most people will budget only when they absolutely have to. budgeting is an ongoing process that allows one to save, preparing for the future that nobody knows

 

In The Absence of Hardship, You Need Other Ways to Focus Your Resources...



It may be true that people budget only when they have to, but in truth budgeting is a tool and a discipline that allows people to direct their resources to the goals that matter most to them, regardless of means.

Whatever your resources, you will achieve more if you have a budget process that periodically compares what you are spending to what you are trying to achieve. If you are not budgeting it is practically guaranteed you are "wasting" money on lower priority items that you could be directing to higher priority items.

...In most of the poorer countries I have been too, people live with nothing like the standard of living that even "poor" people here take for granted, and they tend to get along just fine, assuming they aren't starving to death. To be honest, I bet lots of people in other countries who have nothing more than their families and a modest income are even HAPPIER than people here who obsess about savings and investments. ...

This is exactly why I have decided to develop a "bug-out" option for myself in a 3rd world country. After looking at the way I have been living, the activities I enjoy and the people I enjoy them with, I just can't see a way to really live simply, frugally and self-sufficiently--and be prepared for contingencies as I would like--in North America, without seriously uprooting my life, feeling socially "deprived," and likely still being unprepared for major price shocks in food, energy, and the value of the dollar.

On the other hand, in Central America where many people live much closer to subsistence, I expect it will be easier to grow food and botanicals, harvest water, generate power, even keep chickens, where many others are already doing the same. As long as it is possible to travel for work, I can do so, but should that option close, I will at least have a place to retreat to that does not require heavy inputs of energy and money to be habitable.

Once I saw that drastic change may be forced on us either way, it made it much easier to contemplate drastic changes of my own choosing.

 

There are many people that participate on the forum that live frugal out of necessity. Sure there are a few folks, that have so much disposable income, they make weird prep recommendations like having $10,000 cash on hand. Or recommend to people that they go out and buy several thousand dollar whiz bangs. Like everyone can do so. After all what is a few hundred bucks here or there?

You can get by on very little but it does take acknowledging that your income does not support the extras. Folks that lose a job but keep spending at the same level get themselves in trouble. As do the retirees that refuse to cut back with a reduced retirement income. One thing that complicates peoples life is the need to service debt. Debt might be fine when the money rolls in but it becomes a millstone when the income stops.

 

I still advocate prepping, having a retirement and emergency fund. Like you said, one has to budget and be realistic about when & how these objectives will be met. If all you can afford is one silver coin and $20 in savings a month, at least you’re on the path. It gets frustrating for sure though, especially looking at posts where people are buying $3,000 guns like they were .99 cent tacos.

 

Here’s a typical situation the casa de WILL deals with;

WILL working all the OT he can for months to save up $900 for a much needed survival item. Mrs. WILL then breaks the news that some furniture is worn out and needs replacing. Yea, that stings. I’ll bet there’s quite a few on this board who can relate to that one...ha ha.

 

Here’s a typical situation the casa de WILL deals with;

WILL working all the OT he can for months to save up $900 for a much needed survival item. Mrs. WILL then breaks the news that some furniture is worn out and needs replacing. Yea, that stings. I’ll bet there’s quite a few on this board who can relate to that one...ha ha.

While we aren't struggling financially, I do have to budget to buy my preps and I bought my last sofa's from The Salvation Army. The one's previously were 22 years old and I did buy them new.

I put my family on rice and beans to squirrel away silver and some gold.

All my appliances and TV's are at least 15 years old and probably even older.

While I would never call myself frugal, I do budget heavily at times to afford the preps I buy. I don't mind at all.

 

Sitting home on the weekends because there’s no money to do anything takes some getting used to. Going to the dollar movie and getting a pizza is considered a night on the town. This is where having a homestead is nice because there’s always something to do.

I'm constantly on the look out for free activities or events. Pack a picnic lunch and it's a fun day.

For the rest, I totally agree with you, including the DIY repairs.

As to the comment from someone else about saving $X and then the spouse says we need new furniture. I've been married a lot of years and I still haven't bought any furniture except matresses and one futon sofa. The rest have been hand me downs or found on Freecycle. New furniture is a want, a roof that doesn't leak is a need.

Being on a tight budget means that you look at every thing and work on the needs and try and find a work around for the wants.

