With stocks sliding and a possible recession looming, Adcock’s careful preparation is paying off. Although he and his wife Courtney, who is also retired, make money almost exclusively from growing their investments, they are able to ride out the current market turmoil without making major changes to their spending or portfolio. This is partly due 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 house 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 for living so little in a bull market where everyone is making money. [They said] we should live large,” says Adcock. “But we didn’t do that. Now we make almost no change, and everyone else does.” The Adcock household is powered entirely by solar energy. CNBC Make it Since the market began to retreat from its highs in December and January, the Adcocks have barely adjusted their spending. They’ve tried to “eat out a little less” and not buy top-shelf bottles of booze as often, but even subtle inflation hasn’t reduced their spending. “If your expenses are low, you’re not going to feel the inflation like everyone else. It’s as simple as that,” says Adcock. “You’re not exposed to the same level of inflation as someone who spends significantly more money than they need.” If your expenses are low, you’re not going to feel the inflation like everyone else. It is so simple.
