less equals more

The Freedom of Limited Options

By Brad Beckstrom

I’ve been busy lately, limiting my options. Nope, not talking about stock options. I’m pursuing a simpler lifestyle built around fewer possessions and more time to enjoy what I already have.

The idea is simple, stop spending time and money accumulating, storing, and caring for stuff. Give it away, starting with the small stuff, knickknacks, unused toys and clothing. Later move on to larger items, eventually cars and houses. With each box of things we get rid of, each closet we empty out, there’s a sense of lightness. With each thing we wear out, then don’t replace, there is a feeling of freedom.

The closer you move to this limited lifestyle, the more things improve. If you limit your wardrobe, you’ll spend less time picking out what to wear every day, less time in the store replacing cheap sweaters and shoes. If you limit your diet to exclude crap foods and monster menu items, the payoffs include your finances and your health. Those “vintage” clothes will fit better.

Even the best restaurants serve crap food. If they don’t get you with the heavy-handed ingredients, they will get you with the portions. I do miss my weekly visits to the local BBQ joint with 100 different sauces. Now, when I stop in, maybe every few months, it’s more of an event, something I look forward to. My gut has not missed the weekly three meat platter at all.

Limiting options does not just apply to clothing, diet, or the number of cars you own. It’s something you can apply to any part of your life with benefits. I’ve learned to master investing by knowing less about stocks, bonds, and mutual funds and more about simplified lean index investing.

I’ve gone on a high quality, low information diet by using tools like Feedly and Flipboard to follow the best and most trusted writers I can find. Anytime I add a new source I see if there is one I can prune.

Time

Frugal versus Cheap

11/21 by The Frug 3 Comments

Frugal versus Cheap

Warren Buffett, one of the world’s richest men, and the most successful investor of the 20th century still lives in the home he purchased in 1957 for $31,000. At the same time, he’s pledged billions, billions with an (s) to the Bill and Melinda Gates Foundation. Warren Buffett is frugal but not cheap. Frugal people (or Frugs) are sometimes called cheap because they wear older clothing, drive old cars, skip expensive luxuries. I believe there are a few key differences between being frugal and being cheap. Here they are:

Frugal people are not afraid to spend on others.

Someone who’s cheap may shortchange someone on something as simple as a well-deserved tip. Sometimes the bellman, the excellent server, or the maids that cleaned your hotel room are the people who need that tip the most. Always tip generously for good service. Cheap people may skip a charitable donation or ignore others in need. Saving, so there’s more to spend on others, is one of the most rewarding parts of being frugal.

Frugs don’t buy cheap stuff or sacrifice quality to save a buck.

Cheap people often buy cheap stuff, on SALE. Walk into any big box store and you’ll see some of the most beautifully packaged and presented junk anywhere this side of the western hemisphere. To be truly frugal, don’t replace anything until it’s worn out or unrepairable. When the time does come to replace that necessary appliance etc., search for quality and value. Who knows, in your search you may find you don’t need that new item at all. At the very least, you’ll want to find something you know will last for years and avoid the hassle of having to replace it or repair it in the near future.

Frugs don’t have FOMO

This is what I call it the “think it over skill” that Frugs have. A cheap person may snatch up a sale item for FOMO. Fear of missing out on the deal without thinking about the real cost of every item you add to your pile of stuff.

If you don’t have the “think it over” skill, here’s a quick remedy that really works. When making a significant purchase, just wait 1 day. One day. You may find the impulse to purchase it goes away or the sale will be over and you won’t want to buy it at all. That’s it, just wait one day. If after thinking about it and looking at options (like what is already in your closet) then buy something that will last a decade.

A frugal person would not skip necessities.

Someone who is cheap may skip an important doctor’s appointment or drive around on bald and dangerous tires to save a buck. Part of the benefit of being frugal is saving to assure necessities for you and your family are met. A garage and basement full of stuff won’t do you any good from a hospital bed.

Speaking of hospital beds, a Frug sees the benefits of living lean, like avoiding the 99 cent value menu because there is really not much value there at all.

In many ways, making health a top priority (yes, even over work) pays great dividends. Fitness is a great substitute for the latest styles. For years, I thought replacing perfectly good clothing going from a 32 waist to a 36 was just part of the aging process. A frugal person will be able to replace something when it’s truly worn out versus getting rid of clothes that just don’t fit anymore. I’ve decided to stop at 36 or maybe even go backward a bit. Everyone is different but adding, long term financial benefits to fitness helps motivate me.

Frugal people or (Frugs) look at the real cost of ownership versus buying something just because it’s a great deal.

Another benefit of living lean. Time. The more cheap stuff we bring into our lives, the more time we need to spend repairing it, storing it, cleaning it, shopping for it, and finally getting rid of it. A Frug understands the value in not owning something at all, and the freedom of living lean, freeing up time for a more experiential lifestyle.

Frugal people practice moderation and understand the virtues of delayed gratification.

Fugal people aren’t afraid to spend on experiences they’ve saved for. They understand that experiences have far more value than stuff. While a cheap person may skip travel or a nice meal in a restaurant altogether, a frugal person understands that by saving on life’s everyday expenses, they are pursuing a goal of adventure and experiences.

Cheat sheet for being Frugal versus Cheap.

Frugal people are not afraid to spend on others.
Frugal people (Frugs) look at the real cost of ownership versus buying something just because it’s a great deal.
Don’t buy cheap stuff or sacrifice quality to save a buck.
Frugs don’t skip necessities like healthy food, medical treatment or important repairs.
Frugal people practice moderation and understand the virtues of delayed gratification.

The Frug

Take Imperfect Action.

10/18 by The Frug Leave a Comment

How regularly screwing up can help you get stuff done.

