Wednesday, January 21, 2026

Ideas to Reduce Spending

 


Ideas to Reduce Money Spending:

Whenever you have less money to spend, spend less!

 

Mend, Fix, Repurpose, Reduce, Reuse, Recycle.

Eat simple, nourishing and filling meals.

Grow what food you can.

Wash and re-use containers for storage of items: Glass, plastic, paper.

Learn to knit, sew and mend.  Then knit, sew and mend what you can.

Use re-washable cloths instead of disposable paper products.

Turn off any lights and appliances you’re not using.

Re-use what grey-water you can.

Give handmade gifts.

Entertain at home. 

Enjoy Frugal Fun activities.

Re-use old clothes as quilts, cleaning cloths or stuffing for pillows etc.

Enjoy hand-me-down or second-hand clothes as normal.  Be grateful for them.

Can, preserve and freeze food for later use.

Re-purpose whatever you can.

Walk wherever you can.

Swop or barter for what items you need.

Plan your meals.  Use your meal plan.

Use meat-fillers – beans, lentils, rice, oats, breadcrumbs.

Create a BUDGET.  

STICK to it.  

LEARN to Live Strictly within your means.

 

If you don’t know how to do this –

think of someone in your Circle you think does know how.

Ask them to be your mentor for a short while.

Learn how to do what you need to learn to do.

Build Your Sure Financial Foundation

 Have a PLAN!  Every Successful Plan that Worked looks Something Like This…

No confusion.  No excuses. 
Slow Down… Think it through… 
Become more Content, more Peaceful…
Be Excited and Disciplined while you build your Foundation. 
 
January – 
STOP the BLEEDING expenses for 30 days
Budget – write down EVERY expense, every day – big and small
Become financially conscious 
Aim to cut your habitual spending in half by 15th January 
Decide to keep up wiser spending until it becomes your new habit 
Learn to Live Lean!
Eat simply at home, Cut your leaking expenses 
No entertainment that costs money for this month
Learn to Live on Less than you thought possible. Think. Decide. Do
 
February, March
Earn more money than you thought possible
Continue keeping your budget – know where every cent is going  
Work Hard! Continue to Live Lean!
Work as many hours as you can
Stack income – Build your Emergency Fund of easily accessible money
 
April, May, June – 
Build to R10,000 in a Ready Cash Emergency Fund
Continue to Budget!  Continue to Work Hard! Continue to Live Lean!
Stop feeling Magical, Invincible, in Denial, Desperate.  Stand Tall  
Be increasingly aware of your potential
 
July, August – 
Invest Wisely and Thoughtfully in Your Earning Capacity
Continue to Budget!  Continue to Work Hard! Continue to Live Lean!
Take a course, learn a skill - increase your earning capacity
Acquire one tool, or equipment, that will help you earn more money
Network wisely with people who might be able to connect you with opportunities
Be a good person.  Know good people.  
Cultivate and treasure these mutually beneficial relationships
Increase your daily and hourly value
 
September, October – 
Build Some Passive Income
Continue to Budget!  Continue to Work Hard!  Continue to Live Lean!
Invest in an income producing asset – maybe something you can hire out, or a small property?
Concentrate on Tried and Tested, Boring, and Reliable, before grand schemes
 
November – 
The Discipline Test – You’re approaching the Finish of what you Started in January…
Continue to Budget! Continue to Work Hard! Continue to Live Lean!
Spend NOTHING extra – no holiday spending this year – Think!  
Be creative!  Ask others for ideas
Prepare and give gifts that cost no extra money – share yourself, your time, your talent
Review these last 10 months – What worked?  What didn’t work?
 
December – 
Plan for Next Year
You are keeping a Weekly/Monthly Budget 
You know where your money is going, the money bleeding is stopped
Your extended family, spouse and children are watching you and learning from you  
True friends are watching and learning too
You now have a starting Emergency Fund of ready cash
You have added income.  You have added skills, equipment and tools
Continue to Work Hard!  
Set a slightly less Lean Living monthly budget (your spend can gradually grow!)
Set a new Personal Income Goal. 
Set an income producing Pleasure and Leisure Savings Target
What is another Passive Income Investment you can make – that you want to?  
Find one. Continue to Wisely Invest
 
What will your life look like in 5/10/50 years if you keep up this disciplined planning and spending?
Commit to it!  Stand Tall - Every Day, every month for another year... and then another

Based on information shared by Charlie Munger - edited by Judy Bray

Thursday, January 23, 2020

How to step out of the shop-spend-consume cycle



This might help to get out of the Pay Day Circle of Life...


