Last week I posted part 1 of “Live like no one else”, and gave a few tips on how to start living a life like no one else. Here is a short video with some Dave Ramsey motivation, a few more extreme tips, and little motivation to go with it.
- Ditch the smart phone or cell phone – most people today have a cell phone or they have an iPhone or Crackberry. These devices can be addicting and hard to divorce yourself of (I know personally in trying to get rid of my Blackberry recently). Typically a smart phone can cost you $200 for the phone ($100 every two years) and the phone/data plans cost $50 – $70/month (depending on your plan). Over two years this can end up costing you $1400 – $1880 every two years. Try reducing to just a home phone and a TracPhone. Maybe even after you do this you’ll find that the cell phone isn’t essential at all and you can get by with just the home phone. Aaron's half brother was a huge inspiration to me who retired at 50 years old, and recently showed me his blackberry (pad of paper and pencil)!
- Save 25%+ of your income for retirement – for some people saving just 8% of their income is hard. Again referencing Jacob @ EarlyRetirementExtreme he continually saved 75% of his income to get him to where he is today. This lifestyle is a bit extreme, but once you get financial freedom from debt then saving 25% of your income is an even greater possibility.
- Have at least 1 years income saved in a money market account – with how shaky the job market is and the difficulties of obtaining credit it would be smart to save more than the norm (3-6 months) and stash away 1 years income to weather any further economic storm. This will help you save for an extended job layoff, pay for a new/used car in cash, or provide you the security you need to sleep at night. Some great money market accounts I recommend are EmigrantDirect or IngDirect. Both of their interest rates are historically low at around 1%, but are a lot higher than you’ll earn at your local brick and mortar bank. Plus getting money out of these accounts is easy too and typically takes only 1 business day.
- Dry your clothes on a clothes line – recently I did a video for my grandpa’s 90th birthday party and came upon a picture where he was a young child in 1925 was playing in his backyard and strung across the yard were a ton of clothes lines. It got me thinking about how most people have come to think a clothes dryer is a necessity, because of how quickly and conveniently it dries our clothes. Most people of the depression era would probably argue that a dryer isn't a necessity, and would begrudgingly pay for one and the reoccurring costs associated with them.
What other tips do you have for living a life like no one else?