I grew up with my single mother, who was very cautious with finances. She meticulously saved money.
clipped coupons
And clung to furniture and clothing that seemed like they were plucked right from a film set in the 1980s.
Once I landed my initial job, I received a reasonable income working as a software engineer; however, I discovered that I had adopted my mother’s attitude towards having limited resources. This led me to constantly feel anxious or remorseful concerning finances—most of which were being spent on essential living costs and settling my spouse’s educational debts.
debt
.
In 2019, my perspective on finances shifted after my spouse and I began having earnest discussions regarding the type of future we aspired to create for our two small children. Our aim was to
build wealth
So that they might have access to greater possibilities down the line.
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We educating ourselves and created a strategy with assistance from a financial planner. We began
investing in real estate
In 2019, we acquired three rental properties. In 2020, we debuted a personal finance website.
Parent Portfolio
, to assist other families similar to ours.
By the age of 37, I had accumulated a net worth of
a million dollars
Even though I reached this financial benchmark, there are certain aspects that remain unaddressed.
frugal habits
that I’ll always keep going:
1. I frequently visit my neighborhood library.
Our local library is a wonderful place to spend an afternoon. It offers so many fantastic free resources that many people may not be aware of.
Aside from loaning books, my household has also utilized our local Omaha library’s 3D printer and borrowed board games along with podcast equipment.
We have benefited from various excellent communal events such as cooking lessons, art instruction sessions, and fundamental self-defense workshops.
Regardless of my earnings, I’ll ensure that I maintain a library card.
2. I make my own coffee.
Similar to numerous individuals, I enjoy a daily cup of coffee each morning. However, purchasing it every day tends to swiftly turn into a costly routine; hence, I prefer preparing it myself at home.
I will get a $16 bag of coffee grounds from the grocery store — which will last for at least two months — and set up my coffee machine the night before to brew coffee the following day. This routine saves me money and time getting ready in the morning.
Just so you know, I have nothing against purchasing coffee. If my spouse and I decide we want to unexpectedly stop by a café when we’re out, we’ll plan accordingly within our monthly budget.
But my setup at home most certainly won’t be moving.
3. I continue to handle my own DIY repairs.
When something at home gets broken, I try to repair it myself initially. To me,
frugality
It’s not merely about saving money; it’s also about maintaining the possessions we already have.
When my spouse and I tied the knot 13 years back, we purchased a dresser for our bedroom. Over time, there were several instances where the drawer slides disconnected from the plastic pieces designed to keep the dresser assembled.
Rather than replace it because of this quirk, there have been several times where I’ve just drilled in screws wherever the plastic stopped holding up.
For just a couple of bucks, I managed to extend the dresser’s lifespan for several more years, which ultimately helps me save more money in the long run.
4. I handle my credit card cautiously.
Although I feel more relaxed now regarding our ability to cover what my family desires and requires financially, I remain determined not to rely on prospective earnings for current expenditures.
Because of that attitude, I remain quite wary about my actions.
credit card usage
.
I always settle the balance
credit card balance
Each month, I ensure I pay off my credit card balance to avoid extra charges. I only use a credit card when I’ve planned for the expense and am sure I can cover it with funds in my bank account right away.
I closely monitor what
credit card points
We can use these resources in various ways, such as trading them for complimentary flights and a rental car, or utilizing them to obtain gift cards that enabled me to upgrade from a ten-year-old 20-inch TV to a brand-new 4K model.
5. I purchase only pre-owned vehicles.
Neither my spouse nor I have ever been particularly enthusiastic about cars, so we aim to hold onto our vehicles for as long as we can. Currently, we own a 2005 Saturn Vue and a 2013 SUV, each with more than 100,000 miles on their odometers.
We consistently maintain our vehicles and take necessary actions as soon as we notice signs of deterioration. For instance, after discovering that a car required an entire new transmission, we found out it would have been cheaper to buy a replacement vehicle altogether.
I did some research online and considered various aspects such as mileage, year, past incidents, and general consumer reviews before deciding on a used SUV with 80,000 miles on it. Three years later, we’re still driving this vehicle.
Why are these habits so significant for me?
When reflecting on my childhood, a quotation by the late computer science professor comes to mind.
Dr. Randy Pausch
Engineering isn’t about finding perfect solutions; it’s about making do with the resources available.
As a child, I had limited resources, which taught me to be inventive with whatever was available. This has greatly influenced my current financial decision-making.
I’ve never been one for following thelatest fashion trends or acquiring the most recent technology gadgets. What matters to me is being able to use our resources for meaningful experiences, such as acquiring a new skill or traveling to see our extended family.
In the end, these thrifty practices allow us to direct our resources toward what matters most to us.
Jonathan Sanchez
is the co-founder of
Parent Portfolio
, where he guides readers to seize control of their financial destiny and accumulate wealth for upcoming generations. Raised with thrifty practices, and through making prudent monetary choices, he achieved million-dollar status in his thirties. Keep up with him on
Instagram
and sign up for his newsletter at
Parent Portfolio
.
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