Two months ago I decided to spend only on the basics and see what happens. In short, I have become a new guy, or more specifically, an oxymoronic new old guy!
I've been at my job for 23 years and it pays well. My wife is also paid well and we don't have too many financial concerns. Our house is almost paid off and we have no other debt and should retire decently in our mid 50s. Our work pensions are excellent and we've invested separately in our own RRSPs. However, I have never had much in liquid savings and have always spent pretty freely.
This kind of lifestyle has allowed us to accumulate bikes and skis, put our kids in piano or dance, and go on a fam trip every year. But I've always been a bit leery since a major sudden purchase like a truck or maybe having to look after a parent financially, could spell some trouble. We have universal health care as individuals but my mom's health isn't great and supported living can get to $3k/mo unless she one day has to move in with us. It's not imminent but I have been thinking about it's possibility.
So I eventually decided to spend as little as possible and see what happens. The fact I also travelled over a long weekend with my daughter to the city right before Christmas and just after paying a $1200 mechanic bill, also hastened my desire to save more!
For the past two months, I have bought zero coffees or meals outside. I used to visit Starbucks at least 4x/week along with a place like Subway on my way back from playing pick up hoops 2-3 times a week. I charted all of my monthly payments and got rid of Prime, Apple TV, and Apple Music. We have Disney and Netflix and haven't had cable TV for 20yrs. I also stopped my gym membership since playing hoops and riding my bikes cost nothing. I also have a gym at work if I need to throw around 10lbs plates or look at my ab in the mirror.
I have not bought alcohol for two months and when possible, I bike to get groceries or use my wife's Versa instead of taking my F150 5miles to the store. We still order pizza once/week but it's a large only and we use a coupon code. I'm invariably still hungry but there's always leftovers in the fridge.
Lastly, I don't treat myself to monthly, sometimes weekly, rando purchases of ties or fancy socks, or another pair of earbuds just because I've lost a lost-ear one.
I estimate that I've saved an extra $1000 month living this way: cutting out unneeded cals, fuel consumption, monthly charges, and poorly justified presents to myself.
With this extra money, I've upped the contributions to our kids' RESP and my own trading/investing portfolio. I've excitedly told my wife that maybe I'll start giving myself an allowance! I feel like a 7yo instead of a 47yo! I am thinking that I'll budget $50/biweekly to spend on whatever I want, maybe even a pair of green fancy socks with dollar bills on them!
Ultimately, since I've stopped spending money on frivolous things, every day when I don't pull out my Visa or drive my truck, feels like I am doing more than just saving, but actually making money. Now don't get me wrong: we're not living like the Amish (no offence, but they generally don't spend a lot of cash, right?). We have plans to visit New York and the east coast for two weeks this summer, so some of this money being saved will eventually be spent watching the Yankees and Mufasa's death. My son is also going on two flights for different sports trips and I may coach during one them.
It took me decades to get around to actually budgeting my money. My advice to younger folks out there: the only thing better than being a new old guy is being a new new guy!
March 11, 2022 at 05:53PM
