When I was about 40 years old, I heard Dave Ramsey’s Total Money Makeover on the radio. Iistened as he gave money advice to callers. He talked about spending less money and paying off debt so that you could live the life of your dreams.
It sounded somewhat sketchy, but then several people called in to celebrate that they had paid off their mortgages early. Most of these couples earned less money than me and had also paid off mountains of debt from credit cards, student loans and car loans.
You have to live like nobody else does today, so that you can live like nobody else in the future.
Dave Ramsey
I had never thought I’d be able to be debt free at the time. We had 60K in maxed out credit card debt, 2 car loans, a mortgage with a balance over 98% and I was working in a job that paid me significantly less than what I had earned in the past.
Nonetheless, I bought a used copy of Dave Ramsey’s Total Money Makeover book and started following his “baby steps“.
Ten years later, I retired at 50. In between, I paid off all of our debt – credit cards, then cars, then mortgage. I built up a substantial cash reserve. I started investing in mutual funds. I put money away for retirement.
Those 10 years coincided with my peak earning years at work, so that helped tremendously. But as powerful was not spending money the way I had in the past.
So today, I live like nobody else does.
I own my home. I bought my car with cash. I have no debt. I live off of my investments. I don’t work.
It’s a beautiful life.
Still, it’s not the life that many people would choose. I live simply. I rarely go to restaurants or pay for what I consider “extravagant” goods and services (ranging from expensive clothing, to vacations, to concerts or luxury cars).
Many people I know would rather work so they have money to spend on these items. I have no argument with them. I lived that way for most of my adult life.
Now, I’m not interested.
I actually thrive on owning less, consuming less and buying less. It makes me feel better and happier.
Who would have ever thought that would happen?
What I’ve found interesting is that several of the women I’ve met recently on dates share similar lifestyles. While none of them are retired yet, many have intentionally downsized their lives so that they have more autonomy, freedom and control.
I suspect this happens as a function of age, circumstances and the realization that money and stuff doesn’t always bring more happiness.
I found it to be true for me.
I’d rather live like nobody else.