The Underground Economy, Part 4

I hadn't planned a "Part 4" but realized yesterday that I needed to explain a little more about the original book which changed my way of thinking.  A comment was made that the term underground economy could make one appear to be avoiding taxes (although they knew that was not what I was writing about).

In a way, that was legally what the author was doing when the book was written.  At that time, inflation was (so it seemed) out of control, interest rates were around 17% for banks, and he found his paycheck was being eaten up by what was happening to the economy combined with higher taxes.  He actually came out far ahead by lowering his income (thus, his income taxes) and finding ways to live on less.  The surprise came when he found his new lifestyle was beneficial to his family and they lived quite well and they never returned to life as it was before.

When my husband lost his job in Detroit (a long story that I've told before but basically a result of 9/11), it started our second year in which we ended up with little and then no income.  We had to apply for state aid so I could receive free insulin and doctor's care (which was excellent in Michigan).  We had a few conversations with the woman we had to go through at the state agency and I'll never forget what she told us at the time... that the middle class is always hit the worst in an economic decline (and this was before things got really bad in Michigan).

She explained that the poor already had the skills necessary for living on little and they knew where to get help.  The rich usually do not get to the point they need help.  We have learned a great deal since that time as my husband ended up having to go on Social Security Disability.  While he was able to work at Lowe's for awhile after Detroit, he was never again able to work as an engineer (and eventually not able to work full time as he can have months at a time when he can hardly get out of bed).

That's why I believe it is an excellent use of time to learn basic skills and put in place habits and expenditures before one would ever need to live on less.  (My own opinion on the economy... based on what I've read from people I trust... is things will eventually get worse and we'll see high inflation.)  If one only knows how to live by depending on a high paying job, buying what they want at the grocery store, eating out all the time, spending weekends at the mall, expecting a big vacation each year (we once had neighbors who took at least three big vacations a year), wearing the latest styles, buying the latest technology as it arrives, etc., then should they find themselves living on less (or nothing) they have no survival skills at all.

If you already know how and where to shop off the financial grid for less; have a back yard garden if possible; have invested in skills like cooking from scratch, canning, sewing, deepening a pantry, using herbs, growing flowers, quilting, soap making, candle making, carpentry, plumbing, etc. (not all of them and not all at once, of course)... then should you be in a place where there is a major loss of income... you are far better off than others.

Not to mention that the very learning and using of these skills form a lifestyle which is enjoyable should one never have a financial reversal.  To be honest, if hubby and I were younger we'd enjoy moving further out in the country and become even more self sufficient.  Since life is not perfect (and our 2/3 an acre is enough to take care of), we built a raised bed garden and planted rhubarb near the fence line.  We started a small compost pile a couple years ago.  Small steps providing huge rewards.

We don't have to wait until circumstances are perfect to begin making lifestyle changes and we don't have to wait until The End of the World as We Know It (TEOTWAWKI) to be happy we made even small steps which enable us to lessen our dependence on the financial grid.

We become better only by the doing and we can do only by the beginning.  Whether it is a domestic skill, or gardening, or making our homes lovely with thrift store finds... it is a good journey.

Picture: Three Hens; allposters.com

The Underground Economy, Part 3

Okay, I know I've put too much thought into remembering the title of that book when I dreamed about it last night and awoke quite frustrated.  The one thing I did remember about it was a few years after I had read it, the author had a regular weekly feature on The 700 Club which was filmed at his place and gave loads of great information (at one time The 700 Club was a great resource for learning basic skills).

Living in what he called the underground economy is part of what I have called "living off the financial grid".  Just as most of us do not move off the electrical grid, most also never intentionally move completely off the financial grid as did the author of my "forgotten title" book.  Some of us have been forced off the financial grid while others choose to learn skills to stretch our income.

The financial grid is economics as we were taught and grew up in (most of us)... the making of money and the spending of money... usually at full price or the occasional sale.  When we live a pantry lifestyle (in which I have a gazillion posts under "deepening the pantry" with more to come), we begin to step off the financial grid.  Whenever possible, we purchase food and other items on sale and stock the pantry... then "shop" from the pantry as we need the items. 

When we begin to carry this lifestyle over to all parts of our lives, we are then shopping the underground economy.   Like many people, I first entered this world by "shopping" garage sales for Stephanie's clothing when she was a preschooler.  I soon came to realize garage sales were the way to save lots of money for household items... buying for pennies on the dollar of their original price.

I should mention that my mother had already taught me to shop the end of season sales at the "shops which sell purple" (those being the high end department stores).  I believe Manuela mentioned she can find good buys at these sales and we've also found great sales.  Both my dress winter coat and my down winter coat were 25% their original prices when purchased.  Both were $200.00 coats I bought for $50.00 in the 1990s and both are in great condition.

While not thrift store cheap in most items, it is possible to find new items at these sales for a few dollars.  For some people, this is the best way to save money... especially those who do not have the option to spend time searching thrift stores.  It is not all or nothing and perfection will never be achieved so it should never be a goal.  We do the best we can given our circumstances.

