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Frugal can be relative. At about age 40 my wife and I attended some financial classes at a local community college. We soon learned we were ill prepared to live the retirement life style we desired so we needed to change. It was not that tough for us as we both worked and had no kids. We just had to cut back on vacations, excessive spending, drink cheaper Scotch. Buy $80 Bass shoes instead of $120 Cole Haan shoes. Keep a car a year or two longer.
Point of my story is you have to start working on retirement sooner then you may think and make and effort to save/invest.
A wise old man gave me a piece of advice when I was in college that I hold to this day: "If you're spending $20, you'd better be making $30."
I've saved a little for almost 40 years, and it's turned into a lot. Always lived below my means by keeping cars for ten years, getting lucky in buying a house in a neighborhood that has always appreciated in value, staying out of credit card debt, and determining "wants" vs "needs." There were some splurges along the way but it was all paid for by saving and not charging.
We never had to scrimp and save and always lived well, but we were never extravagant or spent wildly, either.
We have always lived well below our means, living in the most modest home in town with best school district. (Even the pastor's wife came to me for family budgeting advice; I was a notorious cheapskate)
They graduated from good colleges sans loans, working millennials with young families; already saving for college-with our match. When they finished college and we were in early 50s we kept living like we had 2 in college. When husband's company downsized when he was 61 he took the small package. My job was eliminated when I was 58 and I love our busy retirement. Our biggest concern is healthcare.
Frugal is not new to us.
We always pick the middle road when possible. We aren't the grasshoppers always playing, or the ants always working, but a mix of both. When we got through the lean years, past mortgage and college expenses and free of credit card debt, we spent more for the first time in our lives because we could, but then we went back to our usual spending habits. We like the freedom of no debt and the peace of mind that comes with it.
We've sat on the kitchen floor at midnight rebuilding a carburetor when ithere wasn't money to have it repaired and we been able to gift money to family when it's been needed. We've been on both sides and I prefer having a cushion rather than living on the brink of disaster.
We can be very frugal or overindulge, but neither of those are lifestyles we would purposely choose.
We have always lived well below our means, living in the most modest home in town with best school district. (Even the pastor's wife came to me for family budgeting advice; I was a notorious cheapskate)
They graduated from good colleges sans loans, working millennials with young families; already saving for college-with our match. When they finished college and we were in early 50s we kept living like we had 2 in college. When husband's company downsized when he was 61 he took the small package. My job was eliminated when I was 58 and I love our busy retirement. Our biggest concern is healthcare.
Frugal is not new to us.
Very similar story, never wanted for anything but we continued to save every year. Our children graduated college with no loans as well. When we got tired of our jobs and the weather in Chicago we were in a position last year call it quits (me at 54 and wife at 52). Our first year of retirement has left us still living a "reasonable" retirement life, again not wanting for anything (much as we did before). We have downsized a bit on our housing (especially with lower taxes and HOA assessments). Now only have 1 car (a new 2017) too. But we do indulge with travel (20% of our "budget") which was part of the reason for wanting to retire.
Did you do the same or think it was too much hassle to worry about savings.
In the early years, my husband and I had little money. Both of us were teachers when teachers made peanuts. (my first job was part time in a high school and I didn't make even $5,000. that year) He made about $10,000, that's WITH a Master's degree. But, as the years went on, the teaching salary went up little by little. When you are young you have no idea what a pension is or what medical coverage after retirement means. I wasn't thrilled when money was deducted from my pay for the pension, but now I appreciate that it was established by those much wiser than myself. I realize why these are called "benefits".
We bought fixer-uppers which helped us to build some equity. We also started socking money away in what teachers call 403B accounts. I did not touch mine until retirement. I can echo those here who know what happens to that money when you allow it to compound. So, as I've said before, I've been saving for my retirement since my 30s. My husband did all the car maintenance himself, even changing engines if need be. We never went to a mechanic once in those early years. We did our own yead work too.
While raising my two children, I cooked meals every night with the occasional "pizza night". Cooking at home is cheaper and healthier than going out. I perked my own coffee, made my own cakes/desserts. Cut coupons with fervor, in fact I referred to myself as "The Coupon Queen". We grew our own garden in the summer raising enough veggies to share with others.
During those years I didn't really think it was frugal living as much as normal living. Most everyone I knew lived the same way.
I would say that we are a little bit schizophrenic (or strategic?) in our frugality. We lived in a half million dollar house, but we shopped at Walmart and garage sales (I've always made a profit on real estate). We drive old cars, but we have a lot of vehicles (our hobbies dictated the number and type of vehicles). We ate out at least once a week, but mostly at the local Mexican place or at the pizza place (I like not to have to cook once in a while, but I'm not crazy about spending a fortune on food I could easily make at home). We use coupons for orange juice and yogurt, but we buy the best tools on the market (they last a lifetime) and spend $150 on a pair Birkenstocks for my falling arches (they last for years).
I think by making conscious financial decisions, we have done pretty well. Either of us could have made more money in the private sector, but we stuck with public sector jobs and now can live on our pensions. The money we saved over all those years provides our entertainment budget now, and our safety net.
Bring your own soda and candy to the theater. If you keep buying it at their prices, they'll keep jacking those prices up. A fountain soda's cost is approximately 10 cents. I won't pay $4 for a 10 cent item.
I’ve always leaned towards being frugal, but not being frugal with the intention or goal of saving money, but rather being frugal because spending money on some things is just plain wasteful to me. For example, I never buy new cars. I always get cars about a year old with low mileage and keep my cars for 10-12 years or so. I live simply. I don’t deny myself something I want, but my wants aren’t extravagant.
Prior to retirement, we lived well, but within our means. (Growing-up with next to nothing always kept me conscious of our spending and the cost of things.) We comfortably retired with no debt and a healthy lifetime income, but, still live within our means yet, no longer worry about our spending or the cost of things. (I always chuckle when folks declare, "they live on a fixed income." -- Who doesn't?)
The pre-retirement pressure of supporting a family and uncertainty of how much one will be able to save toward retirement ... (or whether circumstances could force premature retirement) -- often leads to greater frugality.
In post-retirement one has more control because the finite amount one has to spend is known. The uncertainty of outliving one's resources or facing catastrophic healthcare costs exists. But, the pressure to live frugally in order to make what one has last, is less than the pressure to live frugally in order to reach an uncertain goal (that often depends on others).
With the exception of the dirty Walmart thing, I have always been the same way as the OP, and wouldn't call that being particularly frugal. We have nice clean Walmarts in town, but shop there rarely except for prescriptions and basic products that are identical to those found in grocery stores, but for much less. I have never been a cheapskate or been notoriously frugal. I haven't brought a bag lunch to work in 10+ years. I can afford it now and it is worth it to me. I don't do anything to make my life less comfortable now, in order to have more later. I just set my level of comfort well below my income level. I save and invest over 25% of my gross income, and have for over 20 years. I am paid well, by my standards, not 1%er, but much better than a top 25%er. DW worked her whole adult life, and retired "early" at 55 with my full support and encouragement. She always tells me it was my greatest gift to her, to which I partially disagree. It was just payback for agreeing to be my spouse. I wanted her to be happy, and she wasn't. It was part self preservation on my part. I make more in a year than she made in 4. Could I have retired sooner if she kept working. Of course. But I like my job and she hated hers. Shes more than 5 years older, and I want her to be around as long as I plan to.
We save as much as I feel we need to and live on the rest. From age 62, she has SS and a pension of about $24k/yr. She did her time, and contributes way more than she spends on "her" stuff, like shoes, clothes, decorating, gifts etc.
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