Justin Wright » Frugal Living

5 Personal Finance Tips for Freelancers

Justin Wright — Mon, 28 Nov 2011 20:16:38 +0000

There are many benefits to being a freelancer. You have no boss to answer to, you can work from the comfort of your own home, and your income is only limited by the amount of time and effort you want to put into making money. However, being a freelancer also comes with a certain amount of serious responsibility – responsibility that you wouldn’t have if you did have a boss, and worked for a company, and had a regular paycheck. This is especially true when it comes to financial matters. Protect yourself and your financial well-being by following these five critical personal finance tips for freelancers:

Budget. Develop a monthly budget and stick to it, so as to avoid being sideswiped by unexpected income fluctuations. Because your income is irregular, you will need to determine an approximate monthly income to use for your budget. Total up your previous year’s income and divide that amount by twelve, then use that figure as a measure of what you can and cannot afford.

Safety net. As a freelancer, it is likely that your income will almost always be at least slightly unpredictable (and sometimes extremely unpredictable). It’s important that you prepare yourself for the tight months by saving during the bountiful months. A good rule of thumb is to keep three to six month’s worth of expenses in an interest-bearing savings account, for “just in case.”

Save for tax season. Don’t allow yourself to be caught off-guard by a tax bill at the end of the year. Set aside a bit of each paycheck you get to avoid tax season shock, and to soften the blow of what could be a hefty IRS debt.

Debt. Avoid it. Period. Keep your monthly expenses down to the bare essentials: rent/mortgage, utilities, car, groceries, etc. This may be the biggest favor you will do yourself as a freelancer. Staying out of debt means freeing up your cash flow, which will come in handy when you have a slow month (or more). This is especially important considering that interest rates for things like credit cards can be very high, and that missing a payment (if the worst happens) can send you into a vicious cycle that will end up costing you way more than you originally borrowed.

Retirement. Don’t forget to develop a plan for retirement, unless you plan on working forever. The time to start planning for retirement is now.

Just like any self-employment venture, freelancing can be a risk. But there are things you can do to hedge that risk. Follow these personal finance tips and set your mind at ease.

About the Author: Dona Collins is a full-time writer and IT specialist who knows how important it is to have a financial safety net. When she is not working she can often be found helping other IT professionals find work through groups like Modis IT recruitment services and other local agencies.

Photo Credit: 401KCalculator.org

Changes – My Decision To Live In A Cave

Justin Wright — Tue, 01 Nov 2011 13:55:45 +0000

Home Sweet Home

I’m writing this article in response to Justin’s blog just to show that what he is talking about can and does work in practice. My name is Carl and I’m 56, born and raised in the UK although I have lived in Spain and Holland before. I had been living in the north of England and working for the Council in a dead-end office job along with 200 co-workers and hating every minute of it. Working for the Council only to pay back half my wages in Council Tax and rent for a Council flat. I lost both of my best friends to early heart attacks, I lost my mother, my dog died, I lost my father. I began to suffer from depression and ended up on medication.

I decided a couple of years ago that when I received the cheque from the sale of my parents’ house I would move back to Spain. I realised there was no way I could afford a big place or anywhere at all fancy and I didn’t want a flat in a town. I knew I wouldn’t be able to find a job with a Spanish company as there was widespread unemployment and the start of “The Crisis” was upon us. I had a few ideas for selling my own database software (opendatasoftware.net) and that was about it.

I decided eventually to look for a cave in the South of Spain and eventually settled on one in a small town of 20,000 inhabitants in the middle of nowhere. It’s a cave in that all of the rooms are built into a mountain side. Not a cave house where some of the rooms are extended outwards. This was an important choice of dwelling as a cave hardly needs any cooling in summer and very little heating in winter due to heat being conserved by the sheer thermal mass of a 3-metre thick roof, solid stone floor and metre thick walls throughout. The caves were previously used to house livestock but are perfectly habitable and come in all sorts of shapes and sizes. And prices – this was a very cheap one at 25,000 Euros.

Typical Cave (Before)

The Cave (After)

The cave is halfway up a mountain and is subject to extreme heat and full sun exposure in summer and torrential rain and gales in winter. The only heating is a small wood stove and there is only one window and one entrance door. There is a small entrance room with a small kitchen and small bathroom off to one side. Behind that is the living room with the wood stove. Behind that is the bedroom and behind that is a storage room. The garden is on top of the cave and the chimney protrudes up into the garden. When I moved in the garden was completely overrun with fearsome weeds.

The Garden (Before)

The Garden (After)

I decided that the only way I could survive was to live on approximately a quarter of what I was used to getting for a living wage – a drastic cut and one that would involve a complete change of lifestyle. I don’t smoke or drink any more so that helped. I’m a vegetarian and thought I would be able to grow most of my own food.

I don’t go out much at all except for walks and bike rides which don’t cost anything. The nature walk I use for a daily bike ride is just stunningly beautiful and I never tire of it. I realised that the lifestyle I was planning on living would be quite hard work physically and so decided to get fit as soon as possible. I started off just walking every day and now I jog 5 kilometres every day, bike 20 kilometres, train with weights and do Tai Chi, sit-ups and press-ups. I feel so much better for it and I think I will have a six-pack by the time I hit 60! Quite astonishing for someone who spent 8 hours a day sat in a chair in an office and never exercised apart from walking to work. The thing is, it is vitally important to be fit for this kind of lifestyle. I live on my own and if I cannot look after myself then I will have a serious problem. Apart from which, this lifestyle requires commitment and stamina. It is in no way an easy option or a cop-out.

