This post is part of the new “reader stories” feature here at Get Rich Slowly. Some reader stories contain general “how I did X” advice, and others will be examples of how a GRS reader achieved financial success — or failure. Today’s reader story is a little bit different; I wrote it after interviewing the subject.

For Your Money: The Missing Manual, I knew I wanted to include stories from average folks like you and me. As I wrote each chapter, I asked around to find one or two people I could interview for sidebars that would illustrate my points about happiness or travel or debt reduction.

Unfortunately, not every interview made it into the book. Out of the twenty stories I heard, maybe ten or twelve actually made it past editing. One of the interviews that got cut was with Jacob Laha, a 25-year-old GRS reader from Kansas who, aside from the mortgage on his home (about which more in a moment), doesn’t use credit.

So today, I’m sharing a very expanded version of what I wrote for the book. I’ve gone through my notes about our e-mail and phone conversations, and have drafted a profile of Jacob. These are all his own words, though I’ve re-arranged the order to give a better narrative flow. I hope you like his story as much as I do!

Hey Twitter followers! Do you live without credit cards? Want to be in my book? Drop me a line!
My name is Jacob, and I saw you were looking for people who don’t use credit for an upcoming article. I’m 25 and I’ve made it this long with out ever having been given a line of credit. I don’t have a credit card or any other form of credit. I do have a debit card that comes out of my checking account so I am not completely archaic.

A brief rundown of my situation:

• Graduated college with a masters degree (~$16,000 in student loan debt)
• Bought a house (FHA loan) ($7,500 first time home buyers credit that I will begin paying back in 2010’s taxes)
• Bought an antique vehicle (not my primary mode of transportation)
• Refinanced my home loan less than a year after originally buying it

I’m employed full time and save fairly aggressively (at least I tend to think so). I actually own a fairly unique home; it’s an old fire station, and my antique vehicle is a 1966 fire truck. I know both of those are probably not the most responsible things to do financially but I felt that I could afford both even though I had just graduated from a state school and bought both within six months.

I hope that my email doesn’t come off as audacious or boastful. I was just offering up a very unique situation that I thought might interest you and your readers.

What’s it been like to live without credit cards?
It really hasn’t been all that difficult. I’m sure that I probably could have gotten a better rate on my home loan and my vehicle loan if I had a credit card and had built up a better credit rating. I’m sure that my credit score is lower than it would be had I been using a credit card for a few years.

I did run into a bit of trouble twice though when I was renting a car, but I’ve managed to rent hotel rooms (under 25 years old) and bought plane tickets with out any problems. Money has gotten pretty tight without having a line of credit to cover low times, but I’ve always lived below my means and cut way back when money was tight. Right now I have a healthy savings account that I am about to dip into to travel to Prague next summer for 2 weeks.

I’m actually fascinated by the fire station. Can I ask you more about that?
Sure. I’m really not shy about my situation. I live in Wichita, and a lot of people have heard about me at least in passing or at parties. It’s hard not to own a fire station and a fire truck and not be noticed! People are a lot less shy about asking those questions when it’s such a unique situation. Apparently its hard to gauge the market on antique fire truck and fire stations.

How much did the fire station cost?
Originally, the seller was asking $120,000, but after some negotiating I ended up paying $116,000 and got the three large window AC units (there is no central air) and several appliances. The home was only appraised at $115,000, so I had to cover the $1,000 difference at closing.

And you bought this right out of school?
Yeah. I was lucky to be able to afford a down payment right out of college. I was lucky to owe as little as I did with my masters degree. I worked 2-3 jobs every summer to be able to live and go to school without working during the semesters. One summer I worked 70+ hour weeks, and some of those days were 16 hour days between two jobs. I also had some help from my parents.

For my mortgage, I have an FHA loan, which only required 3.5% down. I know it probably wasn’t the most responsible thing, but I didn’t want to live with my parents and commute 30 minutes each way, and I didn’t want to rent and just lose that money each month. Was it the smartest choice I could have made? Maybe not, but it has been a lot of fun and it hasn’t set me back financially so far as I can tell yet!

