From Frugal to Financial Freedom

When will I reach financial freedom? Actually, what is financial freedom? To most, financial freedom means having all the money you will ever need. Being able to retire with no debt. Is that what it means to you? Learning to live within your means, forgetting about what the Joneses have, showing some savings in the bank, having money left on payday after you’ve paid the bills, being able to do some of the things you long to without being strapped for cash, and yes, comfort in retirement… that’s what financial freedom means to me. It never hurts to strive to reach that piece of pie in the sky, that chunk of the wealth market that sets you apart from everyone else… but you'll never get there if you don't take action. Being frugal will help to reach your dream of financial freedom, for today and for the future. I don’t know if my frugality was attributed to me through my parents, or if I just happened upon it honestly when I learned I couldn’t always get what I wanted unless I had the money to pay for it. Growing up with little, you will do one of three things. You will either learn to do without, save to get it, or borrow until your debt is so high that the hole you’ve dug for yourself will never sustain a money tree.

But you’ve got to start somewhere

My frugal journey started many years ago, after I was left in a position where I had no money and a poorly paying job. I had acquired a small loan for a car, was paying rent for an apartment, and carried the usual basic bills of utilities, phone and food.

After paying my basic bills and loan each month, there wasn't much left from my pay cheque, if any, at the end of the week. Then and there I made the decision to buy nothing unnecessary for a year, pay off my debt and use credit as little as possible.

It would be a long year for a girl in her twenties, actually, it took three years, but I did it. And I have never looked back. I borrow only when absolutely necessary, I pay my credit card in full every month, and I live frugally the rest of the time. Has living frugally hampered my lifestyle any? Not when you come to the realization that you don’t have to be like everyone else. Not when you are not stressed out wondering if you’ll have enough money to pay rent, buy food or pay your bills. And it certainly is not when creditors are not paying you a collection call. But how do you reach financial freedom when you’re already maxed out on your credit, you’ve got a mortgage, or you can barely meet your bills? It’s not easy, but learning to make small changes in your every day life is a start.

No one said the good things in life always come easily

If you can, get your debt consolidated into one or two monthly payments (one being your mortgage, the other being all outstanding credit cards and loans combined into one monthly payment). And if that can’t happen, then you have to start tackling each individual debt one by one, but the information below is where you’ll start no matter what, because from the savings you will gain, you can pick one debt and start adding the extra savings to it (that’s for another post).

It’s all in the mindset

That’s when the tough part comes in, the mindset. Do not fall back into the trap of seeing extra money in your account after you’ve paid the bills and think now you can start buying again. It’s difficult, it’s like an addiction, a drug…. but don’t do it! Start with small changes that are doable, adding new efforts on a regular basis. As you start seeing those changes making a difference, you will be encouraged to make even more.

With every dollar you save, it's an extra dollar towards your outstanding debt

Here's a few things I can recomment:

• You can make your own household cleaners; the added bonus is they are healthier for you and the environment
• You don’t have to change your vehicle every year or two
• You don’t have to take an expensive vacation every year
• You don’t need both cable and internet
• You don’t need to go out every night or every weekend
• You can make your own meals instead of always eating out
• You can cook in bulk so you have leftovers, or freeze, or can for future meals
• You can purchase in bulk and purchase food when its on sale instead of paying full price
• You can make your own stock for your cooking
• You can downsize where you can; house, technology, and wants vs needs
• You can invite friends over instead of going out and ask everyone to bring a snack, meal for a potluck, or byob (bring your own booze)…. why do you need to foot the whole bill?
• You can do bigger loads of laundry instead of many small ones; added bonus, less time spent on house chores
• You can get in the habit of turning off lights, TV, stereo if you are not in the same room
• You can grow your own produce; many things can be grown in pots if you don't have a garden
• You can make your own rags and dust cloths from old towels instead of buying disposables, much better for the environment as well as your pocket
• You can limit how much paper towels you use; rags will do the same job
• You can make one shopping trip a week, or every couple of weeks, instead of every time you need something which tends to make you buy more than you really need
• You can upcycle and repurpose what you have

There are so many small changes a person can make if you just take the time to think about it and implement them. Don’t let spending dictate your life. You can still live a great life along the way, enjoying the little things that can bring the greatest happiness for the least cost. Watch out you don't fall in to the advertising of the big sellers. You don’t need to throw your hard earned money away needlessly to let the big guys get bigger, so don’t fall into their brain washing tactics.

Don’t try to live up to anyone’s standards

We only have one life to live, don’t make it more stressful than it has to be. Be content in your own world, your own space, enjoy what you have and look after your "stuff", it will last longer which means less spending.

Above all, don't be ashamed to make changes. You don't have to tell people you are struggling financially, but you don't have to let them think you are rich either. Make the changes and own them. Chances are many of your friends are in the same situation but no one is saying so, the only difference is, you have the strength to say enough is enough.

That’s what frugal means to me…. or perhaps, that’s just financial freedom.

_{You can read the first post in my "frugal" series here}