BankerGirl

Posted by Heidi on June 3rd, 2008 in household spending

The following is a guest post to by Jonathan at MasterYourCard.  
 
So you need a microscope to see your savings and your boss is a tightwad, but you still like the good life? You don’t have to marry a millionaire to transform the way you live. Just follow these simple steps.
 
1. Just say “no” to retail. Avoid paying full retail price while still shopping for great-quality products. Rather than buying low-cost economy items at a big box store, buy the best - but shop at sales, auction sites, factory outlets, and consignment stores. You can still have that designer
purse or that marble countertop - and pay 75% less for it.
 
2. Save, don’t scrimp. There are some millionaires who live miserably and low-income families that live wonderfully. The point is not to count every penny and be tight-fisted. Giving to charity and sometimes splurging are de rigueur. Just make sure that you only splurge once in a while and you get a receipt for that donation for that tax deduction.
 
3. Figure out what you must have and what you want to have. Write down all the stuff you can’t live without - your medication, your dentists visits, maybe that magazine subscription that brightens your life. Then, write down what you really want to have. If you’re having trouble, imagine your most fabulous life. What do you need to get rid of to get there? If you want to have lots of adventure, maybe you shouldn’t be watching TV all day - get rid of that cable bill.
 
4. Save money for a few nice purchases. Start putting aside an extra 5% or 10% — 10% should already be going into your savings account for emergencies - for nice purchases. Rather than buying lattes every day, for example, save up for half a year for a pair of real diamond earrings.
 
5. Be grateful for what you have now. Sure, it sounds all happy-huggy, but it’s true - your small budget could be perceived as a fortune by someone else.
 
6. Don’t shop as a pick-me-up or an ego boost. If you need to feel a little better, put that credit card away and go for a walk, talk with a friend, or head to your local library and “shop” there.
 
7. Spend more purposefully. Are you throwing away food or not wearing clothes you buy? You’re wasting money, so stop it. If something isn’t an absolute need or so fabulous that it makes your heart pound, do without it.
 
8. Get inconvenient. You pay big for convenience, whether it’s pre-cut apples at the grocery store or someone else cleaning your gutters. Do it yourself and save a bundle.
 
9. Pay less for your home. Your rent or mortgage is likely your biggest expense. You can save some cash by getting a roommate, moving into smaller (but fabulous) digs, or refinancing your mortgage. Reevaluate your living costs at least once every year.
 
10. Surround yourself with small, attractive luxuries. Some ideas: get cuttings from a friend’s garden and plant in your home, buy some attractive fabric to drape over your couch, splurge on a cheery throw pillow, or pick up a soft, cozy bathroom rug.  these little things don’t have to cost a lot, and can make all the difference in how you think about the space where you live.

I think that Jonathan has a lot of great thoughts here - and a nice reminder for me as I’ve kind of fallen off the thrifty wagon as of late.  All of these solutions may not be right for everyone, so pick and choose to tailor your list for your situation (for example, it may be too much for a homeowner to rethink their living situation annually, but being mindful about housing expenses is always a good idea). 

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