This week I’m happy to introduce you to Leanne Le Cras as my guest blogger while I am traveling. Leanne is one of the bloggers I’ve met online who lives “down under” in Austrailia and I’ve been reading her blog Cresting The Hill for many years now. Leanne consistently writes great blog posts about staying happy and content while going through midlife. But I could tell that a big reason she was so happy is because she and her husband have rightsized their lives. Thank you, Leanne, for filling in for me and sharing some of your SMART and rightsized thoughts with all of us.
Kathy writes a lot about Re-Sizing your life and it resonates strongly with me because that’s how my husband and I have always lived. To begin with, it was from necessity. Then, as we became more stable financially it became a lifestyle choice. We choose every day to live as good stewards of all that we have been given, and I thought I’d share how that has looked over the years.
DRUMBEATS AND JOBS
My husband Ross is a man who marches to the beat of a completely different drum to mine. He is a deep thinker, he has a creative mind, and he doesn’t thrive in a 9-5 work environment. He isn’t cut out for an office job where he answers to the whims of those in the hierarchy above him – and because of that he tended to chop and change jobs on a fairly regular basis. When he hit 50 he took a redundancy and went back to study. He is now a Family Counsellor working from home and mixes seeing his clients with a bit of tutoring and mentoring for the organization he got his qualifications through. It works beautifully for him and I’m happy that he’s happy (and earning some money in the process!)
THE EARLY YEARS
All those career changes and the resultant fluctuation in our income in the early years of our marriage meant that I have always worked at least part-time to balance the load and to make sure we kept a roof over our heads. Not my ideal option (especially when our kids were young) but you do what you need to do to keep things on track. Our prime focus was to get the mortgage paid off as quickly as possible and to avoid taking on any additional debt. We avoided car purchases, credit cards, and any other loans. If we couldn’t afford to buy it, then we waited until we’d saved enough to pay for it up front – not via credit.
As time went on, and online bill paying became the norm, we signed up for our first credit card. I can proudly say that we have never paid a cent of interest on that card. We diligently pay it off during the month and enjoy the bonus Flybuy points that give us discounts on our shopping or fuel. I have no understanding of people who (like both my brothers) have credit card debt to the tune of thousands of dollars. What a load to carry with more debt hanging over your head.
THE MIDDLE YEARS
As we raised our family, we continued to live carefully – we home cooked our meals and takeout was a rare treat, we paid our bills on time, bought clothes when they were on sale, graciously accepted hand-me-downs for our kids’ clothes, and kept putting any extra funds into that mortgage account. We sent our kids to Christian schools – which meant we paid fees, but that was important to us and we budgeted for it.
We taught our kids to manage their money and encouraged them both to have after-school jobs as soon as they were old enough. They saved and bought their own cars (we made a contribution and paid for their first registration fee and insurance) then they paid the ongoing bills. They bought their own phones and pre-paid them giving us peace-of-mind with no surprise phone bills for us to worry about and argue over. They each also worked for a year between high school and university to qualify for study assistance. In addition, they worked in their uni breaks or tutored during their semesters to earn extra funds to pay their way while they were living away from home.
THE “NOW” YEARS
Because we lived frugally and focused on our mortgage payments, we owned our home by the time the children left to move to the city. We lived on two acres of land and decided it was time to downsize. Downsizing actually became “Right-Sizing” when we realized that we still wanted a home big enough for our kids to return to for visits, but far less land to care for. We found the perfect home that suited our needs and was located opposite river wetlands and open space. We managed to live in suburbia while still keeping our views and the sense of not living on top of people. This house felt like it was made for us and will be our home for at least another decade or two – until we’re too old to climb the stairs or to mow the lawn.
Our focus now is on saving for our retirement. Because neither of us are big spenders, we quietly put money aside into our superannuation and into other investments. We take small vacations but we plan to take bigger and longer ones down the track when we’re retired. The plan is to have enough spare money to fund some overseas travel that lasts longer than a few weeks (which is all we’ve been able to take while we’re both working).
THE FUTURE YEARS
We’ve always joked about living under a bridge when we retire because we’ve never had big incomes, but by making the right choices we know that a cardboard box under a bridge isn’t really in our future. Our friends and family who have known us for a long time often comment on how much we’ve achieved with so little – our accountant was particularly surprised at how well we’d done over the years when he did our tax returns.
What it all boils down to is simply living within our means, using our money wisely, not buying things we couldn’t afford and didn’t really need, and prioritizing what we need now and what can wait for later. I come from a family who splurges money willy-nilly and wonders why they are constantly in debt. I call myself the white sheep of the family – while they’re throwing their money to the wind. Meanwhile, we are quietly using ours in a responsible way that has reaped rewards and put us much further ahead financially than either of my brothers who have often earned much larger take-home salaries.
