The Culture of Small: Live under your means. Then what?

[Human beings and our economies have to find a place within the environment. The economic assumption that endless growth is not only necessary but possible is suicidal for any species that lives in a finite world. pg. 298, The Sacred Balance by David Suzuki]

The following recent headlines in the London Free Press tell a story:

Economic outlook, gas prices hit auto sales (Aug. 4)

Stink bug sizes up Ontario (Aug. 4; click here for the stinky details)

Drought worsens in American Midwest (Aug. 5)

Markets brace for the worst (Aug. 8)

(Tiger) Woods looking clumsy (Aug. 8)

And what’s the story?

That we should brace ourselves for tough times ahead because more than Tiger is off of his game.

We are mishandling the economy, personal and national finances, carbon emissions related to industry and human activity (resulting in climate instability), in much the same way that Tiger Woods mishandled his first marriage and recent golf tournaments.

Can things get worse? Of course they can, and they will, because we have a decades-old habit of pushing past personal, economic and environmental limits in just about all we do.

Allow me to offer the following advice:


["Buy a small house. Live small and prosper": illustration by GH]

Live under your means by at least 10 per cent. That is, make sure you spend - on essential expenses - no more than 90 per cent of what you earn.

Then what?

Open a savings account and deposit at least 10 per cent of earnings for the tough times ahead.

Certainly, pressure to spend, spend, spend will still come from many sides, from countless glitzy TV, radio and magazine commercials, even the Joneses next door. But resist the temptation.

I read the following under the headline ‘Economic outlook, gas prices hit auto sales’ (London Free Press, Aug. 4)”

Ford and General Motors sold fewer of their flagship trucks in Canada in July as consumers yet again opted for smaller cars as gas prices stayed high and confidence about the economic outlook wavered...

(I predict gas prices will only tend to move higher. Start saving soon).

...independent automotive industry consultant Dennis DesRosiers said, “There are a lot more economic problems and a lot more hesitation in the market-place than what people want to talk about, especially the politicians.”

As an old economist (I have a valid library card), I don’t mind talking about it. We are on a path that leads past personal, economic and environmental limits. It’s time to trade in the culture of big on a more efficient and affordable model, i.e., the culture of small.

What can you do to live smaller?

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More to follow.

Please click here to read more about The Culture of Small.

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