This is a test
- 256 pages
- English
- ePUB (mobile friendly)
- Available on iOS & Android
eBook - ePub
Book details
Book preview
Table of contents
Citations
About This Book
In Frugal Isn't Cheap, Clare Levison serves up practical financial advice with a side of southern charm. Filled with real-life stories, it will challenge you to change the way you think about money.Her message is deceptively simple and clear: it's cool to be smart about your money; it's stylish to be sensible rather than overindulgent; financial stability is more glamorous than extravagance. But cut up the credit cards? No way. Levison prefers to promote responsibility rather than abstinence. She takes a realistic approach to personal finance that we can all live with, including:
- How to find and nurture your frugal side
- Why you don't need to cut up your credit cards
- The simple formula for financial success
- The Savings Challenge, 20%
- The best ways to make large purchases
Frequently asked questions
At the moment all of our mobile-responsive ePub books are available to download via the app. Most of our PDFs are also available to download and we're working on making the final remaining ones downloadable now. Learn more here.
Both plans give you full access to the library and all of Perlegoâs features. The only differences are the price and subscription period: With the annual plan youâll save around 30% compared to 12 months on the monthly plan.
We are an online textbook subscription service, where you can get access to an entire online library for less than the price of a single book per month. With over 1 million books across 1000+ topics, weâve got you covered! Learn more here.
Look out for the read-aloud symbol on your next book to see if you can listen to it. The read-aloud tool reads text aloud for you, highlighting the text as it is being read. You can pause it, speed it up and slow it down. Learn more here.
Yes, you can access Frugal Isn't Cheap by Clare Levison in PDF and/or ePUB format, as well as other popular books in Personal Development & Personal Finance. We have over one million books available in our catalogue for you to explore.
Information
Topic
Personal DevelopmentSubtopic
Personal Finance1
Living Well on Less
A lesson in finance from my personal trainer
I always had it in the back of my mind that when my younger daughter went to kindergarten, I was going to get a personal trainer. I figured now that the baby was five and a half years old, I could no longer continue to claim that my extra flab was post-pregnancy related. When the day came, I sent my little dear out the door and headed off to the local gym.
I was expecting to walk in there, do a few leg presses, a few crunches, maybe a lunge or two, and walk out looking like I was 18 again. So I was pretty disappointed when I made a total fool of myself flopping around on the stability ball, leg pressed until my thighs burned, did about 75 lunges, and walked out looking exactly the same as when I went in, except I was a lot sweatier and my hair was a wreck.
âThis really sucks,â I thought, as I threw myself down on the couch to recover the minute I got home, and it did. That night I woke up repeatedly with the feeling that someone was trying to rip my arms off, and the next day I could barely move. But what sucked even more was my realization that this was not going to be quick, and it was not going to be easy. There is no miracle cure for cellulite. I realized the first step was to face that reality, meet it head on, and then continue my journey.
Obviously, youâre reading this book because you want to improve yourself financially. Itâs my job to help you do that, and the first step is exactly the same as the one just mentioned: a little dose of reality. There is no miracle cure for your finances. There is no quick, easy way to get rich. Iâm not going to promise that you can read this book and become a double-digit millionaire, just like my trainer couldnât promise that Iâd leave the gym with six-pack abs, but thatâs okay. The good news is that with persistence and effort, you can achieve your financial goals.
The other day a friend of mine was going through some of her old memorabilia and came across some pictures of our children when they graduated from preschool together. She scanned a picture of my older daughter and sent it to me along with a quote of what my daughter said she had learned in preschool: âDonât pull people if they donât want to go.â
I donât want to pull you down your financial path kicking and screaming. I want you to walk with me. I donât want to lecture you or make you feel guilty. I want you to have a successful financial future, not because Iâm telling you to, but because you want to. I donât want you to abstain from spending but rather to do so responsibly by putting more of your money into things that are going to help you build wealth. The choice is yours. You can either come up with all kinds of reasons why you canât make changes to your finances, or you can come up with all kinds of reasons why you will make changes to your finances.
