Lesson 16: Money Secret No. 1 - Scrape the bottom of the barrel
Hello Revolutionists,
We all have them, those frugal friends who no matter what always seem to have the bills paid and money in the bank. They have a special gift for living the Cheapskates way - the gift for hunting out the best savings and deals on everything they need and want so they can live a life of abundance beneath their means. Some people might call it a gift.
Instead, I rather think it's a secret skill, one that anybody can learn.
These friends have honed their skill until they spend less, save more and live the life of their dreams. They have practiced these money secrets until they are habits, ingrained into their lifestyle.
The secrets aren't really secrets. Anyone can do what these frugal friends do - IF THEY REALLY WANT TO.
Perhaps that should be Money Secret No. 1 - You must really want to live life debt free, cashed up and laughing or it just won't happen for you. That can be the unofficial No. 1 Money Secret.
The official No. 1 Money Secret is Scrape the Bottom of the Barrel.
The world has just come through yet another catastrophic pandemic that caused yet another global financial crisis (or as I prefer to call it a ghastly financial crisis - global is just too big for us to honestly relate to). Jobs were lost, homes were lost, whole nations went bankrupt. And the cause? On the surface it appeared to be the pandemic, but in reality it was debt, pure and simple. The whole world relied on debt to survive. And when it came time to pay up, they couldn't.
Now it's happening again, although this time the creators of this havoc are being upfront and quite cavalier about the heartache and destruction they are causing.
So what are they doing to fix the problem? More debt. Yes, the Americans and the Europeans are creating more debt to solve their debt problems. Perhaps no one explained to them the concept of scraping the bottom of the barrel, of making up what they don't have instead of borrowing it.
The folk who have survived the pandemic and the ensuing financially tumultuous two years didn't borrow; they scraped the bottom of the barrel. They didn’t waste a thing. Not a food scrap, not a dollar on anything unnecessary, not petrol or clothing or even time.
But they didn't start scraping when the crisis hit. They actually started scraping long before. Living on a tight budget was and is their way of life. They live by the creed "waste not, want not" and have proved that it works.
Instead of buying a new car every five years, they'll buy a good used car every ten years. They will remodel and renovate instead of buying new furniture. They'll substitute less expensive things for the more expensive.
And they know what they want. They live the Cheapskates way so they can have the things they need and want, and are quite happy to ignore anything else. They don't try to keep up with the Joneses. And they are prepared to sacrifice in the short term to achieve their long-term goals.
They scrape the bottom of the barrel. They don't have more than necessary. You won't find cupboards full of games, books, toys, clothes, decorations, craft materials, dishes, shoes, movies, tools, household linens etc. that aren't used.
Their rubbish bins aren't full of wasted food and drink. When they leave the table their plates are empty and any leftovers have a plan. Fridges, freezers and pantries are full, of ingredients (because ingredients give you options) that will be used up completely.
Treats are just that: treats. They don't eat out at restaurants as a habit. Restaurants are for special occasions and are truly enjoyed. And you'll find they rarely indulge in takeaway or home delivery, if ever.
These frugal friends have learned that thrift, common sense, wise money management and delayed gratification are essential to living a debt free, cashed up life. And they are content with that.
Every purchase is thought over carefully. Prices are gathered, research is done, before a single cent is bought.
Living the Cheapskates way is valued. It's off-kilter to what is regarded as "normal", but a lifestyle of frugality, self-control, generosity and community is a lifestyle of prosperity. They are quaint values, but ones that are rooted in time and have proven to be sound, time and time again.
These values hark back to a simpler time and lifestyle, but they are just as relevant in the 21st century as they were in the 18th.
So how do we get our "normal" to be off kilter?
We start by paying attention to our habits.
For example, in our backyard at the moment is an old shovel. I am not entirely sure just how old it is, it came from my mother when we were married 23 years ago. Now that old shovel has a has cloth tape wrapped around the top to stop my hands from sliding down it. I could have gone out and bought a new handle, but really the cloth tape does as good a job as a new handle and I didn't have to buy it, it was already in the shed.
Little things like repairing what you can instead of spending money to replace, of only buying things you truly need and want, of looking for the best deal, whether it's on a house or a car or a bulk buy of meat, teaching our children the value of money by not buying them everything they want, by letting them work for the extra things they want, of not wasting a single thing, are good habits to develop and a great start to truly living the Cheapskates way.
Scraping the bottom of the barrel isn't about missing out. Instead, it's about finding the good stuff and really enjoying it.
Lesson 16 Challenge: Last week I challenged you to make some goals. This week I challenge you to take your goals and work out how long it's going to take you to realise them by using the Scrape the Bottom of the Barrel financial plan. Work out your bare bones Spending Plan, and if you apply just half the excess to your goals, how long will it take you to reach them? You can apply the other half of your excess to your debt and to building your Emergency Fund.
