Wealth of Advice - By Francisco J. Colayco

Simplify Life – Part 1

There are many books and websites that deal with how to “Simplify Your Life.” One such website is Zen Habits. It is a fact that simplifying our life will lead to substantially reducing our expenses. I’d like to take some of the ideas that they present to be interpreted from the point of view of money.

Every person ha a different interpretation of a simple life. What is simple for you might be complicated for me or vice versa. But the dictionary defines the word “simple” as “plain and easily understood or done.” A simple life can only mean choosing the easiest and uncomplicated things to do. It means choosing only those that give you real value and having more time to do the things you want to do.

However, it is easier said than done. For those with money, it is difficult to give up pleasures that you have and have gotten used to.

For those with little or no money, you would think, how can life be any simpler when you have nothing. But still, it is not a simple life for them because they are stressed trying to find the means for their subsistence. Their life is complicated. The key is to find the balance by:
Understanding what is most important to you.
Having the courage and determination to get rid of everything that is not most important to you.

In this website, there are 72 tips on how to simplify life that you can use for everything in your life. But I will just go through these to show how these apply to the principles that I have been teaching on how to manage your personal finance.

“Tip No. 1. Make a list of your top 4-5 important things. What’s most important to you? What do you value most? What 4-5 things do you most want to do in your life? Simplifying starts with these priorities, as you are trying to make room in your life so you have more time for these things.”

Applied to your financial life, what you need to do is your Statement of Assets and Liabilities (SAL) listing everything you own (Assets), everything you still have to pay for (Liabilities) and the difference is how much you are worth (Net Worth). Understanding where you are today, helps you see where you can go for the future.

What are the 4-5 things that money can buy that you most want in life. These are your financial goals and it could be your own home, car, kids’ education, vacation etc. but one of these goals should always be “To be able to retire (meaning not do active work) and yet support the lifestyle you choose.”

It is from this understanding that you can now compute how much you need to save to reach each of your goals.

Tip No. 2 is “Evaluate your commitments. Look at everything you’ve got going on in your life. Everything, from work to home to civic to kids’ activities to hobbies to side businesses to other projects. Think about which of these really gives you value, which ones you love doing. Which of these are in line with the 4-5 most important things you listed above? Drop those that aren’t in line with those things.”

In terms of personal finance, I would advise you to choose the right kind of work for yourself, if you are an employee. If you are an entrepreneur, you need to find the right activity and/or business for you. Whether employee or entrepreneur, you will only be truly successful if you are happy in whatever you are doing. Although money is important, balance in life is what will keep you going.

Tip No. 3 is “Evaluate your time. How do you spend your day? What things do you do, from the time you wake up to the time you go to sleep? Make a list, and evaluate whether they’re in line with your priorities. If not, eliminate the things that aren’t, and focus on what’s important. Redesign your day.”

Unless you are already so rich, you surely need some extra income. Many people think they cannot do any sideline because they do not have the time. When you evaluate your time carefully and if you organize your list of things to do, you can have a better flow of things to do. You will see how much more time you could have available for some kind of sideline to give you more income.

Tip No. 4 is “Simplify work tasks. Our work day is made up of an endless list of work tasks. If you simply try to knock off all the tasks on your to-do list, you’ll never get everything done, and worse yet, you’ll never get the important stuff done. Focus on the essential tasks and eliminate the rest.”

I know from experience that 24 hours a day will never be enough to do everything that should be done everyday. There will always be work left for tomorrow. The trick is to have a list of everything you have to do and number them based on priorities. For the day, choose the most important among the priorities and do them. One daily priority is to set aside your savings for the day before you even start spending anything. If you keep your savings weekly or monthly, make sure this is what you do on the first day of the week or the month.


Simplify Life – Part 2

Tip No. 5 is “Simplify home tasks. In that vein, think about all the stuff you do at home. Sometimes our home task list is just as long as our work list. And we’ll never get that done either. So focus on the most important, and try to find ways to eliminate the other tasks (automate, eliminate, delegate, or hire help).”

