THE ‘A - Z' PRIMER OF LIVING WITHIN OUR MEANS

Or not spending more than we earn…

Yes, literally – A to Z…Each week I’ll work my way through the alphabet, talking about the things we do or don’t do in order to live within our financial means…

Or getting back to our Rule #1: We Don’t Spend More Than We Earn

It has occurred to me that the way we live and the way we do things is quite different…very different…maybe downright weird.  As I started preparing for this blog and thought about this “A” topic, I thought to myself: “We really do approach things quite differently than many others!”

The letter “A” is for two seemingly diametrically opposed topics:

• Automobile Purchasing; and

• Alternative Transportation

Automobile Purchasing

I’m going to start out by stating the fact that I detest cars.  I absolutely loathe owning a car.  I abhor polluting the air; I can’t stand consuming fossil fuel, and am reviled knowing that the entire automobile industrial complex runs the country.   

Next, ironically, somehow we’ve managed to buy and sell more used cars than just about any other sane person we know.  Perhaps that’s the key word:  sane... In order to live an innovative lifestyle, perhaps one needs to live on the verge of ‘sanity’.   

It does seem rather oxymoronic, or perhaps just moronic, but in my loathsomeness to cars, I thought I would share the cars we’ve owned from 1994 until the present time.  The little + signs means we sold the car for more than we paid and the – signs means we sold the car for less than we paid. 

*Disclaimer:  We’ve never taken a huge loss on a car purchase or sale – more on that later. 

 

Cars from 1994 (Since moving to Oregon) until 2013

Order  Year                Make/Model                           Gain/Loss

1          1966                Austin Healy Sprite                +

2          1977                Subaru Wagon (yellow)         +

3          1987                Subaru Wagon (art car)          own

4          1953                Ford Prefect                            +

5          1978                Ford F250 P/U                        -

6          1985                Dodge Minivan Caravan        +

7          1976                Ford F100 P/U                        +

8          1977                Nissan Sentra Wagon             +

9          1982                Volvo Wagon                          -

10        1978                Jeep Wagoneer                       +                     

11        1986                Dodge Colt Vista Wagon       +

12        1966                Ford Cortina GT                     - (parts)

13        1068                Ford Cortina GT                     +

14        1961                Rambler Station Wagon         +

15        1956                Dodge Coronet                       +

16        1964                Chrysler 300                           +

17        1976                Fiat 128                                   +

18        1977                Toyota Van                             +

19        1981                Mercedes TD Wagon              +

20        1985                Isuzu 4x4 Trooper                   +

21        1994                Oldsmobile Bravada               +

22        1990                Ford Windstar                         -

23        1987                Subaru 4x4 GL Red                own

24        1977                Toyota Van                             +

25        1990                Toyota Previa                          own

26        2002                Ford Fiesta (Spain)                 -

27        1990                Subaru Legacy                        own

28        1993                Subaru Legacy                        own

 

The Gain/Loss only reflects purchase and sale price, not time nor parts invested.  In general expenses for parts have been for customary and usual repairs (i.e., brakes, hoses, clamps, muffler/exhaust).

And, for those of you who are more visual, you might enjoy this short video, which has a sampling of these cars.

 

 

  

 

  

So why in the heck?  How in the heck??  Are we on the verge of sanity??? 

First, the how.  For us, it’s not been difficult.  We look for *inexpensive, interesting cars, without a need for huge repair and with a potential market need or want.  And why?  Given my passion in recycling and reuse, I see older cars as still having life and purpose.  As well…because Andy has a great skill set for working on old cars and knows a lot about what to buy and what to stay away from.  So, we’ve kind of turned our loathsome need for cars into a bit of a small business opportunity.

*the most we’ve ever paid for a car was $4,000.  On average we spend less than $2,000 for a car.

 I’m not suggesting that this model is a good fit for everyone.  Perhaps it’s not a strategy that interests you.  But that’s the key.  If you must have a car, you should do your research and have a strategy.  Here are my recommendations:

 

1)      Whenever possibly, don’t buy brand spanking new.  As soon as you drive it off the car lot you’ve lost value.  Of course it depends on the kind of car you buy and how much you drive it, but in general, the average rate of depreciation is about 20% in the first year.

