Frugality as a Means to Other Ends

[BPA]

Hello.

I've been reflecting on some of the discussions here and on MMM's blog about why we are frugal. 

Early Retirement (or at least as early as one's thirties) is not my ultimate goal, although I do hope to be retired by 50.

Instead, for me, frugality is the way I have managed to raise my children as a single mom, including one rather high maintenance (but absolutely lovely) special needs son, while working part-time and living in a nice area.  I like having the extended benefits from my employer but also need to provide for therapies for my son that are not covered by that plan.  Working part-time also makes it easy to pick him up early from school on days when he is having a meltdown.  It works for us.

My children will be 20 and 21 when I turn 50 which is when I can draw on my DB pension, so I plan to continue working part-time and pay down my mortgage between now and then.  The amount of my DBP won't be much, but years of working part-time have enabled me to realize that I can so live a happy existence on $21K/year. 

So, working part-time so that I could be around more for my kids was my original reason for frugality, but that same frugality is still going to allow me to retire earlier than many of my colleagues.

Anyone else have a similar story?

[sisca]

Hi. I dont have anything similar, I just wanted to say that that was an awesome post.
It works for you, all that matters really.

[spider1204]

I think frugality is just so effective at providing you more freedom that it becomes a means to any end you can imagine.  For some folks it's being a able to raise children, retire early, travel the world, eat healthier, start a business, pursue your hobbies, learn skills, volunteer, and you can go on and on.  It's also effective enough that you get to choose not just one of these goals, but several.

For me it probably all started when I was in elementary school and really wanted to get a SNES but it cost a whole $25 (used, N64 was coming out at the time).  Thankfully, my parents made me earn and save up enough money before I could get it, although they did help me with generating and executing money making ideas.  Ever since I'd been pretty frugal, and was always able to save up anything I desired up until college.  Then I discovered climbing and a full time job and it was readily apparent which I would prefer to do for the rest of my life.  So then the frugality went into overdrive mode.

[happy]

Being a single mum was also the driver for me to downshift and learn some frugality.  I wanted to be around for my children at least some of the time.  I 'm much less better at it than you however, my expenses are somewhat higher. *hangs head in shame*.  I do however live on substantially less than my colleagues.

[BPA]

I'm living on just over $60K now, but figure that I'll be able to handle living on $21K once they are adults and the mortgage is paid off.  If I could live on $21K now, I'd be a rockstar!  :)  According to my pension plan information, that would translate to $1500 a month after taxes...more than enough for me to run this house on.

My frugal journey started with YMOYL and the various "you can live on one income if you are frugal" blogs.  My goal was to live on 2/3 of my income.  I branched out and started reading the early retirement ones because I was feeling a bit overwhelmed.  I now realize that it's more my son's issues that keep me stressed, not my job, but I'd still like to retire at 50. 

I'm so glad for the MMM community.  It's the one place where people don't seem to think I'm a freak for riding 25km in cool weather.  I get so many odd looks and comments.  The people aren't nasty, just surprised. 

[happy]

I'm living on just over $60K now, but figure that I'll be able to handle living on $21K once they are adults and the mortgage is paid off.  If I could live on $21K now, I'd be a rockstar!  :)  According to my pension plan information, that would translate to $1500 a month after taxes...more than enough for me to run this house on.

This makes me feels better! 20k Aus happens to be the single rate for old age pension in Australia. Like you I have various calculations regarding how much I will need once kids are out of high school, mortgage is paid off etc.

[okits]

*hangs head in shame*. 

Please don't!  From your posts that I've read, you've obviously done a fantastic job as a parent and Mustachian.  We should all hope to fare so well. Your kids sound healthy and well-adjusted, and your financial house is in order. There's no flashy parade to celebrate precious achievements like that (but there really should be, it's well-deserved.)

[okits]

So, working part-time so that I could be around more for my kids was my original reason for frugality, but that same frugality is still going to allow me to retire earlier than many of my colleagues.

Anyone else have a similar story?

A bit similar. My reasons for frugality are:

1) (long-term) ingrained habit. Not rich, don't waste money, be responsible with your finances;

2) (short-term) don't want to do my current job anymore, FU money gives me freedom to eventually leave; and

3) (medium-term) want to work significantly less than the ~60 hours/week (evenings, weekends, evenings on weekends) I currently work, once I have children.  I figure if I do all the heavy lifting now for retirement, house, and kids' university savings, I can afford a 50% (or more) pay cut in the future to be more present as a parent.

So no children yet, but I'm thinking along the same lines as you. (It's nice, for me, to see someone already doing it!)

[BPA]

I'm living on just over $60K now, but figure that I'll be able to handle living on $21K once they are adults and the mortgage is paid off.  If I could live on $21K now, I'd be a rockstar!  :)  According to my pension plan information, that would translate to $1500 a month after taxes...more than enough for me to run this house on.

This makes me feels better! 20k Aus happens to be the single rate for old age pension in Australia. Like you I have various calculations regarding how much I will need once kids are out of high school, mortgage is paid off etc.

Having a good plan and the motivation to pull it off like you do is so important.

I find that a lot of the single parents I know want to live in my neighbourhood and I had read enough to know that buying the smallest, cheapest house in the nicest neighbourhood you can afford was a solid idea.  I was thinking of selling a year ago when my daughter moved in with her dad and we had way too much space.  Plenty of people wanted to buy my house and it wasn't even on the market.  Some of the single parents I know couldn't figure out how I've been able to afford it.  The secret for me was that I bought my house close to work and don't need a car.  I walk, cycle, or take public transit.  Since the beginning of September, I've paid about $70 in transportation costs (and that includes trips to Toronto to visit friends).

