There is a stark difference between being a cheapskate and strategically cheap.
One will allow you to keep your friends and self-esteem the other will quickly vanish them.
As a teen, it is hard not to be like everyone else.
This is at a point in time when we are just trying to find ourselves (whatever that means), explore, and unfortunately, assimilate to everyone else which quickly leads us to make impulse decisions and into major regret, the next day.
We must choose our major that sets us up for life before we’ve started to actually encounter it after HS and once the majority of us realize that this path isn’t as intended or simply lose interest, we know we will have a tough time getting back on track dealing with criticism and assumptions we are falling behind.
There is this pressure to know what we are doing and fake a persona of just to make sure no one is worried that they are hanging out or wasting their life with someone who doesn’t have a clue.
All while feeling the same way.
You can call me the Graham Stephan clone, someone whoâs always been fascinated and loving the frugal lifestyle, completely by choice.
We believe it is a major change for the worst and flips it around.
We arenât able to enjoy nice food or go to celebrations anymore because our finances are controlling our lives.
But the truth is, it is completely up to you on how you frame your mind.
Sure, Iâve lost a few friends because I didnât want to lend them money because I know they wonât ever pay me back, but at the end of the day, it only worked out in my favor.
If you want to enjoy living frugally, you first have to stop letting money control your life.
I get it, itâs hard to not think about it 24/7, especially during this time when we are uneasy about the market, the presidential election, and our health.
But being strategically cheap is the new way of life for returns.
First off, to start living frugally, you have to identify your why and how you can realistically keep this up because most of us commit to something on New Years Day and give up by Valentine’s Day.
This is easier said than done to just have a routine, but once you start pinpointing your expenses and what you are paying for, it really is that simple.
My family wasn’t educated on personal finance, until they taught themselves when they got to the states.
The best investment you can give yourself is investing in yourself so that’s what they did.
They prioritized what they actually needed in life and knew that showing off would only lead them into debt.
There is no point in looking good when you know you are in a bad situation internally, so my family immediately threw out that rule.
The fancier clothes, goods, cars, and any shiny good you have reflects your low confidence and poor spending habits.
Not what you have or will become.
Even though this is hard to believe that’s why it’s true, many people disregard the fact that Lambo drivers and Gucci buyers could have easily taken out loans to purchase those products.
A house, diploma, and relationships tell you more about someone’s financial state because they believe in all things that will retain their value and give them higher returns in the future, also known as paying for themselves.
Of course, having friends doesnât mean you are not in debt or starving, but it is more likely that when you have a supportive group, you have more communication and soft skills meaning you are more educated and as a result, have people behind your back helping you out and learning from them for advice.
Regardless of how much you make, you always need to spend less than what you earn.
Shocking but hard to do.
But we already know that, how can we go a step further and actually learn from this chick?
It can be daunting to go through your charges every month but frankly, this is the only way to go about spending less without feeling like it.
You can still live comfortably and the way you envisioned without sacrificing anything you need.
What differentiates a cheapskate versus strategically cheap is knowing what you actually need versus want.
Overspending versus paying attention to what you use on a daily basis is the first route.
This was hard for me to apply.
I was fortunate enough to grow up in a wealthy neighborhood and a great school.
I was surrounded by elites who inherited their wealth for generations and barely any immigrants like us.
My family had strict rules on how to spend becuase they were able to move here.
Without those habits, we wouldn’t be here.
Seeing Vineyard Vines and Air Force Ones as the norm, it was hard not to follow.
But I also didn’t understand the point.
Not only were they not comfortable and overpriced, but it also didnât mean anything to me.
Gap or Zara has the same type of clothing, probably even better quality, for half the price.
Yes, I was laughed at for wearing clothing with no labels and the same white t-shirt every day, but I set habits for life that they will have to learn eventually and survive for clothing instead of for the fame.
Now, this doesnât sound like a big deal, but when you have nothing else to talk about being frugal with a teen, this is what you go through.
From buying clothing to analyzing how I spend my time on the weekends, Iâve cut down my expenses by almost 70% by carefully choosing who I spend my time with and how I treat myself.
If you want to change your money habits, don’t look to money.
It has to do with your psychology, frame of mind, and the way you spend your time.
Now, these are the top tips I would advise you to take to still live your best life while reducing your spending enormously:
-Buy high-quality products for overtime, nott cheap ones often
-Take the time to do research-itâs not a waste of time
-Own a home, donât rent unless living there for <3 years and also clothing! Rent a graduation dress for your once a lifetime(hopefully) HS graduation
-There is nothing wrong with used items, except you know what
-Reduce monthly subscriptions-can you deal with the Spotify and YouTube ads? Library books or monthly NYTimes?
-Travel when the kids are not out of school! Always get the best prices then
-Drive, not fly
-Your status is how you feel inside not what you buy. This will lead you into a serious hole if you care about otherâs opinions. Confidence is determined by how much you DONât talk about yourself.
How do you feel about yourself?
The key to living cheap is to understand what you do and donât need on your terms.
We would be much happier if we didnât look at the other side.
The grass is always greener until you buy that item and see it doesnât make you happier.
Cheap gets a bad wrap.
Donât make it that way.
Know you are doing something that will benefit your health, finances, mental sanity, and comfortability long term.
When you retire, the last thing you want to happen is to live off food stamps and in a shelter because you were careless when you were younger.
Living cheap is not for the poor.
In order to accumulate wealth, you must save and make better decisions than anyone.
Do you think the rich got wealthy by spending?
