Most of Europe is in crisis. In Greece, Spain, Italy and Portugal people demonstrate against the draconian cost-cutting measures imposed by the EU on member countries in deep financial trouble. No wonder many people are sceptical about the EU getting the Nobel Peace Prize, when the situation in many EU-countries in the European Union has led to austerity and conflicts. But nevertheless, teamwork is needed to make ends meet, demonstrations solve nothing. In this economic climate, one can learn to live comfortably with less, and become a happy cheapskate. According to my Thesaurus, a cheapskate is ‘a stingy hoarder of money and possessions (often living miserably).’ But with the right strategy, a cheapskate is no miser. He or she can lead a happy and full life cutting back on many unnecessary things.
On the Internet I found The Cheapskate Guide; 50 Tips for Frugal Living written by Leo Babauta, (born in 1973), creator of Zen Habits, a blogger, journalist and published author from the United States. He describes himself as “a regular guy, a father of six, a husband, a writer from Guam, now living in San Francisco: “I have accomplished a lot over the last couple of years (and failed a lot) and along the way, I have learned a lot”. Why live frugally? asks Babauta. First, because it allows you to spend less than you earn, and use the difference to pay off debt, save or invest. Secondly because the less you spend, the less you need to earn. And that means that you can choose to work less, or work more and retire early. You have more options with a frugal lifestyle. Babauta says he knows what kind of comments his Cheapskate Guide will get. People will say he has no life, you have to enjoy life sometimes. He says he has a great life, and can spend more time with his family, focus on what’s important. So if you’d like some tips on frugal living, here are just a few, from a cheapskate:
Go with one car. Your car is probably one of your most expensive items. Try to do with one, and get more exercise and fresh air. Rent rather than own. If you calculate the interest you pay on a mortgage, insurance and maintenance, buying is often much more costly than renting. Look for used first. If you need something, really need it, not just want it – see if someone you know has one that they don’t use or need anymore. Eat out less. One of the biggest expenses in our daily lives is eating out. It’s much cheaper to cook your own food. If you do eat out, check out the money-saving tips. Babauta’ s guide also recommends to adopt a minimalist wardrobe, stop online impulse buys, because online-buying can be way to easy and lead to huge spending. You should use the library instead of buying books, find free entertainment, choose frugal exercise like trekking etc, stay healthy, thus saving money on hospital bills and medicine, and sell your clutter by organizing a garage sale, etc.
For those who would like to read all 50 Cheapskate Tips, I recommend googling for Leo Babauta. His tips are very useful, albeit a bit too systematic and rigorous for my taste. I prefer to be an absolute miser for a certain period, allowing myself sheer luxury once in a while.