The Steps to Building a Tiny Fortune

Kate and I have managed to accumulate a small fortune, and by "small" I mean tiny, miniscule. These are the things we've done to get there.

• I have packed my lunch for well over 20 years. Kate has packed hers for nearly 15.
• About 15 years ago we realized that if we saved a little each month, in less time than you think it can add up to a decent little sum.
• About 15 ago years we started keeping an emergency fund for unexpected expenses (see above).
• We never had kids. That helped a lot with the two items directly above.
• We buy used cars and put a lot of miles on them.
• I've learned how to negotiate a reasonably good price when buying cars (thanks Dad!).
• I sell our old cars on Craigslist, rather than trading them in.
• We've either paid cash or made significant down payments on land, homes, and cars, and have never been "upside down" (loan balance > asset value).
• We've never borrowed money except for land, homes and cars. Well, there was an awfully nice tractor that I REALLY needed.
• We recognize that where you bank makes a difference. Doing so can save beaucoup bucks on fees, interest rates and penalties. Clark Howard recommends a small community bank or credit union. You might find a credit union here: www.ncua.gov
• We've managed to get good interest rates on car loans and mortgages.
• Almost every electronic device we own (e.g. computers, tablets, cameras, etc.) was purchased either used or refurb, and they are kept for a long time. They are a notch or two below "top of the line".

Home workstation: refurb base model
Lenovo laptop, used monitor.

• We haven't paid credit card interest in many years, and use reward cards to get a little money back.
• Neither of us spends much money on clothes or jewelry. This is probably the most surprising fact in this list, since we are widely admired as trendsetters in the fashion realm.
• We have non-contract cell phone plans. She has a flip phone, I have a "feature" phone.
• All our homes have been smallish. We lived in a single-wide trailer for 7 years (and loved it!).
• We almost never eat out or go to movies or shows.
• I comparison shop and deal hunt obsessively.
• We both have good jobs with decent salaries and good benefits. 
• We both went back to school later in life to enhance our job skills.
• Our furniture is either homemade, hand-me-down, a Craigslist purchase, or inexpensive "assemble yourself".

A table I made. And a cat.

• It's not that I know how to fix a lot of things, but I'm not afraid to try and can often figure it out. I change the oil in both our cars [this, in my opinion, is a basic skill that everyone should have].
• Instead of zipper seal bags, I use fold top sandwich bags and clip them with a close pin. This saves me about 50 cents per month. In ten years, that's $240 dollars!!!
• For many years we have bought mostly generic brands at the grocery store.
• We have a highly refined system for grocery shopping.
• We don't buy expensive gifts for each other.
• I always shop from a list.
• I recently called the satellite TV company when they yet again raised our rates, informed them I was ready to switch to the OTHER satellite company (and I was) and they matched the price, saving us $700 over the next two years.
• We've never been to Europe, Hawaii, or on a cruise. We did buy a second home on wheels, but it's 14 years old and we paid cash.
• We get cheap haircuts and neither of us spends much time at the spa.
• Both of our parents have generously helped us out from time to time.
• Over 20 year ago I read Your Money or Your Life and it profoundly changed my thinking about money and consumption. Later I read The Millionaire Next Door and The Automatic Millionaire (note that it's rather unlikely that we will ever be millionaires, but the lessons were useful). I have listened to literally hundreds of hours of podcasts of the Clark Howard Show.
• Things we've never bought: silk sheets, expensive art, appliances by Cuisinart, audio equipment by Bose.
• About 15 years ago we began making automatic deposits into retirement accounts (I think I started at $10/month), and have gradually increased the monthly contributions over the years.
• We never had kids.
• We've never had to pay for childcare, piano lessons, summer camp, pediatricians, 529 funds, or car insurance for someone under 18. We have paid for some high end dog food and a fancy vet, but I'm pretty sure we came out ahead on that deal (looking at it from a strictly financial standpoint).

My tractor. Splurge? Or necessity?
Admit it, you want one, too.

Ultimately I believe it's possible for someone to make significant changes in their financial situation by making many small decisions over a period of a decade or two. Of course, income level may place significant constraints on the degree of that change. That said, I don't believe it's bad to splurge on things that provide great joy, be it silk sheets, Caribbean cruises or top of the line electronics. Certainly both of us make occasional splurges (but let me tell you, that tractor is SWEET!).

Nor is it to suggest that personal circumstances or crises can't blow it all to hell, in spite of one's best efforts. I hope there's not a hint of judgment here. There are also many times I regret the "not having kids" thing, and I am deeply envious of the joy and love they bring to those of you who chose differently. My goal is just to say that we've made a modest accomplishment, and these are some of the things we did to get there, but I realize that a lot of it is due to the luck of circumstances [June 2021 update: It's also clear to me now how the unearned privileges of being white have benefited us profoundly].

But in any case, here's a pair of cheap earbuds that sound decent: http://www.cnet.com/products/panasonic-ergo-fit/

You're welcome!