Iâm a big believer in the KISS principle: Keep It Simple, Stupid. However, as a southern gal, I find âStupidâ to be a little harsh. So I prefer to follow the KISH principle: Keep It Simple, Honey. In the pages that follow, youâll find simple advice that regular people, like you and me, can use to improve our finances. Hopefully, this advice will shed some light on how you may be flushing your money down the toilet instead of funneling it into your savings or investment accounts, and how you can best use your money to build wealth. Iâve also included some âDo the Mathâ equations that will help illustrate the financial concepts discussed.
Your next step on this journey will be to find your frugal side, so Iâve included some âFrugal Homeworkâ in this chapter. I want to change the way you think about money because I can promise that, if you can and then apply those changes to the financial choices you make, you can create a secure and bright financial future for yourself. If you can change your outlook one step at a time, youâll truly change your life. So without further ado, letâs get to it.
Find your frugal side
When I was growing up, I can remember complaining to my dad about it being cold in the house. Truth be told, it was probably plenty warm for most people, but Iâve always been cold natured. âGo put a sweater on,â he would tell me. Dadâs always been a frugal man.
But todayâs society has become obsessed with excess. Frugal people are seen as dull and boring. Big spenders seem flashy and exciting. However, I think the tide is finally beginning to turn on these perceptions. And thatâs a good thing. Itâs just not fashionable to own 20 pairs of shoes that youâve only worn once. Itâs not cool to have 30 gadgets that you never use. And if youâre spending all your money on designer clothes, youâre not stylish; youâre silly. Now more than ever, frugality is coming into fashion, and itâs hip to be thrifty. It turns out Dad was frugal before frugal was cool.
Do the math
According to a ShopSmart magazine survey,1 women are willing to spend an average of $49 per pair of shoes and own an average of 17 pairs. Thatâs $833 sitting in the closet! The average personâs unused gadget list might include a Wine Aeratorâ$39; FryDaddy (thank your lucky stars that youâre not using this one)â$30; Workout Equipment (just in case you decide to use the FryDaddy)â$100. Thatâs $169 and probably just the tip of the iceberg on your useless gadget collection. If you owned half as many shoes and skipped the gadgets altogether, the money in your bank account would total $585.50.
If I had to come up with one synonym for frugal, it wouldnât be âcheapâ; it would be âsmart.â Being frugal isnât about buying the cheapest thing; itâs about buying the things that are truly a good value. Let me put it to you another way. You have to start spending less, so you can have more. Many things like cars, clothes, and furniture depreciate greatly the minute you take them home. You need to think hard before spending a lot on those kinds of purchases. Look for bargains, buy used, and donât be ashamed to shop at discount stores. Put more of your money into things that are going to appreciate. For example:
$ Price of a solid wood coffee table and two end tables, new, purchased from a furniture storeâ$299.
$ Price of a solid wood coffee table and two end tables, three years old, purchased on Craigslistâ$75.
$ Money in your bank accountâ$224.
Iâm amazed that some people can spend hundreds, even thousands, of dollars each month on clothes. The next time youâre tempted to go on a shopping spree, remember: As soon as you wear that designer shirt once, itâs worth a fraction of what you spent on it. Kind of ironic, isnât it? You pay top dollar to a big corporation just so you can clip that tag. Not only that, but every time you wear the shirt, the corporation is getting free advertising.
I was doing some shopping at a discount store one day and happened to pick up a white cardigan for $15. It quickly became one of my favorite sweaters, and I wore it frequently. On at least two separate occasions, I was told how cute it was. One of the women who complimented me also mentioned that she had seen it at a designer store and admired it. Obviously, she couldnât tell the difference between the discount sweater and the designer one. Designer store price: $75. Money in my bank account: $60.
We all like to have nice things. For me thereâs no substitute for a high-quality blazerâthe perfect cut and quality fabric are worth every penny. But thereâs a limit. Iâm not suggesting that you should forgo all the frills in life, but arenât a couple of nice dresses and suits enough? Do you really need 10 handbags, or would two or three be perfectly adequate? If your closet is so crammed full that you could clothe the entire neighborhood, thereâs a problem and it goes deeper than money. Clothing is just one example, but it demonstrates well the concern so many people have with looking good on the outside, even though theyâre falling apart financially behind closed doors.
