The Impact of Living Simply
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Transcript of The Impact of Living Simply
![Page 1: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/1.jpg)
How to Live SimplyA Comparison of Two Families
![Page 2: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/2.jpg)
The Jones vs. The Simpletons
![Page 3: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/3.jpg)
The Lowdown
Jones
College Degrees
Married at age 25
Both currently work
Total annual income: $48,000
Monthly Income =$4,000
Simpletons
College Degrees
Married at age 25
Both currently work
Total annual income: $48,000
Monthly Income =$4,000
![Page 4: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/4.jpg)
The Houses
Jones House Cost $200,000
20% Down = $40,000
Mortgage- $160,000
5% Rate for 30 Yrs.
Bought House 1 year into marriage
Monthly Payment = $858.91 Not including taxes &
ins.
Simpletons
House Cost $125,000
20% Down = $25,000
Mortgage - $100,000
5% Rate for 30 Yrs.
Bought House 3 years into marriage
Monthly Payment = $536.82 Not including taxes &
ins.
![Page 5: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/5.jpg)
Transportation
Jones
Bought 2 new cars every 5 years
2 cars at $15k each = $30k
$30k at 6% for 5 years
$579.98 total monthly payment
Simpletons
Bought 2 used cars every 5 years
2 cars at $7k each = $14k
$14k at 6% for 5 years
$264 total monthly payment
* Please note that I’m not advocating for car payments here, simply giving a comparison.
![Page 6: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/6.jpg)
Eating Out
Jones Dine out 8 times per month
4 times at an expensive restaurant Avg. meal = $100
2 times at moderate Avg. meal = $50
2 times at modest Avg. meal = $25
Total cost per month = $550
Simpletons Dine out 4 times per
month 1 expensive restaurant
= $100
1 moderate = $50
2 modest ($25 each) = $50
Total cost per month = $200
![Page 7: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/7.jpg)
Vacations
Jones
One expensive vacation per year
Average cost per year = $4,500
$4,500/12 = $375 per month
Simpletons
Two vacations per year
One with family = $1500
One simple one= $500
$2,000/12 = $166.67 per month
![Page 8: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/8.jpg)
Entertainment
Jones
Expanded Cable and Internet Package = $150
2 Movies Per Month = $30
Golf 2x Per Month = $100
Total Monthly = $280
Simpletons
Simple Cable or No cable & Internet Package = $50
2 Movie Rentals per month = $5
Golf 1x per month = $50
Total Monthly = $105
![Page 9: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/9.jpg)
Shopping
Jones
Clothing $50
Groceries - $500
Items for House - $50
Miscellaneous personal items = $200
Total Monthly = $700
Simpletons
Clothing $20
Groceries - $300
Items for House - $20
Miscellaneous personal items = $60
Total Monthly = $400
![Page 10: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/10.jpg)
The Comparison
Joneses
House: $858.91
Transportation:$579.98
Eating Out: $550
Vacations:$375
Entertainment:$280
Shopping:$300
Simpletons
House: $536.82
Transportation:$264
Eating Out: $200
Vacations:$166.67
Entertainment:$105
Shopping:$400
![Page 11: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/11.jpg)
The Comparison
Simpletons Spend Less Each Month: House: $322.09 Less
Transportation:$315.98 Less
Eating Out: $350 Less
Vacations:$208.33 Less
Entertainment:$175 Less
Shopping:$300 Less
Total = $1,671.40
![Page 12: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/12.jpg)
The Potential Impact
• $1,721.40 Additional margin Save/Invest $1,000 per month
At 6% in 10 years = $162K
Paid an additional $200 towards mortgage each month
Home is paid off in 17 years (13 years earlier)
Gave rest to their church- $500
In 10 years they’ve given over $60,000
Doesn’t include paying cash for cars or education savings
All by the age of 41
![Page 13: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/13.jpg)
Savings Growth Over 30 Years
$0.00
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
*Plus a Paid Off House
![Page 14: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/14.jpg)
The Key?
It’s the small daily decisions to say no that allow you to live simply and stay free for
the long haul.
![Page 15: The Impact of Living Simply](https://reader036.fdocuments.us/reader036/viewer/2022062515/55c39f10bb61ebf9558b4712/html5/thumbnails/15.jpg)
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