frugal2free

Access to not acquisition of

Over the last two years I read or listened to nearly 300 books. 

I acquired perhaps 10-15  from Amazon,

but the majority I gained access to for free from

the public library.   

$7,500 (300 books multiplied by $25) is the amount I could have spent to acquire the books. Instead I gained access to 300 books for about $150.

The same holds true for videos,  transportation, video games, 

vacation homes, ATVs, boats, and RVs .

Acquisition is expensive; access is affordable and it scales (can be increased with ease).

Why buy or acquire when you can borrow, trade, rent or otherwise gain access to? 

When we own or acquire we must also pay acquisition costs

such as insurance,  maintenance and finance charges.

Access is the goal- not acquisition.

 

 

(Photo courtesy Suat Eman)

 

Are you listening to Signals or Noise?

Signal-to-noise ratio is occasionally used  to refer to the ratio of useful information to false or irrelevant data.

Noise?

Spam on the internet .  Clever but inaccurate financial sayings.  Doodads.  Ceaseless tweeting/ texting. Busyness.

 Signals?

Family. Friends. Assets. Valuable goods or services. Time. Exercise. Stillness. Contemplation. Growth.

Eliminate noise +  invest in signals =  happiness and freedom. 

 

 

(Photo courtesy Freedigitalphotos.net)

 

The Electric Kid

Here's a novel idea.

Put a child in charge of decreasing your utilities and give her 50% of every dollar saved. 

Tell her she can use any means to justify a lower utility bill. Her creativity will soar as she imagines her big pay-day.

Average monthly electric bill  is $110.55

Average monthly water bill  is over $39

Average monthly cell phone bill  is $47.21

If you can tolerate your children telling you to turn off  lights, watch less TV and turn off the water when you brush then you just might see your utilities decrease by as much as 50%. That's about $40 for your child and $40 extra for you each month.

What do you think are other ways children can help with family finances?

 

(Photo courtesy Phaitoon)

Designer Jeans

A few months ago my wife surprised me with a pair of designer jeans she had picked up at a thrift store. She bought a bag full of clothes for $5 from which she pulled  out several items for our children and then the jeans for me. The jeans retail for $150 and we paid under $1.  It reminded me of a fundamental financial peace lesson:

Buy wholesale and sell retail.

Trouble, of course, happens when you switch the verbs.

Buying retail only to sell wholesale ( think houses or cars) causes poverty. 

Designer jeans bought for $1  can later be sold for $10-50,

but designer jeans bought for $150

will rarely be sold for even a small fraction of the original cost. 

Money is made or saved on your purchase to a greater extent than when you sell an item.

 

 

 (Image via Wikipedia)

True Wealth

Thought provoking wealth quotes

by Brigham Young, 

Buckminster Fuller,

and Henry David Thoreau.

Controlled time is our true wealth.

Wealth is the ability to fully experience life.

True wealth consists in the skill to produce conveniences and comforts from the elements.

How do you define wealth?

Is it free time, abundant resources, exotic experiences, loving relationships?

Your definition will determine your priorities.

 

 

(Photo courtesy Vichie81)

The $6,000 transmission

Stephen Covey   teaches a powerful truth. Using several examples from nature he shows how the 3rd Alternative (win-win from the 7  Habits) is the best course for creativity and success. His "third alternative" in frugal terms looks like this:

Recently a couple was told they need a $6,000 transmission for their vehicle. 

Alternative 1:   pay $6,000

Alternative 2:   Don't pay it and junk the $10,000 car

Alternative 3:  Call other mechanics. Or take the car to a school shop class.  Or negotiate a better price.  Or get a second opinion. Or barter with a mechanic. Or offer to refer clients if they fix the car for free.  Or___  Or___ Or__.

Or is the the 3rd alternative.  Or is abundance  Give it a try.

 

(Photo courtesy Jomphong)

Adjectives, verbs and maxims

Pay as you go

Live within your means/Expand your means

Be Frugal

Economize

Prepare

What if you obsessed about one of these today?

 

 

(Photo courtesy Master Isolated Images)

 

Chronos Vs. Impulse

 

 

 

 

 

 

 

 

 

Money accumulation or loss is highly correlated and dependent on Chronos.

"Let me get two other quotes before I decide"  you tell the Mechanic/ loan officer/doctor.

 

"I will buy a used car ($5,200)  instead of the new car($27,000)"  you tell yourself.

Chronology in money matters means patience and buying older, high quality items.

Impulse causes us to buy now, pay later and pay dearly. "I want new and now."  "I can afford the payments."

If you control Chronos often, then you can enjoy an occasional impulse buy.

 

(Photo courtesy Sakvatere Vuono)