Should we worry about inflation? Not so much.

An Update on Financially Free - Can I Live on $3,000 per month Shows Us Why "No Worries"

One of the most-read posts on A Juicy Enough Life is about living on $3,000 per month.  The data is seven years old and could be considered a case study in why inflation isn't such a big deal.  

I had just retired early for the first time and was headed toward tiny house living.  It was seven years ago.  Even then I knew it would be tight and was a bit concerned about inflation.  

A reader recently asked for an update on this post and if things had changed.  Well, so much changed that the ups and downs could be considered a case study in "why plan at all???  LOL!  But primarily my net worth increased because of additional work and the increases in the stock market.  

Expenses didn't increase all that much, because of diligent spending, LBYM, and a partnership.  #inflationmitigation

If you watch your spending closely and apply what you've learned about personal finance, odds are you don't have that much to worry about regarding inflation either.  Vicki Robbins mentions in "Your Money or Your Life," that conscious spending is the best hedge we have against inflation.  If the last seven years of my personal data prove anything,  she is 100% right. Jose Dominguez, her co-author, was fond of saying: 

Consciousness grows faster than inflation ... Once you are FI (financially independent), you'll have more time to learn.  More time to DIY.  More time to bond with others.  More time to find just what you need for a fraction of the cost.  

Here is my 2022 DIY hedge plan against inflation:  

• Passively invested index stock funds (22% of my asset allocation).  I can avoid touching these for 10 years or more.
• A social security start date well into the future.  Social security is the only cost-of-living-adjusted (COLA) asset I have at this time.   
• Strike-point grocery shopping - buying in quantity when items are on sale.  (I use an Excel spreadsheet to keep up with good prices on 30 or so items we purchase a lot.  A can of black beans or spicy diced tomatoes at less than $1.00?  I'm stocking up!).  
• Use grocery store apps to check prices and create my list before hitting the supermarket.

  

So What Changed in 7 Years?  

My net worth went up by 275% while my expenses only went up by 57% (and that includes fun money I didn't expect to spend). 

I went back to work for a few years at my dream job (LSU's internationally renowned nutrition research powerhouse Pennington Biomedical Research Center).  Never saw that offer coming and was thrilled to get it.  Their focus at the time was on nutrition research to reduce heart disease, diabetes, and obesity.  It was a great four years and I would have done it for very little, but they paid me well.  I retired from that job last year.

1) Cash in the Bank went up by 275%

Even though I was making a good salary, I kept my lifestyle simple.  Even kept driving the same 2011 Honda Insight.  So I saved a lot.  The stock market did well.  I also had a small inheritance from my Mom's estate, which I'm now sharing with my daughter.  (Thank you, Mom and Dad!) 

• Debt (non mortgage)
• 2015 - $0
• 2020 - $0
• Assets
• 2015 - Over $350,000 in retirement funds plus almost $80,000 in cash. 
• 2022 - Over $750,000 in investable retirement funds plus $150,000 in cash. = $900,000. 

2)  Expenses up 57% including discretionary spending. 

They could have stayed the same if I hadn't eased the spending reins for fun money.

• Monthly Overhead 
• 2015 - $2,999 per month
• 2022 - $5,250 per month

The increase in monthly overhead is discretionary and aspirational type expenses.  My basic needs can still be met at the $3,000 per month level.  And that includes my "must-haves:" 

    Housing

    Utilities

    Healthcare

    Personal care such as toiletries and clothing

    Auto and auto expenses

    Cell phone

    High-speed internet.  

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Detailed Monthly Spending

• Housing - 25% higher
• 2015 - $600 per month for 280 square feet.   
• 2022 - $800 per month for half ownership in 1700 square foot home 

We share a smallish home - only 1,700 square feet, 1 bedroom, 1 study and 2 baths.   Costs are about the same except for the darn maintenance.  (boo hiss - so expensive!)

