The Wandering Librarian

My husband and I have been followers of the FIRE movement for as long as we have been together.  FIRE, or financial independence retire early, can take on many different forms across a broad spectrum.  Some people may live a very simple life, even going as far as living in a tent for a short period, to reach their goal of financial independence.  Others may be extremely high earners with the capacity to stash away millions of dollars.  My husband and I fell somewhere in between on our journey to retiring early.  We were able to live a much simpler life than the average U.S. citizen without feeling like we were going without, but we did make some choices that we know our friends and relatives may have given the side-eye.

My husband and I were public servants.  At our peak earning, before I had my daughter, we never exceeded $140,000 per year as a household.  While this is well above the median household income of $83k, we were not exactly raking it in as two Masters-level professionals.  However, we made choices that allowed us to exit the rat race before the age of forty (my husband stopped working at 38 and I left my full time employment at 36).

Where You Live Has a Huge Impact

Our family made many unconventional choices on our pathway to financial freedom, but by far the most impactful was the four years we spent living in rural Oklahoma.  While many young families flock to cities and suburbs, the biggest bang for your buck will always be rural America. Depending on your profession, your earning potential will be slightly lower.  However, your expenses will be drastically lower.  The recurring expenses you will have regardless of your geographic location, like housing and childcare, will be only a fraction of the cost in urban and suburban communities.

Consumer goods, including groceries, are often less expensive in rural communities where overhead costs are lower.  Combine this with less access to high end brick and mortar shopping, you will certainly spend less.  You will even find that the more enjoyable things like eating out are much cheaper.  Our favorite restaurant in Oklahoma had a chicken fried steak dinner for only $4.99!  Because we lived and worked in such a small community, we used very little gasoline and when necessary could easily share a car between two working adults.  Most days, we even made it home for lunch time.

And there were good people in Oklahoma, as well.  I know it can be scary to move to a place that is known to be socially and politically opposite your own belief system.  But you will find your people wherever you go and you may even find out you like some people who do not believe the exact same thing as you!

Your Big Ticket Items Matter the Most

The best way to give yourself breathing room to save without living on just rice and beans is to be completely conscientious about your large purchases, namely your home and vehicles.  The median home price in the United States is about $400-$430k with the median home size being 1830 square feet.  New construction is much larger with a median size of 2300 square feet.  If we look back to 1990, new construction only had a median size of 1900 square feet.  Now, let’s compare household size.  Currently, the typical household consists of 2.53 persons.  The same measurement for the year 1990 was 2.63 persons.  How was it that more people fit in less square feet? How much space do we really need to live a good life? 

We opted to raise our daughter in a 1960s two bedroom bungalow along with four dogs.  It was a happy existence. And when we had to take in a family friend in an emergency situation, we made that work too. We fixed things as they broke.  We did not renovate anything needlessly.  Our home was safe and functional, and a happy place to raise our child. We were very sad to leave Oklahoma and that home; but as it turns out, that house is now the best investment in our portfolio.

After your home, your vehicle will be your next major expense.  We chose to drive older sedans for a very long time.  When our family expanded, we upgraded one vehicle to a small yet affordable SUV.  And now that we live in a very walkable city with ample public transportation, we do not even own a vehicle anymore.

Spend Where It Really Matters

Being a conscientious spender does not mean squeezing every penny.  If you are mindful of your major expenses, you can certainly loosen up on the things that matter to you while still maintaining the margin to save and invest.  For example, we had someone come and clean our home a few hours a week.  We also regularly ate out with friends or just by ourselves.  Perhaps most importantly to me, I still got to travel.  My husband did not bat an eye the last two times I had the opportunity to travel to Europe.  Our margin was large enough that we could easily fit these life improving activities into our budget.