5 Things We Learned From Living on a (Tight) Budget
My husband and I are about six months into our most stable financial situation ever and boy are we incredibly thankful. This time last year we were both newbies in our jobs, had nothing in our savings accounts and were still trying to divvy up our expenses and plan out future bills between multiple bank accounts (which is really frustrating and stressful, so if you take my advice, don’t do it). Even worse, this time two years ago, we were working a combined four jobs, living with family and could fit both of our possessions into one room.
In short, we were stressed out, living from paycheck to paycheck and often having to borrow money from family to avoid late bills.
However, we learned one of the most important life lessons in today’s economy: how to live on a (tight) budget. Over the years, we have tweaked our finances, but the lessons remain the same. In no particular order, I give you our five most important budget lessons:
1. Money is the center of most things in this world. Unfortunately. The sooner you realize that and accept it, the sooner you can find contentment with what you already have. It is easy to get discouraged or downright angry when you can’t do certain things because you just don’t have the money. It seems unfair that a new car payment can cost as much as rent; or that organic food is more expensive than heavily processed junk food. But there are ways around that. It’s all about being creative.
On the same note, entertainment does not have to cost a dime: This may be the most invaluable lesson I could learn from my twenties. We learned early on that money doesn’t have to make us happy. We could find happiness and contentment in the world around us and with each other.
2. Experiences are more valuable than stuff. Ben and I found ways to enjoy our time together without focusing on the stuff we wanted and didn’t have. For example, our most treasured memory during our poorest time in life was when we would spend all day at the beach looking for sharks teeth.
That’s not to say we don’t have a cozy home filled with stuff. And for a while, when our income became steadier and we had leftover cash after paying the bills, all I wanted was to fill our home with furniture, crisp new clothes, fresh produce and decorative knick-knacks. But we re-evaluated what was more important to us as a couple and as individuals. So rather than spending our paychecks on new clothes and the latest gadgets, we choose to go on weekend trips or put that money into savings for a bigger adventure down the road. Memories are made by living, not by owning.
3. Needs are placed above wants. Our money is more valuable to us nowadays — we are careful to spend it only when necessary and when we do get more carefree, its on something that we can both enjoy. We try to evaluate each purchase as to whether it is worthy or not. No matter if it is a small purchase or a large purchase, we want our money to be spent wisely.
Here is a free printable on how to evaluate if a purchase is worthy of your hard-earned money. Enjoy!
4. Very few things are worth the full retail price. I don’t believe I have bought a single item (other than some groceries) at full retail cost in the last three years. It goes back to the previous lesson: we only buy what is necessary and even then, we try to find the lowest cost without sacrificing quality. However, when you are truly broke and hungry, never undervalue the dollar store (the TRUE dollar store, where everything is really a dollar). We shopped there our first year and half together and it saved our budget.
Two tips on saving money when shopping:
Use cash only because you can tangibly see the money leaving your hands in exchange for an item — you’ll be less likely buy an iffy purchase, unlike shopping with a credit card;
Use sites like Ebates and Groupon because you get cash back for purchases and you find great deals that aren’t advertised elsewhere.
5. You can plan for the big things. Like vacations. Or new cars. Or a future home. Budgeting and spending money wisely has taught us to see the bigger picture and appreciate our carefulness now so that later down the road, we can afford nicer, newer things.
This also jumps back to lesson #3 — we are able to wait and plan for exactly what we want instead of settling for less. For example, my husband waited several years to buy a truck, but when the time came, we found exactly what he needed at the exact price we wanted. I also believe it was a God thing, but our planning and waiting helped too!
Budgeting is hard and it definitely felt suffocating at first. But now we truly appreciate and even enjoy living on a budget because we know we are financially secure and stable. It has helped us value a simple lifestyle — something that we continually strive for both physically and mentally — one that is both free of overwhelming stress and debt.
I hope our experiences with budgeting can inspire you to reevaluate your finances — you may be surprised at how much less you can spend yet how much more of a life you can live!
xoxo
Disclaimer: The above Ebates and Groupon links are referral links ❤
Originally published at www.elizabethlandrum.com.
