Your Favorite DIY’s–frugal? entertaining? both?

Do it yourself and simple/frugal go hand in hand.

I’ve found that every 10 hours I cut off my work week has changed my outlook on time and money

Sourdough starter

drastically. When I worked 70 hours a week, I would not have even contemplated making homemade bread, designing my own makeshift closet, making a thermal cooker or learning to do pottery, for example.  I counted my minutes out like a miser counts his pennies.  No way was I going to spend my precious time watching yeast do its thing!  And if I could spend $20 to buy back a few hours of my time from chores, cooking, financial planning or working–the money would fly. Likewise, reducing the time spent working freed up time to do money-saving activities. . .

The simple act of cutting back to 50-60 hours a week felt like some kind of revolution for me. Suddenly, I had the patience to call and argue about a mistake on a bill, or plant potted herbs and lettuce on my balcony.  Some of these activities, I even found I enjoyed–once spending the time no longer meant sacrificing my sleep or my health.

DIY–saving money while having fun.

My recent foray into unemployment has lead me to contemplate DIY projects in an entirely different manner.  I find that I do things myself for a variety of reasons:

• To save money (baking bread and most cooking fall under this category for me)
  

  Homemade bread--a favorite DIY.

• Higher quality (any food item, home grown vegetables and fruits and potentially homemade clothing)
• Entertainment, a sense of mastery and fun! (pottery-making, for example)
• Satisfaction–that I don’t have to rely on a specific manufacturer, grocery store etc for what I want or need: (shampoo alternatives, homemade deodorant and my makeshift closet fall under this category)

DIY and ‘What do you do all day?’

People have the most amusing ideas about being bored without their jobs and paid entertainment. I’ve been unemployed for coming up on a year (not on purpose, but hey!).  I’ve never been bored mainly because given a little spare time to work with my mind rattles off all kinds of oddball ideas. . .what if I could make my own soap?  What if I built an insulating window-covering?  What if I grew my own sourdough starter? Some save more money than others, but the creating and learning process certainly keeps me entertained.

in progress--tomato seedlings

What are your favorite DIY activities and why?

I certainly don’t think that money is the only purpose for engaging in a DIY project.  I’m curious to know what your favorite DIY projects/activities are.  Do you chose activities for enjoyment or because they save money?  Is there a new DIY activity that you’re particularly proud of or one that you hope to take on sometime soon?

Greeks, Goldman Sachs, US Goverment–whose mess is it?

Note: this post was inspired by a lively back and forth between the authors of the Monevator and Money Energy on the issues surrounding the Goldman Sachs scandals, the responsibilities of various nations involved and the economic differences between the US and Greece.  You can see those posts and threads here and here.

Watching the Goldman Sachs scandals unfold as a US citizen and resident of France has been an interesting journey to say the least. To me, Goldman Sach’s entanglements with Greece felt to me like an act of war on the European Union. I wondered what the US government would have to say about all this and discovered, to my mystification, that all of Goldman Sach’s questionable behavior both in Europe and the US appeared (mostly!) legal.  See this great Newshour report for a summary of how this is possible if, like me, you still struggle to fathom it–this explanation is for Goldman Sachs’ shenanigans in the US, but the basic principles are the same as with the Greek fiasco.

Blaming Goldman Sachs? Too easy, I’m afraid.

Goldman Sachs did what any an amoral(immoral) corporation would: make money by any means legally possible. They make an easy target for hatred, especially when you see the contents of their personal emails splashed about the news (who are these people?!?) or watch their representatives being vilified by congress (Newshour coverage).  Here’s a gem from Senator John Ensign of Nevada during recent Senate hearings:

I think most people in Las Vegas would take offense at having Wall Street compared to Las Vegas, because, in Las Vegas, actually, people know that the odds are against them. They play anyway. On Wall Street, they manipulate the odds while you’re playing the game.

Does that tongue-lashing make you feel better?  . . . Me either. Part of me would love to see Goldman Sachs actually face the real threat of being held legally accountable for their actions–but that would have required their actions actually being illegal.

Blaming the US congress and US voters?

I’m not particularly impressed by our members of congress at this time. Perhaps US voters should consider vilifying (and then voting out) our politicians, rather than allowing ourselves to be distracted by their silly Senate hearings about actions the implicitly appear to condone when they refuse to make them illegal.   Indeed, by sitting back and failing to act, we are also condoning such behavior. 

