What I Learned From a Year of Living Within My Means

Saving money is joyful when you have a goal. Paris, perhaps?

When I was in my late 20s, some close friends asked me to go with them to England, Scotland and France the following year. We drank wine and they said,

‘Come with us — we know how much you’ve always wanted to see Europe. You’ll have a year to save for it.’

They told me how much money I’d roughly need. I took a big sip of wine and said I’d let them know in a few days. My heart soared! And then I went home and couldn’t sleep as I was worried about how I’d find the money.

I had good reasons to feel a little freaked out.

I’d just broken up with my live-in boyfriend. I’d bought him out of our townhouse and I’d decided to live there alone for another year. I worked 100% commission as an advertising salesperson for a television network, which meant if I didn't sell anything — I couldn’t eat or pay the mortgage.

But by the next morning, I’d made my decision. I was going to Paris. I dug out a picture of the Eiffel Tower and I taped it to the front of my fridge. And then I sat down at the kitchen table with a cup of coffee, my bank statements, paper, pen, and my trusty rhinestone calculator.

I needed to make a plan.

I Faced My Finances

Listen. You can’t save money if you don’t know how, when and where your money flows in and out of your life each month. So you can’t escape this part even if it makes you sweat a little.

Thankfully, this was pretty fresh for me. I had met with my bank manager a few months before when I had bought out my ex. I was already on a lean budget but how could I make it leaner?

And I also knew I could earn more if I focused on growing my client base at work. That’s the good side of working straight commission. But I didn’t want to focus my savings amount on imaginary future income. I needed it based on my true monthly income.

I also loved what Charles Dickens had written:

“Recipe for 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.” — Charles Dickens

Thank goodness I had more than an annual income of twenty pounds, but there were some things that were non-negotiable. I wasn’t going to stop saving money for retirement or for my normal savings account either. And I wasn’t willing to go into debt for this European trip. I wanted to have the entire amount saved before I stepped on the plane.

After a few hours of number crunching and several cups of coffee, I had my plan sketched out. It was lean, mean and I knew I could do it. Because the reward was to visit three countries and see the Eiffel Tower. I wanted it so bad I was willing to forego cheese, wine and new clothes for a year if I had to.

I called my friends and said, “I’m in!” And then I got off the phone and whooped with joy. I’m pretty sure they heard me in France.

I Gave My Savings Account A Cool Name

I went to my bank and set up an account where I could only deposit and it wasn’t connected to my debit card.

The teller said, “You can name this account if you’d like.” I looked at her and said, “Call it, Kim in Paris,” and she grinned and Kim in Paris was born.

I think the name was important because instead of a normal numbered account, Kim in Paris had a feeling and painted a picture. Whenever I told the tellers to transfer money to Kim in Paris they always smiled and said how wonderful it was. Which made me feel this soaring pride and excitement each time I went to the bank. It made up for my rough feet — pedicures weren’t in my new plan.

I Decided What Was Good Enough

To live within your means and also save money requires a bit of juggling. You have to know yourself and what you’re willing to revise, give up or decide is good enough.

I wore suits and high heels to work as a professional television advertising salesperson but I discovered a clothing consignment store that saved me tons of cash. I sold some clothes there too. And, gulp — I decided to not buy any new clothes for a year and only use what I had.

Cable and buying books went out of the door. I bought a library card. I loved to cook but I also ate out too much. Eating out hit the chopping block and I drove home to eat lunch as I lived only five minutes from work. On the weekends I invited friends over to watch our favourite shows and we’d drink wine and eat potluck appetizers.

And you bet I wore socks so they didn’t see my rough feet.

I Had One No-Spend-Day Per Week

You’d think by eating at home, no cable and reading library books I had nowhere else to spend money. Sure I did. Sometimes a friend wanted to go to the movies or a bar, or a new book called to me at the book store. One of my clients owned a fabulous chocolate shop and how the hell do you walk past luxury Belgian chocolate? But I did.

I made sure one day each week I didn’t spend a cent on anything besides fuel or bills. I wouldn’t buy groceries and I made do with what was already in my home. I didn’t have a husband, kids, or a dog to feed but all the expenses were on me. And I was so grateful for the cooking lessons my mom taught me when I was young.

The key was to not overspend once my No-Spend-Day was over.

I Kept A Few Little Luxuries

Okay — you could take away my cable, restaurants, book-buying-habit, new clothes, pedicures, and fancy cheese, but I did treat myself with a bag of salt and vinegar chips and dill pickle dip and a new magazine twice a month. It cost me $20 total and it saved my sanity. I ate the chips slowly and savoured every bite while I read my magazine.

We all need a few little luxuries while we are saving to reach our goals. Living within your means isn’t meant to feel stingy. Sometimes I would meet a friend for a glass of wine and free appetizers at a local piano bar once per month. It was elegant and inexpensive and when you don’t indulge in something often, your sense of appreciation is heightened.

And whenever I was tempted to buy a new pair of jeans or the latest book from my favourite authors, I would tell myself I would buy something lovely in Paris.

Kim in Paris

And then, after a year of living beneath my means, my trip to Europe finally arrived. I stood on the Eiffel Tower, with freshly pedicured feet, and I was surrounded by the loveliness of Paris. I confess, I wept. And later I ate some fancy cheese and drank a glass of champagne in a cafe close to the Louvre.

The Eiffel Tower was more beautiful than I’d imagined, as was all of Paris and London and Edinburgh too. That trip changed my life forever and it planted my love for travel. I had experiences that were far-reaching and everlasting and worth more to me than cable and the latest magazine.

I came home with cans of escargot in my suitcase, a gorgeous silk pink blouse, and an expanded mind. And I didn’t owe a cent on my credit card.

And the funny thing is? The skill of living beneath your means stays with you no matter what your financial situation is. You realize you’ve been given much more than a larger savings account or cash to go on a dream vacation.

You’re given determination, resilience, creativity, commitment and a sense of pride that you can take control of your life and point it in the direction you want. And I don’t know about you — but for me, that kind of joyful freedom is the best investment of all.

Thanks for reading! I have loads of food essays (delicious recipes too) and thoughtful and quirky simpler living essays waiting for you. (Well over 100 of them!) And this story caught the attention of NBC News in New York!