I decided early on to dispose of most of the clutter that I had in my life and in the words of Thoreau “Simplify, simplify”. I have no TV. I sometimes watch Spanish television on my Eee laptop. I have no fridge and haven’t had for a year although I will be building a small Peltier cooler as I like yoghurt and it goes off too quickly in summer. I have a mountain bike – no car – I’ve never owned a car and I’m very proud to be able to say that. I have a wide assortment of clothes as I have to do manual work in all temperatures so anything from padded lumberjack shirts and work boots to sleeveless T-shirts and jeans to shorts and sandals, really. Lots of books, CDs and DVDs as I’m an avid reader.

I have no expensive hobbies. Most of them are free or cost very little – walking, running, cycling, playing guitar, gardening and reading. Watching the occasional DVD or documentary.

I try to do everything for myself as much as possible. I wash clothes by hand unless they are very dirty or very large items in which case I use the Eco setting on the washing machine about once a month. I use home made cleaning materials mainly made of either dilute vinegar or sodium bicarbonate solution. I always cook for myself using home-grown or locally bought vegetables. I use a home-made solar oven in summer and a home-made updated version of the old-time hay box or the wood stove in winter. I have an electric cooker but I don’t use it.

I boil water in a Kelly Kettle (check their website) and keep it in Thermos flasks and in the summer I use camp showers to heat water. I’ve learned how to sew, how to tie knots (a forgotten art), basic woodwork, electrical work and DIY. I make bricks out of old cardboard and paper to supplement my wood supply. All of this keeps my bills down to next-to-nothing.

I grow a small quantity of vegetables and herbs in the garden above the cave and on the metre-thick windowsill but I’m planning on setting up some square-foot gardens and potato-barrels this coming Spring. It’s early days yet. I use a (self-installed) 120-watt solar panel for some of my power and I’m going to build a couple of small home-made VAWTs as there is a huge amount of wind power available in winter. Half of the mains power in this area is from windmills. I only use mains power for power tools and the washing machine. Most of my equipment is 12-volt or was deliberately chosen for low consumption (like the Eee laptop). I use a Vodafone dongle for the Internet which costs about 4 Euros a week and the same kind of package for a mobile phone although I’m planning on switching the phone to Skype soon.

I have started a local magazine with its own website, I’m making and selling solar ovens and I’m planning on going in for producing Biodiesel for sale once I can find a cheap source of used vegetable oil. I don’t have time for anything else as this is a full-time 24/7 365-days-a-year commitment.

What I would like to say is this. I’m not by any means an expert on anything and I don’t claim to have all or even most of the answers. I have found out how to do these things by researching on the Internet – something anyone can do. And by trial and error in many cases. When I came out here a year ago I struggled to wire a plug. Now I’m installing solar panels!

Most of my ideas came from adapting old 1970s Mother Earth News articles to this century and checking out YouTube. I won’t lie – the learning curve is pretty steep and many times I have had to start projects again from scratch. Anyone who thinks that this is early retirement and an easy option is way off the mark. Anyone who enjoys a challenge and really believes in Learning For Life will love every minute of it. It’s an awesome, inspiring rebirth and a path to self-discovery and I would heartily recommend it to anyone. And as for depression – sorry, I haven’t got the time …

Your Money Or Your Life

Justin Wright — Tue, 11 Oct 2011 20:50:48 +0000

When it comes to finding a career we truly love, one of the main things that can really hold us back is the lack of money (as well as large amounts of debt). I know this from personal experience because I was in this exact situation a few years ago. It can be really depressing when you find yourself in that “stuck” mode, where you have to keep your job in order to stay afloat even though you hate it. I might still be stuck in that same situation had I not hit my tipping point with office jobs and went through a financial overhaul.

Luckily, there is a solution to this problem and I feel that it can help people in just about any situation. What is it? Taking control of our personal finances. I know, the topic can get really boring, especially if all you do is read the “How to Get Rich” books that rehash the same content (save more money, make gazillions with real estate, etc.). It can also be overwhelming, especially if you find yourself in a tough position. But there is no better time to do an overhaul of your finances than right now.

In my book Life After the Cubicle I cover some of the basic finance steps I took to escape my job, which includes things like reducing expenses and saving up a nest egg. However, I HIGHLY recommend grabbing a copy of the book Your Money or Your Life since it covers these steps in detail. I can easily say it is the most interesting finance book I’ve read and it goes along with my own principles on living life to its fullest. It was written some time ago but all the principles in the book still apply, especially in the current economy.

Below is a breakdown of the five main principles shared in the book. While the book does cover a few more, I believe these to be the most important ones. Especially if you are new to the topic of personal finance.

Making Peace With The Past

Your Money or Your Life starts out with an introduction about why the “old road map to money” is no longer a good one. I completely agree with the authors and feel that a lot of us force ourselves into the money trap where we work ourselves to death in pursuit of money (myself included).