My sister lived with me for a lot of the time I’ve had the fire station, and she has paid a little bit towards rent, which has helped me increase my savings.

When did you buy the fire station?
I bought the fire station two years ago this June. I’ve actually refinanced my mortgage since I purchased it: I dropped my loan from 5.875% down to 5.0%. It cost me a little bit in closing costs, but it reduced my monthly payment from $893 to $803. I pay an additional $100 each month towards principal, which is bringing down my loan quicker than I anticipated.

I bought my house right before the market went downhill fast. I bought it before the $8,000 tax rebate, but I did qualify for the $7,500 tax rebate that I will have to pay back. I used the rebate along with some saved money to pay off completely one of my high interest student loans. I traded a 10-year 6.8% student loan for a 15-year 0%-interest loan (rebate) from the government.

Why a fire station?
I bought the fire station because I was looking for a place of my own. I wanted lots of space where I could build things and have a small shop. I also like having extra storage because I’m a bit of a collector — I have trouble throwing things away. Plus I had plenty of room to buy and store an antique fire truck. (Granted, I wouldn’t have bought the truck if I didn’t have a fire station.)

And you have a fire truck?
Yes. About a year after I bought the Fire Station, I bought the fire truck that lives in the garage. The fire station was built in 1953. The fire truck is a 1966 Dodge and comes from a small town called Centralia, Kansas. My dad grew up in Centralia, and it was the fire truck in town when he was a kid. It only has 1600 miles on it, and at least 400 of them are mine.

The truck is probably the most irresponsible purchase I’ve made. I found it at an online auction. To buy it, I had to get a two-year loan at 9.75% through my home-town bank (where I’ve been a customer for a long time). The truck cost me $5500 after the auction fee.

What’s it like to live in a firehouse?
Living in the fire station has been a lot of fun. The garage is large enough to have friends over and have parties, and when we cook out we can open up the large doors and eat in there and still feel outside. The winters are a bit tough with the gas boiler. My gas bills in the winter have topped $350 on more than one occasion.

I’ve enjoyed having my own home:

• I have lots of space to plant vegetables in the summer and flowers in the fall.
• I recently bought raspberry and black berry plants so I will get some fruit in the years to come.
• I can do renovations if I feel like it and feel like I am getting something out if it.
• Recently I have also started brewing my own beer at home. I am about to bottle my first batch and we will see how it goes.

With my tax refund this year, I think I’m going to pay off the loan on my fire truck so I’ll be able to shift more money towards savings and put more of it towards my student loans. I debated using my tax refund to pay down my student loans since it would save me more in the long run, but having one less loan to worry about and being able to apply that money towards the student loans with the flexibility was much more appealing. (Also, it would allow me to begin saving for a possible engagement ring.)

J.D.’s note: I’m not a fire-engine sort of guy, but I have to say: I love this. I love the brick firehouse, and I love that Jacob went out of his way to find a fire engine. There’s nothing about this that isn’t awesome. It’s too bad his story didn’t make the final cut for my book, but I’m glad to be able to share the extended version here.

This article is by staff writer Adam Baker, who recently shared “3 Lesson I’ve Learned in 3 Years of Marriage.”

Technology is a double-edged sword: It has the power to revolutionize our productivity and allow us to achieve feats previously thought to be impossible; but it also has the ability to drain our focus and squander our attention.

As a blogger, I’m usually a strong proponent of gadgets that plug in and turn on. These type of tools allow me to make a living from anywhere I want. But, like many who stare at a computer all day, I struggle with turning all the fancy gadgets off.

It’s incredibly easy for me to work, play, entertain, and socialize all in front of my computer… or a television… or my new iPhone. Even my two-year-old daughter is obsessed with cell phones now. I don’t blame her — they blink, make sounds, and mommy and daddy use them all the time!

Our recent overdose of technology has Courtney and me actively looking for ways to unplug our life. Yesterday on Twitter (ironic I know), I stumbled upon the Sabbath Manifesto. From the website, the Sabbath Manifesto is “a creative project designed to slow down lives in an increasingly hectic world.” Perfect!

