I am going to be successful at going location independent, traveling, whatever it is, I am going to have to rethink the way I spend money.
Over the weekend, I took my frugality to a whole new level. I did something that I rarely, if ever do: I cut coupons. Well there wasn’t actually any cutting involved, but I did check out the local
Safeway ad to see what was on sale, and then went after those items. I have made a dinner for under 5 bucks for the last two nights. I think $5 Dinners is my new favorite website.
Along with my coupon cutting, there is a good chance that my car could be out of my life for good in the next week or two. I finally found someone that is willing to give me a reasonable amount for it, yet Portland in November isn’t exactly the ideal time or place to be car-less. After signing up for mint.com a few months back I have realized how much money I am actually putting into the thing. Between payments, insurance, gas, maintenance, parking etc. it adds up! Have any of you experienced selling your car, and being without one for a period of time? I am confident that while the change will certainly be hard and take some getting used to, it is the best thing to do if you are trying to save money (and living in Portland, you can’t ignore the Green factor!).
The Bicycle: Soon to be my preferred mode of transportation
So back to Mint for just a second. If you are looking to become a better budgeter look no further. I have spent years trying to find a good way to manage my budget, and this far surpasses anything else I have used in terms of features and ease of use (it also doesn’t hurt that it is free). It accurately categorizes all of my expenses, and includes some fantastic charts to help me see where all of my money is really going. To take the convenience one step further, the iPhone (iPod) app is extremely useful, and allows me to see where I am in my monthly budget in a variety of categories.
I am not sure if this post was supposed to be beneficial for you, or serve as a mini update to my life, but the bottom line is, I think budgeting is one of the most important aspects of planning your dream lifestyle, whatever that may be. As I continue in my quest to save, you will probably see more personal finance related articles, just because it is such an important facet to what I am trying to accomplish. However, I will still leave the bulk of it to the big boys like ManVsDebt and Get Rich Slowly (if you haven’t seen these sites, I would highly recommend them!)
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I’ve found that the more I’ve focused on travel and experiences, the less I care to spend on other things. My biggest expenses these days are travel costs and going out with friends, whereas before a large chunk of what I made was paying off debt and computers/business equipment.
Feels much better to live this way!
You’re going to do great without a car. When you have one, walking, biking, and using Tri-met can seem very daunting, but when you’re forced to use them, you learn very quickly how easy it is to get around.
I wrote last week about how much Mint has changed the way I look (literally) at my finances. I’m glad to know you’ve found some success with it as well. It won’t make any decisions for you, but it can quickly and easily show you which ones need to be made.
Frugal living is all about choices. When you cut and eliminate the expenses in your life that don’t bring you joy, you free up all kinds of resources to maximize the things that do.
I look forward to reading more as you prepare for big changes.
I also have zero budgeting skills. This is not the first time I’ve heard about mint, but you did a good job of selling it, to me at least.
About the bike thing. I rocked a bike all summer in the suburbs (Temecula Cali) it was like 100 degrees everyday but it was awesome. Life is different when you are walking/biking-you notice more things.
When facing a “big” change. I just do it and figure it our as I go. How to grocery shop, batch errands together ect. The cool part is, some days I would bike like 10-15 miles, not for exercise, but just cuz I had places to go. You’re gonna be in great shape man. Enjoy!!!
Okay, you’ve convinced me to check Mint.com out. I read a lot about it lately being mentioned in other posts.
I think switching to a bike is a cool idea. You want get fat if you keep it up.
I just sold my car before moving up to Seattle and it was the best decision I made in the move! I’m saving so much money. I thought I would need to get a monthly bus pass (about half what my insurance was), but I’ve found it much more enjoyable to walk everywhere. I’m meeting more people, seeing more things, really feeling the city (if that’s something you can actually do).
I think Portland will really start to look different to you. And there are so many people who bike all winter there, it can’t be that hard
Travel is one of the best investments you can make. The experience will last you a lifetime.
Budgeting is something personal that few of us write or talk about. Why, when it’s one of life’s necessities, do we feel embarrassed by money & not spending it?
