spend less, work less

These are some of the ways I minimize my living expenses:

1) convert the lawn into a vegie garden, and eliminate the lawn mowing service
2) buy fewer clothes and, when possible, shop at Goodwill and consignment shops
3) make a big pot of soup or a large casserole on Sunday, and eat it during the week
4) walk the dog instead of going to the gym
5) borrow books from the library instead of buying them
6) use Netflix instead of cable TV
7) drink tap water in a reusable bottle instead of juice or pop
8) drop the landline phone
9) go natural in terms of hair color
10) live with roommates instead of alone

Worried that spending less will harm the economy?  Our current economy is based on endless growth and debt.  Most economists can't imagine another way and don't see that the current state is unsustainable.  So, they insist that we have to keep borrowing and spending, in order to revive our economy.  There are a few heretical economists who believe a "steady state" economy is feasible, and can enable us to survive and thrive.  This article from Mother Jones, called Nothing Grows Forever, describes some of the research that has been done on this topic.  Sure, Mother Jones is a progressive publication.  But, we'll start hearing more about this in the mainstream media, as people gradually realize that we've been on a dangerous and destructive path, and that there are other, potentially better, ways to structure our economy.

Yes! magazine has a simple framework for redefining what "making a living" means.  It prompts you to consider whether the way you earn and spend money is aligned with your values.  This framework is basically a nutshell version of Vicki Robin's wonderful book, "Your Money or Your Life" which I discussed in a previous post.

Short of winning the lottery or coming into an inheritance, there's no easy way to achieve financial independence.  Each day, you have to spend less money and save more.  For example, instead of replacing my worn-out shoes, I took them to JD's Shoe Repair and got them spiffed up.  For $15, cobbler Julie Derrick re-stitched the seams and reconditioned the leather.  They feel as comfortable as old shoes, because they are, and they look almost like new...

JD's Shoe Repair is located in inner NE Portland, in a converted gas station.  There are 5 or 6 tiny businesses in that space - several food carts (shown above), a dry cleaners and the shoe repair shop.  When David Korten describes the new economy, he talks about the importance of community-based lending that serves the needs of small business owners and the residents of the community, not the absentee shareholders who are only interested in profit.  JD's is a great example of how the new economy can work.  When Julie needed some funds to improve the lighting in her work space, she went to a local non-profit and got a micro-loan.  Its a win-win for Julie as the business owner, for me as the shoe wearer and for our neighborhood as a whole.

Here's an article about how the non-profit micro-loan program works here in Portland.

Yes! magazine has an inspiring article about how Americans are adapting to job loss and lower incomes by developing DIY skills and refocusing on their families and communities. Corbyn Hightower is a case in point.  She had a successful career selling natural skin care products, and a comfortable lifestyle made possible by a booming economy - a beautiful home, expensive SUV, gym membership and the best consumer goods.  She worked long hours and travelled a lot, so her husband stayed home to care for their 3 kids.  When the recession hit, Corbyn's commissions dried up and she lost her job.  As a result, the family had to sell their house, car and other possessions, and drop luxuries like the gym membership and cable TV service.  They rented a small home in a humble neighborhood, and started raising chickens and growing their own food.  They've learned how to save money by making things from scratch, fixing things that break and trading with neighbors.  As a result, the family is able to spend more time together, riding bikes, harvesting fruit and getting to know their neighbors.  Corbyn says, “I think we have to reinvent ‘poor.’ Most everyone in my life is enduring new poverty.  It’s an unfamiliar and scary leap.  And if it turns out that some of these changes feel good, well, then it’s a win-win. The Great Recession is a watershed time for my generation, possibly the era that will live on to define us.”  Well said, Corbyn.

If I want to work less and be more financially independent, I need to reduce my monthly expenses. 

Other than my mortgage, my biggest expense is utilities - gas, electric, water, sewer/trash, internet, phone and an alarm system.  I don't need the alarm system, because I have security doors and a dog.  So, I've discontinued that, which saves $40 per month.  I've also eliminated the landline phone, saving another $40.  If I had cable TV, I'd cut that, but I don't have it.

Water is really expensive in Portland - my water bill runs about $100 per month.  I used to keep bricks in the toilet tank to reduce water usage, but last summer, I got a dual flush toilet.  It's a Toto and it works really well.

Eliminating lawns is another way to reduce water usage.  And, if you replace the lawn with vegie beds and fruit trees, you can grow some of your own food and reduce your grocery bill.  So, last week, I ripped out the back lawn.  OK, I hired someone to do that.  Regardless, I'm saving $80 - $100 per month in lawn maintenance fees.

By eliminating the alarm system, landline phone and lawn mowing, I've saved about $160 per month and I'll have fruit and vegies as a side benefit during the summer months.  Its a good start.