Adopting frugal habits came natural to me, but it wasn’t until recently did I realize what a difference it made. Being frugal literally changed my life.

Many people equate being frugal to sacrificing, and understandably so. Not ordering a drink during dinner when you want to is tough. Not buying a new gadget the day it comes out even though you are drooling all over it takes discipline. And not buying a new car when all your friends upgraded takes a mental focus not many possess.

I know, because I used to wonder why I do it too. But guess what? Frugal living is not sacrificing at all. Trimming your bills may sound like a necessity to you, but having control of your expenses gives you options. I quit my job to work on my business, and one of the main reasons why I was brave enough to take the leap was because our family had minimal expenses. I knew our frugal habits would allow us to live below our means, even if things got tough. Would you feel that way if you had the chance?

Deciding to Give Up the 9-5

I wish I could tell you that I had a million dollar business on the side when I resigned, but in reality, my side business was generating only 30% of the income from my primary job. All I know was that my job wasn’t something I wanted to do for the rest of my life, and my business was something I loved working on. If I could only make the numbers work out, I would quit in a heartbeat.

All of a sudden, those advices about saving X% of your income doesn’t seemed vague anymore. I began to understand. My ability to save 50% of my take home pay meant having my boss breath down my neck daily or being able to work for myself.

What Do You Think about Frugality?

You could argue that it’s irresponsible to quit and do something you love, and it might be:

• If I had a car payment, I probably couldn’t leave
• If I had a mortgage to pay, I probably would’ve stayed
• If I had debt to pay, I was probably tied to my job
• If I had high expenses, I would probably not make it
• If I had no savings, it would probably be too risky

Justifying all the luxuries that you are currently paying for is easy, but you may never know what you are missing. As luck would have it, my business is thriving, and I am making more than I ever did in my life while working at home.

The Real Life Changer

We are expecting our first child named Sara. She will be growing up with much more love from her father because he doesn’t have to travel out of state for work 3-5 days every single week.

Frugal living not only changed my life, but hers too. You may not realize it now, but saving those few bucks could change yours one day.

Post by Frugal Dad

That afternoon, while standing outside waiting on a ride home, and feeling a tad bit sorry for myself, it occurred to me that living frugal often gives people the wrong perception of your financial health. When others see you making frugal choices, they automatically assume you are doing it because you have to, not because you want to. Sure, I could go out and sign the next five years away with a new car loan, but I choose not to.

Over the last year or two there has been a growing trend towards frugality, and many people in the media are anxious to see if it lasts. Unfortunately, I don’t think it will, for one main reason.

Most Americans, myself included for far too much of my life, are overly concerned with what other people think of them. I mentioned the ability to ignore what others think of us briefly earlier this week, as part of my seven steps to financial independence, and Neal mentioned comparing ourselves to others in yesterday’s guest post. Living a frugal lifestyle means living within our means – our means, not within a fairytale lifestyle depicted in the media as the norm.

As we go through our day making little sacrifices here and there, voluntarily passing on opportunities to spend a lot of money, people not living a frugal lifestyle will naturally assume we can’t afford to keep up with them. That’s fine; you can’t control their thoughts and assumptions.

The fact is, most frugal people are in much better financial positions than those feeling sorry for them. The classic example is Sam Walton, who right up until his death drove an old pickup truck around Bentonville, Arkansas. Those who didn’t recognize him probably thought he was just an average guy not able to afford a “nicer car.” We know he could have easily carved $60,000 out of his billions for a shiny new Mercedes, but he didn’t need one. His old truck suited him just fine.

Unfortunately, most of us don’t think that way. So the thought of living frugal frightens many egos out there into thinking they may not appear as successful, or wealthy, if they shop at thrift stores, drive old cars, cut their own hair, clip coupons, and make their own homemade laundry detergent.

Just remember my take on a line from Dave Ramsey:  If people are laughing at you, or feeling sorry for you, you are probably doing something right when it comes to your financial plan.

Post by Frugal Dad

Those who have lost a loved one know the various phases of grieving we tend to go through. I’m still in the “numb” stage that seemed to last up to and immediately following the Memorial Service last Friday. Now I’m feeling a deep sadness, and am really missing my mom. I talked to or saw her every single day for 32 years.

While the feelings of losing Mom a week ago are still raw, I know she would be telling me to buckle down and get busy. I wish more of her tenacity rubbed off on me!

Over the weekend I had nervous energy and decided to grab a few crates down from the attic, and out of the garage, to look for opportunities to de-clutter. While looking through old pictures and documents I found something interesting – a pay stub dated June 1998. The hourly rate: $5.50.