And what about those Greeks?

The French media are very preoccupied with the financial corruption of the Greek government, and the rampant tax evasion that occurs there. Often sited here in France as a symbol of corruption and irresponsibility, le travail au noir, or under the table work is a common source of contention.

After all, if you found yourself forced to shoulder the debts of a fellow Euro nation, wouldn’t you want to know that the citizens of that nation were at least paying their own fair share of taxes? It all starts to seem rather incredible watching people who allegedly don’t pay into their own social programs rioting in the streets when those social programs prove underfunded.

Greek Fiscal Fraud–is it justified?

Recently, I saw a most compelling article at Le Figaro, in which Catherine Schlepp, a former resident of Greece sets out to explain the rampant under-the-table work environment in Greece.  By the time I’d finished reading it, it had  me wondering whether I wouldn’t be guilty of tax evasion myself if I lived in Greece.  As Schlepp puts it:

If the Greeks cheat and refuse to pay their taxes, if fiscal fraud has become a national sport, it’s also because the role of the government is less visible than it is in France.”

She then further details failures in all areas of Greece’s public sector from education, to the hospital system and the justice system and depicts a country with relatively low social assistance for the unemployed.  Given such a track record, it’s no wonder the Greek government struggles to impose new taxes or simply collect those already in place.  The question the Greeks seem to be asking: “What have you done for me lately?”

Schlepp argues, rather convincingly, that for the Greeks tax evasion has become a “condition of survival.” Indeed, when you factor in the arrival of the Euro, the already struggling Greeks have seen their cost of living skyrocket, keeping pace with the costs in other European countries while their salaries have failed to budge.

How relevant is the Greek example to other nations today?

What has happened (over many decades) in Greece is what happens in any nation on any continent whose government becomes too corrupt and inept to help its own citizens–or to allow them to support themselves financially without cheating. To say that economically the US is better off than Greece might well be true.  Politically, however, the US government seems to be heading closer every day towards the kind of monumental political folly that got the Greeks where they are today.  I would argue that it’s a matter of degree, and perhaps time.

And here in Europe, the question of travail au noir as people attempt to make ends meet and lose faith in their governments does not seem isolated to Greece. Here in France, I hear people talking on a daily basis about the extra hours they work on a ‘cash’ basis or that contractor for home repairs paid au noir.
Lest anyone argue (fairly) that the above is mere anecdotal evidence, I present you with the fact that under-the-table wage earners doubled in France between 2003-2008. And 65% of those caught working tax-free were French nationals–not immigrants.  See full article here (in French).  I’m sure we will discover similar problems in countries (Portugal) as well in the days to come.

Is it just me or is the guilt spread around?

I’m starting to wonder if anyone is going to escape blame here–with the possible exception of the Canadians . On one hand, it’s easy to smell a rat in the Goldman Sachs escapades, although they may have been technically legal.  And these same Wall Street companies seem to only be able to do their deals when political leaders turn their heads to their ways and average citizens become greedy (as in the US) or willing break the law (as in Greece).

What are your thoughts on the legality and morality of the Goldman Sachs scandals on these two continents?  Do regular people have as much responsibility as corporations to behave ethically?  Are the Greeks behaving unethically when they refuse to fork over their legal share of taxes to their (corrupt) government?

The ‘you deserve it’ trap and weekly post picks.

Earlier this week, I was reading a post by Revanche at A Gai Shan Life.  Revanche, who had recently started a new job, had a few friends asking her how she intended to treat herself now that the first paycheck had arrived.  In her musings afterward, she said something I found quite compelling:

What object is necessary to “symbolize” my intrinsic satisfaction? By its very nature, my “accomplishment” suffices. What need do I have of obtaining an object as a reward for doing a job? [That's what payday is for!]

I love a post that makes me think–that makes me ask myself questions.

Are we entitled to rewards for good behavior?

The very idea that good work deserves a reward strikes me as kind of odd.  I think I’m in Revanche’s camp on this one: good work, or achieving some goal is the reward, right?  And why should one expect a reward for doing the right thing, the honorable thing, or just the thing that makes you happy in the first place?

But what’s wrong with treating yourself from time to time?

