Monday, October 20, 2008

Simple Living Is Key to Complex Financial Times

One of my all time favorite movies is the 1979 classic "Being There", starring Peter Sellers. The late Sellers (of Pink Panther fame) plays Chance the Gardener, a simple minded but lovable manservant who lives his whole life cloistered in the estate of an elderly patron, only to be abruptly thrust into the outside world upon his master's death. Sellers' clueless character is eventually heralded as one of the great economic minds of his time, pointing out through his innocence and simple thinking the follies of the self-deceived "real world" he encounters.

If you're a simple cheapskate like me, you're probably feeling a lot like Chance the Gardener these days. I know I am. With the recent and ongoing implosion of the U.S. economy, quite honestly my phone has been ringing off the hook with questions from reporters writing articles about getting frugal - and fast - in order to weather the hard times that are upon us.

I guess we've entered the Age of the Cheapskate and frugal folks like me, who know far more about hedge trimming than hedge funds, are the new financial oracles. Chance the Gardener, take a bow.

While I've never claimed to be a mastermind of high finance (a critic once said that I am to the community of personal financial pundits what paint-by-numbers is to the art world), I'll wager that the most effective solutions for making it through these complex financial times may in fact be the simplest. I'm not talking about on a macro-economic level, with its nearly trillion dollar federal bailout of credit markets, but on a personal level, in your own life.

When asked for personal financial advice for surviving - and even thriving - in these troubled economic times, I keep coming back to a single word: Simplify. Almost without exception, whenever you simplify your life, three things happen. It usually costs less, it's nearly always better for the environment, and - here's the best part - it inevitably makes you happier.

Simplify. Drive less by consolidating trips, telecommuting, shortening your work week, walking or bicycling. Stay at home more with family and friends, making your own fun rather than paying to be entertained. Cook more meals at home and eat lower on the food chain. Consider downsizing your house, moving closer to where you work, or living in - and heating! - only part of your home in the wintertime. De-clutter your life and boost your finances by selling stuff you don't use or no longer want. Do more things for yourself rather than pay others to do things for you, and maybe then you can even cancel your gym membership.

How is any of that about sacrifice or hardship? It's all about living a better life - and living lighter on the planet - by consuming and spending less. Ghandi said it best: "Live simply so that others may simply live." I agree, and I think Chance the Gardener would, too.

posted by Jeff Yeager at 2:46 PM

5 Comments:

Blogger lyn said...

Thanks for the post..I just read your book and it's my favorite personal finance book, you make more sense..Have a great day..

October 22, 2008 3:47 PM  
Blogger Anna said...

A friend recommended your book and website to me --- he figured since I was a cheapskate I'd get a lot out of it. :-) I agree completely with you about simplifying. My boyfriend and I live in a trailer which we got for free, grow a lot of our food, and keep our life as simple as possible. And we're extremely happy! You can read about our efforts on our blog at http://www.waldeneffect.org.

October 28, 2008 4:32 PM  
Blogger Jon said...

Be careful following Jeff's advice to shut off rooms to avoid heating them. If you have a forced air furnace, it needs a minimum airflow, and shutting off too many registers has an effect similar to letting your furnace filter get plugged. Adequate airflow is even more critical for central air conditioning.

November 19, 2008 7:10 AM  
Blogger Mortgageman1 said...

I have read your book and instead of trying to make more money I focus on keeping what I have.

It is a much more peaceful way to live.

My kids think I'm crazy when I wash there plastic sandwich bags. HA, HA

December 28, 2008 7:32 AM  
Blogger Ghost said...

Simple living actually makes you feel better. I'm out of debt for the first time in my adult life, I have less stuff to worry about, I'm finally saving for retirement and I have more than enough time for friends and family.
This book was a huge help. THANKS!!!

May 6, 2010 3:59 PM  

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