Principles for Cheapskates
Be patient if you want something, and agree - husband and wife.
It's OK to wait until you can afford it. or find a good deal.
Look around and don't jump on the first thing you see.
Go online, and check out eBay.
Some things are better used, buy used where you can!
The cheapest care you'll ever have is the one you currently own
(see below where I proved this!)
Cheap doesn't mean low quality. Buy Quality.
Be willing to buy a lot of food when it's cheap and freeze it.
Make your own.
Grow your own.
Pick your own, U-Pick.
Get 3 estimates for every job you contract out.
Garage Sales
- are awesome, check the Friday and Saturday papers
- plan your route
- do 2 hrs every Friday or Saturday.
- Estate sales are the best
Craigslist - go here to see what's for sale in your area! It is a free classified ads website, an awesome free service!
Liquidations, going out business sales, can be pretty good too.
Buy more when it's on sale.
Three Old Cars: I heard from Ron Blue that 'the cheapest car you'll ever own is the one you already have.' So, I tested this out. We had a 1982 Honda Civic, 1986 Buick LeSabre, 1979 Ford F-250 truck, and I ran them from 1990 to 2004, for 14 years! I simply fixed one if it broke, and used the truck as backup, unless it broke. Doing most of the easy fixes myself (alternator, battery, oil) I also paid hundreds of dollars for water pumps, gasket leaks, even paid for a new $2000 transmission rebuild for the Buick and a new Honda motor! Something broke down every 4-6 months, it seemed. I added up all the maintenance costs, including tires, filters, etc.
The total cost was $49/month/car! Believe it!
Excerpts from
"The Complete Cheapskate" by Mary Hunt:
How to break free from money worries forever, without sacrificing your quality of life
A cheapskate:
Does not spend more money than he/she earns, no matter how desperate or tempting the situation might appear.
Has a spirit of generosity, regularly sharing money, time, and other resources with people in need.
Lives honestly and ethically, regardless of the temptation to do otherwise in order to get a better deal.
Saves at least 10 percent of all income.
Does not buy compulsively but makes intelligent and well-thought-out choices.
Lives within a financial plan that includes a margin to allow for fun and spontaneity.
A quiz: (Yes/No)
1.0 I spend much of my take-home income paying credit card bills.
2.0 I am near, at, or over the limit on my lines of credit.
3.0 I am regularly late paying my bills.
4.0 I often must pay late penalties.
5.0 I make only the minimum payment on my charge account(s).
6.0 I have to pay half my bills one month and half the next month because I can't pay all of them at the same time.
7.0 I write postdated checks.
8.0 I've bounced three checks in the last year.
9.0 I often "overshop" to meet the minimum-purchase requirement for credit card transactions.
10.0 I've taken a cash advance on one credit card to make the payment on another card.
11.0 I have to work overtime just to meet my current financial obligations.
12.0 I don't know exactly how much I owe in installments debts.
13.0 I worry about money quite a bit.
14.0 I do not have a regular savings program.
15.0 I carry a balance from month to month on at least one credit card and keep hoping to pay it off completely.
16.0 Some months I do pretty well, but other months I'm caught off guard by unexpected expenses.
17.0 I live from paycheck to paycheck and would be in big trouble if I lost my job.
18.0 I'd love to make charitable contributions, but it's impossible. There's just not enough money to go around.
19.0 I believe that if I made more money, I'd be just fine.
20.0 Creditors are calling all the time, and I just don't know how long I'll be able to juggle everything.
21.0 I use credit cards to buy things I would never purchase with cash.
22.0 I have applied for more than five credit cards in the past year.
23.0 I regularly pay for groceries with a credit card because I just don't have the cash.
24.0 My credit cards make me feel secure. There's a sense of freedom that comes with the ability to charge things.
25.0 I have lied to my spouse or creditors about making payments.
If you answered no to all of the foregoing, you obviously know how to control your spending and manage your resources in an intelligent and reasonable manner. If you answered yes to three or fewer statements, you are probably okay for now, but you should consider this a warning sign. Unless you change your ways, problems do lie ahead for you. If you answered yes to four or more statements, you need to work on becoming a complete cheapskate.
You're Not Alone
90% of your friends and relatives know very little about money management
80% of all Americans have never had a savings account
10% of the total population controls their spending
There are approximately 1 billion active credit cards in this country
28% pay their balances in full every 30 days
720 million credit card accounts carry balances month after month, year after year
10 Healthy Attitudes About Money
1.I choose to understand the truth about money.
I know that money cannot be equated with love, happiness, worth, respect, social standing, approval, acceptance, or goodness, nor can it purchase any of these things for me. Money is simply a valuable commodity with which I am compensated for the use of my abilities, skills, and talents. Money is a convenient form of exchange for goods and services. I can abuse money, or I can put it to good use.
2.I commit to being responsible and honest.
I acknowledge that it is irresponsible to write checks before the funds are in my account, make purchases on credit when I know I don't have the resources to repay the debt immediately, fail to balance my checking account, not work up to my abilities, and put off paying my bills. I will respond openly and honestly in all of my financial affairs.
3.I will not spend money that is not mine.
I commit to incur no more unsecured debt (credit cards, personal loans, and so on). I will not pledge future income for present goods and services.
4.I will respond appropriately.
From now on when I encounter discouragement, stress, disappointment, or loneliness, I will not spend money in an effort to avoid facing the real, underlying problem. Instead I will face the situation head-on and deal with the issues in a healthy way.
5.I accept the responsibility and reject the shame.
I acknowledge that I am responsible for my present financial situation. I have made some mistakes. I have failed to plan ahead appropriately. But I am not the sum of my debts; my bank balance does not define who I am, and my creditors do not own me. I owe them money, which I will repay, but I do not owe them my life.
6.I commit to clarity.
I commit to record the simple details of how I spend my money. I commit to face the truth on a daily basis by keeping my purchases recorded, my checkbook balanced, my mail opened, and my bills in order and paid on time.
7.I will exercise my dreams.
I refuse to defer living life to its fullest until some future time when I get my money situation straightened out.
8.I will search out true sources of happiness and will practice thankfulness.
I will acknowledge that I have asked God for things to enjoy life, and He gave me life to enjoy things. I will look for my joy and contentment in what is permanent, and I will find my anchor in the fact that the God of the universe loves and cares for me.
9.I will regularly share my resources with others.
I commit to give back a portion of my money to His work and share my resources with those who are in need.
10.I commit to do whatever it takes and make whatever sacrifices are necessary to achieve and maintain solvency.
I understand that desperate situations often require drastic measures. I am willing to make the adjustments necessary to live within my means. My goal is to achieve personal solvency: That condition where I give generously, save consistently, pay my bills, fulfill my obligations, and still have some left over.
Debt Elimination
There are several methods of rapid debt elimination that work equally well. One method involves a plan whereby each of your debts is paid off proportionately so that they all reach zero balance at the same time. Here is a method based on the principle that it feels good to work extra hard on one bill at a time in order to experience the exhilaration of a zero balance as quickly as possible. Paying off one debt completely gives a great boost to your determination to pay off the next and the next.
First you must determine exactly how much you owe and the nature of your debts. Make a list of all the unsecured debts (credit card balances, personal loans, payments to dentists/doctors, etc.), list the current balance, minimum payment, interest rate, and number of payments required to the amount in full. Next, arrange these debts in order of the number of months required to pay in full, with the shortest payoff first on the list.
It's never too late to begin turning things around today. Embrace joy, choose happiness, and hold fast to the intangibles that cannot be taken from you. And don't deny yourself the simple pleasures in life. Just make sure that if they have a price tag, you pay for them with cash!