WHAT ABOUT YOU?
Are you a spender or a saver? Are you using what you’ve been blessed with wisely or are you hoping someone will come along and rescue you from the mess you’ve created? My late father always used to say that if you have to wait for someone to die and leave you an inheritance to bail you out of your financial woes, then you’ve lived a pretty poor life.
I like to think that we’re living a rich and full life – a Right-sized life – on a budget that we make work for us. Our money doesn’t control us – we control our money – and that’s what I think SMART living is all about.
Leanne lives in the beautiful SW of Western Australia and works part-time as a surgeon’s receptionist. Both kids have grown, flown, married, set up house, and produced one (soon to be two!) delightful granddaughters. She spends way too much of her spare time blogging about the highlights of Midlife at Cresting the Hill and shares the rest of her leisure time with her husband, Ross, and two cats.
Okay, your turn. As Leanne asks, “What about you?” Do you consider yourself a “rightsizer” or something else? Are you a spender or a saver? Whatever works for you, please share in the comments below.
Leanne, I too have always been very frugal by nature and have lived within my means. When I paid my way through university, and then later when my first husband passed away at a young age leaving me with three young children to support, careful money management was a necessity. In addition to being frugal, another thing that enabled me to retire early with a comfortable financial situation was that I jumped on each opportunity for promotion when I worked, so that my salary increased throughout the years and I was able to save for retirement. Finally, although I paid off the mortgage on my previous two houses, my husband and decided to “upsize” when we bought our retirement home. It was the house we wanted in the community where we wanted to live. Although it means we have a mortgage once again, the value of property is going up rapidly in this area, so I believe it was a sound financial decision.
Jude
First off, I am impressed that you never had to learn the credit card lesson “the hard way.” You two have been so mindful with your spending, which can be hard in this day and age.
One thing that has surprised me with money, was how much I spent when I was unhappy with my situation. Since I have quit my job, we are living well below the poverty line, but our finances aren’t nearly as tight as they were. I think stress can really interfere with mindfulness, problem-solving, and making good choices in general.
Wonderful! Happiness is living within your means. I’m both a saver and a spender, I think. I consider myself frugal. By that I mean, I save on a regular basis but am not afraid to be generous with my money towards others or causes, or splash out for something that has a lot of value for me. I think that is the true definition of frugality – careful consideration of where your money goes and what it does – not miserliness.
Rock on, Leanne and Kathy!
Deb
I have definitely reached the age where “less is more”… Great story of redefining our aging selves. Just put our vacation home on the market and already feel a sense of Ahhh…..
Thanks for sharing Leanne!
I did the same when we bought a block of land as a potential spot to retire Emily, when we realized it wasn’t a great decision and sold it, I sighed very deeply in relief!
Leanne, I loved getting to know more about you and how you live. Like you, I’ve always used the term that I was “afraid of living in a cardboard box under a bridge somewhere” when I was an old lady. My first husband came from unbelievable poverty. When he was an adult, his motto was if you can’t pay cash for it, you don’t need it. He taught me that when I was 21. Today my house is paid for and my car as well, but with 225,000 miles on it, I know it’s days are numbered. If I continue to manage my money well, I’ll be okay if I live to be in my 90’s, like my mother, but I can’t over do. Fortunately I’m a minimalist and don’t want a lot of things or clothes. If you read my Fashion Fridays you’ll see I may add a new piece to things I’ve had since I was in my 20’s, and a lot of week’s I just find an inspiration outfit on the internet and write about it. I’m amazed at fashion bloggers with a totally new outfit each week. What would you do with all those clothes? Also I’ve heard horror stories about several who are in terrible debt because of it and for what? A fleeting photo on Instagram? Somewhere their priorities are all backwards. My life is smaller than it used to be, but I’m grateful to God I’m healthy and still here. xoxox, Brenda
Hi Brenda – you are so right – I often wonder about the people who have an outfit a day for the year to post – I’d fail within a month or two! The thought of needlessly buying clothes makes me a little bit ill – there’s a lot of poor people who would love to have that money donated towards keeping them warm at night. I was also flabbergasted when I saw the amount of clothes going into landfill every day – absolutely mind boggling. There is so much money wasted and often by people who can’t afford it. I love looking at all the lovely things you add to your home and wardrobe – but I also noticed they were additions and not entire new ensembles! Clever girl 🙂
I remember being intrigued when newly married, a friend showed me her roomful of furniture, bought on time. I hurried home to tell my husband, suggest we do this. NO, was the immediate answer. We had furniture, handed down from friends and family. We would never take on “unnecessary” debt beyond a mortgage and a car.
