Frugal

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Frugality is the animal that must be bred to achieve financial goals. There is no amount of income that can’t be spent, and then some. If you don’t believe that, take a long look at the U.S. government to get a view of an amount of money that can be spent with ideas to spend more.

The seed of wealth is the money you didn’t spend and instead invested. That is the only course in building a steady stream of income to enjoy the life you want. 

The investment isn’t the problem; the seed is. You can generate a generous income stream from real estate, index funds or a business. In each case it is the excess cash you didn’t spend that is the seed that grows to satisfy your dreams.

The more frugal the lifestyle, the less you need to retire. 

Image a man with a million dollars invested. Is he rich? Could he retire? Well, the questions are impossible to answer. If he spends $300,000 per year the million isn’t so much. If he spends under $40,000, he qualifies under the 4% rule to retire because he is unlikely to ever deplete his nest egg. 

Here is what I said to Brooke, “Do you know what unconditional love is?” She nodded. “Well, mom, Heather and I love you unconditionally. We love you and will never stop loving you. Ever! I know we work hard to be frugal and save and invest. But this is why. Times like this! If we don’t spend whatever it takes to get you better, what good is having money? I don’t care what it costs. We will not be frugal when it comes to getting you better. I would give every dime I have just to have you.”

It is easy to get spoiled living in the backwoods of Nowhere, Wisconsin. Cool, crisp mornings and fresh food straight from the garden. Food we don’t grow ourselves is frequently purchased from neighbors who do grow it. 

As you can imagine, the cheap quality fast food peddled in urban areas these days does not live up to the bill. Even the so-called high end (and expensive) restaurants just don’t compare to what we grow and prepare ourselves.

Going out to eat is not a treat; it is something we do when home cooked meals are not an option. 

Yesterday was April Fools’ Day; it was also Easter. I couldn’t bring myself to pull a prank on the day celebrated by Christians of Jesus’ resurrection. But today is fair game!

To lighten the mood as your favorite accountant traverses the bowels of the late stages of the current tax season I decided to publish something fun. (Well, it was fun to me.) Be forewarned. After two months of sleep deprivation there is something seriously wrong with my head. While I think this is funny, you may not. Of course this doesn’t belong published on a personal finance blog. That’s why I published it.

I’m different. I’ve always been different. I was born with a big disadvantage. Before I was a year old I had more surgeries than most people in a lifetime. At twelve I started taking over a dozen medications. Pill after pill is cut and placed in a dispenser like that of a 90 year old man.

Dad picks on me that all the pills I take are a meal in itself. My parents are supportive, but they have no idea how much of a pain it is to be sick all the time.

I’m also different from my family in other ways. My sister wants to travel the world and teach English (more on that later). My dad hates traveling past the mailbox at the end of the driveway. He says he wants to build a wall around the farm. When Trump came out with his wall on the Mexican border dad said he needs to talk to Trump and see if he could get a section built around the farm.

Frugal living is challenging at times. What seems like a meaningless small change can energize your budget and fire your investments on a steeper trajectory.

Countless blogs and websites provide lists on how to save money. Turn out lights, turn down the heat in winter and the library are good ideas. Mr. Money Mustache has a strong drive to bike. On several occasions he has published on the benefits of biking. Biking is good for your health and cuts energy use. Reducing or eliminating what he calls a “clown-like car habit”, you cut spending by serious coin.

There are times thinking like an accountant determines how much of your hard-earned money you get to keep and how well your investments perform. Money isn’t the only thing accountants think about either. Time is more important than money by a long shot and plays into the equation every time.

This past week my oldest daughter asked if I would be helping with her tuition for next semester. I lollygagged as I didn’t want to think about it at the time. My daughter persisted, finally mentioning she wanted me to know about her tuition if I wanted to use a credit card to accumulate bonus miles or cash back.

Every year I generate cash and miles equivalents of around $10,000 per year. The whole family knows my love of these bonuses since they are tax-free and nothing motivates a tax guy like a five figure tax-free benefit.