Having less things in the house can save you some money. Even if you do not have many things, if you have something you do not use anyway, it just adds to the clutter. Having many things that you do not use does not make you any richer. Think about it. You will have less things to clean and will therefore save time and possibly cleaning materials. You can stay in a smaller house and therefore save rent. When you live in a smaller place, you will have less room for things and that should prevent you from buying anything that you do not really need. Maybe you can earn some income by selling the things that you don’t need.

Help is more available in our country than in others. Therefore, many have househelp. But it is getting harder to hire help nowadays because less people want to be househelp plus it is so expensive to maintain help. Think of salary, additional food, water, electricity etc. Maybe, not having help is a blessing because you can assign others in the family to do the work and save the cost. Or if you live alone, consider your cleaning as your salary for saving yourself the cost of a househelp. Remember though that if you can easily find extra income at a higher amount than the cost of maintaining a househelp, you should include that in your decision to get one or not.

Tip No. 6 is “Learn to say no. This is actually one of the key habits for those trying to simplify their lives. If you can’t say no, you will take on too much.”

Leaning to say No does not only apply to things to do. Learning to say No to your family and friends when it comes to additional expense is a very important trait to develop. It will save you a lot of money at the right time. For example, going out with the barkada when you don’t really have any budget for that or sending money to the province when you are not even sure they will use it for a good purpose, etc.

This does not mean that you will not spend or contribute anymore. It just means that you must understand what you are spending for when you are asked to contribute. Those you give to must also understand the limits of your budget.

Tip No. 7 is “Limit your communications. Our lives these days are filled with a vast flow of communications: texting, email, IM, cell phones, paper mail, Skype, Twitter, forums, and more. It can take up your whole day if you let it. Instead, put a limit on your communications: only do email at certain times of the day, for a certain number of minutes (I recommend twice a day, but do what works for you). Only do IM once a day, for a limited amount of time. Limit phone calls to certain times too. Same with any other communications. Set a schedule and stick to it.”

In today’s world, it is so important to be in touch with all our family and friends. It is a blessing and a curse at the same time. We all know the blessings but the curse is spending too much time and money just communicating. Limiting the time spent in communicating is good advice but in terms of money, here are some possible tips.

Don’t be so eager to get the latest expensive cell phone model. In the first place, you might not even use most of the additional functions that it gives you. It is pathetic that some of those who really cannot afford to waste money spend on a cell phone that can send MMS, take pictures, record videos and audios but all they know is to make calls to a few relatives and they even have a difficult time sending texts. They bought the cell phone because a younger relative who knows how to use the functions encouraged them.

There are so many plans available now to bring down communication costs. Study them well and choose the best one for you. Don’t take a plan that you cannot really use anyway.

Tip No. 8. is “Limit your media consumption. This tip won’t be for everyone, so if media consumption is important to you, please skip it (as with any of the other tips). However, I believe that the media in our lives — TV, radio, Internet, magazines, etc. — can come to dominate our lives. Don’t let it. Simplify your life and your information consumption by limiting it. Try a media fast.”

I think as a general rule, Filipinos read less but listen to radio and watch TV more. Unfortunately, they tend to listen/watch non-productive shows. Actually, Filipinos need more education but they cannot afford enrolling to take the formal or degree courses. But if they really want education, it is available in many channels. I would change this tip to choose the media consumption that will give you and your family good education. If you choose the right channels, you can never have enough education.


Simplify Life – Part 3

Continuation of Series on Simplification taken from Zen Habits. and adapted to personal financial issues.

Tip No. 9 is “Purge your stuff. If you can devote a weekend to purging the stuff you don’t want, it feels seriously terrific. Get boxes and trash bags for the stuff you want to donate or toss.”

This is a good tip as we prepare for Christmas. You can assume that when you receive a gift that you cannot use, you are free to give it to someone who can make better use of it. If the friend who gave it to you is a true friend, he will understand. Just make sure you do not give it back to him as a gift from you. You could actually make someone else happier and not have the extra clutter in your place.

For things that you have used but can share with others who do not have anything, donation is a good way of sharing. The normal rule to follow is if you did not even use an item or if you forgot it existed for more than six months to one year, it is time to let go. There are so many orphanages or organizations that will accept anything used from clothes to equipment.

