Chapter Seven
Who's a Tightwad?
I don’t want to sound preachy here, so I’ll just say that being tightwads has worked out well for us. We’ve never felt deprived. Being retired since our early fifties, and doing whatever we want each day, is priceless. Every day feels like the first day of summer vacation.
People fall into three groups. Those in the first group, the natural-born tightwads group, innately understand the advantages of being a frugalista. They seek out and appreciate tips for saving money. Those in the second group have an inner tightwad that may need awakening or encouragement. But people in the third group, the spenders group, don’t understand why some people are thrifty. They usually feel like they deserve to buy the things they do. I’m not judging, this can work fine for them. However, there’s something that people in this group need to do immediately: Skip to the next chapter.
Some people will say, “You need to have balance,” meaning you have to evaluate the trade-offs between spending now and saving for later. Definitely true, but realize that until every day is your own, you can’t appreciate how nice it is. If starting over, I’d probably aim to retire at age 45.
Some people say, “I’ll keep my job. I don’t love it, but I’d be way too bored if I weren’t working. What would I do all day?” That’s fine, but just realize that what they are really saying is, “I am not able to think of things to do, so I need to have someone else tell me how to spend my time.”
Perhaps it’s just me, but I rarely find myself bored. Each day I wake up with nothing to do, and by the end of the day, I’ve only gotten half of it done.
If you want to embrace your inner tightwad, here are some things that have worked for me.
Here are some examples of how much you can save by reducing recurring expenses.
Haircuts: In 2000, When Jenny was 12, I got a book from the library entitled Scissors and Comb Haircutting: A Cut-by-Cut Guide, and told Jenny that I’d pay her to cut my hair. She learned quickly, and even the first haircut looked fine. When Jenny left for college, she passed the skill on to Lena. The average cost of a haircut in this country (in 2014) is $17, so since I bought that book I’ve saved over $2,800 in my monthly haircuts (or at least kept that money in the family). We could save lots more if Lena would let me near her hair with the clippers.
Electricity Usage: I have a friend who leaves his outdoor lights on 24/7. It costs him under a buck a day, but over 10 years he’d save $2,700 if he’d just flip the switch to off. By conserving electricity, you can drop down into lower rate tiers, saving a surprising amount of money.
Garage and Rummage Sales: You’ll scoff at discounts of 20% or 50% once you get used to the 90% discounts common at garage sales. You may have to visit eight sales before you find something you need, but if you plan out a good route, you won’t waste much gas, and you’ll have fun. Craigslist purchases fall into this category as well.
Fix Things Yourself: When the dryer goes on strike, or the dishwasher decides to rinse the floor instead of the dishes, it’s intimidating. You just want to hide behind something and call the repair person. But I’ve been surprised at how often a little online investigation (ApplianceAssistant.com, for example), will lead to a simple fix. Every one of our major appliances has had a breakdown that turned out to be fixable with a tweak or a small part ordered via the internet. You can save a lot here, and you may find that it’s rewarding to get things working on your own. Your spouse will say things like “You’re awesome!” or “Wouldn’t it have been easier just to call someone?”
Everyone’s different. Perhaps a frugal life followed by a long retirement isn’t for you, but if you’re like me, it’s worth every penny saved.