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Living the Cheapskates Way Rule No. 1
Living the Cheapskates way rule no 1: Ditch the stuff that's not important to you so you have the cash to enjoy the things that are.
Until you sit down and work out what is really important to you, what you simply can't live without, you'll struggle to live the Cheapskates way. Oh, you'll probably cut expenses and start living more frugally, but you'll feel deprived. Your friends and family won't have changed the way they live, they won't have changed their attitude to their money, so they'll keep on eating out, getting their nails and lashes done, buying new clothes, going on holiday, buying every new gadget that comes out. You won't be, and you'll hate living the Cheapskates way.
30 years ago we sat down and consciously went over everything we did, and we decided what was really important to us. Everything else was moved to a "maybe" list; if we had the cash to pay for it and we really wanted to see that movie or go to that restaurant or buy that new TV then we would.
Struggling to live within your means and getting into debt is easy when you don't have a clear idea of the things that are most important to you - the things you should be focusing your money on.
Sometimes it's just easier to go with the flow and say yes to dinner out, or to putting the kids into yet another social group (even if it is sport or art or music) or whatever so you don't stand out from the crowd.
But do these things really make you happy? Are they really important to you? And can you really afford them?
Saying no is hard, but believe me when I say it gets easier with practice. Just say no. Don't offer an excuse or a reason, just say no, and perhaps tag on a thank you.
Take some time and think about what is really important to you.
Here are some things that might prompt you to decide what's really important to you:
For us, way back when Disaster Struck and we made the changes we did, the important things were:
We then ditched everything else because those things weren't important to us.
We said no to invitations to join friends at restaurants. We said no pay tv. We said no to takeaway on a regular basis (we still indulged occasionally, just not every fortnight). We didn't upgrade our car every couple of years. We changed the way we shopped and tried more generics and cheaper brands and found that for the most part they were excellent and met our expectations.
And because we made those decisions, because we were in control of saying no, we didn't feel deprived.
We felt empowered.
We were in control. Our bills were paid. We didn't have any debt other than the mortgage. We ate well. We lived in a home we loved. Our kids were in the schools we chose. Our Emergency Fund was growing. We had everything we needed and, when we looked hard, everything we wanted too.
We were contented, and you can be too, when you make the decision to ditch what's not important to you so you have the cash to enjoy the things that are.
Until you sit down and work out what is really important to you, what you simply can't live without, you'll struggle to live the Cheapskates way. Oh, you'll probably cut expenses and start living more frugally, but you'll feel deprived. Your friends and family won't have changed the way they live, they won't have changed their attitude to their money, so they'll keep on eating out, getting their nails and lashes done, buying new clothes, going on holiday, buying every new gadget that comes out. You won't be, and you'll hate living the Cheapskates way.
30 years ago we sat down and consciously went over everything we did, and we decided what was really important to us. Everything else was moved to a "maybe" list; if we had the cash to pay for it and we really wanted to see that movie or go to that restaurant or buy that new TV then we would.
Struggling to live within your means and getting into debt is easy when you don't have a clear idea of the things that are most important to you - the things you should be focusing your money on.
Sometimes it's just easier to go with the flow and say yes to dinner out, or to putting the kids into yet another social group (even if it is sport or art or music) or whatever so you don't stand out from the crowd.
But do these things really make you happy? Are they really important to you? And can you really afford them?
Saying no is hard, but believe me when I say it gets easier with practice. Just say no. Don't offer an excuse or a reason, just say no, and perhaps tag on a thank you.
Take some time and think about what is really important to you.
Here are some things that might prompt you to decide what's really important to you:
- Paying the mortgage each month, and perhaps paying ahead so you can clear it faster.
- Good schools for the kids.
- Family time, when you do things together.
- Owning your Christmas and other family celebrations.
- Paying cash for the things you need and the things you want.
- Owning a family holiday once or twice a year.
- Choosing to stay home and raise your children.
- Hobbies.
- Early retirement.
For us, way back when Disaster Struck and we made the changes we did, the important things were:
- The kids' educations
- Me being able to stay home with them
- Paying down the mortgage
- Building an Emergency Fund
- Not creating any new debt.
We then ditched everything else because those things weren't important to us.
We said no to invitations to join friends at restaurants. We said no pay tv. We said no to takeaway on a regular basis (we still indulged occasionally, just not every fortnight). We didn't upgrade our car every couple of years. We changed the way we shopped and tried more generics and cheaper brands and found that for the most part they were excellent and met our expectations.
And because we made those decisions, because we were in control of saying no, we didn't feel deprived.
We felt empowered.
We were in control. Our bills were paid. We didn't have any debt other than the mortgage. We ate well. We lived in a home we loved. Our kids were in the schools we chose. Our Emergency Fund was growing. We had everything we needed and, when we looked hard, everything we wanted too.
We were contented, and you can be too, when you make the decision to ditch what's not important to you so you have the cash to enjoy the things that are.