We all have them, those frugal friends who no matter what always seem to have the bills paid and money in the bank. They have a special gift for living the Cheapskates way - the gift for hunting out the best savings and deals on everything they need and want so they can live a life of abundance beneath their means. Some people might call it a gift.
Instead, I rather think it's a secret skill, one that anybody can learn.
These friends have honed their skill until they spend less, save more and live the life of their dreams. They have practiced these money secrets until they are habits, ingrained into their lifestyle.
The secrets aren't really secrets. Anyone can do what these frugal friends do - IF THEY REALLY WANT TO.
Perhaps that should be Money Secret No. 1 - You must really want to live life debt free, cashed up and laughing or it just won't happen for you. That can be the unofficial No. 1 Money Secret.
The official No. 1 Money Secret is Scrape the Bottom of the Barrel.
The world has just come through yet another catastrophic pandemic that caused yet another global financial crisis (or as I prefer to call it a ghastly financial crisis - global is just too big for us to honestly relate to). Jobs were lost, homes were lost, whole nations went bankrupt. And the cause? On the surface it appeared to be the pandemic, but in reality it was debt, pure and simple. The whole world relied on debt to survive. And when it came time to pay up, they couldn't.
Now it's happening again, although this time the creators of this havoc are being upfront and quite cavalier about the heartache and destruction they are causing.
So what are they doing to fix the problem? More debt. Yes, the Americans and the Europeans are creating more debt to solve their debt problems. Perhaps no one explained to them the concept of scraping the bottom of the barrel, of making up what they don't have instead of borrowing it.
The folk who have survived the pandemic and the ensuing financially tumultuous two years didn't borrow; they scraped the bottom of the barrel. They didn’t waste a thing. Not a food scrap, not a dollar on anything unnecessary, not petrol or clothing or even time.
But they didn't start scraping when the crisis hit. They actually started scraping long before. Living on a tight budget was and is their way of life. They live by the creed "waste not, want not" and have proved that it works.
Instead of buying a new car every five years, they'll buy a good used car every ten years. They will remodel and renovate instead of buying new furniture. They'll substitute less expensive things for the more expensive.
And they know what they want. They live the Cheapskates way so they can have the things they need and want, and are quite happy to ignore anything else. They don't try to keep up with the Joneses. And they are prepared to sacrifice in the short term to achieve their long-term goals.
They scrape the bottom of the barrel. They don't have more than necessary. You won't find cupboards full of games, books, toys, clothes, decorations, craft materials, dishes, shoes, movies, tools, household linens etc. that aren't used.
Their rubbish bins aren't full of wasted food and drink. When they leave the table their plates are empty and any leftovers have a plan. Fridges, freezers and pantries are full, of ingredients (because ingredients give you options) that will be used up completely.
Treats are just that: treats. They don't eat out at restaurants as a habit. Restaurants are for special occasions and are truly enjoyed. And you'll find they rarely indulge in takeaway or home delivery, if ever.
These frugal friends have learned that thrift, common sense, wise money management and delayed gratification are essential to living a debt free, cashed up life. And they are content with that.
Every purchase is thought over carefully. Prices are gathered, research is done, before a single cent is bought.
Living the Cheapskates way is valued. It's off-kilter to what is regarded as "normal", but a lifestyle of frugality, self-control, generosity and community is a lifestyle of prosperity. They are quaint values, but ones that are rooted in time and have proven to be sound, time and time again.
These values hark back to a simpler time and lifestyle, but they are just as relevant in the 21st century as they were in the 18th.
So how do we get our "normal" to be off kilter?
We start by paying attention to our habits.
For example, in our backyard at the moment is an old shovel. I am not entirely sure just how old it is, it came from my mother when we were married 23 years ago. Now that old shovel has a has cloth tape wrapped around the top to stop my hands from sliding down it. I could have gone out and bought a new handle, but really the cloth tape does as good a job as a new handle and I didn't have to buy it, it was already in the shed.
Little things like repairing what you can instead of spending money to replace, of only buying things you truly need and want, of looking for the best deal, whether it's on a house or a car or a bulk buy of meat, teaching our children the value of money by not buying them everything they want, by letting them work for the extra things they want, of not wasting a single thing, are good habits to develop and a great start to truly living the Cheapskates way.
Scraping the bottom of the barrel isn't about missing out. Instead, it's about finding the good stuff and really enjoying it.
Lesson 16 Challenge: Last week I challenged you to make some goals. This week I challenge you to take your goals and work out how long it's going to take you to realise them by using the Scrape the Bottom of the Barrel financial plan. Work out your bare bones Spending Plan, and if you apply just half the excess to your goals, how long will it take you to reach them? You can apply the other half of your excess to your debt and to building your Emergency Fund.