frugal2free

How to enjoy every movie, read any book and buy everything you want

1. Make a list of what you want
2. Add to the list only when you have studied the movie, book or other want and determined you really want to watch/read/ enjoy it.
3. Find free or nearly free resources for your wants (library, Netflix, Hulu, friends, Librivox, internet, Project Gutenburg, mystery shops, barter sites, freecycle, eBay)
4. Order your want
5. Listen, watch or read to reward yourself for doing something difficult.

I routinely listen to a book while completing paperwork. I watch movies while I work-out or after I have accomplished my daily goals. Of course you become very selective and yet expansive by keeping a list of the things you want.

The List

Making a list of things not do is very effective in living a debt-free life. What things should you not do today?

• Not to buy on certain days?
• Not co-sign?
• Not support negative habits?
• Not buy from select stores?
• Not work past a certain hour?
• Not use a line of credit?
• Not have more than 1/2/3 credit cards?
• Not bounce any checks?
• Not pass a person in need?

 

Life is all about what we do, how we do it and what we don't do. Those three things coupled with are relationships determine who we are and what we will become.

 

(Photo courtesy Rawich)

Megaphones are not actions

Actions are supposed to  speak louder than words, but occasionally we default to megaphones instead of exemplary actions. We tell people what we (and they) should do, but then don't do it.

Two things to remember about frugality.

To be financially independent: you must know and you must do--talk doesn't count.

Ignorance and laziness are the two culprits for ruin. Whereas knowledge and diligent implementation are key to miracles.

Financial ignorance  and mere  lip service are futile.

If you typically know and then don't do-- increase your commitment.

If you typically don't know what to do--increase your knowledge.

To change your financial well-being you have to be committed.  Thrifty people prefer actions to megaphones.

 

(Photo courtesy Stockimages)

Numbers never lie?

People use numbers to illuminate or obscure.  Salespeople and marketers occasionally use numbers to sell a bad deal. Remember a common sales technique is to use numbers without comparison and without context.

Only by looking at numbers in context and against other alternatives do we discover misinformation.

Is $5,000 a good deal for an engagement ring? Maybe. What does it mean to the person who will wear it? What is the average price for a ring? Can it be paid for now? Would CZ  or a smaller ring be more desirable for the recipient? What do other Jewelers charge for similar rings? Does it matter if it was previously priced at $7,500 or is the intrinsic worth more important than the discount?

Numbers don't lie but people are prone to manipulate numbers to support their beliefs. Put numbers in context and compare numbers with other options to prevent manipulations of numbers.

 Warning: don't be fooled when people use percentages instead of numerals to sell a concept or product (e.g. % of Titanic survivors vs. total number survived by class).

 

 

(Photo courtesy jannoon028)

Clouded thinking

Financial decisions are rarely made in ideal emotional states, but they should be. We often have anger, envy, fear, desperation, or loss clouding our thoughts when we make a money decision.

Debt collectors get debtors angry so they'll pay the collector first. They win when debtors lose their anger.

Under major stress, parents succumb to expensive fast food in order to appease rowdy children.

The key to making frugal decisions is knowing what mood you are in. Once you know your mood, establish a safety-valve: A waiting period/a person to consult with/a sanctuary. Find a way to get to your ideal emotional state before making a financial choice. Additionally decide what you will do in forthcoming, adverse conditions. We each know what triggers our negative emotions. Use that personal information to formulate a well-rehearsed plan for dealing with future emotional challenges.

A friend of mine remained placid during a congested city drive despite near accidents and limited parking. I congratulated him on his ability to stay calm. He said he learned his emotional triggers and worked hard to plan ahead to avoid anger.

Emotions can cloud thinking, but planning ahead can clear our minds to make wise choices.

 

(Photo courtesy pakorn)

Sometimes the best purchase is the one you don't make

Frugal choices often involve comparison between two consumption choices: drive a car or ride a bike? clothes line for your laundry or a clothes dryer? Walmart or Target? fly or drive for vacation?

A third alternative is to completely forgo a purchase. Set a goal to live strictly within your means. Then look to avoid purchases  a little more often.

Some of my best non-purchases ever:

• A time-share when we were broke (it was 50% off retail)
• A second car during college
• Commercial Real Estate during a boom
• A financed, immediate one-year supply of food
• A financed $30,000 new vehicle

A $1,500 couch for $200 is a good deal, but not a great deal.  A great deal is not to buy a  couch--especially if your old one works just fine. No matter how much you "save" in comparison shopping, you always "save" more when you don't spend any money.

