Wednesday, February 4, 2009

Money-Saving Tips

Being raised by a man born in 1928 at the start of the Great Depression has some decided advantages when it comes to living in a budget.

I have been raised to expect the fiery hand of God to descend should I ever allow credit card debt to get out of hand. I believe it's a venal sin not to wash and re-use plastic Glad bags. I negotiated hard for an excellent mortgage rate and I pay more than my minimum payment. I pay my bills on time and, in truth be told, often before the bill even arrives at my house.

With all these checks and balances in place, I watched, with interest, as Oprah interviewed some ordinary people who are extraordinary savers.

One couple had a combined income of $58,000 a year, four children, owned their own home, and savings of over $70,000.

How do they do it?

It's pretty simple, really. Mindful spending.

Almost everyone she interviewed said the same thing. Become more conscious of what you spend. Use cash or debit, instead of credit cards. And ask yourself, "Is that a want or need?"

Many of them cited how just 30 minutes of research resulted in savings of $50 or $100 a month on their home phone/internet/and cable bills.

As someone who works on these kinds of accounts, I can tell you that there is often wiggle room. As the Aussies are fond of saying, "The squealing pig gets fed."

Does this mean we all have to lead sullen, Amish lives? Not at all. In fact, most of the families interviewed realized, very shortly, that making the distinction between want and need actually freed up more of their time for the really important things in life. The super-expensive family holiday gave way to a Staycation, where they happily camped in the backyard, under the stars. Moms and kids got free DVDs at the library, instead of buying them the day they were released. They played board game.

In short, they turned their attention to things that money couldn't buy -- time together.

4 comments:

Hez said...

Thanks for this, Franny! I'm about to go to an appointment where I was going to pay with my credit card... but it makes more sense to pay with my debit so I don't spend that money elsewhere.

I wish I had seen that show last night! I love that kind of stuff...

©km said...

Great advice, from Oprah of all people. Most people live at or above their means - an act that will never let them really save anything. The money they make is there to be spent.

I dunno why it's such a revolutionary idea to live below one's means and value what one has.

My dad is only a few years younger than yours.. could be why we both sometimes pay bills before they even arrive and pay them off.

Could also be why we both take vacations off the beaten path - you parents probably didn't, either.

PTR said...

I'm an aussie and I have never heard anybody say, "The squealing pig gets fed" - except you!

Joe said...

I am a saver. Some might call me cheap.

My lawyer has 2 homes, the biggest boat I have ever been on (that's another story), about 15 road bikes, and he says "How come you have more money than me?" Of course I recounted the above.

He was shocked to hear I have one credit card.

I probably am cheap. I shop at TJ Maxx and Marshalls for deals (I get $100 dress shirts for $25), $1,600 Hcikey Freeman suits for $500 (you have to find the right Marshalls), and more.

I probably have too much of stuff is my "disease." I have 3 ipods - bought off eBay - just in case one breaks - about 12 blue suits - in case one wears out - a zillion ties - although no one wears them any more - about 15 black Bally/Ferragamos - bought from Nordstrom Rack, I buy my books at a discount book store or second hand book store and so on.

As I write this, I see I am wierd. Not cheap.

Jeez.

But at least I have savings. I will not live under a highway by-pass.

Joe