How I did it: This took awhile, but I feel I'm doing this without a lot of effort anymore.  Plus I have enough savings to feel secure if we were to have some big disaster happen.

We paid off all debts except the mortgage.  This took awhile, so don't think I'm making it sound easy.

We put any unexpected money into savings.  Just because you get a raise, bonus, overtime pay, tax refund, etc doesn't mean you have to go spend it.

We stopped buying all kinds of things we don't need unless we feel like we will use it enough to be worth it.

If we really want something, like a vacation, we save up for it.  If you save a little all year for a trip, it's not too hard.

We aren't totally cheap.  We eat out.  We spend money on entertainment, but only if we have the money for these things. 

In summary,we live below our means.  We are not wealthy either.  I am a teacher and don't make huge amounts of money.  My husband makes slightly more than I do.

Lessons & tips: Live in a normal sized house.

Don't replace your car until it wears out.  For example, my car is 11 years old and runs fine.

Stop buying useless things.

Don't use credit cards to shop, only for emergencies like car repairs.

Spend less money than you make. 

Pay off any debt as fast as possible.  Then you can start saving money instead.

Resources: Various websites on simple living.  They really change your perspective on what you really need.

Our own diligence to keep paying down debt and then building savings over many months and years.

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Jun 28, 2010, 10:07AM PDT | 0 comments | 4 cheers