Category Archives: Car-Free

Frugality and the Pareto Principle

Published / by Annie / 2 Comments on Frugality and the Pareto Principle

According to the 80/20 Principle, 20 percent of actions will provide 80 percent of results. This is especially true when it comes to frugality.

When you break it down the majority of money I personally save falls into two main categories: housing and auto. By renting a one-bedroom house in a less than ideal area, I saved $200 a month back when I first moved here in 2011. Since rental prices have went up slightly since then I’ve saved even more.

By allowing my daughter to become my roommate instead of simply encouraging her to move into her own place I increased my savings even more by halving my already low expenses. While this also has the added benefit of providing my daughter with a safe place to live at a price she can definitely afford (while teaching her how to manage money), that is simply an added bonus.

Eliminating my vehicle saved me another thousand dollars a year. While I didn’t have the burden of a car payment (or the cost of the full-coverage insurance that comes along with it), that savings has added up as well.

I manage to save $5,000 a year on just these two expenses alone. The other little frugal decisions I’ve made pale in comparision. To be blunt, I would either have to take a second job (I would need to work an additional 34 weeks a year at my current $150 a week public job income) or locate a position that paid twice the hourly wage that I currently earn if it were not for the money I save in these two areas if I didn’t want to reduce my standard of living.

If you are serious about saving money I urge you to give these numbers serious consideration. While eating out less, eliminating phone service, cancelling subscription services, and other things do save money, you will receive higher savings if you focus on just these two areas of your life.

Running the numbers has shown me that making your own laundry detergent and simply living on less is not enough if you want and need to save serious money. It’s the big expenses that really destroy your budget. However, if you are interested in paring your expenses even further, I urge you to check out my books The Shoestring Girl and The Minimalist Cleaning Method.

Have you ever analyzed where the bulk of your money goes? Please share your stories in the comments below.

The Luxury of a Vehicle

Published / by Annie / 2 Comments on The Luxury of a Vehicle

A few weeks ago a friend asked for some help. He needed to locate a vehicle that would start and run for $1,000 or less–in two weeks.

Considering that my days off rarely match up to the friend in question I considered this an almost impossible task. Not only can it take months to stumble on the perfect deal, the absolute best bargains are on vehicles that need immediate repair before they can be driven.

My friend vetoed those outright.

As we inched closer to the deadline I found myself having to reject vehicles that I would personally buy if I were shopping for myself. Vehicles that need some work can be bought for a song if you know how to do it. That was how I acquired the last van I owned. I paid $500 for it when the transmission went out and had a rebuilt one installed. For $2,000 I ended up with a vehicle that blue-booked for twice that amount and drove it for many years.

"You know, you may not be able to afford the luxury of a vehicle right now," I consoled after the last round of inspections failed to locate something suitable. "You could always walk to work and save up some more money while you look for something you like. It would be tough but you live close enough to your job to manage it."

He gave me the look that one reserves for the crud on the bottom of their shoe. "Cars are not luxuries," he sniffed. "Not if you actually go places."

I didn’t know whether to laugh or be insulted. While I understood that my friend was scared, what he didn’t understand is that in some cases a car is a luxury. When you live in town within walking distance to work and stores you can live without a vehicle, especially in this age of Internet commerce. I know; I’ve done it for years.

Unfortunately, most people have been brainwashed into believing that a vehicle is a necessity regardless of circumstances. I’ve seen folks go without food or hit up charities just to make their car payment.

"Well unless you get really lucky you might just have to," I countered gently.

Fortunately for my friend a few days later we struck paydirt. We located a car being sold for a song that was in desperate need of some tires and cosmetic work. We limped the car to a repair shop, scored a used set of rubber, and went on with our lives.

"You know, you should really buy yourself a car," my friend counseled when he caught me walking to work in the rain several days later. "It makes no sense to walk in the rain when you can afford not to."

"I’ll think about it," I replied as we said farewell. I would rather save money for the future instead of spending it on repairs, insurance, and the myriad other costs that come hand in hand with vehicle ownership. While I might buy another car some day, for the moment I am content.

What is the one thing your friends consider essential that you do not? Please share your stories in the comments below.

I Have Lived Three Years Without a Car

Published / by Annie / 5 Comments on I Have Lived Three Years Without a Car

It has been over three years since I sold my van. I wanted to go car-free for one year, write a book about the experience, and then move on with my life.

I honestly believed that I would purchase another vehicle once the experiment was over. I enjoy traveling on occasion, have family to visit, and prefer buying some consumables in bulk. Aside from that, it gets cold here in the winter; I knew that I would prefer driving to work during inclement weather.

Three Years Later…

I realized the other day that I haven’t even seriously considered buying another vehicle since my one-year fast ended. While I still admire beautiful vehicles and borrow one on occasion I have no desire to purchase one of my own.

What?

I know that I can save the money to buy one. It might take a bit of time but I am a pro when it comes to sniffing out bargains and saving up for big purchases. Money wasn’t the problem, so what was going on? It was time for some soul-searching.

I have to plan my shopping trips now but that has made me a better consumer. I have eliminated a lot of impulse purchases simply by eliminating how many times I go to the store. While I may spend a bit more money when I borrow a car or ask a friend to take me somewhere (I pay for gas and enjoy treating them in some small way as a thank you), I still spend less money than I did when I could go shopping whenever I wanted.

I love the fact that I no longer have to concern myself with maintenance duties. I no longer have the fear that a breakdown is going to decimate my monthly budget. I feel an odd sort of relief when my friends tell me of their latest automotive woes; I don’t have to worry about that any longer.

I also feel better than I have in years. I can walk across town at a decent rate of speed regardless of weather without getting out of breath. I can even jog for short stretches now, something that I’ve not been able to do since 1995.

Even better, I realized that I’m saving a small fortune every year. I no longer have to budget $50 a month to pay for car insurance or $100 for my annual taxes. That might not be a huge amount of money but it adds up over time.

While I am no longer able to visit my beloved aunt as often as I like we are closer than ever due to regular phone calls and Facebook chats, and when we do see one another, we make every moment count.

I get to spend more time with friends as we plan trips together. We both save money by splitting the cost while receiving the added benefit of good companionship during the excursion.

I have gotten better at planning my purchases beforehand. Since I never know when I will get to visit a certain store, I save up the money ahead of time for pet supplies, personal care items, and anything else I know I will need to buy soon. This allows me to take advantage of spur-of-the-moment opportunities when they arise.

The time has come for me to admit to myself that I am really, truly content without a vehicle.

Have you ever considered eliminating your car? What is holding you back if you are? Please share your stories in the comments below.