The Sabbath Manifesto encourages people to set aside one day a week to take a timeout from life. On this one day, you’re urged to:

1. Avoid technology.
2. Connect with loved ones.
3. Nurture your health.
4. Get outside.
5. Avoid commerce.
6. Light candles.
7. Drink wine.
8. Eat bread.
9. Find silence.
10. Give back.

The Sabbath Manifest is co-ordinating a National Day of Unplugging. From sundown on March 19th (today!) to sundown on March 20th, we’re being called to turn off and unplug our gadgets to whatever degree we feel comfortable. This has the potential to benefit our selves, our relationships, our environment — and our pocketbooks.

Here’s a fun video they made to support the cause:

You know what? We’re buying in. Courtney and I are going to give it an earnest shot. We love organized days like this, and will be having some people over for board games by candlelight (alright, maybe we’ll actually use the lights… still undecided)!

Either way, we’ll be burying the laptops, the cell phones, and the television. For us, that would be a big step in unplugging.

What about you? How do you unplug? Will you be joining the National Day of Unplugging?

J.D.’s note: Just the other night I was chatting about this very subject with Fraser from Universe Today. We’re both gadget guys, and both make our livings from the computer. But we’re also both drawn to do more outside, to cut the cord with technology. Fraser has dropped his smartphone for a cheap pre-paid unit. And I’m beginning to question my drawer full of gadgets. I’ll actually be joining Adam for the National Day of Unplugging. And I’ll consider adding a sabbath to my weeks.

I love the sometimes-weekly Ask the Readers feature, even if I’m not great about sticking to my intended schedule. And usually I’m able to work with folks to condense their questions to a small space, which leaves me plenty of room to share my thoughts. This week, Martina sent me a lengthy e-mail that does a better job of laying out the pros and cons of her situation than I could. Read on to hear her dilemma.

I’m wondering if I should sell my 2007 Honda Fit. Or will this be a quick fix that may not pay off in the long run?

For the last several years, I’ve been trying to make it as a part-time adjunct community college instructor living in San Francisco. As everyone is likely aware, the state of California is experiencing a major budget crisis and education is suffering. As a result, I decided in 2007 to take a relatively low-paying but secure office job during the day and to continue teaching in the evenings at one of the two colleges at which I had been working. This has been a wonderful way to have some financial peace of mind, do the job I love, steady my budget, and get on with paying down $30,000 in consumer debt.

Last week, I was told by my college that, due to budget cuts, I won’t be offered classes for the summer or fall semesters. Beginning in June, this leaves me with just my trusty day job which covers only my rent, utilities, and groceries. Period. No saving, no paying down debt. Nothing beyond survival. And I’ve only got a $500 safety net in savings. If anything unexpected should happen, I’m deeper in the red.

At this moment, I can only see three ways to improve my financial situation:

1. Get a higher-paying job, or a new second job;
2. Get a cheaper apartment; or
3. Sell my car.

#1 is something that I’ll be working toward. Finding a better-paying job in this economy is a tough proposition at the moment, but not an impossibility. I would also like to go back to school one night a week in order to get an additional credential that will better position me for more solid, full-time teaching jobs (and, uh-oh, it’s going to cost me for that weekly class). This additional schooling will take 12 to 18 months.

#2 is non-negotiable. Although it costs 55% of the take-home salary from my day job, my apartment is my home, and I love it dearly. I’m in an super-walkable neighborhood that’s three blocks from my day job. Most everything a person could need is within a five-block radius, and I’m three blocks from a major streetcar line. It provides great quality of life. My place is right next to Golden Gate Park — lots of free fun and exercise!

#3 is very attractive to me at the moment. I bought this car in 2007 because the main college that I worked at is 30 miles from S.F. Now that I don’t see myself making this commute through the rest of 2010, I feel foolish paying for insurance (about $125/mo.), parking tickets (sometimes $0, sometimes $110/mo.), and for the car itself. (I should mention that a parent loaned me the money for the car, and I pay $200/mo. for that.) I could sell this car for about $10,000, which is almost exactly the total of my remaining credit card debt.