The book also addresses the problem of thinking we are our jobs. I have always hated the question “what do you do?” because it makes me feel like what I do for work is who I am as a person. This does not have to be the case. There is far more to us as human beings than what we do for a living.

Last but not least, it’s time to make peace with the past. Regardless of what situation you may find yourself in, just remember that going forward it can only get better.

Being In The Present – Tracking Your Life Energy

The next principle in the book is all about tracking the time you spend earning money. This is referred to as “life energy” in the book. If anything, it makes you realize that we do in fact exchange our life for money. We do this everyday when we perform paid employment, whether we like it or not.

However, the book takes it a step further and has you calculate the actual cost of time and money required to maintain your job. This includes things like transportation time and costs, the price of eating lunch at work, and other job related expenses. Once the total time and money is calculated, you then figure out how much per hour you actually earn. The number can be shockingly small, especially if you commute a lot.

Where Is It All Going?

Of all the principles in the book, this is my favorite one. Creating a monthly tabulation of every penny that leaves your hands is an amazing way to get a grasp of where all your money goes. You might even go into shock when you realize that small, frequent purchases can really add up over the course of a month.

As I mention often on this blog, one of the things that allows me to continue to work on things I enjoy is reduced expenses. And no, this doesn’t mean I live with my parents and eat rice and beans for every meal. I simply choose to spend my money wisely on the things I truly get fulfillment from. Tracking my spending every month allows me to keep my expenses in check.

I highly recommend giving it a try. At the very least, you will have a rough idea of where your money goes every month. From there, you can make adjustments and fine tune your expenses so they fit your lifestyle.

How Much Is Enough?

This is where the book really aligns with my personal way of living. There is a chapter in my book titled “A Million Is Not The Answer” where I talk about the idea of making “enough” instead of trying to make millions. If you do want to make millions, then by all means go for it! I personally feel like I can live my desired lifestyle on far less than a million dollars.

The real key is figuring out how much is enough for you. You might have a family and require more income to get by or perhaps you have little to no expenses so you can get by with very little. The important thing is to not go too far past enough. It’s been proven that a certain amount of excess money is a positive enhancement on your life but after a certain degree it can actually decrease your fulfillment. This is usually due to the fact that as you earn more money, you tend to sacrifice more life energy to get it.

Tracking Your Progress

Last but not least, it’s time to track your progress. Once you start monitoring your expenses, you can see how they compare to your income every month. The goal is to take the difference and invest it each month (retirement accounts, savings, etc.). You could also use the difference to get rid of any debt you may have. I did this for a long period of time and can honestly say that getting out of debt was one of the most liberating feelings I’ve ever had (even more than quitting my job).

Time To Get Started

While those are only a few of the principles shared in Your Money or Your Life, I feel that they are the most significant ones.

Being aware of your spending habits and defining enough are the two most important things you can do for yourself. You might just find that you can get by on a lot less money, which will open up doors to job opportunities you may have overlooked in the past.

Photo Credit: AaronPatterson

Experimenting With Car-Free Living

Justin Wright — Tue, 04 May 2010 16:35:22 +0000

It has been quiet around here lately and with good reason: Not only have I been working on a new product (more to come in the upcoming week), but I’ve also been busy biking all over town. Ever since Earth Day, my girlfriend and I have been living car-free. It has been a goal we’ve had for a while and I must say we’re doing pretty good so far.

Our goal is to keep her car parked as much as possible (I don’t own a car myself). We’re still thinking about making the switch to a true car-free life but we want to give it a trial run before we make any major decisions.

The only thing we are worried about is losing the ability to take road trips. However, we’ve realized that we can easily rent a car whenever we want to go on a trip and still spend less each year (insurance and maintenance are expensive).

It Has Been Great So Far

It has been just under two weeks since we started the experiment and we’ve already realize that it is much easier to live without a car than we anticipated. St. Petersburg happens to be very bike friendly and we have everything we need within a few miles of our apartment. We’ve already made a few trips to the grocery store without any problems. I even managed to throw a 10 pound bag of ice in my bike basket and ride home without it melting.

Check out the awesome bike rack I rigged up using a bike rack, a cheap plastic crate from Lowes, and some ratchet straps:

The whole setup costs roughly 40 bucks and has been a life-saver. It holds two canvas grocery bags without any problems and can hold around 30 pounds.

The bus system has also helped tremendously and costs far less than putting gas in the car. Over the past few weekends we’ve been hopping on the bus and taking it to the beach. Not only does it save us the hassle of parking, but we can also enjoy a few drinks at the beach bars without having to worry about driving.

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We hope to keep this experiment going for as long as possible. I doubt I can make it a few years like some people have managed to do, but every little bit helps. I’m really enjoying the exercise and the idea of not having to drive (I hate it).

What $100 Worth of Groceries Looks Like – Florida vs. Hawaii

Justin Wright — Wed, 10 Mar 2010 15:37:41 +0000

The main reason I decided to migrate down to Florida is because I am a sucker for tropical climates. I love palm trees, warm weather, and beaches more than anything. While Hawaii is the perfect place for this, I didn’t want to return to the high cost of living that Honolulu had to offer.

After doing a few cost of living checks, I learned the most of Florida is relatively affordable. However, it wasn’t until the other day when my girlfriend and I were grocery shopping that the cost of living difference between here and Hawaii really hit me.