We followed that plan and neither of us regrets it. We never spent beyond our means, raised and educated three amazing children, took trips to Europe and to this day, always have what we need.
Start the way you intend to finish is such a great lesson isn’t it Beth? I look at all the great “buy now, pay later” deals that can definitely work for people who approach them in the right way, but those deals make money for the people offering them because they suck in the unwary and the financially unwise. So many sad stories of repossession and it’s really nice not being one of them! Your husband is definitely a sensible man 🙂
Just right!
I think of Mr. Mcawber’s advice on spending and happiness . . .
“Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
There’s definitely a lot to be said for living within your means Diane – and the lessons obviously go back many, many years (and there are a lot of people who have the misery of self-inflicted debt who didn’t pay attention!)
Hi Leanne, great to see you over here! I firmly agree with your approach. When I married, hubby was a spender…but in a “have money, spend it”, so no big debt except for the mortgage. I realized that early and worked so money came out of his paycheck and into savings before he saw it. It worked. No money, no excess spending!
Neither of us have ever run up credit cards; we use them simply for convenience and pay them off every month. I even saved up for my car purchases! And we’ve always been frugal – on vacations, with regular spending, on our house. We have our splurges but they are few, not regular. We definitely aways lived within or below “our means” …maybe because we both were raised by parents who did.
And you’re right…all of this “right-sized” lifestyle means we are very financially comfortable now in (early) retirement with some discretionary funds to “play” a bit. Our current house was right-sized as well, so no mortgage. I call it the “10-year” house because it still has stairs and a yard to mow. But it has the bigger kitchen I wanted, the attic office I wanted, and the big garage for hubby’s toys (his splurge, but never on credit!)
You said it right with “What it all boils down to is simply living within our means, using our money wisely, not buying things we couldn’t afford and didn’t really need, and prioritizing what we need now and what can wait for later.” I still live that way, although sometimes I have to remind myself that it is now later!
Hi Pat – it sounds like you guys are on the same wavelength as us. My husband often thanks me for my frugal ways because they have been instrumental in getting us to this point of financial freedom. I’m like you though, in that I need to loosen the reins a little and learn to splurge occasionally – I just need to find something worth spending my money on! (My DIL has offered to help in that dept!)
HI Kathy and Leanne
Wonderful post.
I believe we have lived a frugal life also. Going into retirement free of debt feels so secure. We did a lot of tailgating on family outings and took advantage of discount packages to places we wanted to go. If we couldn’t afford it we didn’t do it.
Laura
Hi Laura – lovely to meet you and yes, I’m always happy to grab a bargain if it means we can go somewhere and do something. I’m a huge fan of cut-price movie tickets, clothing sales, and off peak vacations!
Thanks for sharing Leanne’s story, Kathy. I love that you made a conscious decision to “right-size” by keeping the size of your house but finding one with less land. It’s what works for you and your plans now.
Hi Jennifer – I think the idea of right-sizing vs down-sizing is that your house size needs to reflect your needs. Our day to day living could be done in a smaller home, but we’d miss the family visits – which are really important to me. I think down the line we’ll definitely go smaller though.
Kathy this was a very interesting and informative post from Leanne. Thanks for sharing your story Leanne, I agree with your comment that you’ve right sized your life – well done on living so responsibly and making your money work for you. It’s a great way to live. I really enjoyed learning more about you and your life.
Hi Deb – I always enjoy learning a little bit more about the background of other bloggers and hwo they live their lives. I’m glad my post gave you a little bit more of a glimpse into how and why we are living where we are these days and the choicees that got us here 🙂
Leanne – thank you for sharing your ‘right-sizing’ journey. Good for you! Sounds so non-stressful!
Janet
I think it was more stressful in the early days when we had a mortgage and erratic incomes Janet – it got easier as the mortgage got smaller and the kids got older. Now it’s very stress free.
Hi Leanne, lovely to see you as a guest on Kathy’s website. Although we have been friends for 3 years I still am learning about your life. I agree with your Dad and also your approach to a ‘right-sized’ life. Because my children live close by we don’t necessarily need a large home and our next move will be to an apartment because that is right for us. We are fortunate to be able to travel overseas each year, but that is due to us compromising in other areas of our life. You can’t have it all but you can have a happy and comfortable life.
I think our next step will be to something a lot smaller Sue – maybe not for another decade or so, but when that happens the kids might need to stay in a motel when they visit! Or maybe we’ll do what you do and have two apartments – one down here and one near them for holiday visits 🙂
It sounds like you’ve created a great life for yourself, Leanne! Sometimes I think that living within ones means is a lost art. We are all being trained to desire more and more, even though we have to take on debt to get it. Fortunately, my parents lived within (and oftentimes, below) their means and I learned fiscal responsibility from them. I don’t think I’ve ever paid a dime of interest on a credit card and am not very comfortable with any debt (unless the interest rate is less than I can make with investments). I am also very lucky (maybe not “lucky” since I would never marry anyone who didn’t manage their financial life well) my husband is the same way. We are happily retired and financially comfortable… I can’t imagine how stressful it would be to live any other way.
