Why we save aggressivelyPosted: September 23, 2016
We save aggressively and live simply. People often associate frugality with austerity or ‘missing out’ but there’s freedom in having solid finances. We’ve had an unusually expensive year this year to date but are powering through what would see many “typical” American families accruing considerable debt.
This post isn’t meant to brag, but hopefully to inspire.
Maria earns good money, which definitely helps. We’re above the median household income but nowhere near six figures. We put enough of that income into tax-advantaged accounts that we have zero federal income tax liability each year.
We did $2,000 in repairs to my car. We bought a car for Maria for a little over $4,000 in cash. That car unfortunately may need a transmission rebuild (we’ll know soon) for $2,500-$2,600, but we can (just barely) pay for that out of what’s left in savings.
We spent several thousand dollars on the homestead this year between constructing the raised beds, bringing in soil, buying perennial plants, and setting up our animals.
We grow some of our own food but still spend an awful lot on what we can’t grow. Food is important to us. To paraphrase Joel Salatin, you are only as healthy as the life energy that you consume. I source as many ingredients as possible from local farms, and with the rest of our food dollars I try to support sustainable practices as best as I can through the veil of the supermarket.
With all this, we were still able to pre-pay a considerable amount of our existing debt. We save aggressively as a way to “spend” on our future selves. We give a gift to our 40, 50, 60 year-old selves that hopefully one day in the not-too-distant future we will be financially independent and able to live the homesteading life we truly desire without a need for Maria’s income.
Do you save aggressively? What difficult situations have made you thankful that you did?