Below is a side-by-side comparison of what $100 will get you in each state:

Hawaii

This photo was taken in 2007, so the prices may be a tad outdated. Everything in the picture was purchased from a Sam’s Club in Honolulu for roughly $100.

Items included:

1 Bag of Mixed Fruit
1 Box of Cereal
1 Bag of Beef Jerky
1 Package of Deli Turkey (Double-pack)
2 Loaves of Whole Wheat Bread
1 Bag of Frozen Strawberries
1 Bunch of Bananas
1 Bag of Frozen Vegetables
1 Bag of Frozen Broccoli
1 Bottle of Mrs. Dash Spices
1 Bag of Tilapia

That’s it…

Florida

This photo was taken a few days ago and most of the items were purchased at a local produce stand or natural food market. Everything came in at roughly $93.

Items included:

2 Bottles of Organic Lime Juice
2 Bottles of Olive Oil
2 Bottles of Organic Soy Sauce
1 Bottle of Orange Juice
1/2 Gallon of Organic Milk
4 lbs. of Organic Oatmeal
3 lbs. of Organic Chickpeas
1 Dozen Eggs (Free Range)
3 lbs. of Frozen Blueberries
2 lbs. of Carrots
7 Bunches of Broccoli
4 Sweet Potatoes
7 Zucchinis
1 Piece of Fresh Ginger Root
3 Cloves of Garlic
3 Bags of Spinach
7 (Huge) Apples
1 Bunch of Strawberries
1 Bunch of Bananas
1 Gallon of Vinegar
1 Bottle of Hydrogen Peroxide
1 Rolling Pin
1 Bar of 100% Cocoa

A Clear Winner

It is pretty crazy when you can see the cost difference side-by-side. Not only was I able to buy a lot more stuff (and better quality), I was also able to support a few local businesses at the same time.

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Just curious…do you think you could get more or less where you live?

The Art of Voluntary Simplicity

Justin Wright — Tue, 02 Feb 2010 16:51:15 +0000

As many of you know, ever since I hit my tipping point with office jobs I decided to live a life of voluntary simplicity. This lifestyle change is the main reason why I was able to leave that job and pursue my passions.

However, a lot of people who I talk to are curious to know what simplicity means in terms of a lifestyle. So here is an in-depth look at the lifestyle and how you can start living it yourself.

What Is Voluntary Simplicity?

From my experience, voluntary simplicity means different things to different people. For the most part, choosing a life of simplicity means that you stop living the “modern-day lifestyle” that many of us have grown accustomed to. You stop focusing on accumulating possessions and whatnot and start focusing on getting as much value out of your time as possible. You remove the things you do not need in your life, whether they be physical or mental.

By removing the clutter from your life, you can spend your time pursuing your passions, hanging out with your friends and family, and doing the things that make you happy. You clear out all the junk for good and live a life of passion, freedom, and happiness.

Living a life of simplicity also helps you focus on living in the moment, rather than the past or future. None of us can travel in time as of date, so the only real time we have is now. This very second is your life as you read this sentence. By living in the moment, you can truly experience everything you do in your life.

Want a good example? The next time you sit down to eat, make it a goal to focus on what you are eating. Taste the food and actually enjoy the different flavors that each food has. It’s pretty amazing if I must say so myself.

Last but not least, a life of simplicity usually involves frugality. You start to focus only on the things you need (roof, clothes, food) and not on the things your television tells you to buy. By spending less money, you also open yourself up a lot more possibilities since you no longer need as much money to live from.

Where Should You Start?

Since voluntary simplicity is a personal choice, the best place to start is by deciding whether or not the lifestyle is for you. If it is, you should know that it does take time to transition into the lifestyle. It’s very difficult to make the switch overnight since you most likely have a lot of different things you will need to change in your life.

Here are a few things you can do to start implementing the lifestyle:

Reduce Expenses

A great place to start is by doing an in-depth look at your expenses. Take the time to figure out where your money goes and see if you can reduce any of the expenses. If you have cable, think about ditching it. If you have a cellphone, think about getting the cheapest plan possible.

Reduce Clutter

Have a ton of stuff lying around? If so, you might want to consider decluttering. Go through everything you own and decide what things you need and what things you could live without. Then make a plan to get rid of everything you do not need. You could try selling it on Craigslist or donate to a local charity.

Organize

Once you remove all the clutter, it is time to organize everything you have left. An organized home is an important aspect of simple living and makes it easier to keep your mind at ease.

Go Green

Believe it or not, going green is a great way to save money and reduce the amount of things you need and use. For a list of things you can do, check out my post on going green and saving money.

Automate

A great way to free up more time in your life is by automating various tasks and chores. For example, sign up for automatic billing on any of your recurring expenses. This cuts down on the amount of time you have to spend paying them every month.

Consolidate

Just like automating, consolidating your tasks and chores can free up a lot of time. For example, instead of running to the grocery store on Tuesday and the laundromat on Wednesday, do them both on the same day. Start planning ahead so you can take care of all your errands at one time.

Cut Back on Email

Not only is email a time killer, but it is also a productivity killer. Try cutting back as much as you can and close your inbox if you need to.

