For the past six years, since he retired at age 35, Steve Adcock has been prepared for the possibility of an economic downturn.
With stocks falling and a potential recession looming, Adcock’s careful preparation is paying off. Although he and his wife, Courtney, who is also retired, make money almost exclusively from the growth of their investments, they have weathered the current market turmoil without making major changes to their spending or portfolio. This is thanks in part to their strategy of always keeping two years worth of expenses in their savings account.
It’s also possible because of the couple’s minimalist lifestyle, says Adcock, now 40. They live off the grid in the Arizona desert; their home is powered by solar panels and they get water from a well installed on their property. As a result, their budget consists largely of discretionary spending.
“People thought we were crazy living so minimally during a bull market where everyone was making money. [They said] we should live large,” says Adcock. “But we didn’t. Now we’re making almost no changes, and so is everyone else.”
The Adcock household is powered entirely by solar energy.
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Since the market began to fall from its highs in December and January, the Adcocks have barely adjusted their spending. They’ve tried to “eat out a little less often” and not buy top-shelf bottles of booze as often, but even rapid inflation hasn’t stopped their spending spree.
“If your spending is low, you won’t feel inflation like everyone else. It’s that simple,” says Adcock. “You’re not exposed to the same level of inflation as someone who spends significantly more money than necessary.”
If your spending is low, you won’t feel inflation like everyone else. It’s so simple.
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