• Medical, Dental, Vision, Long Term Care - 0% higher
• 2015 - estimated I would spend $800 per month including a cobra policy. 
• 2022 - about the same  (Medical is $560, Dental is $35, LTC is $170)

• Utilities - 15% higher
• 2015 - $229 per month
• 2022 - $264 per month

I split some utilities with my partner, which helps. My share of energy and gas is $100 on average per month, $32.50 for water and sewer & garbage.   I pay $37.50 for my cell service and $94 for high-speed internet, my partner picks up cable television, I still don't watch it very much. 

• Food & entertainment - 86% higher
• 2015 -  $430 per month, which included eating out at restaurants
• 2022 -  $800 per month, also including eating out at restaurants. 

This category definitely went up.  But I know I can cut back on eating out if I need to.  I also share some of that expense with my partner.  And I'm looking forward to dusting off the strike-point grocery pricing sheet to see how I can reduce the monthly cost.  

• Transportation - 0% higher
• 2015  - $450 per month
• 2022  - $450 per month

This cost has stayed the same or gone down.  I'm still driving a 2011 Honda Insight which now has 127K miles.  The maintenance costs have been primarily oil changes and tires.  I got LUCKY with this car.  

My insurance per month is less because I don't drive to work anymore.  My fuel costs are less.  But I still save $200 per month for buying a new car next year and for maintenance costs.  

• Gifts/charity/helping daughter with student loans - -64% (down)
• 2015 - $250 per month
• 2022 - $150 per month

My beautiful daughter is now married and handling her own student loans.  My giving is primarily through my Rotary Club membership and a few favorites like public radio, plus a few cash gifts throughout the year to my daughter and her new family.

• Clothing - 
• 2015 - $  65 per month
• 2022 - $200 per month

Guilty of splurging here!  I have plenty from years of clothing purchases for corporate world job.  That's finished, but I'm now finding that my running shoes and outerwear needs were piling up. A destination wedding for a family member last year necessitated lots of new clothes and shoe purchases.  So I'm selling some of my better pieces on Poshmark at @isabettarose.  I'm also finding great deals there for branded, new with tags, fantastic clothes!  Won't ever need to buy new again! https://poshmark.com/closet/isabettarose

• Personal supplies, grooming, etc.  - 33% higher
• 2015 -  $75 per month
• 2022 -  $100 per month 

Not much more in this category and it is flexible.  I learned during the pandemic that I just don't need to highlight my hair at $300 per 6 weeks!  

• Household supplies - 0%
• 2015 - $100 per month (Includes food and litter for cat, paper goods, cleaning) 
• 2022 - $100 per month  (Includes paper goods, cleaning and home office supplies)

Very little growth in this as my kitty cat passed away and I haven't had the heart to adopt another one yet.  Also, cleaning supplies just don't cost that much more than they did.  

Following professional and/or obsessed housecleaners on Facebook and TikTok has saved me a fortune in cleaning supplies.   Following others' experiments with cleaning supplies and asking questions of the group members has been very helpful.

• Taxes -- No change, still in the 22% tax bracket - boo!  (Single - No dependents) 

More Reasons Not to Worry

• Mr. Money Moustache posts his thoughts about inflation and why it isn't something to worry much about here.  

• Your Personal CPI could be much lower than general CPI. 
•  Here is a fairly simple  Personal Inflation Rate calculator based on your own expense estimates.  It's important because the calculator weights inflation on what your consumption habits.  If you don't purchase new cars, you probably don't care if new car prices are up, for example.  If you drive an electric car, are you concerned about diesel gas prices busting your budget?  NO.  

My personal inflation rate is around 2% -- which is right in line with my fixed income asset returns.  Whew!  I'm good!  

Check it out and let me know if it works for you!  

http://www.candaceshira.com/learning_center/calculators/personal_inflation_rate

What are you planning on doing or learning or testing to fight inflation costs in your household?  Please stop by the comments and share!  We would love to hear from you. 

Hitting Your "Number." Top Three Things You Must Do

Five years in one sentence:  A catastrophic flood, three hurricanes, two moves, a condo sale, a home purchase, a dream job assignment come true out of the blue, an engagement, a once in a lifetime freeze in the tropics, a parents' death, my first grandbaby, and a pandemic.  No wonder I didn't post any blog updates.   

But I've graduated from work-life again!  And I hit my number with a big safety margin this time.  