Focus on What Works

I highly recommend taking some time to analyze your entire life at this exact moment. Figure out what is working in your life and what isn’t. Then make a plan to remove all the things that are not working so you can focus all your energy on what works for you.

Eat Real Food

One of the things I started doing a few months ago is eating real foods. By focusing on eating natural foods instead of highly processed foods (canned, boxed, etc.), you not only make yourself healthier but also reduce the waste you go through since most processed foods are heavy on the packaging.

By no means are these all the things you can do. These are just a good place to start, especially if you are new to the idea of living a simple life.

I must say that I truly enjoy this lifestyle. By no means do I feel like I am missing out on anything nor do I feel poor. Matter of fact, I feel rich since I actually have time to enjoy myself and spend time with the people I care about.

Do you live a life of simplicity?

Photo Credit: Katie@!

How to Retire Young

Justin Wright — Tue, 19 Jan 2010 18:48:10 +0000

Have you ever wanted to retire early? How about in your 20’s? I know my goal had always been to retire early so I could enjoy the simple things in life.

Well guess what? It is possible to live a retired lifestyle, even in your 20’s, by simply following the steps I’ve listed below. The plan is broken down into two phases: one for getting to retirement and the other is for living it up once you make it there.

Phase 1: Getting To Retirement

Below are the steps needed to get yourself to the retired lifestyle. It’s worth noting that they don’t have to be performed in the order listed, since some of the steps can be rearranged to suit your needs.

I have also put a percentage after each step, which indicates how important the step is in achieving the retired lifestyle:

Reduce Your Expenses (15%)

The first step to retiring in your 20’s is reducing your expenses. The more you can cut them down, the less you’ll have to worry about when it comes to creating an income stream. The key is to write down every expense you have and then figure out how to either reduce it or eliminate it completely.

It takes some imagination to figure out how to reduce your expenses, but it can be done. Start by cutting out cable and ditching your cell phone . From there, start thinking about getting rid of your vehicle(s). This will save you money on gas, as well as on repairs and insurance.

Become A Smart Shopper (10%)

As mentioned above, it’s important to weed out your expenses. However, there will always be a few things you need to purchase. That’s where becoming a smart shopper comes in handy.

What does being a smart shopper mean? It means you know how to find deals, buy in bulk, and overall understand how to get the things you need for the least amount of money possible.

For example, instead of buying various cleaning supplies, you purchase vinegar, water, and a spray bottle. Not only will you save a bunch of money, but you’ll also reduce the amount of times you have to go to the store. That’s a double whammy right there!

Another good example is utilizing coupons, whether they are from the paper or online. You can easily save money on various things by taking the time to hunt down coupons. Besides, you have to use your free time for something…

Move To Florida (50%)

This is an IMPORTANT step in getting closer to an early retirement. You could simply follow this one step and be half way towards retirement. Not bad for a simple step that doesn’t require much planning or capital.

I managed to migrate to Florida for less than a thousand dollars and it was well worth it. Now that I’m here, I feel that much closer to retiring in my 20’s. I’m not sure what it is about Florida that makes it so perfect for retirees, but I think a lot of it has to do with the weather and the amenities available. I can literally walk down the street and play tennis, swim in the bay, play shuffleboard, or watch a few games of baseball for free.

Or perhaps it’s the dive bars with wood paneling for walls and 2 dollar mix drinks specials. I’ve managed to listen in on some pretty crazy conversations amongst retirees. Talk about the perfect place to retire!

If you need help with this step, check out my post: How To Move Across The Country.

Quit Your Day Job (15%)

It’s important to free yourself of your day job if you really want to live the retired lifestyle. Unless of course, you manage to find a nice part-time job you enjoy (door greeter perhaps?). If that’s the case, feel free to work the job for as long as you wish.

The reason it’s important to quit the day job is because most activities take place prior to 4 PM (including dinner specials). If you’re working 9 – 5, there is no way you can enjoy Florida the way it was meant to be. You’ll miss out on some of the coolest tours, tournaments, and happy hours around.

Create An Income Source (10%)

This is also an important step, and can be done before or after you move down to Florida. I would recommend working on an income stream prior to getting here if possible.

Luckily, you should have already reduced your expenses and became a smart shopper. If not, I highly recommend working on those steps first. That way you have an idea of how much income you need generate each month.

If you’ve reduced your expenses and became a smart shopper, this should require less work. The first step is to figure out how much money you need to live off of. Once you know that figure, it’s time to figure out a plan to build an income stream to support you.

Most importantly, you want to build an income stream that requires the least amount of upkeep as possible. This will allow you to truly embrace the retired lifestyle. A few good ideas include building a website, blog, or online business that requires only small amounts of daily/weekly work. Again, use your imagination.

Phase 2: Living It Up

Now that you’ve figured out how to become retired, it’s time to live it up. Here’s some great tips and tricks on what to do with your time:

Create Your Own Sleep Schedule

One of the biggest perks to being retired is the ability to create your own sleep schedule. You no longer have to worry about your day job or any commitments. So it’s a good idea to figure out when you actually prefer sleeping. If you’re a night owl, enjoy it and sleep in the morning.

However, it’s worth noting that you want to get up by noon each morning otherwise you will miss out on some of the specials in the next tip.