Well, that’s a good question.  My answer would be that there is nothing wrong with indulging oneself on occasion. . . but why should it be the knee-jerk response to doing something right or getting one’s way?  When treating yourself becomes a habit, and your spending and/or eating (funny how those go hand in hand sometimes) to show how you deserve something.  Well, I think that’s a problem. And it’s a problem that is fueled and fired by plenty a publicity campaign out there.

Treating yourself when things don’t go your way?

Say you get caught in the rain and a car splashes a puddle over your legs as you’re walking home–I myself might be more likely to stop in a cafe for a cup of tea or take a hot bath when I get home–what about you?   If I’ve had a terrible day at work, I might decide to take a break and do yoga or cook a favorite meal for dinner.  Then again, treating yourself to make up for something sounds like a slippery slope as well–if taken to the extreme.

What do you think?

Is the first paycheck at a new job the time to treat yourself?  Does it matter if you’ve been feeling deprived or if you think you’ve won a major victory?  Are there times when you’re more likely to treat yourself than others?

My Post Picks of the Week:

Simple Living in Suffolk asks the question What Happened to the Middle Class in the UK? It’s a great read that puts the concepts of tax increases into perspective at a time when nations like the UK, France and the US are quibbling about the topic.

And speaking of putting things into perspective, Forrest at Frugal Zeitgeist does just that for us in Condom Soccer Balls–not just for hard times.  Check out this post to see life through Forrest’s eyes as he points to the ingenuity of some of he locals during his stay in Egypt.

In Don’t Forget Your Can Opener, Monevator reminds readers of the point of keeping smart finances: financial independence and the freedom to chose when to walk away from an employer, among other things.

Budgeting in the Fun Stuff reminds us about that fun, frugal local resource: the library.  Which reminds me, I need to get to my library to see if I can find a copy of a book I’ve been wanting to read. . .that costs 24 euros in the bookstore!

And Frugal Scholar strikes a nerve on the education front with Giving up Half a Million to Teach Literature. Her annoyance (and mine) at the fact that education is so underfunded and teachers are so poorly paid and precariously employed might just be sour grapes.  What do you think? Are we just a few teachers bristling at the idea that teaching shouldn’t be paid a living wage?

Value of Education at SIF and Money Funk

It’s not everyday I actually blog from my area of professional and academic expertise: education.  Today in cyberspace  you’ll find two of my posts about the costs and value of education:

A college education–more than an investment? here at SIF and

Private Education: Worth the Money? on Money Funk –a post that asks whether spending $8,000 a year (or more) on private education in k-12 is worth it .

If you’re new to SIF, welcome.  Please feel free to take part in the conversation on education . . .or any of the other recent topics here.  You can also subscribe to the RSS feed for automatic updates.

College Education: more than an investment?

Warning: personal opinions and biases regarding education follow!  I’m going to argue that education is more than a simple, financial investment.  In my case, it was one of the best frugal luxuries I’ve allowed myself.  I’m even going to argue that it can constitute a ‘good debt.‘  But I’ll do that later.  First, let’s see if we can agree on a few facts. . .

Investing in college: not a sure thing.

Do you see college as an investment on which you’re seeking a return?  If so, you’ll want to take a look at Is College Worth It? (Forbes.com).  In it, Rich Karlgaard situates the college education within the context of other  investments and explains why it may not be quite the investment we imagine it to be.

Asset classes–stocks, bonds, real estate, collectibles–are always competing with one another. Each clamors for our spare dollars. For periods we favor one asset class over others (e.g., stocks from 1982 to 2000). But when a collective judgment is reached that a particular asset class has been bid up too high, dollars are pulled and the asset class shrinks in value. Real estate may now be at that point. . . .

Do you suspect that this asset class–a four-year-college degree–might be overpriced? I do . . .

The entire article is well worth the read, however, to summarize:

• the price of a college education has skyrocketed
• high prices have resulted in students needing to take on debt to fund school
• the costs of an education (and the interest on the loan) necessarily reduce the return on your ‘college investment.’

College: a smart investment if your degree actually leads to a higher paying career.