Tip No. 10 is “Get rid of the big items. There are tons of little clutter in our lives, but if you start with the big items, you’ll simplify your life quickly and in a big way.”

Big items could mean items that actually occupy more space. Of course getting rid of items that take space will make your place look cleaner. Or big could mean items that are more expensive. Sometimes, it is more difficult to get rid of the items that are expensive because you feel you might never be able to buy them again. How many times have you kept something because you were told you cannot buy that item anymore for the same price that you bought it. But then, if you really do not find use for it anymore, what does it matter that you can’t buy it in the future.

I believe that when you are detached from material things, it is easier for newer items to come your way. It your home is not cluttered, you friends and relatives might even decide to give you something that you truly need. If it is cluttered, they will think that you have everything you need and will not care to add to them.

Tip No. 11 is “Edit your rooms. One room at a time, go around the room and eliminate the unnecessary. Act as a newspaper editor, trying to leave only the minimum, and deleting everything else.”

Using the word “edit” for reducing clutter is really so appropriate for this tip to check each room of your place. Maybe some of our readers live in one- room homes. Look at the bright side; it makes your “edit” faster. And don’t assume that having one room means that you don’t have anything unless you are in a prison room. I have seen one room places with so much items that the owner does not really need.

The objective of the editor is to make the readers happy while making sure that the newspaper makes money through advertisers so that it can continue to exist. Therefore, a newspaper editor must make sure that the article has good content. This means that the article must be understandable, readable, and only the important items in each article are included and printed to make it as valuable as possible to the reader. The article should take up only the exact amount of space necessary so that there will be more space available for advertisers. The editor has to know how to balance these two important concerns. He needs to make sure that all the pages of the newspaper are properly utilized.

Tip No. 12. is “Edit closets and drawers. Once you’ve gone through the main parts of your rooms, tackle the closets and drawers, one drawer or shelf at a time.”

This system can be “painful” to you because chances are there will be a lot of memories in items that you have kept. As you go through each item, those memories will flash back and you might take time to daydream. Nothing wrong about this, especially if the memories are fond and make you happier. Precisely, the tip tells you to do each drawer or shelf one at a time. This way you do not leave more clutter because you removed all the contents at the same time.

For articles that do not feel good, you still have to be very careful to be objective. Try not to be emotional because you might have to spend money just to buy something like it again because you threw it away. After you finish one drawer, return the items that you want to keep into the drawer before going into the next drawer.


Simple Life – Part 4

These tips are from the website Zen Habits that I bring meaning and relationship to your money.

Tip No. 13 is “Simplify your wardrobe. Is your closet bursting full? Are your drawers so stuffed they can’t close (I’m talking about dresser drawers here, not underwear). Simplify your wardrobe by getting rid of anything you don’t actually wear. Try creating a minimal wardrobe by focusing on simple styles

and a few solid colors that all match each other.”

When you keep things that you do not use in your closet, you are depriving someone else who could have real use for them. You should not have spent money to buy those in the first place but since you already have them, use them or give them to someone who will use them. I know you can be concerned that you might use them someday. True but if those are actually WANTS and you wan really do without them.

I know many impose a “uniform” on themselves to remove the need for too many clothes. If this is something you can be happy with, it is a good idea. It will really save you a lot of money because you will not be embarrassed to use the same clothes more often and therefore be less tempted or forced to buy more clothes.

Tip No.14 is “Simplify your computing life. If you have trouble with too many files and too much disorganization, consider online computing. It can simplify things greatly.”

Many still do not have computers, whether personal or work so they are hesitant to start learning how to operate a computer. This is much like that happened to the texting when the cell phone was new. Nobody thought that texting would be so important to Filipinos. The same thing will happen to computers. It is the communication tool of the future.
You should also not use your age to stop you from learning. Notice how young kids who are exposed to computers learn so quickly. This is because they have no fear and are not afraid to make mistakes and do not care if people laugh at them.

When you know how to use the computer, you can keep a lot of records in the internet and therefore less clutter in your home or workplace. You can use internet cafes in lieu of buying a computer. If you do not play games, you will not have to spend too much on the usage.