That doesn’t tell the whole story. I only had 21 hours that pay period, and about 20 hours from my other part-time job. I was newly married, and without benefits, because neither part-time job would hire me full-time. My wife relocated to marry me, so she was unemployed for the first few months we were married.

When I did finally land a job earning $18,700 a year with benefits we thought we were rich. My wife was working for $6.00 an hour in a medical office. Combined, we didn’t earn $30,000 a year, but we lived like we earned $60,000.

Fast forward a decade. Now the situation is reversed. We are making a conscious effort to live on much less than we earn. Instead of living like we earn twice as much, soon we’ll be living on half of my income alone. What’s different? Our priorities.

Back then we got caught in the trap of keeping up with the Jones, and the media, and even what we thought to be an ideal lifestyle. I spent money to impress the new in-laws, to “provide” for our first child, and to buy a “safe” vehicle since I was now a family man.

Looking back, spending money didn’t impress my in-laws, it only made me look pretentious. And $100 toys meant nothing to my baby daughter, but a little floor time in the evenings helping her learn to crawl, watching her giggle and coo meant the world to her.

Hindsight really is 20/20. There are no such things as a financial mulligan, so I try not to spend too much time obsessing over the mistakes I made in my 20’s. Instead, I admit my mistakes, promise to never repeat them, and look to the future with optimism. And there is much to be excited about.

By the end of this year my wife and I will be debt free for the first time in our marriage. We are already car debt free, another first-time achievement as a couple. We’re also planning to have our fully-funded emergency fund in place by Christmas.

For years I’ve closed my eyes and day dreamed about how it must feel not to owe anyone a dime. How it must feel to know several thousand dollars are in the bank ready to handle your next emergency. How it must feel to budget your next paycheck and have money left after paying bills.

Dave Ramsey describes this feeling as “financial peace,” and I think that is a great description. It will definitely be a weight lifted off my spirit. For too long I toiled at bad jobs, worked through vacations, and put up with more crap than I should have because I had debt. Never again.

I sure am glad I saved that pay stub. It reminded me of all I have to be thankful for today, and how far we’ve come. Instead of being stashed away in the attic it now has a permanent spot on my bulletin board, serving as a reminder of the turnaround that’s possible when you really put your mind to it.

Post by Frugal Dad

I grew up in a middle class family. I was the only child to a stay-at-home mom and a dad who worked as a millright. Money was tight most of the time, but I don’t recall feeling deprived. When we couldn’t afford to eat out, we improvised with whatever was in the pantry.  Bored? My mom would help me craft my own toys, teach me to crosstitch or invent my own games.

Now that I’m married and have three boys of my own, I’m trying hard to share those values I learned as a child. Our income is greater than that of mine or my husband’s families growing up. Our kids are very fortunate in that they haven’t ever experienced real hardship. They don’t always understand how other families live. I do what I can to teach them to enjoy frugality as a lifestyle choice. They help me bake cookies and clip coupons. We shop garage sales and thrift stores. We try to help others who are less fortunate when we can.

Of course, I will admit there are times when it is very hard to avoid raising a materialistic child.

One of the biggest challenges I’ve faced in teaching my sons about frugality is that my parents, who were once the epitome of thrift, now lavish our boys with gifts and meals out. They’ve worked hard to establish their retirement nest egg and love living near their grandchildren. It’s hard to teach the boys about money and values when well-intentioned grandparents give them whatever they want.

My four-year old has a bike with training wheels that I bought for him at a garage sale for $5. He would ride that bike for hours. My parents suggested that he needed a new bike.  I told them that the old bike worked well and that my son loved it.  They decided to buy him a brand new bike anyway.

And in one of my proudest parenting moments, my son thanked my parents for the new expensive bike, hopped back on his old bike and said, “I like the old one better.”

I was proud that my son thanked my parents for the new bike, and even more proud that he loved his old secondhand bike more. In a small way, I feel I was able to teach him that new and expensive isn’t always better.

It’s been a few weeks now, and he’s riding the new bike now. He tells me that he’s going to pass this bike down along with his secondhand bike to his twin brothers when they’re old enough.

And that’s fine with me.

Post by Frugal Dad

It may be hard for you to see why root canal procedures and dentist games are something I’d write about.  Dental hygiene is, after all, a very private affair.

Maybe you’re thinking that I’m going to take “DO IT YOURSELF” articles to a new level.

Are you hoping I’m going to tell you how to save a fortune on dental care? “Just use a pair of pliers and a bottle of whisky next time you feel that twinge between tooth number 2 and number 3.”  No, that’s not where I’m going.

I learned (the very hard way) that successfully navigating a dental emergency is exactly the same as navigating a financial challenge.