I didn't start shopping Goodwill until after Stephanie was married and she mentioned to me her great purchases.  I had the same opinion of Goodwill many people I know still do... that they carry people's castoffs as one would find at a bad garage sale.  She told me the same thing I have told others, think of what you have given to Goodwill.  Hmmm... since then I always shop Goodwill (and the Mission Thrift store where one does have to sort through not so great items but jewels in the rough can be found) first.  When I was looking for specific needs, I would stop in at Goodwill a few times a week (having lived near Goodwill stores twice).

Other "underground economy" places to shop are library book sales and used book stores. swap meets, flea markets, antique stores and antique malls (yes, some are pricey but I have a few in my town that have excellent prices on vintage items), Craig's List and similar online services, Habitat for Humanity and similar nonprofit stores, garage sales given by churches and other nonprofits (which often sell items very cheap at the end of the sale since they don't want anything left), and even getting friends together to swap clothing and items.

A new-to-me way of getting off the financial grid is building a raised bed garden and growing veggies.  Hubby and I were thrilled with the results.  When we have available funds, we also shop the farmer's market which is open May through September... these items not being the cheapest available but always fresh and good and we're supporting local farmers and gardeners. 

Which reminds me that one also needs a community of skilled craftsmen for those skills we don't know how to do.  For instance, we have kept cars going for years and years over their expected demise because of our excellent mechanic.  He has even fixed minor problems for no cost because he knows we'll be back for the big repairs.  Buying used cars is one of the biggest ways to save money.  (New cars still under warranty must be repaired by the dealer unless otherwise indicated.)

This is also a good time to mention comments left in Part 1... that being one has to be aware of community building codes when doing your own home improvement.  Both where Stephanie and her family live and the college town we are near have strict housing codes about who can do major home repairs and remodeling... as in they must be licensed.  Stephanie and her husband have found it cheaper to sell their house and move to one that is larger because of the expense it would require for the changes they needed to make in their present home.

I don't believe where we live in a rural area the rules are so stringent.  Hehehe, the country does draw quite independent minded people.  Even then, we live in a neighborhood in the country so we must pay attention to what is appropriate.  For instance, should we decide to keep chickens in the backyard we'd have to check to see if that is allowed where the farmer down the road doesn't have have close neighbors and has more freedom.

Just as one becomes familiar with living a pantry lifestyle, the more we learn about the underground economy (purchasing for pennies on the dollar, doing work ourselves, learning basic skills, etc.) then the more freedom we gain over our life.  If we can learn to live on far less than we think is necessary, we aren't stuck in jobs we hate just to pay for what we own... or what owns us.  Even if we love a job, learning to stretch our income will enable us to have margin in our finances.  Margin brings peace.  It sounds simple but when one has grown up with different thinking... there is that ah-ha moment.

Not everyone can quit their job and become completely self sufficient but everyone can do something to become less dependent on the world's system of working to buy and working to pay full price and working to pay on the high interest credit cards.  Learning to be happy with less stuff and then enjoying the rich life that comes with becoming more skilled each year in the underground economy is well worth that lifestyle.

Oh, I should add... I have been teased quite a lot about praying before I shop garage sales and thrift stores (library sales, etc.) but I get the last laugh when I find exactly what I'm looking for.  He blesses the hunt.  :)

Picture: John Bull magazine; allposters.com

The Underground Economy, Part 2

As I mentioned, the book (whose title still hasn't come up but thanks for trying) which first taught me about the "underground economy" had a huge influence on my thinking since I read it in my late 20's.  It went completely against what we were being told from every other mainstream source but instinctively I knew it was right.  The very bad recession of that era did have others advising people to live simpler and more frugal lives but no other author I read had actually changed (and improved) their life as much as this family.  (Later we would find a similar family with the Tightwad Gazette books.)

I've said before that a good friend of mine used to say she believed God allowed us to go through some of the bad times so we could share what we learned... thus, the reason I originally started this blog.  Well, that and to talk about books and coffee and tea parties... but that was all I could get in the title.  Everything else falls under the "Me".  :)

At first, gaining knowledge and skills was more on the level of a hobby but I came to realize how invaluable they were.  Later, when we went through two separate years with no income (and other years we had to take a pay cut), they were invaluable.  To be honest, I begin to enjoy life more when I gained the skills which were known by generations before me.  I didn't learn everything at once and I still have much to learn but I came to realize time and/or money spent learning skills was a good investment by being able to do rather than having to pay when needed (or just because I enjoy the doing).

