Link to Article:
http://finance.yahoo.com/banking-budget ... ottom-Line

This is the best list I've read in quite a while on this topic ... it really hits the nail on the head as a "no nonsense" approach without all the "fluff" ... it's solid advice for making your life financially efficient.

Thanks for sharing this.

I think the only step I would have a hard time with is going without a car. I live 50 km away from work in a rural area. No public transit. Right now, house-poor, so choosing not to sell into a short-sale situation.

Anyone live in a rural area and get by without a vehicle? How?

The only situation I can envision where it might work out is if you work at home, but even then if you're really rural you generally need a vehicle to get your groceries and other stuff.

I lived for a year without a car in a small town, but the town had train service to the city and stores within a 15-minute walk. When I lived in backwoods Vermont for 10 years I tried doing my shopping by bicycle whenever possible, but it just wasn't very efficient in terms of time, and it wasn't at all practical in winter.

In general I agree that the list of "tough" actions is a good one, although not all the actions are applicable to everyone. Saving 50 percent of your salary is easy if you make $100K per year, but really tough if you make $15K/year.

I suspect that the idea is to move to where you can live without a car. They already suggest moving to a smaller home and such.

I'm dubious about "eliminating gadgets." If you already have it, the cost is sunk. Not having my own computer would be fatal for my work; not having a cell phone would make it difficult to live without a car. They're not just "conveniences."

I think that some of these are mutually exclusive: Especially, starting your own business (for many types of businesses individuals can start while working full-time) without a computer will be difficult these days.

Ride a horse?

I live in a very rural area and there is no way I could manage without a car because I need it to get me to work. I can't just move to another city where I could theoretically get by without a car, because then the other things that I do save on here (namely: rent, entertainment, etc) would go up there. My boyfriend and I are fortunate enough to work at the same place so we only have one car, which we bought used for cash. We are able to walk or bike to local grocerey stores, the library and parks, so we really only use the car for work and when we go on trips (ie: to walmart haha).

We have a giant apartment for less than $600 a month (incl. everything but electricity, for which we average about $25). This same apartment would cost us at least $1000 in a larger city with public transit. Now we could move into a studio and pay $800, but not really worth it mentally. Been there, done that.

Plus we have an abundance of free entertainment outside our door. Biking and hiking trails in the summer, ice skating, snow shoeing and skiing in the winter. The small town life is a lot slower-paced and does actually help with the finances, at least for me, because there are less things luring you as you walk down the street. I lived for two years in metropolitan areas and spent a good $150 a month on clothes and eating out just because of all the opportunities I had. Plus when I had no car I had this very oppressive feeling on dependence upon others and I was spending $50 a month at least on public transit.

I think most of these lists are geared toward metro-people, I should make a list for rural folks. ie:

Chop your own wood instead of having it delivered already chopped (for the wood furnace)
Ask your neighbors if they want to come along and share gas money when you go to Walmart or Costco.

I'm not sure I follow that, could you explain?

I have a few friends with no car and no cellphone, although now that payphones are a lot less common than they used to be it's getting harder to do without a cell. Still, I only use my cellphone five or six times a year and could pretty easily do without it. It really depends on the kind of work you do and how mobile you are, but civilization progressed just fine for a few thousand years without cellphones, I think for most of us they're not as necessary as we believe.

I seem to recall you're living in a very large city with good public transit? That may help a lot.

For me, in Minneapolis, it would be pretty much impossible. Most recently, I was commuting to a suburb where the buses would skip parts of the routes they didn't think anyone would be on, and didn't always bother to put the route number signs up; I wouldn't have been able to get to work without calling dispatch and finding out what was going on. It's also easy to get stranded because the last bus might run as early 5pm, even in the city proper. The cell phone lets me call a taxi when I need one, or let friends I am meeting know if I'm going to be late. I don't think I've seen any payphones in the area, though I might just not be looking. With a phone, I can call the bus transit line and find out the routes.

Because I spend a lot more time in transit than most people, I tend to group all my errands and often don't get home until late; I wouldn't be reachable at all without the cell. My friends also mostly assume I have something; if I forget my phone, I'm not unlikely to find myself stood up (and subsequently stranded) because they left a message.

I also have one so people don't give me grief about riding the bus at night. It doesn't bother me, but many people think it's unsafe.