Let me tell about the experience I had just a few days ago and how I think it can help you overcome your own painful challenges (dental…financial….whatever) if you ever have one.

The Set Up

On the Thursday night right before the long Labor Day Weekend I started feeling a sharp pain on the upper right side of my mouth.  I didn’t think much of it at the time even though I had never experienced that kind of pain before.  I just popped 3 Advil and felt relieved almost immediately.  All was well with the world.

I didn’t feel uncomfortable again until Friday night.  But the pain came back with a vengeance.  Even though the Advil remedied the situation, the hurt returned every few hours.  I couldn’t sleep or eat.  I was miserable.

If you’ve never experienced tooth pain, count yourself lucky.  I am sure that women who have given birth suffer much worse but for me, this was unbearable.

I was praying to the “dental deities” for relief.  I promised I’d never eat a piece of chocolate again if only the pain would be taken away.

The hurt found me & I found religion. But the pain waves kept rolling in.

My Go-To Solution Fails

I called my dentist on Friday night.  While I didn’t expect him to be there, I did expect to get some emergency service or number.

I was disappointed.

All I got was a recording telling me the office was closed.  Can you imagine how afraid I felt at that point?

I had no idea what to do or who to call.  I was in a real emergency situation and felt completely alone and isolated.

While I was indeed very angry with my (now former) dentist, I didn’t waste energy thinking about him.  I remained completely focused on finding a solution to my problem.

Reality Sets In

I started to understand that my odds of finding a dentist in town over the holiday were slim.  I felt doomed and truly frightened.

Considered All the Alternatives and Took Action

After calling a number of dentists in my area, I decided I’d wait it out until Tuesday – 72 hours of pure pain.

But before my final gasp of resignation, I thought about my friend Ed.

You know who Ed is, don’t you?

He’s Ed the Dentist.

At that point, Ed was my new favorite human being on the planet.  How could I have forgotten about Ed?

I immediately called him and told him about my problem.  Before you could say “canker sore” he took me down to his office, opened it up, took some x-rays and developed an action plan to solve my problem. Ed’s a saint.

The Pilgrim Gets Schooled

Ed asked me a bit about the care I’d received in the past and explained that part of my problem was that I was seeing the wrong kind of dentist.  My general dentist gave me a few root canal treatments and even though he had the qualifications to do it, he didn’t have the expertise.  Ed told me that I should have had that work done by a specialist who only does root canals in order to get the best possible outcome.

Of course, I could have had the problems I was having at the moment regardless of who I saw several years prior.  But Ed’s point was, why take the chance?

Ed explained the differences between oral surgeons, endodontists and general dentists.  While each can do the others’ jobs, specialists are better.  That all made sense to me.

The Solution

After Ed took the x-rays, he consulted with a few friends of his; a wonderful oral surgeon and a fantastic endodontist.  And in the end, the endodontist treated me.

She is a specialist and expert in her field. In fact, it turns out that she heads up the department of one of our country’s most prestigious dental schools. Luck was on my side.

As soon as I sat down in that wonderful dentist chair I felt safe. And when I heard the beautiful sound of that drill grinding away all my pain, I felt a tremendous sense of relief.

Dr. C made no promises.  While the treatment she prescribed had been 75% successful, there was still a significant chance that her treatment might fail and I’d end up with the oral surgeon.  I understood that and I was comfortable with the treatment we decided on.

So what has any of this got to do with you or your money?

Let’s go through it and see.

1. Consider the “Set Up”.

I didn’t infect my root canal.  I didn’t do anything to cause the problem.  And I certainly had no part in this problem manifesting itself right before the holiday.  It wasn’t my fault but it was my problem.

Are you dealing with a financial problem that you didn’t create?  Have you been laid off?  Have you encountered an unforeseen financial burden that has shifted your economic reality?  If so, it’s your responsibility to fix it…but it makes no sense to waste time or energy beating yourself up.

Even if I was to blame for my dental problem or you are to blame for your financial mess, don’t waste time throwing a pity party or a shame shower. Acknowledge the problem and move on.  You need all your energy to find the solution.

2. The Go-To solution fails.

Here’s an area I still need to work on.

You can bet your dental floss that I’m going to make sure that my new dentist (Ed of course) has an emergency contact number when he’s out of town.  Actually, I have his cell so it’s not a problem….but you get what I mean.

If you have a financial adviser, does she have a backup plan in case something happens to her?  Find out now.  Are you depending on your employer to create a job for you?  What if she goes out of business?  Do you have a “Plan B” just in case?  Have you considered opening your own side-business as an emergency replacement?

Think of all the people you rely on for your financial security.  Do you have a backup plan in case they are unable or unwilling to show up when you need them most?  If not, start working on it today.  The list would include your attorneys, accountants, financial advisers and insurance agents to name a few.