So what were the top three things I did, free of charge, that helped me survive those swings?  

#1)  LBYM. Living Below Your Means gives you a McGyver tool kit of skills to survive financially, no matter what.  

If you don't know where to start just look at how much you spent over the last three months. Was there more income than outgo?  If so, that's great!   Because that "spread" is how much you truly earned in the quarter.  

Let me repeat it -- if you spent $1,000 less last quarter, then that's the increase in your Net Worth.  Your Assets.  Your Capital.  Everything else went to somebody else's paycheck.  If you want to quibble about your house note, okay, a tiny bit of it went to equity.  Let's be real.  What, about $200 a month maybe?   

Your next, most glorious step toward freedom, is to increase your net worth as much as possible in the next quarter by reducing your expenses.  

Every quarter I check my net worth through Personal Capital's software.   It's free.  You can use a spreadsheet or even just a pencil and a notebook, which is what I did for many years.  If I haven't added to your net worth, then you are just a wage slave and need to do some major adjustments.  

#2)  Don't Buy a New Car.  Ever.

Out of all the big expenses in today's consumer economy, housing and transport usually come up as 1 and 2 unless you are older and healthcare gets on the list.  (Oh, let me rant about that on another post!) 

It takes time and effort and energy and yes, money, to downsize your home and its expenses.  It is much easier to keep your automobile expenses low. 

Buy a car that is at least one-year-old or more.  

Real Life Money example:  I own a 2011 Honda Insight with 140K miles, paid $12,000 cash for it in 2014.  

This website https://repairpal.com/cars/honda/insight/2011 estimates average maintenance costs of $341 for a 10 year old car! 

I've only paid about $250 a year for maintenance, other than tires and a AAA battery replacement that was all my fault.  That $250 per year was cash ($1,800) I paid in 2021 to a local mechanic to get it ready for another 7 years of use.  Preventative maintenance.  

No car note, just insurance and about $50 a month on gas, maximum.  Even with day trips.  

But but but!!!!  What about warranties and safety?!!!  

1.  The warranties from the manufacturers are still available on preowned and pre-cerftified slightly used cars, so don't throw that one at me.  :-}  

2.  If you are going on a long car trip and don't want to risk it with your older car?  Rent a Car!  Heck, you can even Air BnB a car now.  https://studentloanhero.com/featured/turo-review/

But but but!!!! What will the neighbors think? 

Buy a used Ford 150 and they will think you might be a millionaire next door. 

#3)  Get Your Side Hustle On - Carefully and Mindfully

Not all side hustles are worth it, I hear you!  If I get one more email about Ibotta grocery store coupons or online interviews that never pan out, AAAHHHHHH!!!  Tried them all and just ended up wasting my time. 

Solopreneurship and sole proprietorships are a step up.  And not only do you make extra cash, you also have tax write-offs like office space in the home, that help with housing costs.   

- No employees, ever.  

- You aren't trying to scale a business

- You can try and fail fast

- Hanging out with your favorite people can make it profitable.

As long as you make a legitimate effort to sell your skills to the marketplace, it's a legit business, as per the IRS.  

This is one of the better, easy to consume blog posts I've found about solopreneurship.  https://www.incfile.com/blog/post/difference-between-solopreneurship-and-sole-proprietorship

My Real Life example:  I operated as Stansbury Creative Consultants providing AdWords consulting and marketing support as a side hustle for many years.  It brought in between $2 - $10K per year and allowed me to write off 50% of my new computer supplies and a percentage of my housing costs.  

More importantly, it has allowed me to do fun projects with people who "get sh*t done" without worrying about corporate objectives.  And I can continue to use my new side hustle brand to work on whatever appeals to me throughout retirement.  

What say you?  Have you survived a life of one dumpster fire after another and have wisdoms to share? 

5 Best Guides to Beginning a Life Free of Financial Worry

It is beginning "the thing" or "the change" that can be the hardest, isn't it?

When I was at my lowest financial point of worry and anxiety, these five books lifted me up and over debt toward a life of fun frugal living and some financial security.  So I'm sharing the wealth.