Thanks for sharing your experiences, would be great to see how it pans out for you.
good for you for going carfree – I’ve been without a car for 2 1/2 years and love it! Bike and bus and walk everywhere. It’ll increase your creativity for getting places 100%. Good for you for taking this step.
If you love to read books I would like to recommend reading Millionaire Mind by Harv Eker. You will learn very powerful knowledge from it.
Hey Sean!
Great to follow your progress. I definitely agree that a car can be very expensive, a bicylce is easier, or even get a small scooter if you live in the city.
I think its a good idea to make a list of every single expense you have and then decide whether it is essential or if its not, and that way you can cut pretty much to the bare minimum and set a budget for youself!
Have a great day
Cheers!
Diggy
Nice update. I would love to get rid of my car, it just sucks money out of my account like crazy. Unfortunately, I live in an area where public transportation is nonexistent. So good for you getting rid of yours! It will be such a large burden lifted from you I bet.
Sean,
I am so curious to see where this will take you. I’m becoming more and more curious about this more minimalist lifestyle approach and its transparency.
Thanks for sharing this!
Jill
Budgeting also something I’ve started working on for the past few months. I make sure I send money to my savings account as soon as I get paid and make most of my purchases in cash.
I’d love to get rid of car payments, insurance and my car but since I live in an area where a car is a MUST, I’ve been thinking of downsizing and getting a more fuel friendly car.
I’ll have to check out Mint.
Traveling will help you keep your spending down as far as consumer items go because you just don’t have the room and going through the process of ridding yourself of unnecessary items is a great lesson in future living. That said, plenty of money can be burned on experiences too. Just need to find a balance I suppose.
For a slightly different view (rather than the usual frugal spending ideas) on financial planning I encourage you to check out Ramit Sehti’s blog and book at http://www.iwillteachyoutoberich.com/“. Don’t let the name put you off, it’s not a get rich quick scheme. The good thing is much of his advice is also aimed at younger people just starting to think about financial planning.
I’ve been without a car now for nearly two months and whilst I’m not living in the same city, I don’t miss it. Lots of walking and way more use of the iPod. Also much less angst from being stuck in traffic. Hire a car if you need one or use a service like Zipcar if they are in your area. The environmental and physical benefits make it a win-win too.
Also agree with the recommendation for Harv Eker’s book.
I don’t have a car (use my gf’s a few times a week) and I heart it. I couldn’t have survived college without a car, but after that I was just too lazy to really address not having a car. I sold my truck (for WAAAAY more than I thought I would) back in February and I hope to never have to have a car again. If and when I have a family, I will need one car, but hopefully, I will never need my own again.
I heart Mint as well. It is amazing. I hope I was the one that turned you on to it. If not, lie and say I did. HAHA
Dave Damron
LifeExcursion
Mint.com is a great resource–I’ve been using it for the last year or so, and boy, has it really helped me stay on top of my personal finances.
Before moving up to Boston last year, I sold my car, and to be honest I’m going to go as long as I can without owning one. It’s been tough, especially when I feel like escaping city life, but it’s also been quite liberating to rely on self-propelled and public transportation.
Thanks for the update!
Awesome. I recently began using Mint.com and I love it. It is really incredible to actually SEE where my money is going. Puts things into perspective and definitely makes me more conscious about my spending habits.
I am really proud of your for becoming more “frugal” I am right there on the path with you. Keep it up!
-Dena
For the last couple of years I’ve been paying down debt that I acquired stupidly living above my means. I’ve been getting better and better over time at being frugal. I cut out cable, I eat mostly at home, etc etc. The good thing I can say is, it eventually becomes normal to be frugal. You don’t have to rethink things as much, you just… don’t spend as much as you did before. Your habits change. Thank god for that!
As for the car thing, I sold mine in March of 2008. I did a test run for 2 months before that however. I suggest you try something similar if you are really thinking of getting rid of it. Take the car to a friends house, give him the keys, and act like you don’t have it for a couple of months. If you can handle the two months, you can handle it long term. I’ve been car-free for a year and a half now, and it’s the best thing I did. I’m lucky to live on the subway here in boston, and have zipcar. It’s nice when you need a car for a few hours.
Best of luck to you!
-Josh
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