I still get emails fairly frequently asking me to define simple living and if I can explain how to live like Hanno and I do. Many of the long term readers here would know that I encourage everyone to live their own life and while Hanno and I might be an interesting enough couple, our life is ours - it's what we do because it suits us, our personalities and the stage of life we're at. I write about our life here not so you might copy it but to show you what's possible, easy and enjoyable on retirement. I think the stages or seasons of living - those periods you progress through at various stages of life - are the key here. In each season you need to do different things - a simple life, like every other life, will reflect those seasons and the requirements of it.
So with that in mind, I thought it might be a useful exercise to focus on a few stages of life in general, and see how simple living fits into those stages. I would like to start with what I know best - retirement, but it would not make sense to work backwards, so let's start with students and those in their 20s, then progress to the 30s, then middle age - 40s and 50s together, then retirement. Remember that this is my version of what it may be like, so please help me define these stages and what happens in them; I really want your input if it's the life stage you're currently in.
MONEY MANAGEMENT
Let me stress here that money should never be the most important thing in anyone's life, but it is the glue that holds life together, so it will feature heavily in every stage of life. Money, or more accurately, debt, will make or break the plans you have for yourself. When you first leave school, leave home, start work, or start university there is a very strong urge to buy everything you couldn't buy when you were younger. As soon as you start earning a bit of money, most of us want to create our own style - in what we wear, how we spend our time, where we live and what car we drive. I guess it's one of the ways we separate ourselves from childhood - the ability to earn and spend money is a marker of adulthood. The trick in every stage of life is to get through it with the things that make life worth living without being saddled with debt that we take into the next stage. The one debt that will travel with you through a few stages is usually a mortgage, try not to have other debts with it that tie you down.
Learn how to budget as soon as you start earning your own money. You will still buy a portion of what you want but you'll be in control of your money instead of recklessly spending whatever you earn. At some stage in your late 20s or early 30s, most people settle down and think about buying a home. If you arrive at that point in control of your money, with little debt and maybe even the beginnings of a home deposit, you will have placed yourself in the best possible position.
Personal finance in your 20s and 30s
How to build your first budget
How to manage your money in your 20s
College budget 101
Preparing your budget
mint.com
Whenever you want to buy something that you want but don't need, work out how many hours you need to work to pay for it. If you're earning around $20 an hour, by the time you take out what you pay in tax and what it costs you in the form of clothing, transport and grooming to earn that money, you'd probably get about $13 or $14 an hour in your hand. If you see a pair of shoe that you MUST have and they cost $100, you will have to work more than seven and a half hours - almost a full day's work, to cover the cost of those shoes. Is it worth it?
SELF DEVELOPMENT
If you're lucky and smart, you'll never stop learning. What you learn at school and university are just the basics - it sets you up for life but you need to fill in all the gaps in your education along the way. I can't tell you here what it is you'll need to learn, only you know that, but there are a few fundamentals that everyone should know. Now is the time when you'll start shaping your character and how you'll be later in life. Chance will play a part in your decisions if you don't make plans for yourself. Take control of your life, don't just react to what life throws at you. If you make plans, learn the various life skills that will help you live well and happily, you'll find that you can direct yourself towards certain paths. Take time out, think carefully about what kind of life you want for yourself, what your values are, what you value in other people and what your ideal life would be. Don't get caught up in the silliness of celebrity and wish you'd be a star, or famous. That lifestyle is difficult and can be toxic. Be sensible and think realistically about what might be ahead and how you can change it to make it the best it can be.
Blogs of people in their 20s - can you send me some links to add here? I'd love to share some young bloggers who are studying, travelling, settling down, working at their first jobs, and living simply - single or married.
I guess the one thing I'd like to leave you with is that your 20s is the launching pad for your life. If you can establish yourself on a firm foundation right now, learn the lessons that you need, create a circle of supportive friends and maintain a good relationship with your family you'll be setting yourself up to be in the best position to continue through to the next stage, and that one is a real spinner. If you thought your 20s were high energy, just wait - you're in for the ride of your life in your 30s.
So with that in mind, I thought it might be a useful exercise to focus on a few stages of life in general, and see how simple living fits into those stages. I would like to start with what I know best - retirement, but it would not make sense to work backwards, so let's start with students and those in their 20s, then progress to the 30s, then middle age - 40s and 50s together, then retirement. Remember that this is my version of what it may be like, so please help me define these stages and what happens in them; I really want your input if it's the life stage you're currently in.