They have all balked at the idea of going carless which is their decision.  I'm just glad that I was able to make it work.

Good luck to us...but really it has less to do with luck at this point than good planning and goal setting.  :)

[BPA]

So, working part-time so that I could be around more for my kids was my original reason for frugality, but that same frugality is still going to allow me to retire earlier than many of my colleagues.

Anyone else have a similar story?

A bit similar. My reasons for frugality are:

1) (long-term) ingrained habit. Not rich, don't waste money, be responsible with your finances;

2) (short-term) don't want to do my current job anymore, FU money gives me freedom to eventually leave; and

3) (medium-term) want to work significantly less than the ~60 hours/week (evenings, weekends, evenings on weekends) I currently work, once I have children.  I figure if I do all the heavy lifting now for retirement, house, and kids' university savings, I can afford a 50% (or more) pay cut in the future to be more present as a parent.

So no children yet, but I'm thinking along the same lines as you. (It's nice, for me, to see someone already doing it!)

It's funny.  I was raised to be frugal and my ex-husband was not.  When I read The Millionaire Next Door, I grinned that his father was one of the rich and living like The Millionaire Who Lives in the Upscale Neighbourhood and Drives Leased Mercedes and Everyone Knows He's Rich types instead.  He's a really nice man, but clearly not the "Next Door" type.  My ex does not have a large income but was used to the good life and I'll admit that I threw frugality to the wind for a few years.  I'm glad I got back to it.

Excellent plan to work lots now and work far less when you have kids.  I wish I'd earned and saved more before mine were born.  It's worked out okay for us, but I am lucky that my employer is quite flexible about when I work.  I used to work mornings when he was in elementary school which was very important for appointments and as I mentioned picking up my son when he was having meltdowns.  That would happen on average about once a week. 

Good luck!

[plantingourpennies]

Yes, agreed that early retirement is not the real goal. Rather, early flexibility is! I can't actually think of anybody who has figured out a way to retire early, and then actually stayed retired!

It seems if you have the ability to retire at an early age, you enjoy making money (or enjoy whatever is making you the money) too much to actually stay retired.

Best,
Mr. Pop

[happy]

 
Some of the single parents I know couldn't figure out how I've been able to afford it. 

Good luck to us...but really it has less to do with luck at this point than good planning and goal setting.  :)

Yes I've often had the experience of confusing people with how I can afford some things. People mostly assume single parents are poor and struggling (whereas I think the issue of being time poor is really the problem), and because I mostly don't go in for status symbols people assume my income is low. Of course I try not to waste money too often, and this makes the big difference.

[BPA]

 
Some of the single parents I know couldn't figure out how I've been able to afford it. 

Good luck to us...but really it has less to do with luck at this point than good planning and goal setting.  :)

Yes I've often had the experience of confusing people with how I can afford some things. People mostly assume single parents are poor and struggling (whereas I think the issue of being time poor is really the problem), and because I mostly don't go in for status symbols people assume my income is low. Of course I try not to waste money too often, and this makes the big difference.

ha ha  People are amazed that I am a "professional" without a car.  They see me riding about on my bike or the bus and know I'm a single parent and assume that I'm quite poor.  lol  They see me get off the bus at the high school and will ask if I work in the cafeteria because surely a teacher would want to show off her socio-economic status.  No thanks!  I think it helps that I don't buy into the snobbery that many people assume about the so-called middle class. 

I got sympathy riding my bike home from working in the rain today.  lol  I suspect more than a few people think I'm crazy.

[Self-employed-swami]

ha ha  People are amazed that I am a "professional" without a car.  They see me riding about on my bike or the bus and know I'm a single parent and assume that I'm quite poor.  lol  They see me get off the bus at the high school and will ask if I work in the cafeteria because surely a teacher would want to show off her socio-economic status.  No thanks!  I think it helps that I don't buy into the snobbery that many people assume about the so-called middle class. 

I got sympathy riding my bike home from working in the rain today.  lol  I suspect more than a few people think I'm crazy.

What socio-economic status are teachers supposed to have? LOL  They are the lowest paid bachelor's holders, other than B.Fa!

[BPA]

ha ha  People are amazed that I am a "professional" without a car.  They see me riding about on my bike or the bus and know I'm a single parent and assume that I'm quite poor.  lol  They see me get off the bus at the high school and will ask if I work in the cafeteria because surely a teacher would want to show off her socio-economic status.  No thanks!  I think it helps that I don't buy into the snobbery that many people assume about the so-called middle class. 

I got sympathy riding my bike home from working in the rain today.  lol  I suspect more than a few people think I'm crazy.

What socio-economic status are teachers supposed to have? LOL  They are the lowest paid bachelor's holders, other than B.Fa!

If I were full-time, I would make $94K a year.  People who ride the bus with me have asked if I work in the cafeteria or the daycare.  I am the only teacher at my school who does not own a car.

[Self-employed-swami]

Fair enough :)

I forgot that you were at the top of the earning chart.

[BPA]

Fair enough :)

I forgot that you were at the top of the earning chart.

Yep.  I'm one of the "old ones" now.  ;)