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Even if it was to cost me $25,000 over the next 7
years ($300 a month) to get everything I would need to be self-sufficient,
the savings now and the reduced cost of living when I retire, would save
huge amounts compared to trying to build a retirement savings program that
would cost me $2,300 or more, a month to save the amount they think you
need.
What else is there? Well, the property tax on the homestead is about
1/3 what my son is paying in town - that is another $1,000 a year or $83 a
month. Lower cost of groceries as we will be raising some of our
food, plus we will be eating out less (home cooked meals are cheaper then
restaurants, and better)... say another $100 a month (still enjoy the odd
dinner out). Clothing cost..... jeans, boots, and sweatshirt are
cheaper than suit and tie. I bought all the size 40x32 jeans, blue
and black, when Wal-mart had them on sale for $9.00 a pair. Won't
need to buy jeans for several years - well, unless I gain a bunch of
weight.
Now, like everything else, there is a catch to this. You have to put
the money up front to buy all the necessary equipment. The biggest
problem we had was trying to find those first handfuls of bucks to start
being able to reduce. So we had to make up our mind that we were
going to bite the bullet and find ways to get those extra dollars to get
started.
We looked around to see what we could do and we found lots of things.
From not eating out - $20 a time; going to movies - can't do that for less
then $30; coffee at Tim Horton's or StarBucks at $3 a cup... that is $60 a
month. I bought a lease-back laptop computer (writing this on it)
for about half the cost of a new one. For holidays, camping in a
tent (bought on sale, of course) instead of staying in a hotel, going to a
local lake instead of flying somewhere. Stay with the regular lawn
mower rather then buying a new riding lawn mower (that is $1,900 or
payments of $60 a month saved). We always look for bargains, at yard
sales, clearance sales and thrift stores (one time, it was everything I
could put in a box for $5.00, got 4 like-new light fixtures, a couple of
shirts, a back pack, a bunch of yarn for the wife, and 3 good books).
When we found ways to save, we used that money to start conserving energy.
By replacing all the light bulbs in our house, together with the timers
and motion detectors, has resulted in an immediate $25 month savings on
our power bill ($25 X 12 months = $300 a year ). We purchased our
first solar panels last week. The 2 deep-cycle batteries and an
inverter we had acquired several months ago. We are starting to
supply self-generated power to one room at a time as we build our system.
Those savings then get put toward the next step. We will be ordering
and installing a wind generator this spring. Each month the aim is
to add something to our system. Another solar panel, another
battery, buy a chain saw, install a wood heater.
We are focused on doing things that will reduce our
ongoing cost of living (saving now) and reduce our retirement cost of
living (saving even more later). I smile every time I turn on a
light knowing that I am giving the power company less and less of my
money. The more we invest in ourselves and the more we save, the
more we are able to invest. With each dollar that your cost of
living is reduced, the easier it is to reduce further.
We will be able to make it very comfortably on the amount paid by Canada
Pension (in the USA, Social Security states that the average retirement
benefit is $11,000 per year) and the small sum I will be getting from a
modest private pension. We will even have money left over to treat
the grandkids to ice cream now and then. We will be able to replace
or repair things that need it. Might even manage a holiday in the
winter every few years. Plus every time there is a cost of living
adjustment it will be like getting a nice raise.
It is amazing how far your money will go when you do not have to pay
Mortgage or Rent payments, Car payments, and Utility bills.
 Mostly
we will be able to enjoy ourselves sitting in our front yard watching the
grandkids play and the garden grow. Taking walks down the lane. Enjoying
the lack of noise. Let me tell you I do not miss boom-boxes, car alarms,
squealing brakes, graffiti, rush hour traffic. Nope! Do not miss
them at all.
Now, don't take my word for it, and don't follow
blindly the “experts” that tell you that you have to have a half million
or at least a quarter of a million dollars invested before you can retire.
Sit down and work it out with your numbers. Do the math over and
over until you know where you can save and what you can get by on.
Figure it out for yourself if it makes sense to move to the country, to
find ways to reduce your cost of living, to generate your own power, to
grow your own food... if it is the right thing for you to start to be
self-sufficient.
The numbers and the plan works for me and my wife. We will be spending the
next 7 years investing in ourselves and our dream.
Statistical data compiled from the following sources:
- investopedia.com - a Forbes media company
- Council of Economic Advisors as reported in the Wall Street Journal
- money.cnn.com
- forbes.com - National Retirement Planning Coalition
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