So, here’s my question: Is it better to keep a good, fairly new economy car in the long run as things could improve next year and I may want to be driving again and have this good car? Or should I sell it for what I see at the moment as having greater financial freedom? I live in a very pedestrian-friendly city, and I don’t plan on leaving San Francisco in the foreseeable future. Would selling this car be cutting off my nose to spite my face, or would it be a sound money move?

Thanks for your time and consideration. Any input is very, very appreciated.

To me, it almost sounds like Martina knows what she should do. Based on my own personal experience and preferences, and based on what she’s shared in her story, I’d sell the car, too. It sounds as if her apartment contributes greatly to her quality of life, so she’s probably best served my keeping it for now.

But I also think she should absolutely do what she can to boost her emergency savings as soon as possible. Maybe even take a weekend job working retail specifically to save for a rainy day.

If at some point in the future Martina decides she does need a car, it might make sense to pick up a beater as a stopgap. (Or join Zipcar.)

What do you folks think? Should Martina sell her car or keep it? What’s her best bet in this situation?

As many of you have noticed, my book is making its way into stores. Your Money: The Missing Manual is now shipping from Amazon, and should find its way into brick-and-mortar bookstores over the coming month. I’m excited (and scared) to have this let loose upon the world. I’ve done my best to create a book that can help people improve their financial lives, and I know I’ve packed it with great information, but there’s always a part of me that worries that I could have done even better, you know?

Though the book is out now, the “launch” ceremonies aren’t officially underway. My publisher is putting together a PR push for early April, and I’ll start doing more marketing myself in the next week or two. To start, I’ve contributed 5 practical tips for saving money over at O’Reilly Answers. (O’Reilly is my publisher.) Go take a gander — and while you’re there, feel free to leave a comment with your tips for saving.

In non-J.D.-related news, here are some other interesting financial articles I’ve found recently:

I mentioned the new blog Pop Economics about a month ago, but I’m going to mention it again. I like it. A lot. The author tends to stay on the economics side of personal finance (as you might guess from the blog’s title), but his articles are informative and interesting. I particularly enjoyed the recent rant about the problem with gold bugs. I’ve considered writing an article about gold myself, but don’t have the guts. (I’m not a fan of gold as an investment, and I know saying that will make some people cranky.)

Earlier this month, Steve at Brip Blap wrote a post called “How to Make Money on Facebook”. But the post is really about how to lose money in a negotiation. When you’re buying something — especially a house — you put yourself at a disadvantage when you let the other side know how much you want to buy. I learned this lesson the hard way when I bought my Mini Cooper (I gushed about the car to the salesman, who could then get me to pay even more). When you’re negotiating, let the other side do the talking.

In her article about the myth of the $18,000 wedding, Laura Rowley argues that people think they’re supposed to spend that much because they’ve been told that’s how much people spend — even though that might not be the case. While researching my book, I was frustrated to find that a lot of the figures we financial fanatics hold dear are actually based on myth. (For instance: Can anyone show me the purported Dun & Bradstreet study that shows people spend more with credit cards than without?)

How did I miss this when it was first posted at The Consumerist last November? I don’t know, but this is awesome. Here’s a video from a former Bank of America customer-service rep that explains why she was fired: because she stopped denying people who needed help:

If you can’t (or don’t want to) watch the video, The Consumerist has a complete transcript.

Finally, I’ve been very busy for the past few months. Or years. Which may be why Marissa Bracke’s post about why she stopped working with busy people hit home with me. Maybe I need to change my outlook.

This post is from GRS staff writer April Dykman.

Before I changed my habits, I spent money without much thought. In college, if I had a two-hour break between classes, I’d drive to the mall. Once I started working full time, my coworker and I would bring our lunches to work just so that we’d have the entire hour to shop. If I was bored, I’d wander into the cosmetics superstore Sephora for entertainment. Even at home I’d shop, buying online and tracking my packages until they arrived.