Jan 21, 2020 Lucía González Schuett

 It doesn’t require a total overhaul of your life, but following a few simple steps can help you start consuming less, says Lucía González Schuett.

This post is part of TED’s “How to Be a Better Human” series, each of which contains a piece of helpful advice from people in the TED community; browse through all the posts here.

A few years ago, Lucía González Schuett embarked on a “personal rollercoaster journey,” as she puts it in a TEDxHHL Talk. And it all started when she looked at something that most of us have: a junk drawer.

She was disturbed by what she found — most of the things there were broken, incomplete or imperfect, but she had felt compelled to hold onto them. She questioned every item, asking questions like: “Do I really need this? Does it add value? Is it worth the space that it takes up or the care it requires?”

And she made a radical decision: She vowed to go for a year without buying anything except for food.
Around the same time, she was going through a professional transition. She’d made a career in fast fashion, where her salary was partly based on commission — the more she could get people to spend, the more she earned. One of her responsibilities was to rotate the store’s contents so the merchandise would appear new to shoppers and they’d discover something they overlooked on a previous trip.

In 2018, González Schuett left the industry to go to business school and she chose to make it her no-buying year (which she discusses in a TEDxHECParis talk). Her experiences caused her to rethink consumption — on a personal and a societal level — and become aware of the invasive, ongoing pressures to acquire new stuff.

“The app I use to measure my performance when I go jogging is trying to tell me when it’s time for me to throw away the sneakers I’m wearing and buy a new pair,” says González Schuett, who is currently based in London. “The pillow I sleep on I recently found out has an expiration date.” She adds, “We collectively need to pause for a moment and wonder: Are we losing — or at least outsourcing — our very basic common sense to decide our needs by ourselves when it comes to consumption?”

It’s not realistic or feasible for most people to swear off shopping as she once did, and González Schuett gets that. She says, “It is possible for us to rethink our day-to-day behavior towards consumption, exercise the ability to appreciate things again, and eliminate that link between easy access and taking things for granted.”

She urges people to engage in what she calls a “scary yet extremely insightful exercise”: “getting over the want and becoming honest about the need.” In other words, she invites us to take an honest look at the things we want and we need and question whether we actually do.

There are many good reasons to regain control of your consumption. González Schuett suggests, Maybe it’s for the environment, for the sustainability of future generations, for your personal finances, or for the sake of your peace of mind.”

To help you take back control, González Schuett shares these tips:

Let yourself run out of something before you re-buy or re-order. “Spend some time without it; in other words, try to miss it,” says González Schuett. “Because there’s so much to be learned from missing things. Plus, you’ll exponentially increase your short-term happiness once you get it again.”

Keep an item in your online shopping cart for a few days — or weeks — before buying it. You’ll reduce your chance of regretting an impulsive purchase when you find something better later, or realize you don’t actually need it at all.

Instead of immediately replacing something that’s broken, try fixing it first. It’s not always cheaper to buy something new, and you can support a local business or repair cafe by visiting them. You can also teach yourself some new skills. In her no-buying year, González Schuett learned to sew on replacement buttons, and she even watched a YouTube video to figure out how to repair her washing machine.

When you do buy, consider second-hand. By purchasing something that’s pre-owned, you’ll keep from adding to the sum total of things in circulation — since the thing you’ll buy is already out in the world — and you’ll also save money. When it comes to furniture, she points out that for people who live in cities, “we’re all moving around so frequently that second-hand items are more often than not hardly ever been used.”

Choose quality over quantity, especially when it comes to fashion. Try to pick things that are made to last, and when you are done, consider selling, donating or swapping them, instead of throwing them away.

Share what you have, and find others who will. Rather than buying a tool or gadget for a one-off project, “knock on your neighbor’s door when you need a screwdriver,” recommends González Schuett. And while you’re there, let them know what you have to lend, whether it’s a bike pump, snow blower or sewing machine. These relationships can benefit both of you. She says, “What a burden for both of you to each own both things and how enriching to go back to knowing your neighbors.”

Shift your mindset about stuff. As González Schuett puts it, “Consider yourself a custodian of things, rather than an owner.” When you think about it, you’ll realize that there are ways to enjoy things without owing them — take the library, for example.
She adds, “Ultimately, we know it isn’t the junk in our drawers that is going to make us happy but having the resources, the space and the time to dedicate to the things that truly matter.”

Tuesday, May 7, 2019

"The Great and Spacious Building"

Elder L. Tom Perry of the Quorum of the Twelve Apostles warned that preoccupation with material possessions is a behavior typical of those people in the great and spacious building: 

“The current cries we hear coming from the great and spacious building tempt us to compete for ownership in the things of this world. 

