Living Poor and Loving It

[sweeps]

Donna Freedman lives on $12,000/year. Could you do it?

Story | Video

[Broken Arrow]

I'm really happy for her, and I hope that her story inspires many more to be frugal, but....

Where does she live, and how is she able to do it with only $12,000/year? Assuming that's her gross. Does she have a family, or is that just for herself? Does she save for anything, such as retirement?

[Gruntina]

I used to live on $9000 a year for 6 years with the assistance of state medical.

I didn’t save for retirement nor did I have a savings account. I lived where I can rent a room from others as it was the only place I can afford. I also did not have a car and relied on bus transportation. For me to have a savings or retirement, I would not have been able to qualify for the state health insurance.

It’s sort of a mode of living you get used to and having to play the rules to a game that has so many restriction. Instead of working on a goal to save more money, it was more of a goal to get the most out of the little money you have and so much planning and strategies go into that. Some people are not in a position or have enough belief that they can go into a higher earning position or return to work with a major disability so they toss out the idea of earning more money.

It took me a long time to find a decent employer to hire me for a position that can see through my Deafness and not reject me. Life was simple when you have no money and less choices but depressing when I see others succeeding as far as financially, materiality, and etc. But I would not want to return to those years on a low income.

The irony is that while I was on state health insurance, they were able to provide my hearing devices ($5000). Now I work but have non-state health insurances and they do not cover hearing aids(very few will put 1000 toward a hearing aid) and now I seem to can't afford them. Hearing devices for deaf are extremely expensive and nothing like those devices for older adult losing some sounds which is a different type of hearing loss.

[PauletteGoddard]

If I were in her situation, possibly. Donna lives about 2 miles from me (we've met and chatted), so it's good to know one can live simply and frugally in the neighborhood.

[Exile]

I don't know that there are exact standards for being poor (Forget the official government poverty line measurement, which is way too stingy). I would say that being involuntary deprived of certain basics is true hardship.

But sometimes defining basics isn't all that easy. A cellphone for example sounds like a luxury, but it can be a necessity if you need to keep in touch with family members or others for whom you are responsible or vice versa. But a Blackberry or other upscale mobile unit is a luxury by just about any standards.

One can live modestly without living in poverty. When DW and I retired and moved to the Philippines from California, we downgraded from a 2 bedroom, 2 bath apartment in the U.S. to a 1 and 1 here. In the States, we had 2 cars. Now we have none and depend on public transportation to get around. But despite these sacrifices, we're getting on just fine.

Our only income is our Social Security. Could we survive in the States as comfortably as we are doing now? No Way.

We learned a long time ago about getting by on relatively little. However, I don't think that we could go to the extreme of living Donna's lifestyle again. The key here is whether an austere life style is imposed or voluntary. Forced poverty robs a person of his or her dignity and leaves one at the mercy of unscrupulous landlords, merchants, etc . I can personally attest to this. Well, at least Donna has a support network. I suppose that helps--even to the point of making a difference.

But suppose Donna had a dependent, or were still married and lived at the poverty level. Two can live as cheaply as one, if one doesn't eat. There's a song "When We're Hungry, Love Will Keep Us Alive". That's utter BS. Poverty doesn't sustain or build relationships. It destroys them.

And when you get down to it, Donna's life style is voluntary--at least partly anyway because she chose to become a full time student (for which she deserves props), but would she really be content to live this way as a working person with no hope of a better future?

[cschin4]

I don't get the "loving" it part. Yes, you can live within your means and be happy. In fact, most people who do so are indeed the happiest because they learn to enjoy what they have rather than always wanting what someone else has.
By "loving it" she is making a statement that she would continue to live this way and refuse additional money which would change this lovely lifestyle.
Kind of like people who often talk about how they "love their jobs". I find it curious that the people that often say this are often low wage earners. I rarely hear high income earners walking around talking of how they "love" their job. It what they do and they expect to be well compensated. I personally think think this "you should love your job" pyschology is a way to keep people satified with lower incomes rather than paying them a fairer wage. Just my opinion. BTW, my job is great. However, I stop short of "love". I love my kids and spouse and dog. Jobs come and go. And, I enjoy my job now, but if I had to do something else to support my family I would do it whether I loved it or not.

[cicy33]

We could not do it. base bills are more than that a year. but I would like to get to where we only need my income to live and then save my spouses. My base salary, which does not include overtime or my yearly bonus, is $25k. Where I live that is good money. I actually make more than that with overtime and bonus. and I do love my job. Would I keep it if I were financially able to not work? Duh, NO! But I do like what I do and that is really important to me. and for me to not work I would have to be a millionaire now, today, with it making interest daily for me.

[LuxLiving]

Broken Arrow, I believe she manages some kind of apartment house or something and thereby gets her rent free or discounted? (not sure of those details), she has a bus pass and a library card, cuts coupons, shops thrifts, etc.

[Broken Arrow]

Rent-free? Oh well then I guess that's possible. The article should qualify that tidbit then... because it's kind of a biggie. (Or did they do that, and I missed it?)

[LuxLiving]

I don't know about the article. I had just watched an online video or two of hers yesterday, so it was fresh in my mind. I do believe she mentions that in the vids.

[sweeps]

Yeah, in the video she says she helps manage the apartment building where she lives so she gets a "good deal". That definitely helps.