I thought I needed a new dress for every event I attended, new clothes from REI for every backpacking trip, and practically a whole new wardrobe if I was going out of town. I thought these new things were a way to reinvent myself or to portray the right image, but all they did was fill up my closets and bathrooms with a ton of Stuff that I’m still sorting through today. (Brokamp’s article on turning clutter into cash inspired me to devote this weekend to more de-cluttering.)

These habits never put me deeply into debt, but they weren’t helping me to get out, either. I was often surprised at what my total at the checkout counter, but I’d throw down the credit card anyway, too self-conscious to put anything back. I’d make a lame promise to myself to cut back, but I never did.

A stop to the splurging
The temporary high of buying Stuff was making me miserable when the credit card bill arrived every month. When I finally had enough of paying down the debt just to drive the balance back up again, I went in the other direction. I quit buying clothes and cosmetics and made my lunch every, single day. It was a strange adjustment to have a packed lunch and a full hour in the middle of the day, without a shopping trip to fill the time. I cut my magazine subscriptions, reduced the minutes on my cell phone plan, carpooled to save gas money, and took clothing to the resale shop. I avoided every expense I possibly could, and the debt was paid off pretty quickly.

The downside was that I found it hard to spend money on anything, even after my husband and I were debt-free and had a healthy emergency fund.

A stop to the miserliness
I remember when it became clear that I needed to assess my relationship with money (yet again) because it was the day that the glass carafe from our French coffee press hit the floor. My stomach turned, and I immediately wondered how much it was going to cost to replace it. I went online and found that a replacement carafe would cost $12. I breathed a sigh of relief, but I also realized that my reaction wasn’t indicative of a healthy relationship with money.

My compulsion to buy had turned into a compulsion to save. Why was I buying all that Stuff? Why was I now so worried about saving every cent, especially since we were out of debt and saving money every month? I filled my need to buy with a need to save, and neither was working for me.

The middle ground
In an attempt to find a balance between debt and spending guilt, I began to think about the reasons why it would be a good thing to spend extra money. I came up with the following situations:

• Gaining knowledge. This year I paid more than I ever thought I would for a business course. Halfway into it, I know it was a good decision that will more than pay for the cost of the course. Paying to learn something useful doesn’t necessarily have to have a monetary return on investment, though. I’d like to hire a swim coach to improve my skills, which won’t make money but does provide a great physical workout. I don’t feel badly about spending money when I will learn something of value.
• Experiencing something new. This one can overlap with gaining knowledge, but I felt it was still worth mentioning separately. Experiencing something new can mean travel or taking lessons in something that interests you.
• Paying for quality. The quality of the food I eat is a high priority to me, so I’m okay with spending extra in that area. Another example is the aforementioned clothing habit. I’ve come to adapt the quality over quantity stance when it comes to clothes. If I actually need something, I’ll buy it, but I want it to last and I’ll pay a more for that (and an upcoming wedding is no longer considered a need for a new dress).
• Supporting important causes. One example of a cause that I support is buying locally, so I’m okay with spending extra if it’s supporting a local business. You can lobby for many causes just by mindfully choosing how and where you spend your money.

Determining when I’m okay with spending has helped me to find a balance between mindlessly consuming and mindlessly saving. When are you okay with spending more money? Why do you value those things?

J.D.’s note: I went through this exact same thing. When my frugality paid off, when I got out of debt and built savings, I still couldn’t spend on myself. Does everyone go through this? It wasn’t until I re-discovered the balanced money formula that I was able to loosen up again and budget for fun. I’m much happier for it.

This is a guest post from Robert Brokamp of The Motley Fool. Robert is a Certified Financial Planner and the advisor for The Motley Fool’s Rule Your Retirement service. He contributes one new article to Get Rich Slowly every two weeks. To celebrate St. Patrick’s Day, this article is all about green: How to make more of it by selling your Stuff.

Even though I can’t peer into your closets or surveil your garage (or can I?), I can say this with certainty: You have a lot of Stuff. And as the proud owner of a lot of Stuff, you should consider two things:

• Your Stuff could get stolen or destroyed, and then you’d have to prove to your insurer that you once owned it, and
• The Stuff you no longer want can be turned into cash.