We think we need a larger home, with a three-car garage and a recreational vehicle parked next to it. 

We long for designer clothes, extra TV sets (all with [DVDs]), the latest model computers, and the newest car. 

Often these items are purchased with borrowed money without giving any thought to providing for our future needs. 

The result of all this instant gratification is overloaded bankruptcy courts and families that are far too preoccupied with their financial burdens” 

(in Conference Report, Oct. 1995, 45; or Ensign, Nov. 1995, 35).

Institute Book of Mormon Student Manual
Chapter 3: 1 Nephi 6-11 (spaced out)

Saturday, February 2, 2019

Toxic Dreams You May Have Fallen For

Lauren Greenfield—photographer, documentarian and author of the new book Generation Wealth—talks about the pitfall so many of us just can't seem to avoid.
By Susan Welsh

Lauren Greenfield has spent 25 years exploring what one of her subjects calls the "toxic dream": the pursuit of wealth, everlasting youth and, sometimes, fame. She's recorded images and stories of all sorts of people around the world, from a 60-year-old California paralegal who spent her way into homelessness, to celebrities and wannabe celebrities (like Kacey Jordan, the prostitute whose business enjoyed a boost after she spent a drug-fuelled 36 hours with Charlie Sheen). As the book’s editor, and as an old friend of Lauren's, I jumped at the chance to speak to her about why, even if we're not building a 90,000-square-foot house in Orlando like the subjects of her documentary The Queen of Versailles, we still might have fallen into the trap of wanting more than we can afford. 

SW: You've documented hundreds of subjects: the German-born hedge fund wizard who's wanted by the FBI for fraud; strippers in Las Vegas; rap artists in Atlanta; Russian socialites. Why?

LG: I've often looked at the extremes as a way to shed light on the mainstream. Even though everybody says, "Money doesn't buy you happiness," I don't think that that's the principle by which people live. If you talk to kids and ask them what they want to be when they grow up, they say, "Rich and famous," but being rich and famous is not a job.

SW: How has what we want out of life changed in the past quarter century since you started out?

LG: We've gone from a culture that valued social mobility through hard work and education to a culture that values bling and celebrity. Now, it doesn't matter how you get the money, as long as you have it. Actually, it almost doesn't matter if you have it as long as you look like you have it.

SW: Still, a lot of people would say, "I'm not like that. I'm happy with what I have." Are there more subtle ways that we're all participating in this competition?

LG: We're living in this fantasy where we're comparing ourselves to celebrities, as if their lifestyles are normal. We watch more and more TV, and research shows that the more TV you watch, the wealthier you think other people are compared to yourself. And marketing is so clever. There's something for everybody. This minimalist trend in home décor allows educated, cultured, middle-class people to kind of justify their own materialism. Having less and giving things away is a goal, but what we see in a magazine like 
Dwell not only is very expensive to achieve but also requires a huge amount of maintenance, which for people with jobs and kids is not that easy. It's another way to sort of fetishize our environment. Design has made it so that the house we live in is not just a safe place to raise our family, which it was in the old days, but it's actually this...fashion statement. It's like a designer dress. It's really another side of the same coin. 
SW: Do you fall into that trap?

LG: I stopped at Target the other day to do an errand, and almost unconsciously I picked up a cart, and before 10 minutes had passed, I had 10 items in my cart. At the self-serve checkout, an item came up as $52. My son said, "What is that?" And I said, "Oh, it's face cream." He said, "Put that back." I didn't argue with him because he was right. I was falling for some anti-aging face cream that I had not planned on purchasing. It's hard not to be influenced by these pressures in your daily life—whether you're actually buying or just admiring, or whether they're making you feel inadequate just by their existence.

SW: What have you taken away from all these stories?

LG: I still go into a store and want those things and still even buy them. But I do feel that if we spend a little time trying to understand the forces we often act upon unconsciously, it allows us a little power at least to choose: Do I want to give in to this or not?
Lauren Greenfield is an acclaimed documentary photographer and filmmaker. She is the author of Generation Wealth and other works about consumerism and young people. 

Retire in your Fourties


How This Couple is Doing It.

Farnoosh Torabi, the host of the So Money podcast, introduces you to a couple who will inspire you to rev up your retirement savings.  By Farnoosh Torabi

The husband and wife team, Mr. and Mrs. 1500— anonymous ‘Carl and Mindy’—are documenting their journey to financial independence on their blog 1500days.com. Their goal was to have a portfolio of $1 million by February 2017, 1,500 days after launching in January 2013.
They surpassed that goal 
in about 1,300 days. How are they making the wise choices to aggressively saving that amount?