You don’t have to have backups for all these potential problems overnight.  But you should consider yourself warned as of today.  Don’t be complacent like I was. Make a list now and start putting your ducks in a row.

3. Reality sets in.

For me, I had to understand the seriousness of my situation and I had to be honest with myself.  I was in for a very long weekend and I had to make the best of it.  Nobody was going to “come make it better”.

Are you being completely honest about your financial situation?  Are you hoping that somebody is going to “come make it better” – as if by magic?

You know it’s not going to happen.

The only person who can make your situation better is you. Don’t sit around waiting or complaining about somebody else. You’ve got to take the bull by the horns….and the good news is…..you can.

4. Consider all the alternatives

I had to think of all the possible solutions to fix my pain problem as soon as possible.  Have you considered all the alternatives to fix the financial challenges you are dealing with? Have you taken the time to write it down on a piece of paper?  If not, let’s go ahead and do it right now.

List the issues you struggle with. Is it finding work?  Dealing with retirement income?  Helping your children get on their own two feet?  What exactly are the challenges you face?

List all the possible alternative solutions.

Think outside “the tooth”.

For example, if you are dealing with reduced retirement income, can you get a part-time job?  Can you reduce your spending? Move to a smaller home?  Take in renters?  Stop sending money to the kids?  What are all the alternatives?  Are you willing to consider each of them?

5. Educate Yourself

Before you take action, find out as much as you can about the real cause of the problem and the real meaning of the possible solutions.

I was ignorant.  I didn’t know it was so important to see a specialist.  I figured that if a dentist had the certification to perform a procedure, he or she would do a good job.  Also, I was referred to this dentist from a friend.  While that’s typically how we find professional service providers, it’s not enough.  Now I know better.  How about you?

If you need a trust, are you having a specialist do it? If not, you might be saving a few bucks now only to find yourself (or your estate) in hot water down the road.

Do you have the right team in place? Educate yourself.  Find out.  Take action.

6. The Solution.

Once you’ve gone through the steps mentioned above, pick the best solution.  If required, consult with friends or your accountability partner.  Bounce your ideas off of people you trust and respect but have faith in yourself to make the final choice.

Just like I had to accept the fact that my treatment might not work, I was convinced that it was the smartest approach to take at the time. I was 100% comfortable with the fact that my decision would be wrong 25% of the time.

Likewise, you will decide how to deal with the challenges you face and your solution may not work out. Don’t beat yourself up if that happens.  You can’t predict the future and you are not responsible for it either.

If you do the best you can after having done the most thorough investigation you can, let the result go and deal with the future as it unfolds.

In conclusion, it seems to me that the process I went through with my teeth mirrors what many people go through when they face financial difficulties.  Thinking back on similar experiences, have you gone through anything like this that you drew life lessons from?

Post by Frugal Dad

Not everyone is lucky enough to have a frugal dad. Even fewer are lucky enough to realize their good fortune when they’re still able to thank him.

Medical problems mean my father will never now read this article that he’s inspired with his low-spending ways.

Instead, I hope sharing some of the things he taught me goes someway to thanking the fates for my good luck.

1. You are not what you wear

In his own way, my dad would dress up for what he’d consider a special occasion.

Unfortunately for the more dress-conscious members of my extended family, almost no occasion was special enough.

True, Monday-Friday, 9-5 he wore the worn-in tie and jacket uniform of his generation of white collar workers.

But in the evenings or at weekends he donned jeans with holes in them, jumpers with holes in the holes, and sometimes half in irony something awful on his head.

That didn’t matter when he was mending things, working in the garage or making furniture on demand for my mother – which was most of the time and exactly why he wore them.

And it didn’t really matter when he drove to collect my teenage cousin from her ballet classes in ever more comically awful clothes, just to embarrass her.

I grew up knowing that appearances didn’t matter – it was what the person wearing the clothes did that was important.

And my cousin would now agree. The childhood horror has become an amusing anecdote, and it’s the memory of an uncle who went out of his way to keep her attending her ballet classes that endures.

2. Little moments matter most

Occasionally my dad claimed he’d quite like to spend money on a sports car but my mother “wouldn’t let him”.

I think just the idea of blowing money on something material was satisfaction enough.

In reality what has mattered for him most throughout his life are tiny moments of experience – often with my mother, always with the family – and they very rarely cost much at all.

For instance, in their late 50s they got into hiking, and towards the end of this phase when both he and my mum had retired I got more insight into this mindset when he began using his new mobile phone to send me SMS messages from the trail.

