It’s getting scary out there.
Man oh man, all of us need to reflect on how we are going to manage the next couple of years. With inflation, stagnant wage growth, insecurity surrounding jobs and public programs like Medicare, Medicaid, and social security facing challenges from the administration, many of us will be in a world of hurt.
The thing is that if you strategize you may make it through this challenging time scathed but not broken. Here’s how-
I liken the effort to the problem of eggs. Right now eggs are very expensive in most areas of the United States. What’s a person to do? Well I suggest the easiest thing to do is DON’T BUY EGGS. Eggs are not required for life.
This example may seem simplistic, but it is part of a larger strategy. The strategy is recognizing that many things we consider essential are not. They are nice to have but not required to live an abundant life.
When I think about how I want to spend money I consider the following-
Is this item a consumable?
Will this item promote health?
Will this item make or break a meal, an event or action?
Is there a more affordable way to accomplish the same action?
Let’s break this down-
Is the item I’m considering purchasing a consumable? Is it clothes, food, gasoline, or another item that won’t last, is it something I consume, then digest, then eliminate. Food and gas are easy to identify as consumable, but why did I list clothing?
Clothing can last a long time so it is both an investment and a consumable. If you are consuming fast fashion, that is similar to fast food, it’s not meant to last therefore it is a consumable.
Imagine committing this year to only investing in items that you know will last several years. How can you do this? I like to invest in simple base pieces with limited patterns and “dress them up” with accessories. Anyone can do this.
Think of your dad, he had a hand full of good suits he wore for years. He paired his suits with button down shirts and a great tie. His initial investment in a few great suits cost a lot of money, however on a regular basis, he likely bought a couple of shirts each year and that was that.
Think about your mom, did she take a moment to repair damage done to garments either from wear and tear or from catching her sleeve on a door handle thereby causing a small tear?
Recently I was listening to a woman speak about how she likes to repair her clothes in a similar way that Japanese artists repair pottery with a method called Kinsugi. They use gold, silver, or platinum so that the repair shows the history of the object. I began using this method to repair snags in my sweaters. I use embroidery thread in a slightly different shade to make the repair. Now I have an article that reflects time, use, and appreciation that I can wear. I have the added benefit of a conversation starter with my repairs so I can share my philosophy of frugal living with anyone who has the patience to listen.
If you can, commit to repairing items, and avoid buying items while our economy struggles. You can’t have everything you want sometimes. Recognizing what is truly NEEDED in your life versus what is truly WANTED in your life is a good exercise to build your delayed gratification muscle.
Without health you have nothing
If the item you are considering will benefit your health in a measurable way, it might be worth the cost. For example pain relievers, or other medication you need to feel good, or healthy foods to support your system, or investing in home workout equipment instead of a gym membership. But if you want to get a pizza, a bottle of whiskey, and a half gallon of ice cream to “treat yourself” after a long week, I suggest you consider the health benefits of all these items and make a choice that supports your health and your pocket book.
How to substitute
Find substitutes, or buy less if you feel your cravings are going through the roof. For example, if you normally buy a large pizza and find you have left overs, consider buying a medium pizza and pairing it with a salad. Skip the whiskey all together and brew some tea. Skip the ice cream and enjoy fruit instead.
I realize a medium pizza won’t be as good a value as a large. Often they are so close in price it seems logical to get a large pizza for a dollar or two more, but there is a cost beyond the cost of the pizza, and that is to your health.
Consider how likely you are to fall asleep in a food coma versus getting out for a walk or doing some light stretching.
How likely are you to microwave left over pizza for breakfast the next morning versus having a bowl of oatmeal?
How likely is it that you will do that for lunch.
How awful will you feel after you’ve consumer a sheet of baked carbs smothered in grease and fat for two meals in two days?
I know I would simply want to sleep, or shower, or both after I eat fast food, and I almost never have a good exercise out come after consuming fast food.
What are the consequences of sacrifice?
When was the last time a single item ruined your meal, event or action? If you burn the turkey at thanksgiving, you are going to have to scramble but even without turkey your meal of side dishes will be perfectly fine, as long as you love the company you’re with.
How about an event? Did you forget something that you thought was critical to ‘pull off’ the perfect event. No one will know but you. If it was a bouquet of flowers or balloons. Almost every event will have forgotten items, missed cues, or failed decor, food, accompaniment...no event is perfect and no one will care.
Don’t make the event about you, recognize the value of being there, showing up, participating, and stop worrying about what you didn’t do, bring or buy. Some people will care, but I can tell you from my experience the people who sit around looking for folks to judge aren’t going to be the people you want in your life for long. It’s just too much work to make some people happy, and they can stew in their controlling behavior all they want, but you are not required to participate.
You will find alternatives
There is almost always a more affordable option to everything. Let’s say you are planning a family vacation this year, but everything is so expensive you know it will be hard to manage the financial setback of a big trip to Hawaii or Disneyland.
What can you do?
Consider planning a local vacation.
Consider a camping vacation if you are outfitted for something like that.
Consider a short four or five day getaway instead of a two week romp on the beach.
We all need to take time out and certainly the burning desire to see new locals is a pull many of us struggle to contain, but let me tell you my story. Back during the height of COVID, our cat sitter was exposed to the disease and told us she could watch our cat but we had to decide if that was okay. After considering all the ramifications of potentially having a person with COVID quarantining in our home so we could go camping for a week, it didn’t seem like a prudent option. Instead of taking that week to drive to a campsite we shifted our plans to go kayaking, we drove to a nearby town one day to have a great lunch and enjoy their soaking pool at the spa. We went to local museums in the nearby down town. We hiked trails that were a bit further away than we normally hike so they were new and exciting. We drove to the coast in the afternoon so we could take great photos of the setting sun. We got up very early to photo our quaint downtown at sunrise.
Would I rather have gone camping and hiking for a week? Yes. But finding alternatives wasn’t the end of the world. It was fun and allowed my spouse and I to relax in each others company doing things that are different from what we normally do. We saved a lot of money between the cost of gasoline accommodations restaurant food and the cat sitter.
Sometimes things aren’t perfect
Right now things aren’t perfect. Things may not be perfect for a while. This is not news. Over the past fourteen years I’ve been debt free, the economy has done everything. When COVID happened my 401k tanked. I was laid off work. There was no toilet paper at the store much less a lot of food items I would normally buy. It was a mess. But we worked with what we had. We all did this, and we can do it again.
I believe in you
When I began my debt free journey, I didn’t know anything about the national economy, I only knew that my life of debt wasn’t sustainable for me. I chose to do something about it. It was hard at first, but now after so many years of living debt free it is within my nature. I wish you knew how liberating it is to live debt free. Of all the tasks I’ve taken on in my life, becoming debt free was one of the most challenging in that I had to remain focused for years. Imagine going on a diet that lasts three years. It was hard, but I learned a lot over that time.
If you feel overwhelmed, I understand. It is scary. I remember feeling sick at my stomach when I realized how much debt I had and how much of my wage was simply going towards paying for things I bought years back and I had no idea what I purchased. Sound familiar?
If you can, take time to understand your starting point. Stop using credit cards TODAY. Pick one debt and figure out how to pay it off, then tackle the next one. It may take longer than three years to get out of debt. I promise, when you are finally free of the burden, you will be amazed how living debt free feels. It is easily one of the best choices I’ve ever made. I don’t live a highfalutin life, but I do live a life unburdened, and that is the best kind of wealth.
If you want to learn more about debt free living, buy my book, “Never Worry About Money Again, Gain Financial Freedom by Becoming Better at Managing the Money You Have”
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