Tightwads Can Have Fun, Too
Be a tightwad.
That doesn’t mean being miserly. You can still enjoy life, dote on your kids and grandchildren and enjoy vacations.
But don’t throw your money around. Rich people don’t.
The road to tightwadism is attained by pinching pennies. That’s also the first step toward saving, which is in the general direction of investing.
One thing requires clarification. Being a penny pincher does not mean you buy “cheap.” It means you make certain you get what you want and good value for what you pay. It doesn’t mean you buy the cheapest cut of steak. It means you buy the cut with the least fat and bone on it.
One of the first things you should do, if you haven’t already, is consolidate as much debt as possible, especially if it’s sizeable. A good working definition of debt is the amount of money still left to pay after you’ve paid all your monthly bills. A mortgage is debt. (Although this can also be considered an investment, which alters the picture.)
A car loan and sizeable credit-card and store bills also are debt. And the interest rate on this type of debt can be expensive.
So, in true tightwad fashion, consider consolidating all this debt into a home-equity loan, on which the interest is much lower than what you’re paying on your credit cards.
If you have to make a major purchase such as a piece of furniture, an appliance, or an automobile, wait until the end of the month to shop. That’s when these business operators are anxious to meet monthly sales quotas. Before you go out to make such a purchase, take a hard look at what you intend to replace to see if it can be repaired or last another couple of years.
It’s also a good idea to buy appliances in the off-season. Buy an air-conditioner in winter and a furnace during the summer.
You can pinch pennies around the house without even noticing it. Repair leaky faucets and replace your light bulbs with florescent lighting. Open your drapes during winter to let the sun warm up your home. Close them during summer to keep it cool inside.
Grocery shopping is a constant, so make a list of things you can buy in bulk — sugar, flour and condiments, for example — to save cents. And cook your own meals instead of calling for delivery. Chinese food and pizza can be made at home for less cost and in about the same time it takes to be delivered.
Shop around for generic drugs. Get approval from your doctor and druggist to do so. Then you can slash prices on some of your medicines.
When you shop for clothing, avoid anything with a label requiring “dry cleaning.” Washable clothing is just as good-looking and just as comfortable.
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