26 years old and a net worth over $200,000. Meet Jayson Bastien of Simple Money Living who has graciously shared his story with us today and has proven that building wealth is all about mindset. Keep reading to find out how Jayson made savings into a game and an impressive net worth a reality with some serious frugal discipline.
Habits are the machine to the madness, the frugal lifestyle madness of course! Our self-discipline and extreme focus is unmatched but it’s not like we are all born this way, well perhaps some. Others are nurtured one way or another to being frugal; life puts you into experiences and situations where the frugal lifestyle is born. I want to share how my frugal adventure began and my favourite fun, fantastic, frugal habits!
Where My Frugal Habits Got Started
I sought out financial advice early, kind of a matter of circumstance; I started working on my own early in life, didn’t have anything to spend it on so I saved what I had. In high school I met with a financial adviser to discuss financials, where I learned about PC Financial, an online bank through the Canadian Chartered Bank CIBC. They offered a crazy high interest rate at the time (far above anything the other banks offered) and there were no fees.
Needless to say, I opened up an account and began putting money in at first and then the game began. The game was to how quickly I could put money into my bank account and how much interest income I could earn; through the power of compounding the sooner I deposited my money the quicker it rose. This game turned into a habit I still continue today probably around a decade ago!
My Keystone Habit
That habit I consider my keystone habit, I started to eliminate other unnecessary expenses like eating out when a meal from home will suffice. I also postpone expenses as far as possible, in business it’s like stretching your payables out, I’ll keep using household or clothing items until they reach a near breaking point. I learned from the Europeans that you can wear a pair of jeans all week long without a wash. You can do a lot more for a lot less, all it takes is some simple thinking.
My current result is wealth of over $200,000 at the age of 26 and I’ve lived in Europe twice, been able to travel to parts of the USA and Mexico and am able to enjoy sailing out on the lake! If you get the right expenses right, frugal living is fun and rewarding in life and financially! Through frugal living I am to enjoy the life experiences I want with friends and family.
My Fantastically Frugal Habits
- Make it a game. Like me I made depositing money and earning compound interest a game. Pick something you want to do to live frugally and make it a game.
- Make it a competition. Invite your friends and family members to a friendly competition. Back in January 2017 I posted a video a day while I saved $465 in 30 days. I challenged my friends and family to save along with me; while I provided daily tips to them where they could find the cash to save! I have also challenged friends to see how efficiently we could drive meaning how low our litres per 100 kilometers consumption of fuel is (us Canadians use litres/100 kilometers; for the American audience you would know this as miles per gallon). My average fuel efficiency was 6.5L/100km, which would be equivalent to 36 miles per gallon. This competition turned into an analysis of fuel consumption which we figured the real bang for our buck was keeping the RPMs less than 2000 when accelerating, I’m no car expert but my analytical mind thinks that makes the most sense!
- Reuse as much as possible! I use the same water bottle everyday; I get water from the fridge/filtered tap water, which is where bottled water comes from anyway! No need to spend money on bottled water.
- Another great habit is talking to other people; friends and family mostly. Individuals are unique and while talking with them I find other habits to try out!
My Final Frugality Thoughts
Why does frugality work? How was I able to build over $200,000 in wealth by the age of 26? It’s not because I make a six figure income every year, it’s because of the elimination and reduction of expenses. I realized early on that eliminating and reducing expenses is in my direct control; I can do it today, tomorrow or the next day and I could have done it yesterday! Earning a six figure salary starting tomorrow is not so easy. I say easy in the sense that there is a greater opportunity overnight to eliminate and reduce expenses than multiplying income. Tomorrow I could decide no more eating out for the next month or to turn down the thermostat which I will see immediate savings.
Unfortunately focusing on expenses is not easy enough; human nature, things like peer and societal pressures act to make people conform so when everyone else is making impulse purchases you fit right in by doing the same.That’s focusing on habits is so crucial, eventually you will not even realize you are doing things, things to destroy your debt or build wealth. All in the aspirations of achieving comfort and happiness in life.
In the great words of Warren Buffet, “be fearful when others are greedy and greedy when others are fearful”. In my words “save when others spend and spend when others save”.
About the Author
Jayson Bastien is a Canadian CPA, CA who has founded and leads Simple Money Living. The foundation which he builds upon is Knowledge, Habits and Confidence. You need to and should know just exactly the right financial information, using that knowledge to build exceptional habits all on the road to financial confidence. This is not just another financial blog. His real world expertise and experience gives you a platform and plan to achieve your goals, not just some hot financial topic for you to figure out on your own.