2)      If you can, buy a reliable, economical used car (where the depreciation has either stopped or is negligible).  Again, do your homework about make, model, year.    I realize that this may be too much of a hassle for most people.  Find someone you trust to help you.  Note:  Having an older car will often drop automobile insurance payments.

3)      If you decide to lease or make payments, look carefully at the terms.  Realize that making monthly payments for a car is not an investment.  Start thinking about your major purchases as long-term investments or loses to help you in your decision making process.

4)      Lastly and most importantly…Don’t buy a car unless you absolutely need one.  Rely on other forms of transportation when/where possible. 

 

I know that this seems so hypocritical for me to state.  As aren’t we the former/current owners of dozens and dozens of cars? It does, I admit.  If I didn’t need a car, I wouldn’t own one and perhaps there will be a point in our future where we will make living choices that will virtually eliminate our need for a car.

 

Alternative Transportation

We live in a beautiful state.  We live in a part of Oregon with outstanding natural beauty.  We also live in an area where it is very, very, very difficult to function without a car.  We aren’t purists.  We have several used cars.  I don’t like it one bit, but short of moving (which at the moment isn’t a reality), we do our best.  So here’s our best in using alternatives.

 

1)      Carpooling.  We try to drive in/out together whenever feasible.

2)      Bundling errands

3)      Having a car-free day (this is similar to the idea of the plastic free money week).

4)      Walk where/when possible.

5)      Bicycle where/when possible.

 

We are always thinking about our use of our cars and I suppose that if I want to impart any message at all, it's just that. Think before you decide to get into your vehicle. Think about if you have to use your vehicle, or if there's another way -- a better way.

Depending on where you live and depending on your personal situation, you may have different alternatives to using a car.  If you live in a city, you may have access to public transit.  You may be able to use an electric vehicle, a scooter or motor bike, all of which greatly reduce the carbon footprint.  When we were living in Spain, we all fell love with the Vespa scooters, an Italian brand of scooter. 

Apparently the name “vespa” means wasp in Italian.  Hmm – I wonder if they branded that name because of the sound of the motor…We’ve talked a lot about purchasing a scooter or motorbike to use where we live in Oregon, but as so many people drive monster trucks, I’m afraid we’d get squashed like a…like a…wasp.  

As we’re a bit of exercise fanatics, my husband and I try to commute with our bicycles.  The closest grocery store (Trader Joe’s) is about 8 miles away from our home.  We endeavor to ride our bikes there either every weekend, or every other weekend.  During the late spring and summer, I try to ride my bike to work (about 14 miles one way). 

 

But for the most part it’s not practical, and not that safe.  While there are bicycle lanes, everyone is in their car bubble, listening to their car bubble music, and is tuned out about the world outside their bubble.  I can’t tell you how many near misses I’ve had with people not paying attention.  Nonetheless, I think it helps me with the car guilt factor.  Plus I thoroughly enjoy commuting by bicycle. 

Here’s something to think about when you use your own power (i.e., walk, bike, scooter) as a means of transport.  You accomplish several things simultaneously.  Really…

 

• You actually do get to your destination.
• You get to your destination much slower and much more aware of your trip and purpose.
• Alas – you force yourself to slow down and observe.
• You get awesome exercise.
• You release stress and tension.

I do use the car much more than I’d like to.  Last year we had the fantastic opportunity to live in Spain.  Hopefully I'll get to write about that opportunity in a future blog entry.  One of the best things about living in Spain was being able to walk everywhere.  No, actually the best thing was that everyone walked everywhere.  Everyone walked to school, to work, to the park, to shop and to get together with family and friends. 

I’m a HUGE proponent of walking, as well as bicycling and wish that I could use my own power as a means of transport on a more regular basis.  But for the time being, I’ll continue to use my reliable Subaru, Toyota, or whatever other used car we have on hand… and continue to dream about an alternative transportation industrial complex running the country.   

You might think that I'm done with the letter 'A'...but not quite. I'm afraid next week's blog still has me talking about the letter 'A'...stay tuned!

Disclaimer time: I’m not a financial planner, nor am I a business guru.  What I am is a very practical person with (as my mother always said) “a good head on her shoulders”.   I have good common sense and am old enough to have accrued plenty of wisdom and practical sense.