Amazon has it on sale from time to time

 

1.  How to Get Out Of Debt, Stay Out Of Debt and Live Prosperously

This was the first book I read that took the shame out of debt and addressed some of the emotional issues.   It inspired me to take a second job as an adjunct professor.  This didn't pay much per hour but the extra $2K in a year helped lift my family out of debt.  I felt like a cork, bobbing above the water and suddenly seeing the shore.  What a relief that was! 

I found a copy of this one for .01 on Amazon!

2.   "The Only Investing Guide You Will Ever Need" 

This was the second financial self-help book I purchased and still have on my bookshelf.  Why?  Because it's so funny, lighthearted and real.  

Tobias is a Harvard graduate who helped me understand that when I avoided buying something, or saved $1.00 on something, I was actually saving $1.50.   A penny saved is a penny and a half earned! And understanding how our taxes affect your personal finance is mission critical. 

If you are being taxed at the 25% marginal tax rate for federal income tax, then add in state income tax, then add in sales tax -- well, you could say that you are being taxed at approximately 50% (for the ease of the example, even though it might be a little high).  

So, as Tobias gives as an example in the book, if you go out to eat on Thursday night and spend $40?  Well, to replace that $40 could mean that you have to earn $50-$60.  

Even though Tobias is a very wealthy guy, he still buys canned tuna "long" (i.e., on sale), and stores the extra cans under his bed.   He goes "short" on tuna when it's very expensive (i.e., he uses up his stores).  


Seriously people, this is how rich people act.  Just be careful you don't overbuy on tuna and never use it.

This is about $8 on Amazon

3.  I Will Teach You to Be Rich

So inspirational and easy to read.   

Ramit promised to show me how to make $1K a year in a side gig.  I didn't think I could do it.  But then I did.  And I still make $1k a year doing a side gig.   

I don't know how he does it, just call it "Ramit Magic"

Found this for .01 on Amazon too -- great deal! 

4.  Your Money or Your Life

Ground-breaking,loving and practical approach to understanding how you are trading your "precious" life for that new toaster, or pair of shoes, or kitchen blender, etc., etc.  -- is it really worth it?  Good practical guide to understanding how much your job is really paying you per hour.   

Think you are getting $30 per hour?  Add in all those hours to commute, the wardrobe costs, the unpaid CEU hours, the hours just unwinding from the stress...  hmmm...  maybe it's time to rethink that hourly rate down to about $5!   And the toaster really cost you four hours of your precious life.  Hmmm...

Definitely an eye opener for me and one of the inspirations for Breaking Free From the Corporate Cube.    Inspirational for living well on less.   

Still about $10+ on Amazon

5.  The Millionaire Next Door

Last, but certainly not least, the granddaddy of them all, "The Millionaire Next Door."  Reading about this scene from the book (page 27), with the Decamillionaires (worth $10 million or more) is the best take-away you can have this frugal Christmas.

The professors who wrote the book wanted to study millionaires, so they invited the subjects to a focus group.  Wanting to make the millionaires comfortable, they provided wine and caviar for the group.   Here's what happened next:   When one of the group members (who owned several pieces of downtown New York property) was offered a glass of 1970 Merlot, he said 

"I drink Scotch and two kinds of beer - free and BUDWEISER!"  

It's also where I first heard the phrase, "Big Hat - No Cattle," -- a term the millionaires saved for those who flashed fancy cars and clothes, but had no assets.  

Here are more millionaire tips.

That's my top five that will keep you busy learning through the cold winter nights ahead.  Do you have a favorite I missed?  Share It!


Disclaimer:  If you do decide to click on one of the photos and buy one of the books, I will receive a small commission from Amazon.  It didn't affect my list one whit -- I've had these books on the shelves for years.  And any proceeds will go back to making the blog better!

Pay Off the Mortgage or Not?

Just my opinion, but.... this hotly contested question is really the wrong question to ask.  Which is why there is so much debate about it, perhaps. 
   

The important question to ask is "how much does housing cost me every year?"  And the answer tells you whether or not you can and should pay off the mortgage, or if you should have a big juicy mortgage the rest of your life.   

What?  NOT pay off the mortgage -- ever??? 