You sound like you have it worked out perfectly Janis – my husband always says that I have the Scottish genes of my ancestors when it comes to be frugal with money. But he also acknowledges that we’ve managed ours well and the future prospects of retirement are not as daunting as they would be for those who’ve spent every penny as fast as they’ve earned it! To have a large mortgage in your 60’s must be a burden and a half and it would keep me awake at night – not how I want to approach retirement that’s for sure!
Great guest Post Kathy and great guest posting Leanne! My husband and I have always lived within our means. My husband is very handy so we seldom have car repair or small home repair expenses. This has left us extra income for travels.
Hi Haralee – I didn’t realize you were one of Kathy’s regular readers, but it doesn’t surprise me at all. She seems to attract people who manage their finances and their lives really well – and you’re definitely one of them – plus you have a handy husband – and added bonus! Mine’s pretty good with that sort of stuff too and it definitely saves on handyman costs.
Leanne before I met my husband I was a big spender and was close to $30,000 in debt. Once I met him I started paying off my debt and within 5 yrs I was debt free and saving. We only have a house payment and our house value is way more than we paid so we are very financially stable. If husband hadn’t gotten cancer our retirement would be perfect. I feel very blessed that financially we are as well situated as we are for how bad my debt was.
Hi Victoria! Another person I didn’t know reads Kathy’s blog! You guys are a perfect example of how you can learn from each other and find your way out of a mess. My husband always spent what he earnt when he was younger – fortunately he was happy to adapt to my more frugal ways and by living carefully we have managed to be much further ahead in life than we would have expected to be. I love that you’ve pulled yourself out of c/card debt and don’t have that added stress while you’re dealing with your husband’s cancer journey x
Hi, Kathy and Leanne – What a delightful surprise to see Leanne here this morning! Her post is a great reminder of Guest Hosting done well. The summary contains crucial pieces of wisdom and is incredibly well-written.
“Live within your means, use your money wisely, resist buying things you cannot afford/don’t really need, prioritize what you do need and what can wait for later.”
I believe that this is the best advice (and modelling) that we can give to our children, and to each other. Thank you for this sage advice and important reminder.
BTW Kathy – I have been following your vacation posts on FB. Wish I was there!
Hi Donna – you summed that up beautifully btw! I was really pleased when Kathy asked me to guest post for her – I’ve admired her blog for years so it’s quite an honour. And yes, I think putting in the work to manage our funds and live within them has definitely set an example for our kids – both are doing so well and I’d like to think that we set them on the path of being good with their finances.
Hi Kathy – I just wanted to say thanks again for inviting me to guest post while you’re vacationing. Your blog was one of the first I found that really resonated with me – and it still does after years of reading it! Right-sizing just works doesn’t it? 🙂
Hi Leanne! Thank you so very much for filling in for me. I know that you and I have been following one another for years now–great minds think alike right? And although you do write consistently about happiness and staying positive–it was apparent that you also live very sustainably and “rightsized.” Good for you and for all of us who are able to design our lives in a way that offers freedom from stress and a focus on what really matters! Plus it is REALLY nice to be able to travel and have SMART Living 365 so nicely looked after in my absence. Thanks again! ~Kathy
Hi Leanne…love your story. Your journey/story is very inspiring to me however, I can see it might be scary for others that need to live a life that says, I need more. I have been on both sides of the game and I can say for me…freedom from debt is one of the best feelings a person can have. The “MORE” experience became such an empty experience/feeling and when we embraced “rightsizing” it exceeded any MORE feeling I ever had. Do not get me wrong…I love to travel and have some nice things but when you hit 60 and you are still struggling to pay off credit card bills and a mortgage on your home…it can suck the life out of you. Your story clearly tells anyone that this kind of Freedom is obtainable if we choose to go down this path. I also think you have provided your children with a gift that will serve them the rest of their lives. Hope to meet up with you and your husband someday.
Hi Thom – thanks so much for your kind words. You are so right about how liberating it is to be debt free by the time you’re 60. We now have enough spare money to splurge on the little extras that we put aside when we were younger. We have also done some travel but we’re definitely looking forward to the days when work schedules don’t impact on the time we have available to be away.
I think right-sizing is such a great concept and it’s worked really well for us – and any time you’re in Western Australia feel free to drop in for a coffee and a Tim Tam (an Aussie favourite).