The Unforgiving Paths of Early Hardship and Frugal Living

My life has been marked by a series of transitions—from growing up in the bustling middle class of New York City to the starkly different atmosphere of the upper Midwest farm. While my home may have lacked modern conveniences, the essence of my childhood remained largely intact. Despite the differences, it was these life changes that shaped the understanding and resilience that would guide me through subsequent phases, including poverty and financial hardships.

From Middle Class to Rural Farm Life

When I was just seven years old, my family made a significant move from New York City to the upper Midwest, where our situation drastically changed. While we still had access to bathroom facilities, our home was a partially above-ground basement. This marked an early lesson in appreciating the basics and learning to live despite the limitations.

Adapting to a Frugal Existence

My journey towards financial acumen began at a young age. At 16, I took up employment at a local five and dime store, earning a modest 85 cents per hour. Subsequently, my modest accommodation choices, living in dorms and boarding houses, taught me the importance of frugality and limited spending. Support from my grandparents, who gifted me $1,000, initially funded my college years, but my future stability was made possible through diligent work during my studies.

Military Career and Early Marital Challenges

My career path included a stint in the USAF, earning a starting salary of around $100 per month. This experience not only provided a different set of financial priorities but also enabled me to manage a frugal lifestyle. Post-military, my salary was substantially low at $5,400 per year for a half-year position, yet my draft board reclassified me as 1A due to my job position, leading to my impending draft in 1968.

Managing Debt and Accumulating Assets

While I did not actively consider myself poor, the reality was that my wife and I were debt-free initially but had college loans to pay off. We started our marriage not just as individuals, but as a net zero, with little to no assets. Our combined income, despite being modest, enabled us to purchase a mobile home and a modest country home for $11,600. Several frequent relocations followed, each contributing to our experience with frugality and asset accumulation.

Later Life and Retirement Planning

With my wife retiring early at age 55, we both were able to pursue our interests and plan for our future. My retirement at age 60 saw us living frugally, ensuring I did not begin taking Social Security until after age 70 to maximize monthly payments. However, it was our foresight that allowed us to buy partial long-term nursing home care insurance policies before the costs increased.

Living Below Your Means

The key to navigating and overcoming financial hardships is to live below your means. This was a lesson that we both understood and practiced through various life stages. While many people may appear successful, they might be deeply in debt and not saving for the future. Our lifestyle choices, such as modest vehicles, frugal clothing, and growing our own food, were not just a reflection of our economic status but a conscious decision to ensure financial resilience.

Lessons for the Future

Our experiences highlight the importance of financial prudence and the value of savings and assets. By living below our income and making smart financial decisions, we were able to accumulate assets that would support us in our old age, ensuring we did not become a burden on our children or community.