Early last year I decided I wanted to simplify my financial life. I had a bunch of bills and felt like, while I was making good money on paper, I didn’t have a lot (or any) left at the end of the month.
First I cut out my lawn guy at $60/mow. He would mow my lawn roughly every 10 days from mid-April to November….20 or 21 times. That’s approximately $1200/yr saved. I’m now on my second year of mowing my lawn myself and will have saved $2400 by the end of this mowing season.
Next I sold my truck, boat, and airplane and bought a ‘98 Acura as a beater. I’m not sure this was a good idea, but I sold my truck for $6500 and bought my beater for $1000. I’d rather have my truck but I did use some of that money to invest in my children’s 529 college plan.
I really enjoyed owning an airplane, but the honeymoon had worn off and a 40 year old airplane is a money pit.
The boat was just stupid.
I got rid of Netflix but that only lasted a few months. I have it back now, but we haven’t had cable since 2006 and we don’t miss it.
I also got rid of an old refrigerator through the power company. It was using $5-$10 month of electricity, but West Penn Power took it away for free and gave me a $50 check for it. Nice!
I also feel that term life insurance is extremely important and while this added to my expenses, an additional $500K policy for $36/month is must-do for every husband. Get 10-12 times your annual income in term life.
Just getting rid of stuff is an amazing feeling. Some stuff I sold and other stuff I simply gave away. Having less stuff frees you and it feels great.
What are you doing to simplify your life?