And as we know, the financial return only comes about if the college grad actually finds employment at a higher rate of pay than he/she would have found without a college degree. If you’re looking for an excellent discussion of whether the costs of an education outweigh the benefits, I recommend this broadcast from NPR:  Is a College Education Worth the Debt? In it, Professor of Economics, Richard Vedder at Ohio University points towards some moments in which college is not the slam-dunk investment students imagine it to be:

Forty-five percent of people who go to college, four year colleges, don’t get a bachelors degree within six years. Those people often have met with disappointment and their investment isn’t particularly good, necessarily. Another group of people graduate from college and then have trouble getting jobs and end up taking jobs for which a college education is not really a prerequisite. Twelve percent of the male carriers in the United States today have college degrees. And I have nothing against male carriers with college degrees, but I don’t think it’s an absolute necessity to have a college degree to deliver the mail.

Some college investments have a higher return than others.

It seems we’ve awakened to the idea that a degree that will not automatically translate into  employment in a high-paying field that will allow you to pay of loans. I’m glad that as a society, we’ve been able to have this discussion!  Yes, the kind of degree matters.  So does your actual academic outcome and the actual experience (internships, research etc) you were able to glean during your University days.

But what if your goals in going to college are not financial?

I bet there won’t be much controversy surrounding the notion that the college ‘investment’ isn’t all it’s cracked up to be or on the notion that a college degree isn’t necessary for success. But there are other considerations in getting a college education.  What if, you want to be a more highly educated and informed person? That was certainly my own goal when I went to college.  

To me, the education was the end, not a means to an end, which means that the $12,000 I spent on my undergrad years was not exactly a financial investment–or at least not solely a financial investmentl! So what the heck was I thinking?  Well, basically, I spent $3,000 a year plus interest (which I paid back later) to have the opportunity to focus on my studies at a private University.  And I took advantage of the opportunity to do so by learning all I could, sampling a variety of classes and disciplines, schmoozing with my professors and other interesting people, researching in remote locations and gaining ideas and insights I’ve carried with me since.  It’s an experience that has shaped me and that can never be taken away.

Maybe education is simply the greatest luxury I’ve allowed myself. My biggest ’splurge.’  Would I have gone down such a path if the cost had been $100,000 in student loans?  Probably not.  But I would argue that four years of my life and $12,000 plus 3% interest for a few years was worth my time–regardless of the return on my investment (which incidentally turned out to be reasonable,although you certainly don’t need a college degree to earn a teacher’s salary).

Of course, attending college (and spending your time drinking beer) does not an educated person make. Many scrappy and motivated folks can educate themselves to a higher degree than someone who attends university without making the effort to learn.  That said, for the truly motivated student, having access to professors and a learning community can be an opportunity to grow in ways you simply can’t on your own–depending on your discipline.  I personally believe it helped me push myself farther, learn more and see perspectives I would have missed otherwise.

What say you?

Is a college education a good investment?  Is it more than that?  Is it wise to attend college and take out loans (like I did) just for the ‘joy of learning?’  Is it really that important to be an educated person?

Radical simplicity, frugality–for couples only?

Last week, in the discussion following the post, Risks you’d take to live your dream, Maus posed a question that deserved a post in its own right:

Patricia’s story, as well as that of Trisha’s here at SIF and Jacob’s at ERE, makes me wonder if living at the edge is easier (or at least easier to contemplate) if you have a spouse or partner. While I have no qualms about living a simple life, indeed I embrace it; I am held back by the prospect of loneliness or isolation, especially in the later stages of life. It is one reason that I remain rooted in outrageously expensive California. There are no (habitable) houses for $250 a year; but my family and friends are nearby. To me, the prospect of real hardship can only be borne with the knowledge that I can draw on the support of friends and family.

What do others think? Is the single versus coupled dichotomy a false one with respect to radical simplicity?

Couples, simplicity and frugality: practical considerations.

Simple, frugal--easier for couples?

Immediately after reading Maus’s comment my mind began to mull over all the ways in which I’ve found that living in a couple makes it easier. Financial advantages of living in a couple include shared lodging and entertainment.  Less tangible benefits such as moral support and companionship can make situations comfortable and happy when they would otherwise feel austere.  Should you fall on hard times, you (ideally) have a partner or spouse to help boost your morale or support you.

Honestly, though, how many people have you heard complaining on blogs and in real life that they would love to indulge in radical simplicity, if only their spouse or partner would agree? While I admit this is not my particular experience, it’s not difficult to find examples of people who feel that their husbands,wives, partners stop them from achieving the degree of minimalism they seek, from spending less or from ‘dropping out of the rat race.’

