Live simply, stupid: Amish finance lessons we could all use
Filed under: Saving Money, Simplification, Recession
Long before frugal living and keeping your finances tight became part of the daily life of making due during the recession, the Amish had it covered.They watch what they spend, learn to save at an early age, are entrepreneurs, and have a network of friends and family to help in emergencies.
When is the last time you saw a homeless Amish person? Never. Why? Because they have a social network in their church that helps provide for members who are having a tough time.
While they're not exempt from the effects of the recession -- some Amish in northern Indiana were laid off at factory jobs and have returned to farming -- their lifestyle helps lessen the impact.In an excellent article for the Houston Chronicle, Amanda L. Grossman recently wrote about Amish finances and what "Englishmen," as the Amish call non-members, can learn from them.
Last year, WalletPop's own Geoff Williams wrote about frugal living by the Amish after talking with his brother, who is an expert on the Amish. I don't know if Geoff ever followed through on his idea to live like the Amish for a year as a way to save money, but here are some more financial tips that Grossman writes about that you might want to try:
- Saving early. Amish children typically attend schools until they're 15, then they become apprentices to the the many trades and businesses in their communities. Teens give their paycheck to their parents, who give the child 10% for spending money and put the rest in a bank account that the worker gets when they turn 21.
- Live at home for free. If not married by age 21, the Amish continue living at home and don't pay rent and such bills. They continue working and contributing to the family.
- Cheap labor. With large families of eight or more children, an Amish family can run a small business or farm without all of the costs it would have if it hired workers.
- Low taxes. It's a common misconception that the Amish don't pay taxes. They pay the same taxes that other Americans do, but not Social Security or Medicare. The Amish don't collect Social Security when they turn 65, and aren't eligible for Medicare. To claim the exemption through the IRS they must be a card-carrying member of their church.
- Community health insurance. They use their savings and donations from fellow church members to pay any medical bills. Each church has a board of directors that collects premiums each month from the congregation according to the age and number of family members. Money is pulled from that fund as needed.
- Entrepreneurs. Every Amish person has some sort of skill or trade and is anxious to sell it. Driving down the heart of Amish country in Pennsylvania, Grossman writes, are numerous signs pointing where to buy Amish goods. An honesty box where you pay for anything you buy, allows them to be at their normal day job while selling their crafts on the side.
- Live humbly. This is the basis of their lives, and it shows in how grateful they are for what God has given them, not wasting anything, being charitable and driving horse-powered buggies.



Reader Comments (Page 1 of 1)
6-18-2009 @ 1:16PM
Marcia Richards said...
The Amish are not the only ones who live frugally. The Latter Day Saints (Mormons) do the same sorts of things, keeping a back up supply of needed items in case of lost jobs, catastrophe, etc. They also band together to support each other when hospitalization or large medical bills are incurred.
Each of us could do a similar thing. If you think about it there is only one RULE you have to follow: You cannot spend all of this week's paycheck this week. You need to put something away for the future, to save up for bigger purchases, or even to buy seldom used items (like garden equipment) as co-owners with a group of neighbors or family. It is just as simple as that. My sisters and I share large serving dishes, etc. for family parties--why do we each need a whole set? We don't.
We get so caught up in things we "have" to have that we don't think about how we can get along without some things. My sewing machine is used every single week to make some kind of repairs or patching, making clothing last much longer than it would otherwise. I freeze extra food until I need to use it, having found that a freezer helps me save money. I almost never buy anything that isn't "on sale" or "marked down." Even meat can be found marked down when it's a day or two prior to the last sell by date. Into the freezer it goes, for later use. No one has ever gotten sick from the practice, either.
It's an interesting project to see how much money you can hang on to by telling yourself that you absolutely will not spend a cent unnecessarily for a week or a month. I take my sports water bottle in the car whenever I leave home to do errands or shopping, and drink from it between stores. That saves a lot of $2 soft drink purchases, and water has no calories besides.
Even when spending, there are ways to save. If you go out to dinner with another couple or two, take turns inviting them back to your house for coffee and dessert, unless the restaurant is known for it's fabulous desserts. It doesn't cost $6-7 per plate to make or buy dessert at a bakery, and the coffee is cheaper too. Besides, we're never finished talking and can continue our eveing at someone's house without having the big "making dinner for company" thing hanging over our heads.
There are lots of opportunities to save, if you don't rush out to replace something the moment it breaks. Can it be repaired? Can you live without it? Can you rent or borrow one more cheaply if it doesn't get used often.
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6-18-2009 @ 7:35PM
chemfreeguy said...
I'm not Amish but I know that the rules have changed. If you're looking for a great job, with a great company, with great benefits, that you will have your entire life, until you retire, stop looking. That was then this is now. That job doesn't exist anymore for 99% of us. Unless you have unique and remarkable skills you better figure out what will work best for you and your family. I am a former executive who left the corporate world to help people adjust to the new realities. My suggestion to most is to do what millions of people are doing now, find a good home business. That won't work for everyone but if you find one that you can get into for virtually no investment and learn the right skills, you should do well.
There are two opportunities that my clients have had the most success with. One is an amazing opportunity to profit from Ebay and there are well over 720,000 people making a full time living with them. http://cli.gs/HomeBizSuccessSystem That's a huge company to work with. The other great opportunity is working with a company that we all know, Google, http://cli.gs/GoogleCashSystem
So many of my clients tell me that they are loving working for themselves, making more money than before, in less time, and enjoy the extra time they have to spend with their families.
Avoid all MLM, they are mostly scams.
6-18-2009 @ 2:36PM
kb said...
40 yrs ago my future in-laws told us to live on less than one of our salary; that way three could live on one as that salary went up. We retired at 60, sent two kids to college and paid it all up front, paid for our home and our cars and have no debt. Never were rich, never will be. People say you were lucky....nope...just not greedy. Nobody gets everything all the time and all at once. Money you save is not lost; it's still yours. Invest in your own life rather than make other people rich. I will never understand why people feel deprived when they take money home with them so they can have a present and a future. Don't shop for entertainment, don't watch TV commericials.
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6-18-2009 @ 3:04PM
Diane said...
We weren't Amish, but we lived near a settlement and as farmers, we learned from their ways. The Mennonite and Quakers also are a fine influence as even the Native Americans have been. All of those who adhere to this self-reliance and regard for nature and living in harmony with nature, will enjoy many more benefits from life, than those who don't............
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6-19-2009 @ 6:41AM
Amy said...
For some other money saving or money making ideas including FREEBIES and Work from Home options visit http://www.ManyMoneySavers.com
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6-25-2009 @ 4:20AM
jingjing said...
i agree 6-18-2009 @ 2:36PM
kb said...
http://www.ed-hardy.cc
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