living in paradise

[forestdale]

The following is from my simple savings newsletter:
http://www.simplesavings.com.au
They have lots of good tips.

Six steps to paradise
Yesterday morning Matt (my husband) woke up and said, 'It is great living in paradise'. He made me think 'Why are we so different? I'm not special. We are not even middle income earners. How come we can afford to live in paradise?' And, with the kind of thinking that only happens at four o'clock in the morning while nursing a teething baby back to sleep, I found the answer - six steps anyone can follow to live in paradise.

Step 1 - Guard your wallet
Guard your wallet from attack. A marketer or salesperson's job is to make you think you need something that five minutes earlier you did not know existed. They have many ingenious ways to attack you. They are using psychological tricks to get to your wallet and steal your money. If you are on guard, you will be able to keep more of your money. So if you start reaching for your wallet - STOP! Set off your internal alarm bell and move on to Step 2.

Step 2 - What will you gain?
You have stopped yourself. Congratulations! Now, work out what you or your family will gain by having that item. What are the long-term consequences? Will it improve your health and happiness or genuinely give you more free time? How? If you can't answer these questions positively, then leave your money in your wallet. It is important to be really skeptical. Now move on to Step 3.

Step 3 - What will you lose?
Every time you buy an item you gain something and lose something. If you are lucky, the only thing you lose is cash and the time it took you to earn that money. But this is not always the case. A great example is a television. When you buy a television you gain entertainment but you lose quality time with your family. Another is an electric mixer - you gain a faster way to make cakes but you lose the exercise and arm tone you would have got by hand beating it. So before buying anything, you need to work out what it is you are going to lose. Ask yourself, 'What will I have to give up in order to have this?' (In case you are interested, we don't have a television and we do have an electric mixer. I would rather tone my arms paddling a canoe.) Once you are certain you've worked out what you're going to lose, move on to step 4.

Step 4 - Is it worth the bother?
Every time you reach for your wallet, purse, credit card, etc., ask yourself if it is really worth the effort. If you have to carefully assess every item before you buy it, do you want the bother? Just leave your money in your wallet. It is so much easier. If you leave the money in your wallet you won't have to make any choices, work overtime, and so on. Over the last couple of years I have trained my brain into thinking that spending money is a hassle - a real bother. This protects my family (our oasis) and ensures that I only buy items that will improve the overall quality of our lives. Now, if you have decided it really is worth it, move on to step 5.

Step 5 - Is there a better way?
Now it is time to shop around for a good price and work out the smartest way to buy it. How can you get the best value for your dollar in the minimum time possible? Most of the time, I find the answer in the Savings Vault. Sometimes, I have to do it the hard way and work it out for myself. Very occasionally, the hard way takes more time than I saved, but I get satisfaction in knowing that I have NOT been tricked and that I'm doing what is best for my family. Looking for a better way is the key to being lazy and successful. For example, instead of paying $15 per kilo for meat at the supermarket we looked in the Yellow Pages for a local wholesale butcher and pay around $6 per kilo for top quality, home delivered meat. Once you have researched your purchase and found the best way to buy it, move on to Step 6.

Step 6 - Do you have the spare cash?
Most of the time buying things on credit is stupid, so if you don't have the cash, you just don't buy it. Go without - save up till you have the money to spare. This doesn't apply to such things as borrowing money for a basic car so you can get a job, but it does apply to 99% of purchases.

If you use the six steps and they improve your life, as I'm sure they will, thank baby Jacqueline's teeth because I'm usually asleep at 4am.

[Darlene]

Some words of wisdom, thanks Bethany.
Jack & I met each other fell in love rather quickly(got married 6 mo after we met & are celebrating our 20th in Nov.) and bought a house with a few tho he saved up. We didn't spend it on a fancy wedding or honeymoon, we bought a house.Lived there on one income and sold it 9 years later at a nice profit to move out to the country. In all that time any extra $$ went towards the principal in our mortgage. No trips, no new cars, no fancy anything, just pay off our debt as quickly as possible. We did without & had it good. Now we've been in this new house 10 years and are now mortgage free. Still with one income. We have dd in her 2nd year of college & ds will be starting that next year.
We have never had a new car, never gone on a vacation other than to visit family, don't keep up with our neighbors, family or friends in material posessions. Sure so & so's hot tub is really nice add that to thier new car & truck and you are talking mega debt. no thanks. I wouldn't be able to sleep at night.
What we do have are 4 people living under one roof content with what we have and making do & feeling like we've got it good.And we do.
I'm not boasting, I just want you to know that if you work hard & find your way to enjoy the simple things in life you can find that inner peace too.
Choices abound..what are you going to choose?

[PrairieRose]

Great article Bethany...I like the site too.
Good for you and Jack, Darlene.....you should teach classes to young marrieds.