Early Bird Specials

It’s true, Florida has a ton of early bird specials. Best of all, a lot of them are open to all ages. Woo!

The key is to find happy hours and specials in your neighborhood and plan them out on a calendar. That way you know where to get cheap food and drink whenever you are craving them. I swear some of the prices remind me of cheap college bars on a tuesday night. It’s crazy.

Do Crossword Puzzles (And Word Searches)

When it comes to entertainment, one of my personal favorites is doing crossword puzzles and word searches. Not only are these things cheap, but they are also very relaxing. Especially if you pair them up with a cup of coffee on the back porch. It’s heaven on earth.

Read Books (From The Library)

Another great source of entertainment is the library. You can literally keep yourself entertained for free. Each week, I head to the nearest branch and pick up at least 3 books to read each week. Not only does it give me something to do, but I’ve also noticed that fiction books blow away anything on television. I barely watch any television now that I read on a daily basis. It’s also a great way to improving your writing.

Listen To Chill Music

Retirement is all about relaxing and enjoying life. There is no room for stress or negativity. That’s why I love listening to chill music all day. I’m a big fan of Jack Johnson since his music puts me in a great mood. You could also listen to oldies if you prefer.

Either way, find something that puts you in a good mood and let it play all day long.

Enjoy The Outdoors

One of the reasons Florida is so perfect for retirement is because of the weather. We did have a few cold weeks here but other than that it’s been great. I can go outside and enjoy the sun, even in January.

Best of all, there are tons of free things to do as I mentioned above. You can go swimming, play tennis, or take up shuffleboard (badass sport). But lets not forget tanning and hanging out at the beach.

Close Enough

Okay I must admit that this is probably not the best way to approach retirement. However, my life is pretty similar to what I’ve listed above. By doing what I love and combining it with a frugal, green, and minimalist lifestyle, I’ve managed to create my own version of the retired lifestyle.

Photo Credit: Micky | CC

Go Green, Save Money

Justin Wright — Thu, 14 Jan 2010 21:38:43 +0000

As most of you know, I’m a big fan of frugal living. But I also try to keep my carbon footprint as small as possible. I’m a huge advocate of living an earth-friendly lifestyle and try to conserve as much as possible.

However, it seems that whenever I mention the idea of a green lifestyle to people I meet, they often act surprised. They assume that living frugally and being green is an impossible task. The truth is, being green can actually help your frugal lifestyle. It can save you money in a lot of areas you might often overlook.

Being green does not mean you have to go out and buy all the green friendly gadgets you can find. It’s more about consuming less in your every day life. However, I do recommend a lot of green friendly products to people because they are better for the environment and our purchases help support the companies that make them. That way they can continue to produce more of their products and compete with the non-green alternatives.

Here’s a breakdown of some of the ways you can go green and save money at the same time:

Save Water

Take Quick (And Cool) Showers

This is an easy one. Try taking quicker showers and using cooler water than you normally do. This will not only save you money on your water bill, but it also requires less energy to heat the water up. Trust me you’ll get used to it a lot faster than you think.

Wash Clothes With Cold Water

I’ve never been much of a laundry expert, but I have noticed that washing all my clothes is cold water has not had any side effects. Again, this helps save energy by using less to heat up the water.

Use Less Water In Your Toilet

A quick and easy way to save money on water is to place a liter bottle filled with water in the tank of your toilet. I’ve read that it can save up to 300 gallons of a water a month.

Turn Off The Water When You Brush Your Teeth

This is something I’ve always struggled with but once you get in the habit you’ll never have to worry about it again. This also helps save money on water costs and actually saves more than you would think.

Triple Check Faucets For Leaks

Believe it or not, a dripping faucet can use A LOT more water than you would believe. Make sure that none of the faucets in your house drip consistently when the water is turned off.

Save Energy

Walk Or Bike Instead Of Drive

Whenever possible, try to walk or bike where you need to go. The less you use your vehicle, the less gas you waste and the more money you get to keep in your pocket. If you do have to use you vehicle, try combining errands into one trip instead of driving to the store multiple times.

Work From Home (If Possible)

This is another way to reduce your gas costs since you no longer need to commute to work. Some may argue that you’re using more electricity since your at home but I beg to differ. Most office buildings run lights all day long even when it’s light out. I would assume this is because most cubicles don’t have the best window views.

When you work from home, you can utilize the sun to light up your home office and use far less electricity. However, this is not possible for everyone but it never hurts to ask your boss. Even if you can telecommute one day a week, it cuts your gas consumption by 20% for the year.

Turn Off The Lights

As a kid I was constantly told to turn the light off whenever I left a room. It’s a tough habit to break but it’s a costly one to keep. Never leave a light on in a room you’re not in. This will cut down on your energy bill and help you be green at the same time.

If you find it necessary to leave a light on when your not at home, invest in a small LED lamp or nightlight that doesn’t use much electricity.

Heat Or Cool Your House Only When Necessary

A big factor in energy usage is how often you use your heater or air conditioner. Try your best to only use them when you find it necessary. Make use of space heaters and fans that use far less energy and you’ll immediately notice a difference on your next electricity bill.

Buy/Rent A Smaller Home

This one goes right along with the last tip I shared. Buy living in a smaller home or apartment, you can heat or cool it for far less than a larger one. Plus you’ll need to buy less stuff to fill all of the empty space you have.