By Brad Beckstrom

I’ve always liked taking action. Getting stuff done. A friend once told me, “The best way to fall asleep is to lay in bed and think of each thing that you did that day from beginning to end. Include the little stuff, washing your face, taking the dog out. If you’re like most people you probably do a lot of things even though at times it doesn’t feel like much. By the time you get near the end of the list, you will be asleep.” This trick didn’t work too well for me, sometimes I would lay there and think of the things I forgot to do which was a great way (not) to fall asleep. It’s okay that it failed. I was trying to do something that would help me fall asleep. I’ve learned something by trying this out, it didn’t really work, I’ll try it again, I took imperfect action.

What’s “imperfect action”? My first thought was doing something that didn’t work or trying something like a shortcut that just made the task longer. It could be something that was unproductive but got you 1% closer to reaching your goal. Maybe it wasted a good chunk of your day but you learned something from it.

Taking imperfect action is something that can help both the perfectionist and the procrastinator. [Read more…] about Take Imperfect Action.

Knowing Things Instead of Buying Things.

08/18 by The Frug 1 Comment

By Brad Beckstrom

What if every time you thought of buying something, you decided to know something instead? You’d probably build up a pretty good “store” of knowledge. You’d constantly be refreshing that knowledge whether you’re in a grocery store, online or shopping for a large purchase. I’ve used this strategy on large and small purchases. Something simple like “that health bar has more calories than 2 whole eggplants.” Now whenever you look at those 240 calorie health bars you’ll think about the equivalent of eating two entire eggplants.

Knowing things can impact larger purchases.

I’ve been putting off replacing our old car. We probably should’ve sold it a year ago but that time has not been wasted. Since then we’ve been learning about:

Making 30% more by selling a used car on craigslist instead of to a dealer.
How new cars lose 20% of their value just 6 months after you drive them off the lot.
You can find some really great cars using an app like Carvana once you know what you’re looking for.
Whether an electric car or a hybrid car is a better fit for our daily driving.
All of the benefits of having a car that’s paid for and skipping the commute.

You can even apply this thinking to investments. When you pay high annual fees on your investments, your spending money. Years ago I used to sell off underperforming mutual funds and search for up and comers. I stopped doing this and took a few years to completely revamp my investing strategy. I learned that many funds I had been buying had high fees of around 1% per year. I also came across a study that Fidelity had done about the most successful individual investment accounts. The winners were investors who were dead or had not touched their retirement accounts for years. After some research I decided to buy and hold ultra low-cost index funds with fees less than 0.060% and exchange them only when I needed to rebalance my portfolio. This one change has saved me thousands of dollars every year, and will continue as long as I hold these index funds.

Often when I’m interested in something, I decide to research it and by doing that I delay the purchase. I believe that delaying purchases is one of the best ways to cut your spending. Even a delay of one or two days to do a bit more research (learn something) can make you rethink that impulse purchase. I also have a simple rule of not replacing something until it is completely worn out or, in the case of perishables, gone. When you run out of something and stay out of it for a few days sometimes you realize you don’t really need it. If it was really amazing you’ll remember to replace it. (sorry kale snacks)

Here are some tried-and-true ways of knowing things instead of buying things. [Read more…] about Knowing Things Instead of Buying Things.

How To Prefer What You Have.

09/17 by The Frug 1 Comment

By Brad Beckstrom

Years ago I had a vision for what I’d like my future home to look like. It included stylish mid-century modern furniture, expensive rugs, artwork, and beautiful lighting. It doesn’t look like that and I’m happy about it. Instead of replacing and upgrading furniture over the years, we decided to keep the furniture we had. This included things like our original coffee table that’s been destroyed by kids, dogs, spilled beverages. I kept my furniture from my college dorm room, now in my son’s room and still going strong. We kept various IKEA classics from my various bachelor pads and wife’s early post-college years.The IKEA dressers had to be repaired and in one case reassembled. A few years back, we had a fun day running down to IKEA to dig through the parts bins for pegs, knobs, and brackets. I also grabbed a few Swedish meatballs. We’ve received a few pieces of furniture from relatives over the years, proudly displayed next to the IKEA stuff in the living room that we repurposed as a library.

With all this old furniture populating our home, something interesting began to happen. The furniture began to develop its own personality. Chew marks from pets that are no longer with us, wild rings, marks, and divots in our coffee tables that come along with raising two boys and having pets. I guess you could call them scars, but the good kind. We’ve actually created that distressed, weather battered look the people pay for. I like to think of it as sort of a slow motion destruction. [Read more…] about How To Prefer What You Have.

Perfecting the 4 Hour Workday

08/17 by The Frug 1 Comment

By Brad Beckstrom

What if you could wrap up your work each day by noon? Would it improve your life? Would you have more time for family, friends, exercise, and other pursuits? If you could work just four hours a day, would you ever need to really retire? These are some of the questions I had in 2007 after reading Tim Ferriss’s book “The 4-hour Work Week.” The book isn’t about working 4 hours a week, it’s about taking control of your workday, and your life, so that you’re focused on the part of your work that you really love.

Failing at the 4 hour workweek

I’ve yet to pull off the four hour workweek, but after 10 years of working at it, and about 5 years of writing about it, I’ve gotten to a place I’d like to call the 4 hour (workday). The idea was pretty simple. If I’m able to eliminate, commuting, needless meetings, the office, and other time killers, I’d already be part of the way there. Staying focused and eliminating distractions like breaking news, social media, and email could get me there.

So, I’ve done it. I’ve gotten to a schedule where I can start my morning’s early and be done right around lunchtime. I’ve realized that if more people could create four hour workdays, our working life, retirement, and even our education would look different.