 

definitely. We have somewhat expensive furniture but have had it already for 12 years and it barely looks used. People in my area have garage sales with high end furniture for pennies on the dollar, they just want to get rid of it and dont want the hassle of craigslist.

 

save pennies now so can spend dollars later

 

I know you're not asking but these tips helped a friend reduce expenses.

1. Get rid of cable tv and just pay the lowest for internet. I pay 40/mo through comcast. You can get free tv with an antenna and there are alot of things you can watch and do online.

2. Get rid of your cell plan and get a prepaid through virgin mobile. I pay 80/ mo for two smartphones. They have cheaper off you don't need a smartphone

3. Libraries rent out dvds. Netflix is only 8/ month


As far as mentality, I know it would be hard to go from six figures to barely making the bills. We didn't have a huge change like that but we did have a time of significant lower income

 

3. Libraries rent out dvds. Netflix is only 8/ month

What's cable?

Libraries also have free ebooks if you do that and ours does a 2 for 1 day on videos and books on tape.

 

I completely understand what you're going through, WILL. My wife and I also were in a very good positions and almost a year ago she was dianosed with MS (it was actually on our honeymoon). She's in the process of going down to part time as long as able, but I can see an end to that as well. We're currently scrounging because we're expecting our first child in just under a month. Strict budgeting is a new thing for us as well and definitely challenging. We're still trying to figure things out.

 

i'm a newbie too, i have it just alittle worse. i'm single, got hurt at work and became disabled--so it was culture shock to go from making a very nice living to practically nothing. but i do have some tips for you. if your wife was paying in social security long enough, she should be able to get a disability check both for herself and your child--it's not a kings ransom, but it is a help. you should also check any other kind of social service help she can get. some will be means tested--meaning what you have in the bank--others will be income tested, so you may or may not qualify--but certainly do the applications for everything you can. food stamps, housing, utility help--that includes gas, electric and even cell phones. the unfortunate thing is that in the social service world the right and left hands dont know what eachother are doing--but talk to enough people and you will find what's available at your COUNTY level--that's where you want to be.

secondarily, i listened alot to dave ramsey. he has interesting theories on your money and how to budget--and they worked for me. find him on you tube. he has a daily radio show that i only listen to on occasion, but the you tube video's are awsome. they changed my perspective... that and prepping has me want an ultimate move from the burbs to getting some land where i can garden...i dream of a root cellar and warmer climates.

also i coupon like a mad woman--there are ALWAYS deals to be had. yesterday i had a coupon for 15 dollars off 15 dollars or more--i bought 2--only 2 pair of panties and i still had to go out of pocket for 4 bucks--but i cant get them anywhere else for 2 bucks each.

get as many loyality cards in local places that you can. if you're not vegetarian, red robin gives you a free burger the month of your birthday--that would be two evenings out--one for your wife, one for you. even my local outdoor shop gives a gift of 10 dollars off ten dollars or more. i usually pick up an mre an something small to cover that cost. several times per year, i get the same coupon from kohls stores--i head straight to the clearance section and pick up gifts for as close to the 10 dollar mark as possible. i've gotten photo albums, potholders and dishtowels, a cocktail making book, candles, cd's all sorts of stuff for free or close to it--i think my last trip had me owing kohls 68 cents. godiva used to give out a free piece of candy once per month; now they've changed it to a free piece with a purchase--but you can still just buy one piece and get one free. it's definately a lifestyle change, but it also changes your perspective. our grandparents saved until they were able to buy instead of give it to me right now and living debt free gives you a sense of freedom that you probably have never known before.

 

Now days, we have to squirrel money for months for such a purchase. When we’re almost there, something breaks and the money’s gone. Replacing broken stuff doesn’t happen too often. These days most stuff is repaired, and I have to do all repairs myself because I can’t afford to hire anyone.

I've been wanting a dehydrator, it's been my next non-food item I want to buy and this keeps happening. Sometimes it's because something better comes along, like the Tattle lid sale last year, other times it's because we need parts for a car repair. I can't imagine what kind of shape we'd be in if we couldn't do so much ourselves.

 

dehydrator is one of those things that is relatively easy to make. And there are lots of ways to do it, from using an old toaster oven to a refrigerator.

old computer powersupply/fan can be used for the fan (people *want* you to take away their old computers).