MONEY MANAGEMENT
Let me stress here that money should never be the most important thing in anyone's life, but it is the glue that holds life together, so it will feature heavily in every stage of life. Money, or more accurately, debt, will make or break the plans you have for yourself. When you first leave school, leave home, start work, or start university there is a very strong urge to buy everything you couldn't buy when you were younger. As soon as you start earning a bit of money, most of us want to create our own style - in what we wear, how we spend our time, where we live and what car we drive. I guess it's one of the ways we separate ourselves from childhood - the ability to earn and spend money is a marker of adulthood. The trick in every stage of life is to get through it with the things that make life worth living without being saddled with debt that we take into the next stage. The one debt that will travel with you through a few stages is usually a mortgage, try not to have other debts with it that tie you down.
Learn how to budget as soon as you start earning your own money. You will still buy a portion of what you want but you'll be in control of your money instead of recklessly spending whatever you earn. At some stage in your late 20s or early 30s, most people settle down and think about buying a home. If you arrive at that point in control of your money, with little debt and maybe even the beginnings of a home deposit, you will have placed yourself in the best possible position.
Personal finance in your 20s and 30s
How to build your first budget
How to manage your money in your 20s
College budget 101
Preparing your budget
mint.com
Whenever you want to buy something that you want but don't need, work out how many hours you need to work to pay for it. If you're earning around $20 an hour, by the time you take out what you pay in tax and what it costs you in the form of clothing, transport and grooming to earn that money, you'd probably get about $13 or $14 an hour in your hand. If you see a pair of shoe that you MUST have and they cost $100, you will have to work more than seven and a half hours - almost a full day's work, to cover the cost of those shoes. Is it worth it?
SELF DEVELOPMENT
If you're lucky and smart, you'll never stop learning. What you learn at school and university are just the basics - it sets you up for life but you need to fill in all the gaps in your education along the way. I can't tell you here what it is you'll need to learn, only you know that, but there are a few fundamentals that everyone should know. Now is the time when you'll start shaping your character and how you'll be later in life. Chance will play a part in your decisions if you don't make plans for yourself. Take control of your life, don't just react to what life throws at you. If you make plans, learn the various life skills that will help you live well and happily, you'll find that you can direct yourself towards certain paths. Take time out, think carefully about what kind of life you want for yourself, what your values are, what you value in other people and what your ideal life would be. Don't get caught up in the silliness of celebrity and wish you'd be a star, or famous. That lifestyle is difficult and can be toxic. Be sensible and think realistically about what might be ahead and how you can change it to make it the best it can be.
- Aim to be self reliant so that you may look after yourself throughout your life without having to rely too heavily on others.
- Learn how to cook from scratch. Over the years it will make you healthier and it's much cheaper than relying on convenience foods and fast food.
- Learn to bake, it's a lot of fun and people will love you for it. The bread, cookies, biscuits and cakes you make yourself will, hopefully, have no artificial flavourings, preservatives or trans fats.
- Find a mentor or role model. It could be someone in your family, someone you work with or someone you meet along the way. Ask questions, watch how they conduct themself be aware of their values and how they apply them to their everyday life.
- Get rid of friends who drain you or who are negative or toxic.
- Learn how to sew, knit and mend. This will help you extend the life of your clothes and if you're good at it, you might even be able to make some of the clothes you wear. I have seen some dresses, skirts, tops, shawls, scarves and bags on some young peoples blogs that are really fabulous and much nicer than store bought. You can really define your own style if you make some of your own clothes.
- If you have some land - use it. Learn to grow food.
- Read.
- Disregard advertising. It is there to create an insatiable want in you. Don't give it any power, march to the beat of your own drum.
- Reuse, repair and recycle.
- Travel if you can - even if it's just to the next county or state. Expand your horizons by travelling cheaply by train or get a group together in a car.
- Self discovery - this is the time when you work out what kind of person you are, what you hope your life will be and how to gain those illusive goals.
- Get enough sleep.
- When you leave the family home, stay close to your family. They are important.
- Heather's comment made me realise I should have added this important note: expect to make mistakes. All mistakes are learning opportunities.
- And I liked Rachael's comment on starting early on your retirement savings. Your superannuation,/401K plan/pension scheme will serve you well in your older age, especially if you start it early.
Blogs of people in their 20s - can you send me some links to add here? I'd love to share some young bloggers who are studying, travelling, settling down, working at their first jobs, and living simply - single or married.
Through Lemongrass Eyes
Muddy Fingers Meg
I'm happy to include you, Katy - The Country Blossom
There are more great blog links in the comments. Don't forget to check them out.
Muddy Fingers Meg
I'm happy to include you, Katy - The Country Blossom
There are more great blog links in the comments. Don't forget to check them out.
I guess the one thing I'd like to leave you with is that your 20s is the launching pad for your life. If you can establish yourself on a firm foundation right now, learn the lessons that you need, create a circle of supportive friends and maintain a good relationship with your family you'll be setting yourself up to be in the best position to continue through to the next stage, and that one is a real spinner. If you thought your 20s were high energy, just wait - you're in for the ride of your life in your 30s.