‘Facing the Atlantic with the sun on our back and half our tea left. It doesn’t get better than this.’

or

‘Fish and chips from the best takeaway in the world. Mum only ate half hers, so I had to finish it off. It doesn’t get better than that.’

In the early days I questioned his judgement – and more than once wondered why he insisted on affording me these insights during hours when he knew I must be at work.

Even typing that sentence – and knowing my dad – the answer is obvious.

And the older I get, the surer I am of his judgement.

3. Nothing is ever broken

As a child of World War 2 – he was born amid the bombs of the Blitz here in Europe – my father was raised against a backdrop of rationing and ruins.

Like many of his generation, he’d therefore been instilled with a ‘make do and mend’ mentality that in his case persisted after the economic boom of the 1950s and 1960s that he shared in, too.

It helped that he was very handy – furniture repairs were easy, for instance, and he grew up fixing cars.

But he went further than that, recycling delivery palettes into garden fences, or turning the broken down brick wall that fence replaced into a rust-red paving for a BBQ area.

I might be giving the impression here that my parents lived in some sort of rural shack held together by bits of string.

It’s true that some visitors were surprised to see old sinks recycled into plant pots or old doors made into work benches – in later years my dad would boast he’d been green years before it was fashionable, rather than being cheap!

But overall my parents lived better than they otherwise would have, in always lovingly cared for and (generally) conventionally pretty homes, by spending less money and instead being creative and finding a use for anything.

4. Keep money in perspective

Given that I write a blog about money and investing, you might say that I’ve failed miserably to learn this lesson.

But the very fact that I’m writing right now is a testament to my dad’s example.

If I’d followed the path trod by many of my peers from college, I’d be being too busy in the corporate world doing something I hated to even dash off an email to my girlfriend, let alone wax lyrical about my father’s dubious jeans at 3pm on a Monday afternoon.

Indeed, I wasn’t even 30 before I downshifted and got out of the rat race to work as a freelance at hours and in places that suited me.

Often that’s meant longer hours for a time, and sometimes for less money.

But I’m my own boss, nobody can tell me what to do, and I make my own rules without the peer pressure of the typical office (one reason perhaps why I’ve found it easy to salt away 30% or more of my income).

It’s true I’ve probably capped my earning potential by deciding not to follow the carrot of an ever-higher salary up the career ladder.

But money is just money. Our days are too short to be ruled by it.

5. You must control your financial future

Hang on, didn’t I just say money was over-rated?

I did.

Of course I realize that money can mean almost everything if you haven’t got it, whereas in contrast having a lot of it can give you all kinds of possibilities.

But if you don’t put money in its place, you’ll never enjoy any of the riches you do make.

Equally, if you don’t realise that money is just a means and not an end then when you’ve got little money you’ll not appreciate the better things you want it for – to feed your family or to give your beautiful daughter new shoes.

It’s all too easy to see the candle and not the flame. We don’t live for money, we don’t remember it when we’re old, and we’d be better off in a world without it.

But that isn’t the world we live in – which is why I’m dedicated to saving and investing my way to financial freedom, while trying to keep a sense of perspective along the way.

And here my final lesson from my father was an unfortunate one.

Dad did exactly what he was supposed to – he shunned debt, paid off his mortgage, built up a relatively large pension, and ensured his family and my mother were adequately covered should the worst happen.

Yet when the worst did come calling – in a doctors’ surgery, in the form of a diagnosis that gave him less years than he expected but more than he wanted to spend at work – he wasn’t able to immediately quit his day job because of the rules around his company pension.

As a result he had to work for more years than he wanted to, just to avoid massive cuts to his retirement entitlements. (Even then he did retire before his time, and at some significant financial cost).

Happily my dad put up a good fight against his condition, and it’s taken more years than we might have expected for it to move to a threatening state. So he did get to enjoy some of the retirement he’d so looked forward to.

But what struck me about the entire episode was the lack of control he had over all the money he’d paid into his pension over the years.

I decided that it wouldn’t be the same for me.

Explaining the different route I’ve taking would require more posts – an entire blog , in fact – and it’s very unlikely my dad will ever see the results of the lessons I’ve learned from him.

But some day I hope to be sitting on a cliff top somewhere, in the sun, financially independent and with someone I love, and I’ll remember my frugal dad in his frayed jeans enjoying a slice of my mum’s cake like it was caviar on a blini, and I’ll toast him and everything he’s taught me.