The idea of not paying off my mortgage came from Ric Edelman in his book The Truth About Money," 4th edition.

He outlines great reasons to carry a big, long mortgage.  

• A mortgage is cheap money. 
• Greater liquidity.  
• You can sell without selling (get your equity back by refinancing your mortgage). 
• The list goes on.  Most telling is the story about the widow who had a lovely $500,000 home - paid off.  But had no cash to maintain it, travel, etc.  It's an important read.

Whether you pay off your mortgage or not, you still have monthly maintenance, taxes and insurance.  You'll never be without housing expenses.  And these expenses are subject to inflationary pressures.   Just a few years ago in my state a law was passed that allow insurance companies to charge you up to a 2-3% of the home value as a deductible for damage from a "named storm," i.e., Hurricane.    Hmm..

5 More Reasons to Escape the Corporate Cube & How - Money In Real Life Stories

 

6.  You want to be (a little) like Sofia Varga.   

You know, "Gloria" from TV's Modern Family.  In real life she's savvy, hip, wise, and quietly building her own media empire.   Latinas are dropping out of Corporate America and cutting their own paths to financial AND emotional well-being. 

7. You Can Exit the Party Slowly, and Take a Few Cookies With You.   

There is still something to be gained out of your current Corporate Cube Job.  Contacts in the next cube are your potential clients, future collaborators or even your investors. 

• You are still learning. Money In Real Life (MIRL) Story:  For example, my partner became an seven figure entrepreneur after spending a few years as a CPA.  He learned from every client – what to do, what is realistic, what things cost, how taxes worked.  This knowledge was invaluable for his future as a business owner and real-estate developer.
• That Guy In IT probably has a side-hustle too and can help you when you need IT expertise and don't have a whole department to call on.

Financial Freedom: 5 Reasons to Run from the Corporate Cube

I've been out of the corporate cube for two months.  I've seen it from both sides.  Being on the outside looks and feels a lot better.  Here's 5 Reasons Why:

1.  It's tough to earn financial freedom in one lifetime by working for someone else.

If you still need to earn money, (i.e., your parents haven't willed you a couple of million in a trust fund), just know that owning our own business is one of the few ways in this country to create wealth in one life time.    I picked up these tips from the Millionaire Next Door classic book.   But I suggest you get your own copy and pour through it. 

Let's start with taxes.   I learned a lot in the Jackson Hewitt Tax School and I learned that Earned Income you get in the Cube is taxed more highly than any other kind of income.    Taxes are one of your biggest ongoing expenses.   Those who are self-employed, or who earn money from dividend income, or rental income -- well, they don't have as high a tax burden.   Do whatever you can (legally) to reduce these.

Financial Freedom: the Marie Kondo Life Changing Magic Way. But Watch Out for Those Emotional Barriers

From 2600 square feet (2010) to 1500 in 2010.    

From 1500 square feet to  697 square feet in 2014.  

I’ve cut my living space and stuff by 66% in the last five years and never felt freer or happier.  But each time I scaled down, I had to step over and toss out more than unused clutter – I had to face the accompanying fears and bogeymen haunting my psyche. 

The Top 3 Fears:

• What if all my stuff fit in the new space?  Would I end up embarrassed, with furniture or boxes of (fill in the blank) at the doorway, left by the movers who couldn't fit it into the new place?  
• If I have to get rid of it -- how will I manage without it?  (i.e.,)   Could I really live without a (fill in the blank?) 
• Wouldn't I be spending more money to replace the stuff I tossed?  Because obviously I would not be able to live with out.

Reality Check:  

The only things I ever gave away to movers because they wouldn't fit in my new space:

• A chest of drawers handed down to me from my family that I really didn't like.   Good riddance.  The mover seemed thirlled!  0% regret.
• A 9 foot-high-bookcase.  10%  regret.  I really liked that bookcase, but it was a choice between the bookcase and the antique sideboard my daughter loves and wants some day.  The mover who loves books ended up with the bookcase.  I can buy another one someday.  So far, I've done great without it.

But as I consider downsizing to 280 square feet, I’m even more perplexed and wondering "good grief, how am I going to live without a living room??" 