Just a reminder. All these tips are really to remind you that the road to success is usually shortest when there are few obstacles. Personal belongings that have no real purpose or use are in fact obstacles to success. Simplifying life also means reducing or getting rid of unnecessary belongings around you.

Tip No. 15 is “Declutter your digital packrattery. If you are a digital packrat, and cannot seem to control your digital clutter, there is still hope for you.”
A packrat is one who loves to keep everything. The usual excuse given by a packrat is that maybe he might need the item. We talked about how computers help you to lessen your clutter of papers and documents in your workplace or home. However, you can also accumulate clutter in the internet and this is not a good habit. Those who are already computer-savvy face this issue. Having too many documents even on internet filing system uses up space and time for you to find what you need. Maybe space in the internet may not cost extra money. But as we already know, time wasted will always cost money. Time Lost could cause the loss of opportunities or even extra expenses. Specifically, if you don’t have a computer, looking for documents in the internet will need more time in the internet café.

Besides, if you have learned to clean up your surroundings of clutter as we have been discussing in the past issues, you will be ready to use the same principles and systems in cleaning up your computer data.

Tip No. 16 is “Create a simplicity statement. What do you want your simple life to look like?”
An important advice I always give when I ask you to make your financial plans is to put it in writing. This is the same principle being used for your simplicity statement. Based on experience, goals and systems that are put in writing are more likely to be followed. If you keep your thoughts in your head, you will most likely forget many of them.

In making your financial goals, you have to be exact about the kind of lifestyle you want to live. Based on this lifestyle, you have to make your plans to be able to earn enough money to maintain it.

Your simplicity statement is similar to establishing your lifestyle goal. The simpler you want to make your life, the simpler your financial goals will be. In short, the simplest way in planning your financial life is to set specific amounts that you would want to accumulate at specific times in the future for specific purposes, i.e. how much, when and why!


Simplify Life – Part 5

We continue with tips from the website Zen Habits in connection with money.

Tip No. 17 is “Limit your buying habits. If you are a slave to materialism and consumerism, there are ways to escape it. I was there, and although I haven’t escaped these things entirely, I feel much freer of it all. If you can escape materialism, you can get into the habit of buying less. And that will meaningless stuff, less spending, less freneticism.”

Most people are materialistic and really affected by consumerism. Why do you think there are so much Christmas decors all over? These decors are really developed by companies to be able to sell more products during the season. They know best that people are affected by advertisements and by the environment. It is up to you to control yourself. I know it is very very difficult because I find it difficult myself.

This is why you need to follow the first principle “Pay Yourself First.” Put aside your savings so you don’t touch that anymore. Then, the next most important move related to this tip is to make a WRITTEN BUDGET. That way, you know exactly what you are giving up if you will buy things that are meaningless.

Freneticism is being frenetic which means fast and uncontrolled. Sometimes, we become really wild buying more than what we need. Let us change.
Tip No. 18 is “Free up time. Find ways to free up time for the important stuff. That means eliminating the stuff you don’t like, cutting back on time wasters, and making room for what you want to do.”

Time is the most important asset we have that we have in common with any other person in the world, whether rich or poor. We seem to forget that. I talk about this in my books in relation to investing early in life to take advantage of “compounding.” It has been proven that the earlier you start saving and investing in a disciplined and determined manner, the earlier you reach your personal financial goals.

Having time to do more important activities is another goal. We all know that in our country, it is so hot and humid that many tend to go to air-conditioned malls or outside in the shade. Many times, those times are wasted in window-shopping and temptation to spend. Try to develop reading and sports. If you don’t have the budget, go to libraries or buy used books and choose sports that do not cost. Believe it or not, “sipa” is some kind of sport and you can be a celebrity if you are good at it.

Tip No. 19 is “Do what you love. Once you’ve freed up some time, be sure to spend that extra time doing things you love. Go back to your list of 4-5 important things. Do those, and nothing else.”

If you have read my books or other articles, I always advise that if you want to be successful in any business, you must have a passion for that particular business. Passion for something is the same as loving that something. When you love doing what you do, you will do your very best. In the case of a business where profit is important, I believe that it is easier to make money if you truly love what you are doing. Of course, this assumes that you have objectively studied the financial viability of the business.