Use A Laptop Instead Of A Desktop

It’s true that the majority of desktop computers use far more electricity than laptops. So the next time you are shopping for a computer, think about purchasing a laptop even if you only plan on using it at home.

Unplug Appliances You’re Not Using

Some appliances use electricity, even when they are turned off. So get in the habit of unplugging them when you are not using them and you’ll also help cut down your overall energy costs.

Eat Smarter

Buy Locally Grown Foods

I love buying locally grown foods as much as possible. Why? Two reasons. First off, buying locally is much more environmentally friendly. The foods don’t have to be transported across the country which cuts down on the waste of gas and fuel. They are also much fresher since they make a shorter journey to get to your house.

The second reason why I really like buying locally is because I like to support local farmers. It’s a great way to give your money back to the community you live in.

Buy Food In Bulk

Buying food in bulk is a great way to reduce waste as well as keep some money in your wallet. Start by taking a look at what foods you eat often and then find out where you can get them in bulk.

A good example of a food to buy in bulk is brown rice, which I eat everyday. Many health food stores and Asian markets sell large bags of rice that are far cheaper per serving than the small packages you find at most grocery stores.

Eat Lots Of Fresh Food

Another great way to cut down on waste is to eat a lot of fresh fruits, vegetables, and grains. Most of these foods come without packages as you usually bag them yourself. Try your best to avoid the foods that come in a lot of packaging. Plus you’ll find that fresh food is actually cheaper than the packaged stuff and much healthier.

Eat Less Meat (The Bad Kind)

This is a tough step that a lot of people might not want to do. I’ve always been a big fan of meat but I have drastically cut down over the years. I’ve finally made it to the point where I only eat a small amount of chicken and fish every week.

Eating less meat is a great way to go green because the meat industry is terrible for the environment. It requires far more resources to product meat than grains, fruits, and vegetables.

Update: As mentioned in my comment below, I’ve actually been eating more meat lately. The key is to find clean meats such as grass-fed beef, since they are free of the harmful additives. Plus the animals are raised the way they are meant to be.

Go Paperless

Sign Up For Paperless Billing

This was a huge step for me and I’ve been much happier ever since. I signed up for paperless billing on every account I have and no longer get anything in the mail (besides junk). Not only does it drastically cut down on paper, but it can also save you money. Many companies will charge less service fees if you opt out of paper billing. It’s a win for everyone!

Ditch The Paper Towel

I must admit, I used to be a paper towel fanatic. I would use it for everything, whether it was a simple spill, cleaning the house, or blowing my nose. Sadly it’s a huge waste of paper and also costs a lot of money if you use it often.

So instead, set up a cloth towel system in your house. Cut up a bunch of old rags or purchase a few from a store. Then keep a separate clean and dirty container somewhere that’s easy to get to. Whenever you need to use a towel, grab one out of the clean container. When you finished, throw it in the dirty one and you’re all done. Then all you have to do is throw the dirty ones in with your laundry.

You no longer have to go out and buy paper towel every time you run out, which means more money in your pocket.

Use Cloth Dinner Napkins

The idea I mentioned above also works for dinner napkins. Purchase a set of cloth ones and you’ll never have to worry about running out of napkins again. It’s a really easy transition and something I highly recommend doing.

Use Recycled Toilet Paper (And Less Of It)

Believe it or not, I have read a few blog posts from people that have actually implemented cloth toilet paper, but I’m not even going to go there. That’s one thing I haven’t been able to get myself to do yet.

Luckily, there are a few companies out their that make recycled toilet paper. It does cost more than the regular stuff, but I feel that purchasing it is a great way to support the company. Who knows, if enough people buy it maybe we can get the prices to come down.

A good brand to check out is Seventh Generation, which you can find at health food stores as well as some regular grocery stores.

Print Less

This is another area I used to struggle at. I would constantly print everything I received so I could have it in paper form. Once I finished with it, I would chuck it in the garbage and be done with it. What a waste of paper.

I have since ditched the printer completely and now do everything electronically. If someone needs something from me, I’ll scan it in and email it over to them or use some fax software. It’s amazing how much money I’ve saved on ink cartridges and paper.

Miscellaneous Tips

Borrow Instead Of Buy

This is another easy thing to implement into your life. Whenever you feel the need to go out and buy something, see if you can borrow it instead. This works great for things you’re only going to use a few times.

A great example are books. Instead of rushing out and buying a copy of a book you want, hit up the local library. They’ve got tons of books to keep you content for the rest of your life.

Buy Used

If you need something that you can’t borrow, try purchasing it used. It’s amazing what people have for sale on Craigslist and other classified ad websites. Not only will you help reduce waste, but you’ll also save a lot of money.

Make Your Own Cleaning Supplies

Not only are many household cleaners bad for the environment (and yourself), but they also come in tons of packaging. Not to mention they’re pretty expensive.

Instead, make your own cleaning supplies. It’s amazing what a little vinegar and water will do to clean up your house. All it takes is a spray bottle, a jug of vinegar, and some tap water. Talk about a cheap and healthy alternative.

Use Magic Soap

For things that require more than water and vinegar, check out Dr. Bronner’s All-In-One Magic soap. The stuff is completely natural, comes in a recycled bottle, and lasts forever.