The rewards of downsizing draw me forward anyway:  pure joy, a new view of the world, a fuller life.

The KonMari Method Is Helping This Time.  Real Life Case Study Below.

For those of you facing the same kind of emotional collapse that is either slowing you down or halting the process all together, I’m sharing some of the tools that helped me and recent photos from my current use of the KonMari, the process laid out in The Life Changing Magic of TidyingUp by Marie Kondo. 

First Things First:  Your Clothes 

Marie suggests that you start de-cluttering your clothes.  NOT your closet, because clothes are stored many other places too.  And clothes are the easiest.  So here goes my Saturday.  

Finally Financially Independent: Can You Live a Rich Life on $3,000 a Month?

Yesterday was my last day at Megacorp (gulp) and I'm not 65 years old yet, I'm not even 59 1/2!   Anxious?  Excited?  Terrified?  Yes, yes, yes.    Is it something that you could do too?  Yes, you too.

Call it semi-retirement, retirement, a mini-retirement, early retirement, embracing the simple life, the mid-life crazies, taking a break from burn-out...I'm not sure what label fits yet.   The truly kind people at Megacorp gave me a subtle kick-in-the-pants and I am eternally grateful.  The choice was to conform to a job that just wasn't a great fit or get the heck out of the way.  

I took it as a sign from the universe to RUN, not walk, from a bad fit to finding the people who need exactly what I have to offer.   I may never work full-time again and just volunteer, or work by-the-hour, or even find another, better-fitting job -  not sure yet.  But I do know that this will test the financial freedom plan I'd been preparing for years.  Nothing is more satisfying that being the master of your own life.

Game.  On.  

$3K per month financial road map - This is a high level outline of my financial readiness checklist that may help you if you are planning or even just dreaming about walking away from the corporate cube.  If I can stick to the $3K per month plan, I can choose where and when I work and keep my financial independence for the reset of my life. 

Is Frugal Becoming the New Black?

I like how we are beginning to think in the blogosphere (and in the real world!) about money.    Bigger is not always better.  Less can be more.  You aren't defined by what you own.  Debt can suck the life out of you -- avoid it at all costs.

See this Learnvest.com post from June of 2013 that is still attracting comments.

http://www.learnvest.com/2013/06/meet-the-frugals-why-i-dont-care-about-upsizing/3/

I'm constantly reminding myself that Frugal didn't always mean "cheap."  It derives in part from the Latin word frux, "fruit, produce," and "value, success."  Juicy!    As Vicky Robin says in the audio version of "Your Money or Your Life," -- it's about squeezing all the juiciness out of every expenditure so that your life is as fabulous as possible.   

Escape from the Cube: Financial Independence - Being a Rental Lord

It's middle of month 4 of the Landlord Challenge, and so far so good.

PROs:

1.  I've  cleared about $300 or around $100 a month!   Doesn't sound like much except that $300 is on top of the renters paying for all of my maintenance costs savings ($200 per month), all of the manager's fees, property taxes, all of my mortgage interest, the mortgage itself and building my equity - about $150 per month.

2.  I'm only making $28 a month on a savings account of $28,000.   I've got $50,000 in equity in this town home, so I'm thinking making  $100-$250 a month is good return.

3.  My utilities at my new place are only $50 a month for electricity and $21 for water/sewer/trash.  I'm living in a luxury condo in the middle of the city, within walking distance of coffee shops and grocery stores, for about the same cost as living in my suburban town home with the long work commute.

CONs
1.  Rent is coming in as expected, although it is a little later than I would have hoped. The management company's bookkeeper quit and they are in process of training the new one.  By the time the management company processes the checks, it is around the 15th - not the 1st - and I'm usually so nervous about it, I go pick up the check myself.   I am looking forward to the day when that check just shows up in my mail box, as I expected.

2.  The air conditioner went out on the Friday before Labor Day.  The temperature in my part of the country averages around 98-100 degrees on that weekend!   The maintenance guy I had lined up for such an emergency was a complete waste - thank goodness for the management company.  They took over and had it fixed before 5 p.m. that day.