Tip No. 20 is “Spend time with people you love. Again, the list of 4-5 important things probably contains some of the people you love (if not, you may want to re-evaluate). Whether those people are a spouse, a partner, children, parents, other family, best friends, or whoever, find time to do things with them, talk to them, be intimate with them.”

When it comes to money, those you love are not necessarily the best financial advisers. In fact, you may have to be extra careful to assess whatever family and friends suggest to you when it comes to money. There are so many stories of family and friends who do not pay back what they owe and who recommend scams to their closest family and friends. Try your best to objectively assess any financial issue, whoever it comes from. Ask real experts.

Tip No. 21 is “Spend time alone. See this list of ways to free up time for yourself — to spend in solitude. Alone time is good for you, although some people aren’t comfortable with it. It could take practice getting used to the quiet, and making room for your inner voice. It sounds new-agey, I know, but it’s extremely calming. And this quiet is necessary for finding out what’s important to you.”

This advice is also true for your financial life. After you have received all the good advice you can get, you have to make your decision. You cannot blame anyone else so analyze and study the facts well. After you have done all you can, you must also submit yourself to God, who in the end, will judge on where you will be going whether still on earth or beyond.

More next time. Check out our seminars on March 31 (Pisobilities:Wealth Within Your Reach at Investability:Mutual Funds) and April 21 (Investability:The Stock Market at Invested: Analyzing Stocks).


Simplify Life – Part 6

We continue with tips from the Zen Habits in connection with money.

Tip No. 22 is “Eat slowly. If you cram your food down your throat, you are not only missing out on the great taste of the food, you are not eating healthy. Slow down to lose weight, improve digestion, and enjoy life more.”

Everything in our body is interconnected. As I understand it, our brain tells us when we are already full but there is a time lag. When you eat too fast, you could already enough but your brain will not be able to tell until you have eaten too much. In addition, you do not get all the right nutrients because you did not chew your food well to allow all the digestive juices to do their work. Therefore, by eating too fast, you would be spending money for food that your body doesn’t really need. If spending less on food is one of your budgetary issues, this is a good practice to remember

Tip No. 23 is “Drive slowly. Most people rush through traffic, honking and getting angry and frustrated and stressed out. And endangering themselves and others in the meantime. Driving slower is not only safer, but it is better on your fuel bill, and can be incredibly peaceful. Give it a try.”

Actually, what is important is to drive the right speed because driving too fast or even too slowly could use up fuel unnecessarily. What you would save on by driving carefully and not been stressed are medical bills. You would have less headaches and body pains plus you would avoid accidents that might cause your hospitalization as well as payments to the third parties you might harm.

Generally, the advice is to go slow and/or with moderation in moving about your life. Too fast or too hasty in doing things could lead to unnecessary problems

Tip No. 24 is “Be present. These two words can make a huge difference in simplifying your life. Living here and now, in the moment, keeps you aware of life, of what is going on around you and within you. It does wonders for your sanity.

Live your life to the fullest. I ask you to plan for the future for by making your financial goals and your personal financial plan. However, I do not expect you to continuously think and worry about your future. Establish your goals and action plan IN WRITING and check once in a while (maybe monthly or quarterly) if you are on the right track. In the meantime, after you know what you want and how you will get it, just live in the present so that you can enjoy whatever your present life can provide you, no matter how simple.

Tip No. 25 is “Streamline your life. Many times we live with unplanned, complex systems in our lives because we haven’t given them much thought. Instead, focus on one system at a time (your laundry system, your errands system, your paperwork system, your email system, etc.) and try to make it

simplified, efficient, and w ritten. Then stick to it.”

Tip No. 26 is “Create a simple mail & paperwork system. If you don’t have a system, this stuff will pile up. But a simple system will keep everything in order.”

Tip No. 27 is “Create a simple system for house work. Another example of a simple system is clean-as-you-go with a burst.”

Notice how Zen Habits also bring up the need to “write.” This is also the advice I give on making your personal financial plans. Write them down because studies show that written plans are followed better than those that are just memorized. It is a very sound principle not only for your financial life but for any kind of simplification and improvement.
There is an implication even in your saving and spending habits when you put things in their proper place.

