Making Your Money Go Farther
Especially during this inflationary period…
I’ve never known a tougher time financially other then now. My parents struggled under Jimmy Carter’s presidency, where he wore a sweater and asked Americans to lower their thermostats. Our house grew cold in spite of the wool sweaters, but they made it. They made it through gas-rationing, double digit rates of borrowing, and prices that only went up, and so shall we.
I love money. Seriously. That’s why being a CPA sounded okay to me. I liked thinking about money, where it goes, how it’s earned and how to account for it. And the principles of saving money and staying ahead work no matter the financial situation of the country. Ready for some tips? Let’s go…
- Budget. Normally the advice is to pay yourself first, as in saving money, but with the rate of return being so much lower than the cost of goods/services and borrowing, maybe it’s time to ensure you do not borrow.
- After you account for all your expenses, see what your variable costs are and reduce spending in that area. Maybe you can go a while without new clothes, new sheets, a lawn service or dry cleaning. Maybe ironing your own shirts would save you enough money to go out once a month to the movies or to dinner. Look for ways to save.
- Do not go into debt for a new car. Drive used and buy AAA for when your car breaks down, because it will someday.
- Pay off your credit card every month. Most Americans are living paycheck to paycheck, and I’d like to move you away from that. Don’t carry a balance on any credit card ever.
I’m going to address this further, because my husband and I never carried a balance on any credit card. We started out with just one card, charged a little bit and promptly paid it off. Those interest fees and late fees add up, and they are bad for you.
I opened up more credit cards as we had more money to spend, because I wanted in on the good sales. It pays to have a store credit card that has no annual fee, so you can get in on their sales. But only if you have the money available to shop. If you don’t, or if you aren’t financially disciplined, don’t have more than one credit card.
5. Pay yourself. If your company has a retirement plan that matches the amount you put in there, then pay in as much as you can up to the amount your company matches. You do want to retire someday, and we always assumed there would be no social security for us, so save.
6. Cheap vacations are good. Go camping. My parents have a decent amount of cash piled away, and part of the reason is we went camping every summer, even when I was in high school.
My husband and I would drive to a small town and stay in a motel with our kids to get away. A pool and just two meals a day were enough to have fun. Just getting out of the house for four nights helped immensely. Save your money right now, and visit family if they’ll have you. Find cheap ways to vacation for now.
7. Condense your driving. Plan your errands, and drive as little as possible. Stay close to home this year, even though the pandemic is done. Save your money, because things will get better and you can take a great vacation on one of those years.
8. Don’t spend needlessly. We quit the gym membership and went for daily runs to save money. Can you do that? Swap babysitting with a friend. Try eating meatless meals several nights a week. Open face turkey sandwiches with gravy were a childhood staple, because they filled us up on the cheap. Look for the little ways to save your money.
9. Cut cable/streaming services and reduce your entertainment expenses. For now. Don’t pay for your news. I read Drudge and Bongino for a liberal and conservative take on the news, and I scan the headlines. Then I’ll read what articles are free.
10. Remember to give. As awful as it is for you, it’s always worse for someone else. Can you tip? If you’re getting Starbucks, maybe give the barista a tip. Maybe give some money to a charity you like. Giving is good, and if you can’t do it financially, then think about donating your old clothes/home decor/kids’ toys etc. to a charity that has a resale store.
We’re going through a tough time right now. So many of us are hurting financially, but we’ll get through this. We always have. Good days are coming. We just have to wait out this financial storm a little longer.
Focus on what you can change, and don’t overthink about those areas where you have no control. Enjoy life’s little pleasures. Maybe a beautiful sunset could be celebrated each evening. Maybe playing Scrabble would be a fun way to spend time instead of in front of the television. Enjoy the little things that are fun and beautiful while we wait for better financial times.