Sometimes couples support each other during hard times, but not always. I’ve also seen couples fight over reduced incomes, money troubles or simple discrepancies in how money should be spent.

Do radical simplicity, frugality and social isolation go hand in hand?

Maus seems to draw a link between simplicity and “loneliness” or isolation, but does one really follow the other? If you look at Patricia’s example, she and her partner left the UK to resettle in a rather rural (read remote) area.  I left many of my friends and all my family behind to move to France.  Jacob from ERE is also living a somewhat uprooted lifestyle, although he left his native Denmark years ago.

I suppose that one could conclude that leaving your native culture and moving someplace new requires that you leave behind your connections, however, I’m not sure that leaving family behind is necessary. At least one of the examples above, Jacob, happens to live in an extremely high-rent area.  He certainly hasn’t found himself forced to move and leave it all behind in order to simplify.  Patricia and I have moved and simplified, but if you remember from Patricia’s story, she has a lot of local friends and a very rich social life in Portugal.  As for my husband and I, we now live much closer to his family and our friends in France, so we hardly find ourselves alone–quite the contrary.  As DH recovers from his accident we’re surrounded by family and friends.

If you think about societies where social isolation occurs, do you think of radically simple ones? I personally think of affluent societies. I’ve never been  to Cuba, but whenever I watch a documentary on that country, I see people living lifestyles we’d probably consider quite radical by US standards, and all the while, they find themselves tightly connected to the society around them.  For example, in Cuba, I recently learned that drivers are required to pick up hitch hikers and that taxis can’t leave until they are full. That’s just one example of the way societies can be simple in terms of material goods and highly complex in terms of interdependence and relationships.

Sharing resources and living a simplified life can bring all kinds of contact with others. Patricia found herself bartering with neighbors; Jacob has theorized about sharing large tools between neighbors.  The most radically simple lifestyles I’ve ever currently witnessed were in Madagascar–where people were appalled to learn that occasionally in the US, an elderly person can die at home and the fact can go undiscovered for some time.  In Madagascar, this is unthinkable.

What do you think about living simply and frugally?

Is it possible when you’re single?  Is it easier in a couple?  What are your experiences in this area?  Does simplicity lead to social isolation?  Does living in a couple protect you from the precarious nature of life?

Saying “NO” to Fitting in. And weekly post picks.

I could type you a grocery list hundreds of items long detailing all that my husband and I have said ‘no’ to as we’ve cut our expenses and our time commitments. The tangibles (gadgets, toys, clothes) that we didn’t collect. The experiences (vacations, cruises, dining out) that we don’t indulge in. . .

For the rest of this guest post, go Early Retirement Extreme, one of my favorite blogs, in case I haven’t mentioned that in the past

I also encourage you to check out a few other gems I found this week:

From the Wall Street Journal: The Foreclosed Families of Abacus In which Frugal Scholar takes us through a careful consideration about the people behind the loans that Goldman Sachs bet against.

What Can One Person Do? On the Ultimate Money Blog.  A reminder that our steps toward doing the right thing for the planet isn’t as futile as one might think.

An Amazing, Eco-Friendly, 24-roomed, Transformer Apartment Check out this link on everyday minimalist for a convertible apartment.  You just have to see it for yourself. . .

Dual Household, Single Income–and frankly, the whole blog.  I discovered the Gai Shan life this week.  It chronicles one woman’s efforts to support her parents and sibling using only her income, her wits and her sense of humor.  Definitely worth a few clicks.

Where would you be without debt?

Picture yourself, without debt: The sensation of your stomach not twisting into knots when you open your credit card statement.  No mortgage payment, no student loan payment.  Your paycheck is your own again.

Will you miss debt? If someone had asked me this question when I was struggling with student loans and credit card debt, I would have laughed . . . or maybe growled.   I’m sure all of us can think of better things to do with a chunk of the paycheck than reimburse money already spent and the interest that keeps compounding away.

I can’t picture my life without debt. Don’t get me wrong:  It’s not that I enjoyed being in debt, in fact, I hated it—however, the opportunity to take out loans and access credit changed my life–by giving me an education I’d never trade away.  My education allowed me to travel the world, gain new perspectives, one could argue it allowed me to meet my husband.