Post by Frugal Dad

Beautiful country outside of Ketchum, Idaho

Money’s list provides a pretty good starting place of cities to consider. Since any relocation wouldn’t happen until we reached financial independence, employment is not a top consideration. We are more interested in qualities like a low crime rate, plenty of green space, and relatively low property values and taxes. Here’s a look at Money’s top ten places to live:

1. Louisville, Colorado Money’s description of Louisville includes “dry, clear weather, little crime, good health care, and low taxes.” Add in the Rocky Mountains, 30 miles of local trails and eight world-class ski resorts within a two-hour drive, and there is little not to like about Louisville, Colorado. I traveled to Denver a number of times on business and fell in love with the Rockies, the climate and the outdoor activities.

2. Chanhassen, Minnesota When I think of Minnesota I think of cold winters. However, with cold winters comes a variety of things to do that a family from the south has never experienced. Ice fishing, ice skating, sledding, and hockey all sound pretty fun. And since I love cold weather I’d fit in just fine. Not sure the wife and kids feel the same way, though.

3. Papillion, Nebraska According to Money, the typical single-family home in Papillion starts for about $100k less than the first two cities. Interestingly, the property taxes were significantly higher.

4. Middleton, Wisconsin Another cold weather locale, but one with lots to see and do. Even though the town is only seven miles from Madison, most residents enjoy hanging out in their own community.

5. Milton, Massachusetts Single-family homes go for $460, 000 here, which just about eliminates the town from our list of potential spots to relocate. Add in a close proximity to Boston and it just doesn’t feel like a good fit for us.

6. Warren, New Jersey Ditto on the above comments. To close to New York City for my tastes, and ridiculously high home values (half-million and up).

7. Keller, Texas The knock on Keller was “rapid growth” and “strip malls.” We aren’t interested in a fast-paces lifestyle, so Kelly might not be a good fit, either. Besides, I’m not sure I’d be escaping the heat moving to Texas.

8. Peachtree City, Georgia Of all the cities in the top ten, Peachtree City sounds most like where we currently live. At only 35 miles from Atlanta, I’d worry about the urban sprawl eventually swallowing our tranquil place.

9. Lake St. Louis, Missouri Lake St. Louis has an interesting history. Developed forty years ago as a “resort community,” it has now developed into an attractive spot for permanent residents. Two major problems with Lake St. Louis – ridiculously high annual dues for their Community Association, and proximity to a General Motors plant which plant to layoff nearly 2,000 workers.

10. Mukilteo, Washington First, a confession. I’ve always wanted to live in the Pacific Northwest. I love the idea of being close to both Puget Sound and the Olympic and Cascade mountain ranges. Toss in a great school system and low property taxes, and Mukilteo seems like a top candidate.

Another area of the country we have strongly considered is Idaho. Idaho has a very low crime rate, low property taxes and insurance rates, and they offer more wilderness area than any other state in the lower 48 states. Unfortunately, they do have a relatively high state income tax rate and low average wages, but since we wouldn’t need much income after financial independence neither of these facts are a big detractor.

Speaking of state taxes, Kiplinger.com put together a nice interactive map along with a state-by-state guide to taxes on retirees. You can learn which states impose their own estate taxes, which 7 states have no income tax, and what are the most pension-friendly states?

Again, we won’t be in a position to relocate any time soon, but it is fun to scope out different places. Wherever we do decide to retire, we plan to have a place with acreage to give us a little room to roam. I’d like to have a big garden, and a few rows of fruit trees. When looking for a place to buy, we would gladly put more money towards land than the home itself, and wouldn’t mind adding on to the house or remodeling with cash over time.

Interested in finding a home in one of these locations? Search the MLS for homes!

Post by Frugal Dad

When the economy started to head south I noticed many people became quite proud of their frugality. Those who were once quietly going about their simple lives were suddenly very happy to share how they saved money, reduced their utilities, rejected new cars and new clothes, etc. Frugal people were suddenly very popular. Just months before, they were laughed at and mocked by those who thought frugal people were alarmists, or too conservative, or somehow less intelligent or sophisticated than wealthy people.

On the opposite extreme there were plenty of people still doing quite well, and living in a bit of denial that we were headed towards a recession. To prove their solvency to the world they continued to spend shamelessly buying fancy cars, high-end clothing and big homes. And in an instant, the roles were reversed.

Stories began appearing about people being ashamed of their affluent spending habits. Designer stores were putting purchases in non-descript bags so patrons wouldn’t stand out. No longer was it “cool” to show off a designer label, or a high-end store bag, in public. Sales at most retailers plummeted, except those stores offering extreme discounts to customers such as Wal-mart and Dollar General.

A few months into the recession the media started to slowly turn on us frugalists. Were we responsible for the lack of recovery? Were we to blame for the lack of sales, and the avoidance of debt? Many of us, myself included, refused to accept that excessive spending and running household deficits was a reflection of our patriotism. In fact, it was quite the opposite. We felt it was time for everyone to reign in the wild spending of the last several years.