Yes, in your case it definitely makes sense! I guess that's the problem with all these "one size fits all" recommendations; everyone's situation is unique.

some of these are definitely tough, but i've got my reasons for my choices.

for example- if i wanted to live close enough to campus to not need a car, i would either pay more than my monthly take-home in rent for a nice safe apartment, or i'd go cheap and deal with the crime and lack of personal safety. i've already been there and i'll pass. what's it worth to not live in fear? i'll pay the car expenses, personally.

also, i'm currently in a long distance marriage. two cell phones are cheaper than two land lines and two long distance bills. plus, we both have very odd schedules and wouldn't be able to chat a few times per day as we do now- that at least makes this experience more tolerable. we have never been able to spend a ton of time together and rely on the phones to keep in touch.

i get too much enjoyment from my ipod (keeps me going at work) and my dvd player (lets me kick back at home) and etc, to prefer their minimal dollar value over the experience of having them.

A few months ago I had the opportunity to go carless after our car was impounded by the local police for driving on non Spanish (German) plates. Madrid has fantastic and very very cheap local transport. We gave it a shot giving up the car but ultimately broke down and gave in. The reason convenience. Even though my Wife lives within biking distance of work (and does bike) I teach English which means I'm at different companies though out the day and it can take up to 90 mins to get places, after spending all week on bouncing around on metro the last thing I want to do is spend all weekend bouncing around to visit our friends. For example church is only 20 mins by car but over an hour by train.
We ended up renting a car every weekend for the first 5 weeks then rented it for the next 6 weeks until I could get my car on Spanish plates. What I do instead is to plan my classes and my routines to avoid doing too much driving.

It should also be noted that we have only one car instead of the request 2

1. Downsize house. Done. Bought a fixer upper, purchased for 71K. After 10 years it is a liveable house with low payments. However our property taxes just nearly doubled!
2. Save 50% of income. Nope, do the standard 10%. Love to figure out how to do that!
3. Eliminate gadgets. Going the wrong way here. Just recently got cell phones (prepaid) after much nagging from the parents. Do have a computer and tv with basic cable. But to me, unless you are getting a big screen tv, doesn't seem like electronics cost THAT much, and you only pay for them once, right? Maybe they should put magazine subscriptions or other recurring expenses here?
4. Eliminate your car. We have one paid-for car. There have been times in my life where I have had 0 cars, but with 2 small children this is not the time for that.
5. Only buy used. Like what? Food, toothpaste, toothbrushes? feminine products? replacement stuff for your car? I suppose they mean clothes, or furniture, but let's be serious here.
6. Buy one, donate 3. "You know that you have too much stuff and your closets and other storage areas prove it." Okay, this could apply to our book collection. I don't know why they keep referring about all the stuff people have. What if you are one of those people who doesn't have all this "stuff" people keep talking about?
7. Make Christmas a no-spend holiday. Got me here. I like Christmas, and giving gifts.
8. don't eat out. I actually did an analysis, and found out we didn't spend any more money when we ate out more versus ate out less on our food expenditures. But the places we go have $3 tacos and or a great chinese place that can feed the 4 of us for $20. And hell if I want to go out to a nice restaurant for my b-day will do so. I do try to make my own sweets than purchase them (more for slowing down sweets intake than money measure) so for example made 2 apple pies this weekend.

Sigh. What if you are doing most of these things and still are not saving as they said 50% of income? Time to make shredded wheat out of cardboard?

Maybe do something to improve the salary? It's not impossible to make biiiiig jumps.

Daedela that is a good question. I've have been monomaniacal before and done the 50 hour a week job, skipping lunches deal. Now that I have a 40 hour a week job I am reticient to go back to that lifestyle, especially that I have 2 young children. If I had to do it for my family security I would do it again, but not until then, or before they are older. My father was a workaholic and missed alot of occasions, including my college and graduate school graduation ceremonies. I don't want to get to that point.

Partygypsy:

I know of NO ONE who saves 50% of their income. And I've never seen that given in most PF writing as an achievable goal. So I think you're starting from a wrong assumption.

Most PF writers believe that 10% gross pay should go to retirement savings. And another 10% should go into savings for things like car registration, Xmas presents, and vacations.

It sounds to me like you're doing a FINE job of saving.

Sandi