My husband and I may go into debt again–and we’re happy about it. Why?  Because we may soon have the ability to buy a home for about what we currently pay in rent.   Of course, it would be great to just be able to buy a home ‘cash’ and never pay a mortgage or rent again.  But how many people do you know who can actually do that?  Once again, credit presents me with a big opportunity . . . as well as a healthy dose of responsibility and risk.

Debt that shackles you versus debt that lets you grow:

I can think of some debts I wouldn’t enjoy paying back. Dining out or vacationing on credit come to mind.  So does paying interest on car repairs because the emergency budget didn’t quite cover them (ouch!  I’ve been there.)  And who wants to be stuck in that cycle of credit bondage where the rates sneak up on you and you find yourself barely paying the minimum payments.  Just the mention of it makes me grind my teeth as I remember a lot of sleepless nights.

But not all debt is quite so painful or damaging. In fact, a little can get your foot in the door—which is why the credit crunch hurts so much for small business owners, first-time home buyers, students . . .Think of all the people who owe their start to a little credit.

Do you have debt you can’t wait to get rid of?  What about debt you couldn’t live without? Using debt to acquire something you can’t afford quite yet always involves risk.  If the future doesn’t pan out as you expect, you could end up struggling to make payments.  And credit costs more, there’s no arguing against that.  But debt can have its positive sides as well.  I must admit, I’ve had some moments in my life where debt seemed worth it—how about you?

No Shopping Compact: limits, unintended effects?

Whenever I read a post like this one at Consciously Frugal about Joining a No Shopping Compact, I’m enthusiastic. Is it necessary to not buy anything new for a year?  Not at all.  But if you feel drawn to the idea of changing the way you view shopping, spending and consuming–forever, then not buying new for a year might interest you.  What do you think?  Have you ever given this a try?  Would you?

The notorious new hat

Changes after a year of not buying new.

Back in 2007 the not buying new experiment forced allowed me to find new (if slightly less convenient) solutions for my problems.

Back then, I was working horrific hours at work, so for me, convenience had a very large pull!  I find that habits keep me efficient and speedy, changing habits takes time, energy.  But it was worth it.  Some of the long-term changes:

• Buying new: no longer my default: I’ve gotten in the habit of waiting to see if I can do without an item, if I can find one used someplace for purchase or if someone I know is giving one away.  I recently got a pressure cooker this way.
• I no longer feel entitled: I no longer tell myself, “I work hard–I deserve this!”  I’ve found other pastimes that make me happy.
• When I do buy something new, I  feel like I’ve failed at a challenging and unending game. Yes, I’ve actually come to enjoy the whole ritual of thinking of other options.

No-shopping compact over, what now?

Since finishing up my year without buying new, I’ve made a few notable purchases–especially before moving to France where everything is so much pricier (ahem, and where most women are shorter and have smaller feet than I do!) Here’s a list of my major new purchases since not buying new for a year:

• Shoes--I have a harder time finding comfy shoes in France (this could be because I’m still a French newbie) .   Also, I am shocked and awed by the cost of shoes in France!
• Winter clothing (specifically warm jackets, but also pants and sweaters).  Back in San Diego, I was rather lacking in this department and I didn’t feel like waiting until I was freezing in France to buy clothes.   I took advantage of the financial meltdown sales in January of 2009. . .
• Underwear! (January 2010) After my year of not buying new followed by rather sparse spending habits, I thought this was justified
• A hat: I recently purchased a hat to keep my face from frying when I’m out walking with my husband.  I had baseball caps but felt they weren’t really protecting me on the sides . . . I came across such a hat and voila! But I think I let that burning sensation pressure me . . .

Looking at all these purchases, I’m left wondering if I’ve come up against a limit of the ‘no shopping compact’ and if eventually, we must all revert to buying new. Interestingly, most of my new purchases are for clothing.  We bought a bit of furniture when we moved to France, but we found it at an antique shop–hence it has all been in existence longer than I have . . .

Unintended Effects?

It would seem that some things I need, I simply can’t make or find used, but my brain is still working at the problem long after I’ve finished with the ‘compact.’ Picking at the above list,  take that hat, for example.  I’ve dabbled in sewing before and looking at the way it’s made, well, it’s quite simple actually.  I could have made it from reclaimed fabric–say from a pair of pants that bit the dust.  I found myself also wondering. . .couldn’t I make underwear out of old t-shirts?  That might make you laugh, but underwear is really the one thing I will not buy ‘used.’ So, it seems, the game is not over–at least for me.