Heating element screws into a lightbulb fixture

 

Will, please don't worry. I'm not sure when all the changes happened and how long you've been having to go "frugal". But for clever, creative people (like yourself), there's a moment when a little click occurs, and all of a sudden things start to fall in place much better, and life becomes BETTER than it was before.

There are/will be some changes, sure. But you won't mind them.

You start to find what is REALLY important to your happiness and wellbeing and you start to move away from the media induced consumerism we have all been brainwashed with.

You start to feel a sense of accomplishment and pride when you can solve all kinds of unusual little and big problems WITHOUT money. (I call it "making something out of nothing") It becomes sport or a game. Your relationships will change (in a good way) often more helpful. All the gadgets that you think you need now, you most probably don't need them, and/or can find another way of getting the job done without the gadget.

New clothes, gadgets, furniture lose their significance and you start to feel like, "hangon, who will think less of me for a worn couch?"

You start to trade and learn new stuff. After a coupla years, you won't want to go back to the old way.
As an example,
On another thread on this board, someone mentioned a TV series that came out around 2003, called "frontier homestead" I think. When the people were interviewed several months after the show was over, they felt bored, empty and lonely. One guy had a huge beautiful house in California somewhere, pool, palm trees, great views. His daughters were being interviewed in the pool. They looked really unhappy and said they were deathly bored. Like how often can you go to the mall? And his wife felt incredibly lonely rattling around in the big house. She didn't even know where the rest of her family was in the house. Another family, a little boy was bored out of his little skull, playing with some kind of computer game because there was nothing else interesting to do. And the parents looked all a bit faded and unhappy too.

I also just want to let you know that I am speaking from experience too. I have never been happier than I am now. being in nature, growing my owns stuff, with my dog and cats is absolute bliss. I don't have hot water, and my fridge recently broke. I am not replacing it, I am using my cold cellar and that works fine. I can't tell you when I last had my hair done professionally, and nail polish is used to mark my tools so I don't lose them. I no longer buy ANY electrical gadgets, as I am planning to not use electricity soon. I found my own ways of handling things like dehydrating, drilling, sewing, toasting, mixing, etc.

There is one other thing. We are BLESSED with the internet. Whenever I am trying to figure something out, I look on the net. It is the biggest, bestest library of useful things one could ever hope to encounter. And from other people's ideas, I often come up with my own.

So, I'm wishing you an abundance of pleasure-ful moments very soon. They are there to be had.

 

We went from 2 incomes to 1 literally overnight. We have savings, trips planned, and didn't have to worry. Now, even with long term disability, even paying off vehicles, we still have to watch our spending.

It will get better soon but it has really showed us how to live better.

 

Hubby and I have struggled all our lives to make a living. We, through these struggles, have managed to pay off our mortage on our bol. We have lived at our bol for the past 20 years.

Like you, my husband was put out on disability because of a very bad heart. So we went from a good income to disability payments. We moved from the CA Bay area to a 20 acer bol with no electricity or pluming. We had an outhouse and wood heating. It was a hardship at first.

During that time we have learned to do without a lot of the must haves that our society accepts. We have built on our abuilities to be more selfsufficient. We have learned so much during these years.

Our bol has been improved by adding electricity, a well and an older mobile home. It is all paid off.

Hubby had a heart transplant 2 years ago and it has been a very slow recovery. There are many things that we will be unable to do even as his health improves. But our prepping plans have been made to accomodate our conditions as best we can.

One thing I can say....We are both so proud of what we have accomplished and would never go back to the life style that we had before moving here.

Our children thought we were crazy old people. But now they want to make sure that we leave them our property in the will and not sell it. Ha! Ha! They will get it all including the maps to the treasures.

God bless and keep on prepping.

 

Thank you Will for this thread - it has drawn out some really great comments!

When I first researched preparedness here, and elsewhere, I was very discouraged; everyone must have a lot of disposable income to do all the things "required" to survive. I didn't live in the right place, didn't have the right home, car, guns, etc. (Mr. Rawles book, "The Patriots" sure didn't help.) I'm sure I'm not the only new prepper to have felt that way.

But we've been fortunate to live in the 3rd world for a while, as a family, and live in a manner that I think many in America fear - without power, without emergency services, without reliable mail to receive quality goods, without options, even without (gasp) guns. I say fortunate, because I believe when the dust settles, people will find alot of those very expensive prep items turned out to be simply nice to haves. But I don't begrudge them their money - if they have it to spend, and choose to spend it on that, then good for them. I may be skeptical of its value, but I pray it works for them as they hope.

