[AlexdeLarge]

How we Downsized from an Annual Income of $42,000 to $6,500
And lived to tell about it!

Thinking Small

[patience]

+1 Great post!

We are entering an age of less = more for the individual, so those who get a head start will be the real winners. Instead of asking how can I keep living like I am with less income, how about asking how well can I live ON WHAT I HAVE?

For some insights, I'd suggest some in depth study on how people lived about 150 years ago. Add some modern technology to that, and you're off to a good start. Get rid of the 4,000 square foot McMansion, downsize to about 500 sq. ft., build it yourself, insulate the heck out of it, use only minimal electricity that your can afford to provide with solar/wind, and look for all the small answers to supplying your own needs.

Granted, the gal with 14 kids under age 8 probably won't fit in 500 sq. ft., but then did she need 14 kids?

[AAA]

Great Find.

There are many great ideas at Tiny House Design.

There is actually a small movement that is catching on in various parts of the US and people are turning to tiny houses. It is helped by the recent economic downturn.

.

[Ludi]

I wonder what prescription drugs they decided they didn't need. His blood pressure meds? Her insulin?

[hardtootell]

Amazing! Fantastic! Exactly what the world needs and can afford. It has a chance to be sustainable.

Of course Mrs Hardtootell would rather have her fingernails pulled out than even consider it...

[Jotapay]

Is that your ward? And nurse?

[Pops]

So is that guy you Alex?

Tell what you are doing.

[RdSnt]

The fact the house is small has nothing to do with being able to live cheaply. If the mortgage is paid off there's little cost to a house, particularly if you do repairs yourself.
Doing without a car chops a huge chuck of cash from your needs.

[IanC]

Truly inspiring - both the tiny houses and the article about living off grid. It's funny that this has become my new ideal. Why don't I just reach out and grab it?

I thought their plan to forego health insurance was the most revolutionary aspect of the whole article.

-IanC
Portland OR.

[AAA]

Doing without a car chops a huge chuck of cash from your needs.

Some stuff to do without that could save a lot of money each month:

Internet: $65
Cell: $80
Direct TV: $40
Dining Out: $250
Water: $30 out of $60/month for watering grass
Electricity: $30 out of $70/month for items such as TV, computer, etc...
Natural Gas: $50 out of $60/month for heating

Total: $545/month or $6,540/year that could easily be saved if need be.

Oh wait that figure looks familiar. Aka the total budget of the people above.

.

[AAA]

I thought their plan to forego health insurance was the most revolutionary aspect of the whole article.

I actually think it is kinda stupid unless they have some kind of other insurance.

Accidents happen whether it is a broken ankle while gardening, broken arm while chopping wood, or a million other things that could go wrong and cost literally $10,000+

That means either they put their whole budget into medical bills or their medical bills become part of our budget as American taxpayers.

[Pops]

Why don't I just reach out and grab it?

I agree, so how do you answer yourself?

[Ludi]

I thought their plan to forego health insurance was the most revolutionary aspect of the whole article.

I actually think it is kinda stupid unless they have some kind of other insurance.

Accidents happen whether it is a broken ankle while gardening, broken arm while chopping wood, or a million other things that could go wrong and cost literally $10,000+

That means either they put their whole budget into medical bills or their medical bills become part of our budget as American taxpayers.

Either that or they depend on their friends and family to bail them out. How many of us have that kind of friends and family?

It's easier for people who don't have health problems to forego health insurance, I think. I am afraid to terminate mine, because I have health problems and need prescription medications. I can only assume the folks in the example don't actually need prescription meds to survive or to enjoy quality of life.

[Hawkcreek]

They did say that they had a $1000 fund for emergency treatment. If you contributed $100 a month to a medical fund every month, you might be able to eventually become almost self-insuring. Especially if you lived a healthy lifestyle - plenty of excercise, low stress, and good nutrition.
If you lived in a community of people doing that, you might even be able to start your own insurance company that wouldn't rip you off. That is pretty unlikely, I know.

[Ludi]

They did say that they had a $1000 fund for emergency treatment. If you contributed $100 a month to a medical fund every month, you might be able to eventually become almost self-insuring. Especially if you lived a healthy lifestyle - plenty of excercise, low stress,

As long as you didn't have a major health problem, such as a stroke, heart attack, etc. or if you're ok living to be only 60 or so, or if you were fortunate to be born with good genes.

$1000 doesn't get you much "emergency treatment." Maybe a band-aid.

[AAA]

They did say that they had a $1000 fund for emergency treatment. If you contributed $100 a month to a medical fund every month, you might be able to eventually become almost self-insuring.

Agreed but that is 18% of their monthly budget.

.

[patience]

Just got the bills for my wife's 3 day stay in the hospital, when she had acid indigestion/acid reflux. Thought it could be a heart attack, Doc said got to Emergency room, etc..

Our co-pay was $850, top notch Blue Cross Anthem paid $4,000+. BUT! If we had NO insurance, the bill would have been $8,500!!!! Yeah. BC has clout. They just say, "Here's what you get. Period."

$1,000 ain't much.

edit: That was just the hospital. The Dr. bill isn't in yet.

[Hawkcreek]

Yeah, my reply was colored by my beliefs. I believe that people have a lot of control over their health by controlling their actions. I think that if you subtract most of the fat off the average person, and they would start exercising and eating right, our health costs would be cut by a factor of 10.
I have only been to a doctor a few times even counting the motorcycle wrecks. And I am 61.
But if I quit exercising or start eating junk, I start feeling bad. I think that may not be a coincidence.
If I had invested all of the money I have spent in insurance payments over the last 40 years, I think I could provide medical care for 100 people like myself.

[JJ]

transaction date: 12/04/03
description: HMO ADJ - A (brain surgery)
amount due: 243,278.65

of course, that only covers the surgery, not the room or supplies.

edit:

thought I had better come back and add, my co-pay was 100.00 for the entire three months (rehab, etc.) with United Health Care.

Someone told me the other day AIG owns United Health Care.