The couple, both in their early 40s, share their tactics and what's next.

FT (Farnoosh Torabi): Why did you want to embark on this journey and why did you give yourself a goal of 1,500 days? How did you know that it was actually achievable?

Carl: I'm a computer programmer. It can be very, very stressful at times. It was a bad day and the thought that came into my head, I was 38 at the time, I'm like, "There's no way I can do this until I'm 62 or 65 or whatever age people normally retire at." I Googled something like: How do I retire early? Or, How do I quit my job early? And the first thing that popped up was 
Mr. Money Mustache.

I started reading through his stuff and my first thought was, "This guy retired at like 31 or 32, this has got to be some kind of pyramid scheme or something like this. No one retires before they're 62," and then I started reading it, and I realize that the guy was legitimate. He put all his numbers out there, and there really wasn't anything that he did that was spectacular or abnormal. He just constricted his spending, lived a frugal life and was able to quit.

The first thing I did after that was figure out how much I spent—I did this within like 10 minutes.        I figured out how much we spend every year. Using his post about "
The 4% rule," I figured out how much we would need to retire. I ran down to the kitchen and I told Mindy, "Hey, all the stuff will work I can quit my job in 1,500 days."

FT: With your $1 million goal, how are you planning to, in your new life, make the most of it?

Carl: We live in a very low-cost area of Colorado. Our property taxes are $1,000 a year. Life is pretty cheap here and we can get by with about $2,000 a month. We take nice vacations. We've been to Hawaii three or four times—we travel hack to do it. I think we're going to be able to continue to save even after we retire.

That million dollars doesn't count other sources of income. It doesn't count Social Security, which I think will still be around in 20 years, maybe in diminished form but I think we'll still have it. Our side gigs are probably going to bring in income too. It might not be a whole lot but when you're not living on a whole lot, you don't need a whole lot to really move the needle.

FT: You have a million in savings now, which is earning interest and then if you bring in some side income to kind of just pay the bills, that's a pretty nice cushion. What are your side gigs?

Carl: The blog is my main side gig and Mindy actually got a job through my blog, which is ironic because she didn't think it was a good idea in the first place so now she has a great job, as a result to the blog. I also do lots of home rehabbing, which I enjoy.

FT: I'm looking at your blog actually, and you are very transparent. You talk about your investments where you started in 2013 with $586,000 and now today, you have a net worth of about $1.3 million—you almost doubled where you started. You more than doubled actually.          I don't understand though how you went from $586,000 in year one to $869,000 a year later.

Carl: Yeah, that's crazy.

FT: $300,000 almost, are you making a million dollars a year? How did you save that much?

Carl: No, there are two things that really helped. One of them is serendipitous—we bought a house for really cheap. It was a foreclosure in a really great neighborhood but for some reason, no one wanted this. Well I know the reason, it was horrific. So we fixed that up, we bought it for about $176,000 and now we could probably get over $400,000 for it and that was a lot of hard work on us, we're still working on it to this day. The other thing, which I don't like to talk about because I don't like to give people bad ideas, but I've made some good stock picks. I don't endorse it, and it's not my new methodology, but I bought 2,000 shares at Facebook at like $30 a share and now it's like $120 a share. I'm an index-fund guy now.

FT: Your investments when you count your net worth of $1.35 million—that includes equity?

Carl: Yeah it does. My pure stock value investment without that is about $1,120,000 right now.

FT: Can you share your aggressive investment strategy? When do you plan to tap this money? 

Carl: I think I'll have to tap my portfolio soon after I leave, especially when Mindy leaves her job. So I'm extremely aggressive, I think I own $25,000 in bonds, and that was a very recent development. The way I look at it is, there's a lot of time to recover if something disastrous happened on day one of retirement. The thing I would do is just go back to work or I could drive for Uber if I don't want to work full time.

FT: What would be your advice to someone who is getting a later start? 

Carl: When people ask me that, I tell people the very first thing they should do is write down every single expense in a notebook because you'll be surprised. We started doing this and we're like, "Wow, we spent that much on groceries? What were we thinking?" After you do that, evaluate every one of those line items and see how you can cut those down. The first thing is always to cut expenses because that's easy and that's something you can do immediately and right now, today.

After that, increase in income isn't always as easy but most of us don't work more than 40 hours a week. There are all these new things and this new peer economy that people can do. How about you drive for Uber or Lyft? How about you rent out a spare room in your house through Airbnb? There [are] all kinds of little tweaks you can do to increase your income. Those are the two things I do. Cut expenses first and try to increase your income. 