Not only do I use it as shampoo, body wash, and face wash, but I also use it as toothpaste. And no I’m not kidding about brushing my teeth with it. You’ll no longer have to go out and buy a bunch of different soap. Plus you will drastically cut down on waste (packaging) and will save a ton of money.

I plan on doing a separate post about this soap because it truly is amazing. It’s the MacGyver of soaps.

Do You Want Paper Or Plastic?

My guess is you’ve been asked that question a few times this week. However, the best answer to the question is neither. Instead, use a backpack or a canvas bag that you can pick up at most stores these days.

Imagine how many bags (and plastic) we would save if everyone reused the same one every time?

Get Started Today

By no means do I expect anyone to be able to do everything I’ve listed above. It took me over a year to actually implement everything. It’s important to just get started in the right direction. Try implementing a few green habits and products into your life and you’ll start making a difference.

Have any other green tips? Please feel free to share them below.

Photo Credit: D Sharon Pruitt

A Simple & Easy Wallet Solution

Justin Wright — Tue, 01 Dec 2009 16:45:42 +0000

A few weeks ago, my dog ate up (destroyed) my wallet. That’s when I decided I needed to find an easier and cheaper solution.

I’ve always been a fan of carrying my stuff in my front pocket but a lot of times wallets are just too thick. I’ve also used a money clip but I did not like the fact that all my cards would not fit in it.

There has to be a better solution…

Introducing The Money Band

So I started surfing the web looking for interesting yet simple wallet ideas and came across the Money-band. At first I figured they were just selling rubber bands for a few bucks but then I decided to give it a shot anyway. I figured it was far less than the $20+ I’ve spent on decent leather wallets over the years. Plus I really liked their slogan:

As simple as possible, but not any simpler.”

A few days ago I received it in the mail and it turns out it really is just a rubber band. But it’s a custom sizeed one that makes carrying your cash and cards really easy. I know this because I tried using other rubber bands and none of them fit the way I wanted them to.

What Does It Hold?

As you can see in the picture above, I’ve managed to fit everything I need inside the band. I currently carry the following items:

Debit Card (Personal)
Debit Card (Business)
Drivers License
Health Insurance Card
3 Business Cards
Cash
Apartment Key
Mail Key

I managed to put the two keys on a very small key ring and then put it around the rubber band. That way I never leave home without my keys or my wallet since they are connected.

So far, I’m loving the simplicity and really love the fact that it’s waterproof. It’s sort of dog proof as well, though I’m sure my dog could eat the rubber band if she wanted to.

Update: My dog did in fact destroy my Money-band, but I loved it so much I went ahead and ordered another one.

You can order your own by heading over to the Money-band website.

What’s your favorite type of wallet?

What I learned From Not Spending Money

Justin Wright — Mon, 24 Nov 2008 17:28:00 +0000

My experiment to not spend money for 7 days has officially come to an end today. And guess what, I made it! It was not easy, but it was totally worth it. It made me realize a few things that I wanted to share.

The Things We Take For Granted

When you do not have any money to spend, you quickly realize the things we take for granted. I can’t believe how much I missed going out to the bar and eating once in awhile. I also missed buying the little things like beer and soda when I ran out. Things like this we consider small in our everyday lives, but when we don’t have this option they feel a lot bigger. I felt like I was missing out on a lot of things.

The Things We Forget

However, not spending money also makes us realize the things we already have and enjoy doing. For example, not renting movies made me realize how many movies I already own that I haven’t looked at in ages. It’s easy to overlook our belongings when it is so easy to go out and get new things all the time.

I also realized how many free things there are to do. Going for walks, rollerblading, and hanging out at the park are just a few. Taking pictures and hiking were two other things I enjoyed doing during the 7 days.

It’s Easy To Spend Money

The weird thing about not spending money, is that it made me realize how easy it is to spend money. Consumerism is a tough thing to beat and a big reason why so many people struggle when it comes to spending habits and credit cards. Yet it is so easy to do when there is so much going on in the World. Everywhere you look there are restaurants, stores, and malls waiting for your money.

However, it is also important to live life because not spending at all can easily make your life miserable. In just 7 days I felt what it is like to not be able to go out and do the things you enjoy. So the key to success, is to find a happy medium.

My New Plan

After talking with my girlfriend about this experiment, we have decided to implement a weekly spending budget for entertainment. This includes things such as eating out, drinking at the bars, and so on. Prior to this experiment, I didn’t really have a budget which made it easy to spend more than I wanted.

So from today on, we each have $50 a week to spend on entertainment. This gives us $100 total when we go out together which should make it pretty doable. The key will be conscious spending instead of going all out. It’s easy to drop $50 at the bar when you are not paying attention to what you are buying. At the same time, we often go out to eat and spend less than $25 when we only order one drink. So watching what we spend will be the key to success.

This Concludes The Experiment

All I can say, is that this experiment was worth it. It made me realize a lot of things that I have forgetten and has not set the path for better spending. I would recommend trying this simply because it helps you realize where all of your money goes. Even if you do not make it the full 7 days, you will still learn a lot from not spending.

PS. Tune in tomorrow for a very important post about growing a mustache for kids!

Photo Credit: stuartpilbrow