Just as I say deepening the pantry is having insurance you can eat, gaining new skills and learning how to utilize the underground economy is insurance you can use.  Even if I don't bake bread every week, I still make it once in awhile to keep my skills updated (what you don't use... you lose).  After cooking frugally and from scratch now for decades, it doesn't take much thought to throw together a cheap but nutritious meal or soup or stew or dessert... or stretch a chicken to feed a crowd as Edith Schaeffer taught in Hidden Art.  :)

Each family is quite individual in what skills will be beneficial but learning as a family (or with friends) brings everyone together and makes it more fun.  It is never too early to learn many skills.  My kids were both quite little when we would go to garage sales and they learned how to quickly walk through and note quality and if there were objects we were looking for at the time (each was given a couple of dollars to spend only at garage sales when they were young).  Stephanie excels at slowing down as she passes a sale to take it all in for needed items (they're called "tag sales" where she now lives).

Christopher went through growth spells since we have been living on S.S. Disability but everyone comments on how well dressed he is... Goodwill.  Our store has great selections.  He has had to purchase slacks when they go on sale at the department stores but has managed to find great sales.  Instead of complaining about living on little money, if the parents are keeping a positive and faith filled attitude, kids will be better able to learn important frugal life skills (which I believe are going to be skills they thank you for later).

Both of my kids had to go to work at age sixteen (part-time) to purchase clothing and any extra "wants and desires".  At first I felt guilty but now I can see how "all things truly work together for good".  Those early lessons of earning their own money certainly have been beneficial.

Of course, all of this skill learning was done a day at a time and not knowing what the future held... days which could be stressful and busy with plenty of other things to do.  As I look back, I wish I'd made the time for all of us to learn more useful skills (especially veggie gardening, which I am just now learning).  However, as we lived one day at a time... imperfectly but usually doing the best we could... we all have become good at many items and excel in others... those skills which have been used over and over as the years progressed.

Other skills were not used and would have to be refreshed... like sewing and quilting... although I never could make clothing.  I didn't get the sewing gene, neither did my mother or daughter.  I suppose if I'd kept at it as I did with other skills, I'd be pretty good today but it was not something which came easily... the making of clothes that actually fit, that is.

While my husband did not leave a job on purpose, as did the author of the book, he did have periods of unemployment and then had to take an early retirement (S. S. Disability).  One does not have to jump off the mainline economy completely to be helped by learning how to live off the financial grid... whether completely or as part of a family economy.

The thing is... becoming part of the underground economy is a lifestyle... just as is homeschooling is more than education... and deepening the pantry is more than buying extra groceries.  I'll chat more about that next as we will need to go to a Part 3.  :)

Picture: Home Making: allposters.com

The Underground Economy, Part 1

Years ago I read (and re-read) a book written from the perspective of the late 1970's - early 80's recession (and I can't remember the title).  The author was very well educated (PhD) but had chosen to leave his professional position and live a life working lower paying jobs mixed with living off the land.  He and his family learned to do everything they could themselves rather than paying someone else to do it, grew a large garden, and continued learning by reading and taking classes (especially at the community college where skills were taught).

I wish I'd kept the book, I gave it to the library sales when I thought I no longer needed the wisdom it offered.  I'd love to re-read it today... slowly and with a fine tooth comb (so to speak).  It was this book which first opened my eyes to what he called the "underground economy" where one could live quite well on very little income. 

At the risk of greatly underdefining (is that a word?) his lessons learned, he came to realize his quality of life became much higher when he left a high stress professional job where his take home pay was being eaten up by increased taxes together with a high rate of inflation.  He started "doing" what he had payed others for in dollars whose value was decreasing all the time.... by simplifying their life and learning to live off the financial grid.

Some changes made were-- growing a garden, looking for needed items at garage sales and thrift shops; driving older cars; bartering; investing in classes to learn skills such as cooking, canning, sewing, carpentry, plumbing, mechanics, painting, well... you get the idea.  His family learned how to take vacations with little money and send their kids to college for less.  All because they found there was an underground economy where one learned to live life differently than what they had been taught... that being make lots of money and spend lots of money.

I've thought about this book often in the twenty-plus years since reading it (over and over).  It came to mind a couple days ago as I walked through Goodwill and noticed all the beautiful clothing, shoes, household items, etc. one could purchase for pennies on the dollar from their original cost.  I think of it when I am at the grocery store and see how much money is being charged for baked goods, processed items, and all pre-made foods (of course, not all being unreasonably priced).

It was this book which inspired me to take cooking, flower arranging, and quilting classes in my 20s and 30s (I wish I'd taken the time for even more skills learning).  My husband was also influenced long ago, learning to do whatever he could as he had time.  These skills became invaluable when we had no income (I have limits... he is not allowed near electricity and we're good friends with our mechanic).  :)

The underground economy is nothing new for it is the way the generations before us lived each day of their life.  There was a time in this country that only the wealthy could afford to pay someone else to do that which we take for granted today.  When one learns there is life outside of paying full price, life can become less stressful and more creative... not always easy but well worth it.

Now, obviously my husband didn't quit his job but he did utilize every skill he learned.  Our home is full of beauty and books and so many good things in spite of living on a very small income.  I'll share more about our journey in Part 2.

Picture: Homemaker-First Issue; allposters.com