spend less, work less

James Howard Kunstler writes in The Long Emergency that the decreasing availability of cheap oil will cause massive disruptions in our economy.  As oil becomes more scarce, its price will continue to increase, causing prices to rise for all of the goods we purchase - food, clothing, appliances, electronics, cars, you name it.  That's because it takes lots of oil to grow, produce and transport everything we consume.  Our daily commuting costs will climb, too.  As the cost of everything increases, we'll buy fewer non-essentials, and businesses will suffer from decreased sales.  To reduce their operating costs, they will outsource and automate wherever they can, and they will lay off employees, further reducing consumer demand.  As oil prices continue to climb, many companies will go out of business, causing more lay-offs.  You get the picture.  I won't try to summarize the evidence behind Kunstler's conclusions - you can read the book if you're interested.  He doesn't offer any solutions, because there aren't any.  Instead, he attempts to describe the disruptions and disorder that will occur as the economy contracts.  He paints a picture of a less globalized, more locally-based economy, where people consume a lot less, and are more directly engaged in producing what they consume.

It's depressing to read stuff like this, but by becoming informed, you have the opportunity to plan and prepare for the changes ahead.  For myself, I'm trying to build up my savings, so I can weather financial hardships.  I'm also trying to reduce my dependence on my car.  That means looking for a job that I can get to by bus or by walking.  This spring, I'll increase the size of my vegie garden to eat healthier and reduce my food bills.  Those are all things I want to do anyway - reading Kunstler keeps me motivated and focused.

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.

For a decade, John Perkins was Chief Economist or "economic hitman" for a major international consulting firm, coercing developing countries to take on massive debts to finance infrastructure projects that benefitted multinational corporations at the expense of the local people.  In this video, John describes how the US government and American corporations collude to keep developing countries in poverty...

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.

My goal has been to reduce my expenses so I can afford to work part-time, and can use the extra hours to grow my own food, get more exercise, do volunteer work, etc. But, it's not easy to find a part-time job that pays a living wage. I haven't given up completely, but now I'm broadening my search to include full-time jobs at organizations that share my values, like energy efficiency consulting firms and wildlife conservation groups.

Why are our employment options so limited? If we want to earn a decent income and have benefits like health insurance, we have to work for big corporations or the government. That's not an accident. Our economy is designed to keep us trapped - working for the corporatocracy.  According to Urban Dictionary, a corporatocracy is "rule by an oligarchy of corporate elites through manipulation of a formal democracy." That pretty much sums it up.

Millions of Americans left farm work for factory work 150 years ago, and a similarly massive shift is happening now, according to Sara Horowitz.  Currently, almost 1/3 of the work force or 42 million Americans are self-employed or working as freelancers, consultants, contractors or part-timers.  They aren't covered by the worker protections designed for factory and office employees during the New Deal era.  As Horowitz explains, those laws assumed that most people would work for a single large company until they retired.  But, that is no longer the case.  In her view, worker protection laws need to evolve, to provide a safety net for workers of the new economy.

In the 1930s, people had to make do with less.  My grandparents started an auto wrecking business and junk dealership.  The shop and the house were made from salvaged wood, with windows made from truck windshields.  These people were seriously into reuse and recycling, way before it was cool.

Over the past few months, I've concentrated on reducing my expenses, so I can spend less time working.  I recently asked my boss if I could work part time, and he said yes, so I'm down to 3 days per week at the office.  With the extra hours, I've been walking more, gardening more and just going about life at a less-hurried pace.  

My next goal is to gradually transition to self-employment, so I'm developing a couple of small businesses - an organizing business and a garden design business.  And, I'm committed to slowing down and savoring small pleasures like walking Penelope...  

By the way, if you're considering becoming self-employed, I recommend Barbara Winter's book Making a Living without a Job.

I've just finished reading a great book called Your Money or Your Life: transforming your relationship with money and achieving financial independence.  The author, Vicki Robin, provides a 9 step program to help you assess where you spend your money and consider whether that's really how you want to invest your "life energy."  Here's Vicki describing how her book helps you become liberated from the consumer culture that keeps us trapped in our jobs...
 

Here's Vicki's blog, with more ideas and information about becoming financially independent.

If you haven't read the book, I highly recommend it.  If you have read it, please share your thoughts.  What impact did it have on you and your relationship with money?