My friend recently moved house and he told me his personal frustration. Ordinarily, he is very systematic and keeps his documents in order but this time some bills got misplaced and were not paid on time, particularly credit card bills. When the next bills arrived, there were interest and penalties already charged. Of course my friend was upset even if he was partly to blame for the lack of system. But he learned his lesson to create a better system henceforth to make sure all bills are paid on time whether or not he receives the bill.

Note the “clean-as-you-go” system that the Zen Habits mentions will save you some money without your even realizing it. It is so easy not to fix things first as you are doing the activity. For example, many do not immediately fix their bed when waking up or automatically clean the bathroom after taking a shower. This is especially true if you have someone who will fix or clean for you. When you fix/cover your bed immediately, it will keep whatever inner bedsheets you have cleaner for a longer time. When you clean you shower immediately, it will lessen the build-up of bacteria and mildew, which will cost more money to clean up at a later date.

These may sound so petty but when you are wondering how to save or spend less, all these little opportunities add up.

Simplify Life – Part 7

We continue with tips from the Zen Habits in connection with money.

Tip No. 28 is “Clear your desk. If you have a cluttered desk, it can be distracting and disorganized and stressful.”

Tip No. 29 is “Establish routines. The key to keeping your life simple is to create simple routines.”

Tip No. 30 is “Keep your email inbox empty. Is your email inbox overflowing with new and read messages? Do the messages just keep piling up? If so, you’re normal — but you could be more efficient and your email life could be simplified…”

These three tips are related to our everyday life in the office and at home. These tips all require establishing routines that remind you constantly to put each item that comes to your attention into a specific “box.” If you have not cleared your desk yet, you can start by putting all your documents in one pile and going through each of them one-by-one and putting each in the right “box” or directly into TRASH.

One box could be marked URGENT meaning you have to work on it immediately. Another could be marked READ LATER meaning it is good reading material but can wait when you are not too busy. You could also make FILES for important documents that you have to keep for many years. You can have a file for each type of activity like INSTRUCTIONS/WARRANTIES when you receive or buy a new item, it is good to know how to operate it correctly especially if you do not use it too often. Also, when it doesn’t work well, you want to save repair money by keeping the warranty card.

The same kind of “boxes” can apply to clearing your personal financial plan. You could use envelopes as your “boxes.” Keep receipts of your utility bills in an envelope so that you can see how you are progressing in controlling your expenses.

The same holds true for your other expenses.

There are also the “boxes” that you have to consider in relation to your savings. When you make your personal financial plan, you should have objectives “boxes” for the future.

You have your SHORT TERM box for your NEEDS within the year. Savings for tuition fees, Insurance premiums, etc. would go into this box. These payments are usually not monthly but at certain days of the year. You should not borrow to pay for any of these since these are regular expenses that you can plan for.

For the MEDIUM TERM box, you could put your savings for your house, car and other major items into this.

The LONG TERM box is your retirement. No matter what age you are, you have to start saving for your retirement. You can do without some of your expenses but you always have to save for your retirement.

The “boxes” for these goals are really bank accounts, investment certificates and lists of the amounts you have set aside.

31. Learn to live frugally. Living frugally means buying less, wanting less, and leaving less of a footprint on the earth. It’s directly related to simplicity.

32. Make your house minimalist. A minimalist house has what is necessary, and not much else. It’s also extremely peaceful (not to mention easy to clean).

33. Find other ways to be minimalist. There are tons. You can find ways to be minimalist in every area of your life.

I remember a saying that “Simplicity is beauty.” As I grow older, I notice that it is much easier to realize the truth of that saying. When we are young, we think that it is important to accumulate things because it is like a “statement” that we can afford to buy more things. The truth is that what you can afford is not necessarily what you can show off. Perhaps, when you show off, maybe you really cannot afford and you are just showing off.

A lot of people who have a lot of money choose to be a minimalist. I am sometimes amazed at how they are able to not care about what people say that they are using the same things over and over again. Their homes are almost bare but in good taste. Their décor have simple tones. Tabletops are free of clutter and whatever they need and have are kept in cabinets.

