I lost 50% of my salary and didn't blink an eye....

[DocMcStuffins]

This isn't a story about how great of an investor I am or that I have all my income coming from dividends as I am not there yet on my journey to financial freedom.  But it is still a good story.  You see, I have been following MMMism for the past two years.  I am not as hardcore as some of you but definately am anti-consumerism/frugal.  My wife teases me I would be happy / content to live in a cardboard box (which is probably true).   Well, this year has been a tough year for me from a business standpoint.  I essentially will make 1/2 of what I had made the prior few years.  I will make it up at some point as I need to adjust my business and am confident I will get there again.  The reason I bring this up is that when when I was taking my family to church today my son asked me about how my business was doing and "how do I become successful".  Had the audio book "millionaire next door" on which probably is why he asked me this today.  I told my eight year old that this has been a very tough year but asked him if he could tell that I had made 50% less than I did the year before.  He said "no".  I asked, did you get the same kind of clothes, trips, food, experiences like you did the year before and he said "yes sir".   I then went on to tell him (and his siblings) about living below your means, investing / paying yourself first, and being frugal about what you do spend your money on.  When you do this son, this is how you become successful, this is how you become financially independent so that if something bad happens in life, you won't blink an eye.  Without the education I have gotten from here and others within the ERE/FIRE world, I would have been sunk.  I have had a great offense when it comes to income for many years but had a horrible defense.  After I corrected my bad defense, I didn't even feel a change in my standard of living when my income was cut in half.  Thank you all for this.  It truely didn't hit me until today about how awesome it has been to not feel the pinch in my everyday life as it would have been if I was still leading a high consumption life.  Thank you all again, you have not only changed my life, you have affected the next generation.

[2ndTimer]

You are amazing!  Thought I was cool when I handled a recent threat of a 20% cut calmly but you are cooler.

[BTDretire]

What a meaningful lesson for your son.

[Bajadoc]

Sir, the example you are setting for your children is priceless. You have won the game, and so have your kids.

[Moostache]

What a great life lesson.  Congratulations for not only being prepared to and able to ride this out but also turn it into a positive learning experience for your son.

[Bracken_Joy]

Not only is it wonderful you provide such a great example and seized on a teachable moment, but it's great your son is asking those questions.

[DocMcStuffins]

Thanks for the nice words.  I had to write a post as it was just one of those times when you said to yourself "I am doing this right".  I am so thankful.

[1967mama]

Have you thought about starting a journal to document your journey? This would make a great journal title too!

[alleykat]

Great story.  I love that you are not only able to stay calm and realize you are okay, but to also show your kids and be an example.  I only wish my parents taught us about financial responsibility at a young age. 

[okits]

Not only did your family's standard of living not change, but it sounds like your kids didn't have to see what commonly happens with major income loss (fighting with your spouse, lots of worrying or panic, increased alcohol consumption/destructive coping behaviours due to stress, etc.)  You and your wife not raising your kids in that kind of environment means they in turn probably won't raise their own kids in that kind of environment. It really is an endless, virtuous cycle.

Congrats on doing so awesome, and give your wife a big hug. Having a Mustachian (or Mustachian-friendly) spouse cannot be overemphasized as a factor in a family's successful frugality.

[cerberusss]

That is what being a dad is all about. Bravo, sir, bravo.

[Dicey]

Way to go, Doc!

[DocMcStuffins]

Funny about the writing a journal about it.  Didn't even think about it and what happened but good idea.  Instead, I am writing a book in my spare time about a different topic.  hopefully if will be out by February.  this is one of those situations with a post topic above that talks about frugality and power.  Didn't realize how much control and power I had over my life through frugality.  This has been such a teachable moment in my life for my kids.  Priceless and almost worth going through the financial drain.   Thanks again you all. 

[Aussiegirl]

Not only did your family's standard of living not change, but it sounds like your kids didn't have to see what commonly happens with major income loss (fighting with your spouse, lots of worrying or panic, increased alcohol consumption/destructive coping behaviours due to stress, etc.)  You and your wife not raising your kids in that kind of environment means they in turn probably won't raise their own kids in that kind of environment. It really is an endless, virtuous cycle.

Congrats on doing so awesome, and give your wife a big hug. Having a Mustachian (or Mustachian-friendly) spouse cannot be overemphasized as a factor in a family's successful frugality.

couldnt agree with you more on this okits.

DocMcStuffins - congrats, a wonderful story on why it pays to be to be mustachian. 

[The_path_less_taken]

Congrats Doc on not only "getting it", but also having the wisdom to pass it on to your children.

Kudos.

[MrStash2000]

This isn't a story about how great of an investor I am or that I have all my income coming from dividends as I am not there yet on my journey to financial freedom.  But it is still a good story.  You see, I have been following MMMism for the past two years.  I am not as hardcore as some of you but definately am anti-consumerism/frugal.  My wife teases me I would be happy / content to live in a cardboard box (which is probably true).   Well, this year has been a tough year for me from a business standpoint.  I essentially will make 1/2 of what I had made the prior few years.  I will make it up at some point as I need to adjust my business and am confident I will get there again.  The reason I bring this up is that when when I was taking my family to church today my son asked me about how my business was doing and "how do I become successful".  Had the audio book "millionaire next door" on which probably is why he asked me this today.  I told my eight year old that this has been a very tough year but asked him if he could tell that I had made 50% less than I did the year before.  He said "no".  I asked, did you get the same kind of clothes, trips, food, experiences like you did the year before and he said "yes sir".   I then went on to tell him (and his siblings) about living below your means, investing / paying yourself first, and being frugal about what you do spend your money on.  When you do this son, this is how you become successful, this is how you become financially independent so that if something bad happens in life, you won't blink an eye.  Without the education I have gotten from here and others within the ERE/FIRE world, I would have been sunk.  I have had a great offense when it comes to income for many years but had a horrible defense.  After I corrected my bad defense, I didn't even feel a change in my standard of living when my income was cut in half.  Thank you all for this.  It truely didn't hit me until today about how awesome it has been to not feel the pinch in my everyday life as it would have been if I was still leading a high consumption life.  Thank you all again, you have not only changed my life, you have affected the next generation.

Excellent story. It took me a while to get the advantages of a "great defense"

[golfreak12]

My first thought was 50% from what ??
If its 50% of $50K, then yeah thats though to adjust to. But if its 50% from $200K, then its just less saving.
My salary can adjust quite a bit too.
I made over 100K last year but if I was making $50K, it still wouldn't make a difference in my everyday life. I just wouldn't be saving 55% like I did last year

[Lindy]

Way to go!  I think your post belongs in the "Share Your Badassity" forum!

[RootofGood]

Congrats.  I'm digging the fact that your kid learned a very important lesson here - smart money management turns what would be an emergency or catastrophe into nothing more than a blip on the big chart of Life. 

Our household suffered a 50% reduction in income when I was suddenly let go from work.  I quickly realized we were fine and everything went on as usual (I just called it retirement).   Our kids learned the same lesson as yours did.  Plan and save and emergencies don't have to happen. 

Kudos!