Keys to Thriving Financially as a Single Mom


Emmy Johnson, the author shares what it takes to achieve wealth and thrive.

There are three critical components to thriving financially as a single mom, all of which you can control:

1. Use the time + money + energy equation to create abundance in every part of your life.

2. Create a lifestyle that you can afford now (not when you were married, or where you hope to be in a few years. Now.), including a savings plan for emergencies and retirement.

3. Focus on earning.

This is a recipe for wealth that affects all areas of life, and nearly every decision you will make. All three elements — earning, budget, and resources spent — are all intimately intertwined. To understand how, let’s look at the last one.

Focus on earning

When you’re going through a life change, whether divorce, death of a loved one, new baby, job change, relocation, in the likely event that money, time and/or human resources are reduced, the natural impulse is to tighten up and hunker down. Frugality is a wonderful, powerful thing—one I urge you to cultivate and maintain throughout your life, even when you have money coming out your ears. Frugality has nothing to do with how much you earn or spend, and everything to do about being conscientious about your resources—money and otherwise—and managing them with a sense of gratitude and abundance to make your life and the world around you better.

Frugality, however, can be a slippery slope to a scarcity mentality. Scarcity mentality is the belief that all your resources—money, jobs, love—are limited and must be hoarded. Here’s a classic example: Your husband announces he’s having an affair, and leaves within a week. He earns more than half the household income, all of which he takes with him when he moves out of the house he shared with you and your two kids, and into the apartment of his mistress. You, understandably, panic. Your bills are beyond what you can afford on your own. The payment on your house is huge. Your name is on the mortgage, which puts your credit at risk.

You quickly go through the monthly expenses and start slashing like mad. That is exactly what you should do! Gym membership that you never use, canceled! Tell the kids that this time you will indeed enforce the household rule that the thermostat will not go above 66 degrees in the winter, commit to doing your own nails and cancel the Christmas trip to the Bahamas.

Is this you?

I’m loving this story, and it is exactly what you should be doing (though, 68 degrees maybe?).

However, let’s look at the math. Aside from the vacation, those cut-backs add up to a couple hundred dollars per month. That is not going to make a significant difference in your ability to afford what was a two-income household, much less afford a large mortgage that was financed with two salaries.

A common mistake is when people panic—and moms are especially prone to this—they focus on how much they can save each month. Savings and frugal living are passions of mine, and comes with all kids of residual benefits aside from immediate cost savings. In fact, I argue you should NOT clip coupons. Clipping coupons requires hours per month with very little return on investment of that time. Instead, the absolute best, proven way to get ahead financially in the short- and long-term, build wealth, take control of your time, and have the freedom to create a life for yourself and your kids is to focus on earning.

Let’s say that in addition to slashing the fat from your budget, renegotiate your phone plan and commit to a few 
Crockpot dinners in lieu of take-out each month, that newly single mom also commits to a plan to earn more money. The residual benefits are astronomic.

In the example above, if the mom after receiving the “Peace Out” bomb from her kids’ dad, committed her lunch hour and Saturday afternoons to freshening up her resume, working her network like crazy, applying for new positions and / or strategizing with her boss about her career goals. Within a few months it is very reasonable she could increase her income by five-figures—income very much needed immediately, and have residual financial and professional benefits for the rest of her life. Plus, by focusing not on the Sunday Clipper, but on big goals and investing in her own worth, she actually gains very real control over a chaotic situation.

Many women find that single motherhood is a fantastic motivator for driving them to risk going for their professional goals—and earning a lot of money along the way. Christina Brown, 28, launched 
LoveBrownSugar.com, a lifestyle blog for women of color, as a hobby project while she earned about $50,000 per year working in public relations in New York City. When she became pregnant, and a single mom, Christina jumped fulltime into her entrepreneurial endeavor. “I had to kick it into high gear when found out I was having a baby, and was a big motivator to earn to take care of her.” Motherhood drove Christina to increase her blog’s adverting rates, double down on strategy, and button up her processes. Within three years, LoveBrownSugar.com went from $0 to $100,000 in revenue, while Christina works from home and spends lots of time with her daughter, who often models toddler fashion on her mom’s web sites.

Money, of course, isn’t just about surviving, paying bills, securing a future and enjoying nice things. Building a great career you love, modeling that passion and success for your children, is incredibly satisfying — especially when you accomplish it in the face of what you believed was impossible.

Adapted from 
THE KICKASS SINGLE MOM by Emma Johnson with the permission of TarcherPerigee, an imprint of Penguin Random House. Copyright © 2017   by Emma Johnson.