Frugality doesn’t have to mean depriving yourself – you can have fun finding no-cost ways to save money.
Key Points:
- Your work employment is the single most important source of income you have
- Under stress, it’s harder to think calmly, and hence, to make better money decisions
- To get out of your financial sand trap, you must also change all your prior ways of thinking about money
- If you’re disorganized with your paper bills and notices, you won’t be able to figure your situation out
There is no greater pressure today for people to tighten their belts, find how to economize with what they’ve got, and search for ways to save money. For many people that’s easier said than done.
I’d like to suggest that even the most frugal person can use even more ideas to stretch a dollar. Everyone can use fresh new ideas.
Here are some ways to save money:
- Think it through. Even if you have a job, get honest with your lifestyle. Are you living beyond your means? Do you have lifestyle ‘creep’ because of a fear of missing something, or not meeting other people’s expectations? Have you succumbed to FOMO?
- Your work employment is the single most important source of income you have. If you don’t have a job, get one. Even if it’s a bridge to a better one later. Don’t play hard to get. You are not precious. Everyone needs to work these days.
- Ditch the ‘live for today’ mentality. Today is only 24 hours – tomorrow is much longer. Immediate gratification is to be avoided at all costs. Replace all thoughts that “you need something now”, to “I don’t need it at all.”
- You don’t need a spa or drugs to relax. They cost plenty of money. Under stress, it’s harder to think calmly, and hence, to make better money decisions. There are simple no-cost ways to calm down, such as respiration techniques, meditation and listening to music. Try listening to free ASMR (Autonomous Sensory Meridian Response) tracks to down-train your nervous system. (FYI- ASMR streams are used in airports to keep large groups of people feeling relaxed.)
- Meditate every day. Do deep breathing several times a day and certainly any time you feel anxious. Listen to enjoyable music every day. Doing this will have profound effects on your mental state.
- Ask yourself some questions. Do you use credit cards for non-emergencies? Do you avoid opening your bank statement? Have you been caught not having the money to pay for critical drugs at the pharmacy? Have you ever loaned out money when you’re in debt? Now, reflect on the reasons why, if you answered “yes” to any of them.
- To get out of your financial sand trap, you must also change all your prior ways of thinking about money. You are working on the new you with a new growth-focused mindset. Know that you are a work in progress. You just need to put in the effort.
- People with a growth mindset recognize that they can radically change their spending habits for the better. This is good news. For you, the key to this change starts with your thoughts, when you start thinking and enacting new ideas. The effect of this state-change in your cognition is called neuroplasticity.
- If you’re disorganized with your paper bills and notices, you won’t be able to figure your situation out. You won’t know what debts you have, what your income is, and what obligations you’ve committed yourself to. Get your paper files organized even if you have to use an old shoe box. Turn a timer on for 20 minutes and spend the 20 minutes pulling together your files. Repeat the next day. Keep trying every day.
References:
- Almenberg, J., Lusardi, A., Säve‐Söderbergh, J., & Vestman, R. (2021). Attitudes towards debt and debt behavior. The Scandinavian Journal of Economics.
About the Author:
S. M. Mitchell is a former radio host in Brisbane Australia. He was sometimes known as a financial comedian who used black humor to poke fun at people’s outrageous spending habits.
His straight forward approach in this book is decidedly less humorous and much more practical.