Frugal people donât spend their time wishing they had more stuff. They avoid excess. In fact, they take pride in being understated with their possessions. You have to nurture that mentality within yourself. You arenât what you own. Being secure with who you are is one of the most important factors in financial success. If you donât have self-confidence, youâll constantly be comparing yourself to others. If youâre not self-assured, you leave yourself vulnerable to the âkeeping up with the Jonesesâ mentality.
Does your financial life consist of smoke and mirrors rather than dollars and cents? Have you found yourself with a solid credit card bill instead of a solid savings account? Do others view you as well-to-do, even though youâre barely squeaking by? If your answer to any of these questions is yes, you are not alone. Many people these days are living a lifestyle that can only be described as âall hat, no cattle.â Theyâre putting on a good show, but they donât really have the financial resources to be living the lifestyle they are. Theyâve got champagne taste on a beer budget.
I guess Iâm just a simple country girl, but big houses, fancy cars, and designer labels donât impress me. If you have a chalet in Aspen or a house on the waterway in Ft. Lauderdale, Iâd love to come for a visit but Iâll let you keep the mortgage. I canât remember the last time I drove a new car. Right now Iâve got an SUV with more than 135,000 miles on it, but it gets me where I need to go most of the time. And although I have been known to buy a designer purse or two, itâs always at the outlet. Believe it or not, I prefer it that way.
I watched a show once about a single woman raising her two grandchildren, ages 3 and 7. She would drop them off at daycare and school each morning, go to work as a waitress and bartender all day, then go home and do homework with them in the evening. That impresses me.
If your financial life is a fake, the only one youâre fooling is you. Do you want to surround yourself with people who put the most value on material possessions? I prefer those who find hard work, responsibility, and integrity to be the things of greatest importance. Financial exaggeration is usually just a thin disguise for insecurity, emptiness, and self-doubt. If youâve been feeling the need to overinflate your financial standing, what you need to start doing instead is nurturing your frugal side. Maybe you need to get a new group of friends, or maybe you need to get a new budget. Flashiness fades, but broke is forever. I donât know about you, but Iâd take a herd of cattle over a big hat any day.
Frugal homework
Make a list of the best qualities you possess as a person. You might describe yourself as:
1. A good mother/father.
2. A loving husband/wife.
3. A competent teacher/nurse/auto mechanic.
4. Neat and clean.
5. Stylish.
Now, make a list of your most important possessions. Your list might include your:
1. House.
2. Car.
3. Jewelry.
4. Clothes.
5. Big-screen TV.
These are the physical things that are a part of your life, but they are not a part of your character. You need to see that the first listâthe qualities about you that make you who you areâstands on its own. Itâs static, even as your list of physical possessions is dynamic. If you are neat, clean, and stylish, that doesnât change. I would put all of those qualities on my list, and I feel confident that Iâm going to look just as good in a $15 discount store sweater as I would in one thatâs designer. If you are neat, clean, and stylish, your home will reflect that. You donât need a house thatâs 4,000 square feet to show who you are. Your tidy, well-organized space can be just as enjoyable and stylish at half that size.
I have a friend who went through that exact scenario. She and her husband decided it was time to downsize. They sold their very large, customized home and bought a smaller, more standard version. I was shocked when they told me about the move. Their sprawling brick home was just gorgeousâflawlessly furnished and decorated, spotlessly maintained. It was so enjoyable to eat dinner at their house and relax on the back patio. I have to admit, I thought they were a little nuts to be giving all that up.
But as soon as I stepped into their new home for the first time, I realized I was the one who hadnât been able to see the bigger picture. Their smaller home was just as gorgeous. Even without the large foyer and vaulted ceilings, this home gave an immediate feeling of elegance. The physical things were different, but the characteristics of the owners were still the same. My friend has fabulous taste and style, and that hadnât changed. Because of who she is as a person, she was able to make her smaller space look every bit as fabulous as the larger one had. Sheâs also an excellent cook. Sure, she might have given up her stainless steel kitchen, but the food that came out of her mid-grade oven was every bit as tasty as it had always been, and we ate, drank wine, and laughed just as hard on her new smaller patio.