The distinction isn't always clear, but it becomes less foggy by practicing discipline and realizing that money is accumulated by saying no.

 

 (Photo courtesy Luigi  diamanti)

Elvis understood residual income

Elvis's estate earns over 40 million dollars a year although he passed away in 1977.  He created music works that people have enjoyed for many years. Elvis created a vast amount of residual income.  Residual income is getting an ongoing stream of income for past work.

We all have a hobby or job that we could offer as a creative piece to generate residual income. A mechanic could offer a manual for DIY types. A car salesman could offer car-buying videos on You Tube. A day care provider could establish parenting clinics. A seamstress could offer online tutorials. A school teacher could offer a short e-book on getting good grades. A retail sales clerk could start a small boutique.

Ironically passive income requires action, non-passive action that is. Today is a good day to create something to help others for a long time to come. What can you create to improve others while building residual income?

 

(Photo courtesy Wikipedia)

 

Tonto & Ronald were connectors

Tonto made the Lone Ranger better.  Tonto was a connector. He helped the Lone Ranger (leader) succeed by completing  him. He connected the Lone Ranger with success.

Metrics rarely measure a connector's contribution. There is no number for a person who provides help on a double team. There is no measure for a listener. A connector sees opportunities in relationships and ideas. Then he uses them to improve his team's chance for success.

Connectors are the glue holding winning organizations together.

Ronald Reagan connected Americans to a belief in America's greatness. He saw hope and then offered his vision of hope to Americans in despair.

Connectors aren't often noticed, but they are essential. Where can you be a better connector? Who could you connect others to? What can you do to help others shine? Who are the  connectors in your life?  What could you do to let them know you appreciate them as connectors?

 Look for ways to help your family's finances thrive by being a connector. Connect your family to financial tools. Connect them with financial intelligence.  Be a Tonto  by clearing the path for your family to succeed. Be a Ronald Reagan by creating a compelling financial vision.

 

(Photo courtesy dan)

!Imbued w/ Insubordination???

I was in the principle's office in Eighth grade when I was labeled an "insubordinate student". I believe the offense was attempting to clarify a question for a confused class-mate during a test. I hadn't offered an answer, but a clarity to a muddled question. After being labeled a cheater  I was sent to the vice principal's office.

I remember looking out the window at the vice principal's white muscle car as he explained what insubordination means. I was someone who disobeyed authority he told me.

I think the label was  code for rebel, free thinker.  Of  course our society needs law-abiding citizens and schools need rules to be obeyed. But we have an obligation to always question answers, teachings and traditions. We are not to be automatons-- blind and unthinking.

Students should question everything they are taught. They should think for themselves.  Patients should investigate their doctors diagnoses. Children should test their parent's teachings. Buyers should question every slogan they hear. Readers should debate every point in a book.

Being imbued with insubordination compels us to get multiple viewpoints. Insubordination allows us to thrust off the status-quo of accumulating debt.  As insubordination becomes a way of life we discover an infinite number of specific questions to ask in order to solve any problem.

If the average person doesn't wait to buy, then wait and wait to buy.

If the average person doesn't ask for a diagnosis to be verified by another professional, then ask several other professionals.

If the average person doesn't question a money adviser or a financial "guru," then question them.

Adults become financially free when they question  superior's advice. It's a lot nicer place to be than the Vice Principal's office.

 

 (Photo courtesy timlewisnm)

 

Bridge builders needed

The dirty river of debt often tempt us to stare. Like watching a fire on a polluted river, debt captivates us. But it's much more effective to stop staring at the filthy river. Instead build a bridge to cross the river of debt.

Results come when we create a bridge; sympathy results from complaining about the river of debt. We must choose to solve our problems or to get sympathy for our problems.

My wife and daughter felt their wardrobes were grossly inadequate. Not wanting to spend much money on clothes,  they bought over $300 worth of clothes and jewelry in one day for $10. They used two gift cards and a special sale at a  thrift store to pull off the feat.

A close family friend spent 18 months actively looking for a better job while still employed. He looked before he needed to and now is very happy with his new job. He could've complained about his job and looked for sympathy.

Go ahead build a bridge and stop staring!

 

(Photo courtesy prozac1)