I’ve saved countless THOUSANDS of dollars by being thrifty. I’m nobody special. I just happen to have a different approach when it comes to spending money.
This isn’t a “Rags to Riches” story, but rather a lesson that I learned growing up. Being the youngest of 3 siblings, I watched my parents struggle to raise us. Money was tight most of my childhood years, and I watched my mother sew the clothes I wore to school. She clipped coupons, made meals at home every day, and spent the little money they had to provide a decent life for us.
Growing up into adulthood, I saw a lot of financial mistakes made by people close to me. New car payments they couldn’t make, expensive mortgages that couldn’t be met, and all the fancy gadgets that they would buy when they couldn’t seem to afford the car they drove or the house they lived in!!!
That made me realize that I didn’t want to be like them. I never made a lot of money in my life, but I learned to live within my means. I shopped around, as all the stores had similar items that I wanted to buy. I clip coupons to this day… as I don’t see why I shouldn’t save $1 on something I was going to buy anyway. I go to the thrift stores, use promotional discount codes online, and I never really buy name brand stuff.
But mostly, it doesn’t bother me a bit what other people think on how I live my life. I work hard, and I save hard. And I do it by following a few basic rules:
minimize Spending
Easier said than done sometimes. Cut corners where you can, especially when it comes to eating out. Track your spending to see where your money goes... then plug the holes.
Don't overextend yourself
And I'm talking about monthly payments. Pay cash for it and be done! Don't financially commit money every month for a revolving credit line. That's the surest way to get yourself into a hole.
Buy used when feasible
This is the bread and butter of being thrifty. Why pay retail for something when there's a good used option out there? Did you buy a new car when you got on island? Me neither. I paid cash for a good used car and it's mine. Why not do that with other items? My husband didn't know that his toast was made in a $4 toaster, and I'm pretty sure it tastes the same as the $13 option the BX sells.
save save save
Now that you've started saving money, it's time to start stockpiling it. Invest into your retirement account, TSP, Roth, or brokerage account. Living a thrifty lifestyle leads to this step, so be smart about what you do once you get here. THIS is what you're trying to accomplish.