As a result, some started to feel ashamed over their frugality. And that trend continues today, as many land here at Frugal Dad while searching terms related to “ashamed to be frugal.” Funny how two extremes with the same line of thinking can take vastly different approaches. At least half the “extremely frugal” people I meet proudly proclaim their thrift, eager to tell how much they paid for everything, and how much you could have saved if you asked them before buying. The other half seem almost afraid to admit they shop at the thrift store, or drive a beat up car.

I believe the struggle is compounded by the media, who often go to great lengths to project people leading a simple life as weird, or extremists, while building up the idea that everyone is rich, no one has to work, and 16 year-olds deserve $10,000 birthday parties and new cars. That is simply not reality, but it is certainly the perception of some who believe everything they see on television. And it is this perception that causes people to reject a natural tendency towards simplicity, and instead pile on as many goodies and gadgets they can while accumulating more and more debt.

So do not be ashamed to be frugal. Wear your frugality as a badge. Be proud of driving a clunker, and wearing everyday clothing, and living in a modest home.

Post by Frugal Dad

In the first 25 pages of the book you are instantly reminded of what it is like to have nothing but the clothes on your back. Actually, I shouldn’t say “reminded” because many of us have never experienced that feeling before. I’m not talking about being down and out for a few weeks, or struggling to make ends meet, I’m talking about having absolutely nothing. No car, no home, no job, no money, no food, no health care, and no network of friends to help. And from this Shepard was to rise to the ranks for the fully employed, find a place to live and sock away a respectable about of money in savings.

Besides an engaging look at what it’s really like to be homeless in America, Scratch Beginnings made me aware of a couple things that I had forgotten since becoming accustomed to a steady paycheck and having all of my basic needs met without giving it much thought. There are many people out there wondering where they will get their next meal, or their next job, or their next opportunity for work. This is especially true in this time of prolonged recession with many people finding themselves unemployed.

Shepard describes his first big win after a day of hard labor netted him $28.61. Combined with the whopping $20.27 he had left over from his $25 starter fund, this left him with $48.88 to start building a personal supply of basic items.

From the book:

Before heading to her home on the north side of town, Cicely dropped me off up the street from the EasyLabor at Family Dollar, where I made my money count. All of it. I bought six pairs of underwear, a six-pack of socks, six white undershirts, a stick of deodorant, a toothbrush, an eight-pack of Ivory soap, shampoo and conditioner, a towel, a washcloth, a roll of toilet paper for emergencies, and a week-long supply of an assortment of potted meat and crackers that I would eat for lunch.

It’s probably safe to assume this list doesn’t represent what most of our lists looked like from our most recent shopping trip. Notice there were no CDs, no bottles of expensive wines, no home decorating items, and no expensive toys. Nope, just basic necessities. Shepard was satisfying those needs for shelter, clothing and food first. Later, he would go on to add transportation, a job, and his own place to stay by sticking to his initial plan of only spending money on things that were absolutely necessary to his survival.

Most reading this are probably in much better situations than those described in the book living in the Crisis Ministries shelter in Charleston, SC. However, that doesn’t mean we cannot apply these same lessons. Intellectually, we all know that savings in merely a function of spending less than you earn. But many people are convinced a requirement for building savings is earning a lot of money. Not true.

In fact, I know plenty of examples of people who earn a ton of money and have very little, if any, savings. Conversely, I know people who earn a modest amount of money, but have healthy emergency funds and long-term savings. Scratch Beginnings really drove that point home for me, and from a frugal living perspective was the major take away from following Shepard’s story.

I would be remiss if I didn’t add a disclaimer for those interested in reading Shepard’s book. The language is raw and unedited from conversations he had with those in the shelter and at various jobs. It did not bother me, but it may not be suitable for young readers (pre-teen or younger). In a way I wish some of that had been left out of the book to expand the audience to younger people, but in the end I was glad Shepard left it in because it added to the authenticity of his experience. An experience that I hope more people will read and learn from in their struggle to lift themselves out of a life of poverty.

Post by Frugal Dad

With the recession on, many people are interested in saving money. It is no surprise that frugal is back — and in a big way. Here are 50 blogs (in no particular order) that can help you save money and live a frugal lifestyle.

General Frugal Living

These are general frugal living blogs that often combine frugality tips with personal finance ideas and insights.

1. Frugal Dad provides insight into living frugally by eschewing debt, getting the most for your money, and being happy with what you have.

2. Being Frugal offers a number of helpful articles on frugal living –  including a regular feature called Tightwad Tuesday.