I believe those who presently live frugally (by choice or not) will have a resilience that money and things simply cannot provide. They are most likely to think creatively, to know they can be happy for less, and have a healthy perspective of what truly is a crisis.

Our primary prep has been to be debt free for over 20 years, to live on only one income even if we have two or more, and to raise a generation that thinks. Our preps are flexible, we move around a lot - not elaborate, but reasonable. We'd like to get a little farm when I finally retire, and we're saving up to pay cash - but if it all falls apart tomorrow, we'll be just fine. I think another good prep, that doesn't cost any money, is to recognize that life is very important, but a good life is even more important, and the after life more important still. So when we prep, we prep not just to live, but live a good life as long as we are able, and never fear the after life.

 

There are savers
and there are spenders
all across the spectrum
Whether one chooses to spend or save is a personal decision
Telling someone "you need to start saving money"...or "you should live frugal" makes no difference to their consumer spending preferences (or rate)
It's their choice..and their life....

Think of it this way
If you found a 100 dollar bill on the street
How much would you you spend and how much would you save?
I would spend 70 bucks...and save 30
So my marginal propensity to consume=.7
Marginal propensity to consume

The savers like to postpone consumption (save for a new couch..to enjoy at a later date)
The spenders want to consume NOW (and enjoy the marginal utility immediately)
The spenders are the ones who rack up credit card debt and buy 80 inch tv's with their Best Buy 0% interest credit card.......

I've been living fairly frugal the last 3 years
I even have a compost pile!!!!!!

 

There are savers
and there are spenders ...
...

And there are some off us that would be happy to make either choice.

 

Sitting home on the weekends because there’s no money to do anything takes some getting used to.

IMHO It's OK to be bored! Especially for children. Being constantly entertained or distracted is bad for the soul and the mind.

...the best ideas and adventures come from a period of being bored :thumb:

 

Here's a show for this thread.

http://www.tlc.com/tv-shows/extreme-cheapskates

 

I did the quiz, and am a cheapskate according to it , but they didn't really ask the correct questions

Biggest items to save money on imo: never ever buy a new car, don't go out to eat , you can get perfectly good furniture on the side of the road for free

 

HL431!!!!!!!!!

No Way!! Those people are impared! I'm laughing myself silly but am disgusted at the same time.

 

They are a bit crazy!

But hey, it's TV. "Reality" yeah right TV.

 

While it's always nice to have lots of money for gadgets and nice stuff, the reality is that the skills and mindset you learn from a frugal existence are far more valuable to enduring hardship. In most of the poorer countries I have been too, people live with nothing like the standard of living that even "poor" people here take for granted, and they tend to get along just fine, assuming they aren't starving to death. To be honest, I bet lots of people in other countries who have nothing more than their families and a modest income are even HAPPIER than people here who obsess about savings and investments. Of course it's difficult to scrimp and save and deny yourself all kinds of stuff that friends and neighbors take for granted, but in the end, you will be far more resilient and resourceful than many others who don't have those habits. My best wishes and deepest respect for your commitment to your future financial stability!

 

To be honest, I bet lots of people in other countries who have nothing more than their families and a modest income are even HAPPIER than people here who obsess about savings and investments.

I feel the same way about the rural, poor, out here in Southern Colorado
and I think brothers and sisters who grow up dirt poor have stronger "bonds"......

 

Prepping shouldn't be about spending, it should be about mentally prepping oneself to living more frugally than today. So in that case, dial back work to sensible levels. And instead of focusing on more money or consumer goods, reduce your expenses.

The prepping subculture in America, like every other one, is primarily materialist in nature. Spend, spend, spend, spend. I always think of traditional/native/aboriginal peoples who survive with no economy or income at all.

The make do without all the modern conveniences. But one area they (used to be) fortunate with was that nobody kept hitting them up for money. Tax, tithe, tribute, mortgage, lease, rent, etc. would be out of the question. They hunted, gathered or built what they needed. Their time was their own, and nobody really owned land.

So look to prepping like that. A return to a simpler economic arrangement, pre-serfdom, actually the natural state of affairs. What we have now is not natural. With all the modern conveniences and technology we have today, it's shocking any of us is working more than 16 hours/week. I'd say we, individually and as a society, are doing something terribly wrong. If we need to work this hard in the best of times, what about disaster? Work 200 hours/week?