Make frequent use of the words âIâd ratherâ
Frugal people donât derive pleasure from having the newest model vehicle or the biggest house on the block. Their enjoyment comes from knowing they have a secure financial future. Frugal people know something their non-frugal peers havenât figured out yet: Each dollar spent is a dollar that could have been invested.
I want you to stop being concerned about keeping up with the Joneses and start making frequent use of the words âIâd rather.â Letâs say youâre talking with your neighbors who just bought a brand-new ski boat. Theyâre very excited about taking it out for the first cruise of the summer. Because they know how much you love the water, they suggest that you should look into getting a boat too. What do you do?
First, resist the urge to hop in the car, drive to the nearest boat lot, and buy one thatâs got more horsepower than your neighborâs. Then say something like, âI love your boat. Iâm sure itâs going to be lots of fun, but Iâd rather save up for the kidsâ college tuition. I donât want them to have to take out any student loans.â
Do the math
Going out on your neighborâs boat with them: Free. Thatâs called out-smarting the Joneses.
âIâd ratherâ is empowering. âIâd ratherâ says: I have choices and Iâm making smart decisions. Iâm not comparing myself to my friends or neighbors or coworkers. Iâm not influenced by their decisions. Iâm the captain of my financial ship. Iâm in control.
When it comes to spending, remember you have nothing to prove to the rest of the world. Prove to yourself that you can be smart with your money. Make âIâd ratherâ a part of your daily life. Wouldnât you rather be debt free and sitting on a good nest egg?
Frugal homework
Hereâs another exercise that will help strengthen your frugal mind. I call it the Bargain Brand Challenge.
Iâm always amazed at the money people will spend needlessly just because theyâre worried about looking cheap. While on a recent vacation, I had a conversation with a bus driver about the different hotels available around the area where we were staying. She cautioned me not to stay at certain more expensive hotels, because they were no better than their less expensive counterparts.
As strange as it sounds, companies realize that some people actually like paying more for things. It makes them feel important, a step above the rest of the crowd. They assume they must be getting more because theyâre paying more, but thatâs an incorrect assumption.
The bus driver had it figured out, but lots of people donât. Name-brand Nancy or name-brand Ned, as the case may be, wonât buy anything that doesnât have that well-recognized symbol or registered trademark. For them, everything from hand lotion to hotels must be top of the line, the latest and greatest. No less than the (perceived) best will do.
But is that little symbol really worth those extra dollars? Does more expensive really mean better? Are you guilty of buying higher-priced things just because you think someone else will view them as better?
Iâm challenging you, for one week, to choose one of the least expensive options available whenever you make a purchase. For example, if you need a box of cereal, buy the generic.
Do the math
$ Price of a box of name-brand raisin branâ$3.09.
$ Price of a box of generic raisin branâ$0.99.
$ Differenceâ$2.10.
$ Savings if you purchased one box per weekâ52 x $2.10, or $109.20 per year.
$ If you want to watch a movie, rent a DVD.
$ Cost to take a family of four to the movie theaterâ4 x $10, or $40.
$ Cost for a family of four to watch a movie rented from Redboxâ$1.
$ Money in your bank accountâ$39.
I guarantee youâll find that lots of less expensive things are just as good as their higher-priced counterparts. For some things, youâll decide the more expensive items really are higher quality and therefore worth the extra money. But youâll never ...
Table of contents
- Cover Page
- Title Page
- Copyright Page
- Dedication
- Acknowledgements
- Contents
- Foreword
- Introduction
- 1 ⢠Living Well on Less
- 2 ⢠Less Spending, More Balancing
- 3 ⢠Getting Out of Debt
- 4 ⢠Save, Save, and Save Some More
- 5 ⢠Creating an Investment Plan That Works for You
- 6 ⢠How to Make Those Large Purchases Work
- 7 ⢠What Is Net Worth, and Why Should You Care?
- 8 ⢠Income: a Crucial Part of the Financial Equation
- 9 ⢠Wanting to Be Rich Doesnât Make You Evil
- 10 ⢠What You Should Teach Your Children
- 11 ⢠Achieving Financial Success
- Notes
- Index
- About the Author