What does “Frugal Living” mean to you? Probably it raises visions of generic brand food products, rinsing out plastic bags to reuse again and generally making do with less.

Most of us feel frugal living is just a rationalization for a reduced income. If we live in a frugal way it is because we just don’t make enough money to live in an enjoyable way. When you put it that way it certainly does not sound appealing.

But what if I told you many wealthy people live in frugal way and live very comfortable lifestyles? Wealthy people often become that way because they spend wisely and because wealthy people feel like they can buy what they want, they feel less of an urge to buy things.

Frugal living is actually not associated with lack of things but with peace of mind. Doesn’t peace sound good and beautiful?

When someone first proposed the idea to me it came in the form of a book called “Simple Abundance” by Sarah Ban Breathncac. Then I found the very same thoughts in a book called “Don’t Sweat the Small Stuff and It’s All Small Stuff” by Richard Carlson. Both books were bestsellers and many more follow-up books were written.

Both authors discussed the lack of contentment most of us feel and how this translates into overspending. We spend a lot of time focusing on what we are going to buy and then when we get the thing all we can think about is getting the next thing. Plus we are bombarded by advertising always urging us buy more, upgrade and have the latest version.

Buying stuff does make us feel good for a short period of time. Dr. Carlson explains that it is because we stop focusing on what we don’t have. The catch is though the wanting feeling comes right back after we make the purchase and we start thinking about the next thing we have to have.

Frugal living not only means spending more thoughtfully but about being content and at peace with what we have right now. When you really think about it most of use have a great deal.

We have food to eat, friends, family, clothing, music to listen to, a beautiful sky to look at, beloved pets – so many things. Appreciating what you have is the very first step into frugal living.

So you can make the journey into frugal living just by taking that first step. Just get into the habit of thinking about what you have instead of what you don’t have.

Then something rather amazing begins to happen. You start to feel better and you begin feeling like you need less. When you get into the mind set of being happy with what you have it translates into better financial and mental health.

Contented satisfied people are less likely to use their credit cards to buy unnecessary items. Therefore they have more room on their credit cards when those big unexpected expenses pop up. And when you are able to pay for the unexpected expenses you stay in a better mental state.

Less credit card debt means you can save more money. You will feel financially secure and when you do make a purchase you will do it for the right reasons. Plus if you are thinking about retirement, learning to live frugally may let you retire early.

Frugal living is a way of getting out of that want it, put it on my credit card, regret it later financial misery prison.
Frugal living brings freedom from debt, freedom from constant wanting, freedom from overspending and disappointment when your purchase doesn’t bring lasting happiness.

The first step to financial freedom is easy. You don’t have to complete a worksheet or buy anything. Just begin with a mental shift, when you start thinking about all you want, think about all the things you have.

I have lots more ideas about frugal living and loving it so check back with me and get some more ideas. Also, let me know how you are doing. I would love to hear from you and if you want publish your thoughts on this blog. Use the contact form or make a comment.

Our sister site Cheapskateliving.org has great post on frugal living called Simple Way to Force Yourself to Save for Retirement

If you are anywhere close to retirement frugal living can help you have a more comfortable retirement.

You don’t have to buy a course, read a book or sign anything to begin your journey in frugal living. Just begin by focusing on what you have and feeling content. When you start to think about what you don’t have just dismiss that thought. Count your blessings.

Stay tuned for more lessons in frugal living. The journey is more fun if you go with someone, so let’s go together.

Can You Do Retirement Math?

If you are 50 plus, you probably have wondered if you have saved enough resources to put yourself on he path to retirement. Of course, you will probably be much better off if this thought occurs to you at age 20 or 30. The more time you have, the easier retirement savings will prove to be.

Why Retirement Math?

You do not have to be able to solve complex equations to figure out if your current savings, and savings rate, will help you enjoy a secure retirement at a certain date. In the old days, you may have had to be able to do some simple retirement math.

These days, you can find plenty of free online financial calculators that give you answers in minutes. This online, free retirement savings calculator is simple to use, totally free, and provides a lot of answers.

There are, of course, two big problems with our best retirement math.

• You may not like the answers that you get. You may find that your current savings, plus retirement income, will be inadequate. You ma also find that it will be almost impossible, with your current plan, to catch up!
• You will find the predicting the future is still impossible, no matter how many fancy figures you can produce. We cannot really know how inflation or market returns will affect us. We really have no idea how much electricity or gasoline will cost in ten years, of if current fuel sources will get replaced by something else. If so, we can only hope that the alternatives will be better and cheaper. It is just as likely we will pay more though.

The Truth May Get You Going On A Better Retirement Path

You know what they say about the news. Even if it is bad news, it is still good news to know. Take some time to estimate the numbers.

What can you learn? You will not get a magic bullet, but you will have a starting place so you can continue with your goals.

You will know if you can really take early retirement, or if you should delay your plans to quit work. Maybe you can put your own retirement plans back on track by adding a bit more to your savings each month, setting up an online IRA, or exploring some extremely frugal changes in order to have a chance to enjoy your golden years in peace.

You Know What A Bad Retirement Plan Is?

The reality is that the only truly awful retirement plan is a total lack of one! Figure out where you are, and then try to figure out where you need to be. Answers come when you know what the questions are.

How To Plan For Retirement After Your Portfolio Drops

Here are some tips from John Nelson, author of What Color Is Your Parachute? For Retirement with Richard Bolles of the best-selling What Color Is Your Parachute career guide. Nelson is a retirement researcher and lecturer in consumer science at the University of Wisconsin.

He created a retirement model that has been selected for the retirement readiness program for federal employees. His Retirement Well-Being Model is a research and philisophically based tool to factor in health and happiness, as well as finances, as people plan and set goals for retirement.

Here is a summary of his advice to people in their 50′s and 60′s who have seen their retirement accounts shrink and now figure they will have to delay retirement:

Start taking better care of your health. It is easy to think you can work longer but many people effectively retire because their health deteriorates to the point where they can’t work any more. He recommends visiting a site called realage.com that is supposed to help you plan for your health in retirement. He says it will give a better idea about whether you really could be healthy enough to work those extra five years.

Nelson says you have five primary sources of income in retirement – personal savings, employer plans, real estate, keep working and social security.

He also mentions that the single most important strategy for planning a fulfilling retirement is figuring out how to stay fulfilled without spending a lot of money because many of us will have less money than we planned. We need to look at other forms of happiness besides spending such as working, volunteering or social relationships.

As far as what to do about the big drop in your portfolio… Nelson says to delay accessing your retirement account as long as you can. Giving your portfolio time to rebound is as important as trying to save more.

Wondering about dental insurance after you retire? Check out our post on Dental Plans For Retirement