No, I believe that frugality really IS the better answer.

 

OK, First off Mrs will needs to not let the MS stop her. She needs to push and I mean push hard stay active walking and so one. Gardening will be good for her. I am talking from what my sister and BIL have had to do. My sister also got breast cancer and keeps going. Yes you need to trim expenses

I can live on $10 a day for food not allot but works for me and the mrs. how do we do that is we fix a meal it does 2 second one is our lunch at work. we eat some meals that are very simple others are not. We were both raised in houses that were limited in income and brought different skills to the table. We shop at discount stores, buy bulk, and freeze foods, can foods, an only buy some foods when cheep. We stock up and use down till can restock. You need to decide what level of wear you can take on furnishings.

As far as things we do we take trips stay at less expensive places. Our income is about the same a yours is now. Our prep re simple things mainly foods, ammo, and we have a bol that will work for some things.

 

I am in a similar situation to the OP; a pretty decent salary (65k+) that was cut in third after being diagnosed with MS made full time work in my career impossible.

However, I've lived frugally my entire life, starting from middle school, when I'd squirrel away my bus change and walk to school instead (grew up in NYC). It was that mentality that allowed me to steadily save up a decent nest egg, even while living in one of the most expensive cities on the planet, and which helped me to weather the transition into part-time pay levels.

Now that I earn much less, nothing has really changed; I still calculate the best unit prices and wait for sales, I still only buy what I absolutely need and what will store well, I still look for ways to keep costs low (like packing my own meals when traveling to avoid buying over-priced junk, limiting use of A/C so that I only have a $50 electric bill in July in Florida, baking my own bread using wild yeast, etc...).

I find that if I make living frugally a challenge or a game rather than thinking about how I'm 'limiting' myself, it makes a huge difference.

 

I have always tried to live below my means and work the wife over as well. She has had a horse or two for years and trains on them, we ski and I train and race with season passes, fly fish and shoot. Not inexpensive hobbies, but hobbies/sports that get us outdoors and exercised as well as fitting well within our budget.

We don't eat out often but we have bought 3 new trucks and recently a new SUV in the last 30 years. We paid for our son's college,,, ouch, but it all fit well enough.

It is not how much you make or spend, but you need to live below your income level and you will be fine. We have usually (my wife sometimes differs) kept car loans well within our abilities to pay after large down payments and work out of pocket for everything else. The one period things were tight were the years our son was in college, but even with that $25k annual bill we did fine.

It all comes down to personal responsibility.:thumb:

 

Frugality can also be a mentality that translates to "poor" .... this is where hoarding might creep in or tendencies for some folks. My mother used to always say growing up "I don't know how we're going to make it til the end of the month!" and "We're broke" - so I felt like we were going to run out, was scared of going hungry or without clothing or shelter (because OMG we can't pay the rent!), so as I grew up, that stuck with me.

I ended up hanging onto stuff I might use one day - I always described myself as poor, even when I had "decent' money from working. It's taken me the better part of a few years to get into the mindset that I am blessed, and thankful for what I have. Less is more, because when you can't find stuff, it's no good to have it if you don't know where the hell it is because it's buried in crap you're never gonna use.

If you are overwhelmed by stuff, take a day or week at a time and donate what you can. I can't stand people from garage sales pawing through my stuff, so I donate and out of sight, out of mind. It's one way I prep my mind - less is more. I want to have what I need, and use what I have. If I am not using it or if it does not serve a purpose - out it goes - including my "old" mode of thinking.

 

taco's

"Taco's" @ "Jack in the Box", 2 for a Dollar!!!!

Cat and Sleepy Turtle in Seattle

 

Too many people over extend their costs, just to have something new or something trendy. Be sensible and only by quality, necessary items for the long term.

 

I am so greatful to you for starting this thread, I have had a few here PM me and criticize me for being on perm disability (govt handout), also it IS disheartening to read day after day all this money people spend without giving it a 2nd thought. I am female on my own, disabled i can do some things but major back and knee issues. People dont seem to understand that its very hard to just go buy stuff when you get 800.00 a month and have home repairs ect. It is nice to hear other options to some of the more expensive preps.. Thanks again and congrads on becoming a daddy soon