3.  Renters, being college kids, forgot that they had to pay for water as well as electricity.  Their water was shut off and a panicked phone call to the manager occurred on a Friday afternoon.   All was straightened out and again, I'm in debt to my rental manager.

Like I said, so far, so good.  Next month could be a completely different story!    But for those hoping to take this risk as well -- the moral so far is "hire a good manager, and stay on top of the rental checks..." 

Escape from the Cube - Financial Independence: Rental Income Big Gamble Part 2 - Decluttering

Prepping to Rent and Move:

The last week has been all about decluttering and staging.  I'm decluttering because I'm going from 1200 square feet to 697 square feet.  I'm staging because I'm putting the townhouse on the market July 1st.   The property manager has been hired (cost 1/2 first month's rent, 8% thereafter per month).

Decluttering has been emotional -- but freeing!  My declutter Go-tos for inspiration have included the book "Get Organized:  the Clear and Simple Way" by Marla Dee, FlyLady.net, and any resource for ADHD organization such as the National Association of Professional Organizers.    

washroom after removing mini-trampoline

Dee approaches organization from an emotional purging/mental envisioning and mapping perspective.  She suggests taking photos of the space.  It worked better for me than most other approaches such as, "do you love it? use it?  No?  - then toss it."     For example, throwing out the old mini-trampoline that didn't work so well anymore was easier to do when I took a photo of the room where it was stored,  after the trampoline was moved.   I wanted that cleared out space for myself.  The tossing process became a gift to myself:  of a beautiful, daily used space instead of the loss of an object that wasn't used that much anymore anyway. 

Since I had to take photos anyway for the online lease posting, this helped get me going on the photo taking recommended by Dee.   Another example of how this works --  I didn't realize how the golf clubs got in the way of the pic until I viewed it through the camera lens and saw them in the photo of the washroom.   (PS - I'm keeping the clubs, just giving them to a friend to store.)

woodburning fireplace

By the way, it took abut two hours to stage and take about 10 photos of the townhouse. Here's one of the woodburning fireplace.  (notice the coffee table was moved, and you can see the built in bookshelves.  Oops, that reminds me -- I need to declutter the cabinets underneath!)

Do you have too much clutter getting in the way of your space?  What resources do you use to inspire the big clean out?


Other posts you might like:

How I sold my pool table on craig's list
Escape from the Cube: Part 1

Escape From the Cube: Financial Independence Next Steps - Rental Income Big Gamble

You may have followed my last downsizing saga to improve my financial situation.  I moved from my 2500 square foot beautiful family home in lovely university area with 100 year old oak trees....to an apartment.   Traumatic?  Seemed so at the time.   As someone, maybe like you?  Who is  more left-brained than right-brained, my environment is very important to my creativity -- and hence my sense of well-being and safety.

The move was scary.  Here is a from back then with helpful moving tips if you are moving soon.  But I pocketed $50,000, helped pay off $5,000 of my daughter's school loans at Ivy League University, and had a 1 and 1/2 year vacation in a luxury rental condo.  Instead of desperately searching for handymen while trying to finish reports at work?  I went to picking up the phone to say  "Hello, maintenance?  Could you change my air conditioner filter today?  Great, thanks!"  I'm now a BIG fan of renting.

From that apartment, thought, I bought a town home.  To Rent or Buy was the question..and one of my most popular blog posts.  The initial ask was driven by my $50,000 nest egg going from a 4% return each year to a 1% each year.  Then there were those incredibly low interest rates on property.  Pushing me forward was that monthly rental "vacation" that cost $1,100 per month.  So I bought again in 2010.  And got a $6,000 first time home owner's credit.  Which I put into the new townhouse.


Now, 3 years later -- I'm ready to turn my townhouse into a rental income property -- gaining about $200 per month in passive income while paying off my equity --  and go back to renting (at only $975 per month).  Crossed fingers!

But to rent my place, I need to go through the transition again of moving and resettling.  I'm using the skills I developed during the previous moves in the last 5 years.  And would love to hear your tips and tricks to making moving easier.

I'm into the new space on July 13th, 2013, and will need to rent my town home out to someone else, with the right amount of rent, by August 1st.    It's a gamble.

I'll be posting every week -- let the Gambling Begin!