Do you pick up pennies off the ground? I do, and so should you. There is a famous proverb (some attribute it to the Scots, who are known to be thrifty) that says: "Take care of your pennies, and your dollars will take care of themselves." John D. Rockefeller himself quoted this proverb when an associate asked him why he, the richest man in the world, picked up a penny from the ground.
I truly believe in this way of life. I was always frugal to an extent, just not to the extent that I am now. For instance, I used to buy clothes only on sale. Now I buy them only on final clearance or at thrift and consignment shops. Does this save me big bucks? Maybe, maybe only pennies, but those pennies add up, and turn into the dollars needed for more important things.
Do you have a change jar? I have several. Once I was sick, and had to be out of work for a week. Since I don't get paid when I don't work, and I make very little money, I was panicked at the thought of losing a week's pay. I started counting the coins I had been saving. When I was done, I had more than enough to carry me through for the week. As it turned out, I was so well stocked on food, and ahead on my bills, so I didn't have to use most of it, but it was nice to know it was there.
Those coins were my first emergency fund. The experts will tell you that you need an emergency fund equal to 6 months income. I don't know if I'll ever get there. Even now, all I have is enough in case the car breaks down, but at least I have that. There were a good many years when I had no savings, and lived on the edge of disaster every day, in fear of car trouble, illness, or losing my job.
Murphy's Law applies to each of us. What we must do is decide whether Murphy will be allowed to live at our house, or visit occasionally. I would prefer not to have him there at all, nevertheless, he is sure to arrive, so I'm doing whatever I can to make sure his visits are short and far apart.
To get where you want to be financially, you have to decided what you're willing to sacrifice. Nothing great ever happened without sacrifice. For example, I'm building this website, which means I sacrifice my free time and my intellect for what I hope will be the greater good. I feel that if I can reach only one person whose life is changed by the words I write, then I have accomplished something worth all of what I sacrifice.
And speaking of worth, what do you feel you are worth? Do you think that what you are financially is all you deserve? Do you feel that you must live above your means to make people admire you? I promise you, this is not true. If the people you have admiring you are only impressed with your material possessions, then they aren't likely to be around once those possessions are gone.
In my next article, I will talk about self-worth; what it is, and what you need to do to obtain it.
FRUGAL TIP #1
Start a change jar. If you feel you can't give up all your change every day, do it anyway. It's o.k. to rob the jar of quarters now and again, but never the dimes, nickels and pennies. If you want, you can separate your change into a different jar for each denomination. I've done that with great success.
When you are at the bank, ask for coin rollers. When you have enough change in one jar for a roll, roll it up. You'll be less likely to spend it when it's rolled, but if you have to spend it, it will be easier to spend.
Get some of those little address labels that come free in your mailbox from time to time, or order some, and put one on each roll. This makes businesses more likely to accept the coins in a roll should you need to spend them.
You'll be surprised how quickly this change adds up. Try to go as long as you can without spending it. When times are tough, cut back as much as you can before you touch your change jar. Even then, use as little as is humanly possible.
This is your personal emergency fund. This is for small unexpected expenses, like your printer running out of ink when you have a report due tomorrow, or a headlight going out on your car, or running low on gas the day before payday. In other words, it's your "stash". Everyone needs a "stash". It's a small bit of security, but believe me, when you're at the bottom rung financially, it makes you feel a lot more secure.