What about you? What items do you buy new?  Are there any you prefer to make, or buy used?

Risks you’d take to live your dream

In a recent discussion following the post, Have you Ever Felt Poor?, Patricia, a long-time reader of this blog and a citizen of the UK who now resides in Portugal, made a rather incredible revelation in the comment section:

Strangely enough I felt poorer when I was in a good job, earning a relatively good wage, than I do now when I earn practically nothing. At the time both myself and partner worked long hours, earning high wages, but also had that ‘hamster on a wheel’ syndrome, we also had a mortgage, insurances, utility bills, car & fuel bills… it just went on and on, it seemed the more we had , the more we felt we ‘needed…

So we got off the wheel… and here we are 4 years on… living on about 4,000 euros per year… and happier than I’ve been in years.

As I’m always interested in seeing how people live on shoestring budgets (4,000 euros a year is pretty good, if you ask me!) the comment lead to an email back and forth between the two of us, which Patricia agreed to let me turn into a post.  I’d like to take a moment to share Patricia’s way of life with you–the nuts and bolts, the risks and the benefits.

The nuts and bolts of Patricia’s shoestring budget:

Re-purposed boots: in the spirit of frugality.

Patricia and her partner live just outside the village of Figueira in a home they bought cash and fixed up.   As part of their renovations, they created a cottage that they can rent out for income, her partner also gets the occasional odd job to bring in money.  A great deal of what allows them to live on such an unstable income is their fine-tuned frugality and the ability to do things themselves:

• Most of the fruits and vegetables they eat are home grown
• Patricia has worked out a barter system with a few locals to get “eggs, honey, books and other odds and ends”
• They turn the fridge of 10 months of the year, relying on their stone built house to keep things cool.
• A log burner stove allows them to do the cooking, heating and drying clothing in winter  using wood they collect from the forest.
• They make their own bread, conserves etc.
• Their water comes from a well in their garden
• Their mode of transportation is a scooter, used on occasion.
• Patricia invests one third of everything they earn through renting their cottage in food staples like flour, pasta sugar and vinegar. . .for weeks, months without income.
• They have no computer, TV or radio, instead enjoying the local peace and tranquility, a good game of cards, or visits from their many friends in the area.

Risks and insecurities of living abroad on a tiny income:

I especially appreciated Patricia’s willingness to detail a few of the struggles she and her partner faced in the pursuit of their dream:

It’s hard to describe how we live really, most people recoil in horror when I tell them. The insecurity of our lifestyle is incomprehensible to most.

We sold up all we had , gave up good paying and secure jobs  to come here, live in a semi ruin  with, at that time, no water, electricity, sewage, plumbing … anything at all really except the bare shell of the house and the land… It cost us more than we could really afford, and took the rest of our capital to make it partly habitable…

As Patricia went on to explain, living on minimal wages from odd work here and there can be precarious even when you’ve fine-tuned your budget to the extent she has.

When I say we often have no money, I dont mean we are just a little broke or that we don’t have any to spare… I mean we REALLY HAVE NONE.

I was also surprised to learn that Patricia and her husband have had serious difficulty qualifying for Portuguese health care. I thought that people within Europe would have an easier time, but apparently, Patricia and her partner have been caught in some red tape (oh, I’ve been there in France too).  They could receive emergency care, but would have a hard time covering costs of tests, x-rays etc.

The benefits of knowing how to live on almost nothing?

As much as the above mentioned concerns may seem a little out of the comfort zone, I bet we can all imagine some of the benefits of living the way Patricia and her partner do. After hearing about all the trials and tribulations they’d faced, I asked if Patricia thought it was all worth it.

Our peace and tranquility and quality of life is wonderful, we gave up an ugly, dirty crime ridden stressful life to come here.(plus good job and mortgage).. and I’d starve rather than go back to that rat trap…

Here I can take joy in different things… today I heard a cuckoo for the first time this year… we hear woodpeckers a lot too… I have time to bake, cook and grow… I can take joy in the special time I have with my partner now too. . . just sitting by the kitchen range with a book…

I could go on forever…

So what do you think?

Do you find yourself ‘recoiling in horror’ as Patricia puts it? Do you have our own dream that you’d go to great lengths to achieve? Or have you done it already?