They cannot blow on their first paycheck and expect to live this way.
You have to stop believing what others have.
Only the best things are shown online after decades of meticulously saving.
Start laughing at that designer clothing because they could be in as much debt as a homeless person is.
What you wear and own has nothing to do with your situation, it all has to do with your current state of mind.
Strive to live the frugal lifestyle because it will build this immense support system for you to live comfortably and be able to afford a lifestyle you enjoy, on your own terms, no one else’s.
Ditch The American Dream
Bigger is not better.
The average size of a new single-family home since 2018 has steadily increased to 2,623 square feet and now with the pandemic, it has gotten even larger.
According to real-estate firms Zillo and Redfin, the median size of American living spaces are the biggest out of any other country.
Americans care too much about the image, not themselves, surprisingly.
But that still makes us selfish no matter what way you put it.
In order to live frugally, you must do what is best for you.
No one else or else you will be living in someone elseâs shoes or home in this case.
Let it Go
We are stubborn creatures.
Once we get hooked on something good, we canât let it go. It is like icecream.
No, we cannot have 1 scoop, we need the whole pint and buy it in bulk in case another pandemic happens or something unprecedented like that and we need to salvage it.
Nothing is running short of supply.
There isnât an asteroid coming, as long as Neil DeGrasse Tyson affirms so, the only person we can frankly trust these days.
They Are Not Just Darn Pennies
Yes, they may seem like pennies, but they do add up over time.
Without burning inside, an American spends around $1,100 per year on coffee, which breaks down to roughly $92 a month according to Fool.com.
No wonder Millennials are so poor!
Stop pretending you have so much money while still trying to pay off your student loans and apartment hop.
Be a little bit more creative and make your own coffee at home, made with more love and intent.
Every dollar counts.
You get richer by saving, not spending.
And yes, I still pick up pennies and blow on them for good luck from the floor.
Act poor and you will be better off, financially, morally, and as a friend.
Priorities
If your social life is the most important thing to you outside of work, then keep it that way but make sure it isnât an exception to your budget.
If you know that you want to take 2 trips, post-COVID its probably going to be 20 by now, make sure you look forward to those trips but find things can also make it enjoyable without making it too comfortable.
You donât need to wait all year for your lavish 70 grand vacation and say you stay frugal all year.
Accommodate things such as the fees on beach chairs to the taxi tip.
Even though you are on a different island, you still are attached to the same bank.
It must be turned into a habit and saving is wasted if you donât apply it to everything.
Wait A Sec
We all know we should wait 48 hours before every purchase, but what about this: work a little harder to find a competitor!
I understand.
Apple is a monopoly and a top grade for its products.
It can charge any price, inelastic demand and you will still buy it becuase it is sooo worth it.
You donât want a Samsung phone that catches on fire.
I get it and there is no reason why you shouldnât sacrifice Apple for that.
You have to make sense of your decisions.
Buy something worth value, that you know you will use and not throw away in a month.
Making big purchases isnât breaking the rules.
Making stupid cheap decisions are.
Don’t be too cheap.
And be a little adventurous!
Why choose the first one product that everyone raves about or is on teh windowsill of a store?
That is usually the product that stores want to get rid of the fastest anyway because it isnât selling.
Be strategic and hack the system.
It isnât cheating.
That is how you get through life.
Finding alternatives and taking your time by outlining possibilities.
You Aren’t Me (I Canât Find the Not Equal Sign)
Because I live in NY State, income taxes, the price for goods and simply just to live here costs more so in order to compromise for it, I must sacrifice something, but never the happiness of life.
That sounded so poetic.
That’s the best I got.
Just because you give something away or limit it, doesnât have to be a dramatic scene and the end of the world.
We become too attached to things and believe that what works for you, has to work for me.
Do you ever get jealous that your friend can eat 2 hamburgers and a shake without looking bloated or gain 20 lbs?
Thatâs jealousy and difference right there.
The sooner you can remove that from your life, the more you will enjoy and appreciate it.
You donât need to be a cheapskate.
Look for what you use daily and cannot live without.
Donât enjoy spending money, it isn’t a great quality to have.
Understand why you flock to those designer stores.
Why not the generic stores?
It is better to be average after all because you have realistic expectations and actually achieve your long-term goals as opposed to feeling burnout from not achieving anything.
Resist Temptation
Moderation is key in life.
Eating too much is bad for your health, sleeping too little will increase your mood swings and lead you to eat more.
Same thing with spending.
As tempting as it is to check out the new style or tech thatâs coming out, it only hurts from jumping the gun and making an impulse decision.
No one got hurt from waiting or shutting up as well.
Donât frame it like a punishment because that in itself is a punishment.
Now it’s hard to forget our financial mistakes from the past and we always try to wait for the perfect time, moment or situation to make a new change.
Frankly, the times when we make changes are at our lowest points.
Either when we cannot afford to stay in this neighborhood anymore or say adios to $5 lattes with friends in the morning because our bank said so.
Why wait and deal with those scary consequences when you can develop a habit to cut down on spending overall and be more intentional with how to save money to avoid them altogether?
Be creative with it.
Sure, if you arenât feeling like making beef bolognese, just get GrubHub.
But be mindful that the easiest of tasks are done on purpose.
It is easier to order and deliver than prepare and buy food.
But which one is better for your bank account?
Looking at the long term is hard.
We never know what will happen, let alone the next day.
Understand that even if you donât see the benefits of skipping the subway and instead of walking to work, it will pay off big time in the long run and that’s when life becomes rewarding.