Being a minimalist means just keep the bare essentials. If you can afford to buy your WANTS and not just NEEDS, it means buying the wants that are simple looking and not attracting too much attention. You can brand yourself as a MINIMALIST by showing it in your action.

Being a minimalist also means not needing the latest gadget and not caring if you are not in the latest fashion. Obviously, being a minimalist can save you a lot of money. You don’t have to buy too many of anything. You can use the same thing over and over again. It also means not buying the latest fad in anything. You don’t need the latest cellphone or gadget.

I know we have readers who already feel they have very little or don’t have anything and yet I keep on harping on the need to have less. Of course, I realize their situation and if they can keep themselves clean and their surroundings free of clutter, instead of feeling sorry for themselves, they can be proud to be a minimalist.

Simplify Life – Part 8

We continue with tips from the Zen Habits website in connection with money.

There are 72 ideas in this manifesto but the others have similar financial advice as I have given in the past two months so I will end at Tip No. 39.

Tip No. 34. “Consider a smaller home. If you rid your home of stuff, you might find you don’t need so much space. I’m not saying you should live on a boat (although I know some people who happily do so), but if you can be comfortable in a smaller home, it will not only be less expensive, but easier to
maintain, and greatly simplify your life.”

Tip No. 35. “Consider a smaller car. This is a big move, but if you have a large car or SUV, you may not really need something that big. It’s more expensive, uses more gas, harder to maintain, harder to park. Simplify your life with less car. You don’t need to go tiny, especially if you have a family, but try to find as small a car as can fit you or your family comfortably. Maybe not something you’re going to do today, but something to think about over the long term.”

Tip No.36. “Learn what “enough” is. Our materialistic society today is about getting more and more, with no end in sight. Sure, you can get the latest gadget, and more clothes and shoes. More stuff. But when will you have enough? Most people don’t know, and thus they keep buying more. It’s a
never-ending cycle. Get off the cycle by figuring out how much is enough. And then stop when you get there.”

I know that there will be some who might comment that you don’t even have a small home or a small car and you have very few things so maybe this particular column does not apply to you. But those who are able to afford more could learn from these tips.

Personally, only my wife and I live together since our children have their own homes. We have decided to simplify our life and transferred to a condominium instead of a house. We have even switched to cars that require less expensive gas and maintenance. I think that if we had realized that “smaller” is better earlier in life, we would have done this earlier.

Maybe, we could have invested the money to provide us activities that would have brought more meaning to our life. For example, treat our family to more activities together.

Tip # 37. “Create a simple weekly dinner menu. If figuring out what’s for dinner is a nightly stressor for you or your family, consider creating a weekly menu. Decide on a week’s worth of simple dinners, set a specific dinner for each night of the week, go grocery shopping for the ingredients. Now you
know what’s for dinner each night, and you have all the ingredients necessary. No need for difficult recipes — find ones that can be done in 10-15 minutes (or less).”

Tip # 38. “Eat healthy. It might not be obvious how eating healthy relates to simplicity, but think about the opposite: if you eat fatty, greasy, salty, sugary, fried foods all the time, you are sure to have higher medical needs over the long term. We could be talking years from now, but imagine frequent
doctor visits, hospitalization, going to the pharmacist, getting therapy, having surgery, taking insulin shots … you get the idea. Being unhealthy is complicated. Eating healthy simplifies all of that greatly, over the long term.”

Tip # 39. “Exercise. This goes along the same lines as eating healthy, as it simplifies your life in the long run, but it goes even further: exercise helps burn off stress and makes you feel better. It’s great.”

These last few tips I am sharing with you have to do with keeping your body healthy. As they correctly pointed out, being healthy means less chances of medical bills. But you must remember that all of us will grow old unless you die while you are still young.

You need to plan not only for your retirement but also for the medical bills that go with old age. One way to plan is to live a healthy style now. Someone once jokingly asked, “Why do you want to die healthy when you will be dead anyway?” I guess it is because we can do more with our lives and with our money if we are healthy. Who wants to live stuck to a bed or hardly able to walk or worse, using up all our time lining up and waiting for the doctor to see us and having to spend all our money on expensive medication?

I hope these tips helped you as they helped me