I can personally attest to the latter. As I wrote previously, the Brokamp family kicked off 2010 by moving into a new house, so over the past few months we’ve sold all kinds of things on Craigslist. We also held a couple of yard sales — one in below-freezing weather. The total take was more than $2,000 in extra cash.

Of course, you probably want to keep most of your Stuff, and if you’re smart, you have homeowners or renters insurance to protect it. But if your residence is burgled or burns, how would you prove to the insurance company what you once owned?

The answer is to take a home inventory — going room by room and documenting everything you own. As you’re looking at each possession, take the opportunity to evaluate whether you still want it. Once you’ve completed the inventory, you’ll not only have proof of your possessions — which, beyond its insurance purposes, will help you determine your net worth — but also a pile of items to sell, trade, donate, or give as presents. (Re-gifters aren’t judged here in GRS-land.)

Ready, Set, Inventory!
Are you raring to see how much you really own, de-clutter your house, and make some cash? Here’s how.

1. Designate a place for the Stuff you no longer want. Clear some space in the garage or guest room where you’ll put your trash that will become someone else’s treasure.
2. Choose a method and start inventorying. You have a few options when it comes to providing proof of your possessions. Perhaps the easiest is going from room to room with a video recorder, opening drawers, closets, cabinets, armoires, safes, floorboards, and false walls along the way. Another option: Use the Insurance Information Institute’s online inventory tool at KnowYourStuff.org. Or just write it all down, using digital photos and receipts as evidence of ownership. Remember: As you’re recording all your possessions, you’re also identifying Stuff you no longer want.
3. Note important information. Take video or photos or detailed notes to record identifying information such as brand, model, serial numbers, engravings, and unique attributes.
4. Give special attention to expensive items. Consider getting a written appraisal for jewelry, family heirlooms, rare collectibles, and other pricey Stuff. Contact the American Society of Appraisers or the International Society of Appraisers to find an appraiser in your area. You also might want to take extra steps — such as buying a fire-resistant safe or renting a safe-deposit box — for these items. And make sure your insurance actually covers them. Some policies specifically exclude jewelry and other big-ticket items or only provide coverage up to a limited amount.
5. Scatter copies of your inventory. Keep a few copies of your inventory outside your home, such as in a safe-deposit box or buried in your office desk. If your inventory is in a digital format, email it to yourself. If you use KnowYourStuff.org, the information is stored on secured servers that will be up and running even if your house is down and smoldering.

Turn Clutter Into Cash
Now that you’ve combed through your worldly possessions for things you no longer want to possess, you need to decide the best way to ditch them. Here are your options:

1. Donate your Stuff. If you itemize your taxes, you can deduct the fair market value of items you donate to qualified organizations. Make sure you document what you’re donating, get a receipt, and follow the rules — and there are many. For example, any donation of used clothing or household items that’s more than $500 requires that you file Section A of IRS Form 8283. Consult IRS.gov for all the gory details.
2. Hold a yard sale. This is the best option if you have a lot of Stuff of modest value. You won’t get top dollar, but you will get rid of a lot of Stuff in a single morning, assuming you price it right and live near a lot of people.
3. Sell items online. If you have items that will sell for $50 or more and you’re willing to put in the time to list them online, websites like Craigslist or eBay or Amazon.com’s Marketplace can help you find sellers miles — and even countries — away. Just make sure you take steps to protect yourself and your Stuff, such as using a payment service like PayPal or dealing only in cash. There are a lot of people in cyberspace trying to scam online buyers and sellers.
4. Use a consignment store, auction house, or specialized seller. For unique and expensive items — such as rare collectibles, antiques, or jewelry — enlist a professional who knows the market and can help you get the most money.

Voilá! You’ve now documented your possessions, cleaned out your house, and maybe even made a buck or two. Congratulations!

J.D.’s note: More great stuff from Brokamp. It’s as if he reached into my mind and plucked out a piece of my book. Your Money: The Missing Manual has material covering this subject, though it’s spread out over a couple of chapters instead of compressed into one concise article like this. Photo by Phillip Stewart.