3. Simple Mom is a blog that offers frugal living ideas, as well as personal finance information and life hacks.

4. Festival of Frugality is a rotating blog festival. It features great articles from a number of writers every week. The Festival has its own blog, which shares great information, tips and helps for frugal living.

5. Almost Frugal shares a personal journey on the road to frugality, and provides insights that can help you come along.

6. A Mother in Israel provides frugal insight for living a kosher life.

7. Domestic Sense is about finding ways to improve your quality of life while being frugal.

8. A Frugal Living Blog by a Frugal Guy focuses on making the most out of your life through frugal living.

9. The Frugal Duchess features helpful information on being frugal, while remaining fashionable and fun.

10. Pat Veretto’s Frugal Living Blog gives readers a first hand account of living frugally.

11. Frugal Zeitgeist offers personal finance ideas with a focus on saving money and frugal living.

12. Not Made of Money looks at frugal living from the perspective of a husband and wife team.

13. Fabulously Broke is a blog about saving money while still enjoying a good life.

Frugal Tips, Tricks and Bargain Hunting

Looking for tips and tricks to save a little money? Want bargain hunting advice? These blogs show you how you can save money everyday.

14. $5 Dinners is a great frugality blog that focuses on helping you create delicious dinners for less than $5.

15. Frugal Babe chronicles her quests for great deals. Once you see how she does, you will see how you can do it, too.

16. Money Saving Mom focuses on grocery shopping tips, and providing information on good deals.

17. Ebates Shopping Blog is all about tricks, tips and offers to help you save money on almost anything.

18. It’s Frugal Being Green provides proof tips and tricks for being environmentally friendly while living a frugal lifestyle. It really is possible!

19. Mashup Mom is focused on sharing tips that can help parents live more frugally every day.

20. Make It From Scratch devotes itself to tips and ideas that can help you save money by making a number of things — from food to carpet cleaner — on your own.

21. Home Ec 101 provides helpful ideas on saving money around the house, from food to cleaning to fixing things up.

22. Fabu Daily offers frugal tips, as well as deals and coupons (and how to use them).

23. Frugal Blog on Families.com is chock full of helpful advice and frugal tricks on getting the most out of your money.

24. Mighty Bargain Hunter shares tools and tips to help you get the best deals and live frugally.

25. Savvy Frugality offers a number of tips and tricks to help you remain focused on living within your means.

26. Frugal Sister features helpful information, tools and more — from a pair of sisters helping each other live the frugal life.

Coupon Blogs

Part of frugal living is clipping coupons and finding online specials. These blogs can help you do just that.

27. Coupon Cravings provides regular deals, coupons and specials that can help you save money.

28. Mommy Saves Big printable coupons lets you peruse what’s available, and then print out coupons for your offline shopping needs. Online coupon codes available as well.

29. Coupon Mom Blog offers a number of coupons — by state — and provides information on free samples and offers to boot.

30. Coupon Blog specializes in online coupons, providing daily deals from different retailers.

31. Donna’s Coupons is the About.com site on couponing. A great, daily roundup of online coupons and more.

32. Coupon Mountain has a blog that posts special deals for online and offline merchandise.

33. Coupon Chief offers a number of Internet deals. Others can submit coupons, and there is a trust score so that you know whether coupon contributors can be trusted.

34. Coupon Cactus provides codes, and even has a coupon alert system to let you know when your favorites are available.

35. Live on Coupons is from Idaho Press-Tribune, but there are plenty of coupon deals that are available anywhere.

36. Coupon Shak provides coupons on specific items, as well as rebates and travel coupons.

37. Retail Me Not lists merchants and coupon codes to help you save money when you check out.

38. Find Savings offers all a number new deals available daily.

Frugal Blog Posts

These may not be frugal living blogs per se, but there are often some good frugality posts. Here are some posts on frugal living from some great personal finance blogs.

39. Free From Broke offers 9 ways you can save money when it comes to baby costs.

40. Modern Gal shares specific ways she will save money while going green.

41. Stretchy Dollar has a great post on turning a super spender into a frugal saver.

42. M is for Money features some delicious meals that you can make frugally.

43. Savings Advice provides a handy step-by-step article on getting the most out of your coupons.

44. Christian PF lists 6 things you can buy now that will pay for themselves by this time next year.

45. Five Cent Nickel helps you avoid shopping pitfalls that can cost you more.

46. Moolanomy offers an interesting quiz: Are you frugal, or are you cheap?

47. My Two Dollars knows 25 household items that you can reuse to enhance your frugality.

48. Bible Money Matters looks at way you can eat out for less.

49. Pay Less for Food features a look at why now could be a good time to try store brand products.

50. Christian Money Mountain shares information on saving money on gas.

Post by Frugal Dad