If you haven’t guessed or if you haven’t read my books or blog posts, you may not realize that I write for a specific segment of our economy. That segment comprises individuals who earn a decent living but struggle to effectively manage their money.
Managing Money for Middle-Income Earners
This group includes individuals earning around $70,000 annually or families earning $130,000. While their earning power is absolutely fine for a nice lifestyle, it’s not sufficient to make them wealthy. I don’t cater to affluent individuals.
The truth is that most of us will never achieve massive wealth. However, we can still thrive and achieve financial stability with the right mindset. When I began my journey towards being debt-free, I earned 20% below the median income for my area. It was undoubtedly challenging, but it taught me valuable lessons about self-sufficiency, delayed gratification, and finding genuine joy instead of seeking temporary happiness through material possessions like a new pair of shoes.
The Surprising Reality: Living Paycheck to Paycheck Regardless of Income
Did you know that 48% of Americans earning over $100,000 annually live paycheck to paycheck? Furthermore, 60% of Americans, regardless of income, live in the same cycle.
I vividly recall the days when I struggled to make ends meet, feeling vulnerable and worrying about paying my bills. The fear of a catastrophic illness jeopardizing my ability to work or the possibility of losing my job plagued my thoughts. At that time, I had no emergency savings, a situation shared by many Americans who lack the means to cover a $400 emergency expense.
Living debt-free is undeniably one of several strategies that can help increase your wealth and freedom.
I understand that today’s income doesn’t have the purchasing power it used to. However, I also recognize that making a few sacrifices for a short time can help overcome the challenge of living paycheck to paycheck.
Building Resilience: From Vulnerability to Financial Stability
To stay on track, I rely on several online resources. I regularly watch YouTube channels focused on frugal living, follow Instagram accounts that promote frugality, and engage with frugal living groups on Facebook. Immersing myself in this content serves as a motivator to help me stay aligned with my goals.
I won’t deny it; maintaining a frugal lifestyle can be challenging. Currently, I’m grappling with the decision of whether to get a professional haircut or do it myself. I know that a professional cut would yield better and longer-lasting results, but as a person with long and curly hair, it’s challenging to discern imperfections. Moreover, since I work from home and lead a relatively solitary life, there is no one to impress, except my spouse and he never seems to notice minor changes in my appearance. In fact, he wouldn’t likely notice the haircut itself, not because he doesn’t appreciate me, but because we’ve been together for a long time, and my hair is not his primary focus.
Another instance where I face conflicting emotions about spending is when I travel. I feel the urge to have a specific vacation wardrobe, something cute and appropriate for the destination. However, during my recent trip to Washington, D.C., I consciously decided not to buy an entirely new vacation wardrobe. I knew my shoes were suitable for walking, and if they became worn out during the trip, that would be the right time to replace them. While my outfits might not have matched the city’s business attire, I wasn’t going to an office meeting. I engaged in typical tourist activities, and it worked out wonderfully. I didn’t end up spending hundreds of dollars on clothes that would only serve a specific purpose of making me look cute while on vacation.
I have the ability to resist my desires by exercising willpower. It can be challenging at times, but delaying gratification always leaves me with a sense of self-control and empowerment.
Embracing Frugality: Strategies for Thriving on a Modest Income
- When shopping online, add items to your cart but wait a few days before making the purchase. This will create distance from your desire and enable you to make better decisions.
- If you feel nostalgic and have the urge to spend hours wandering around the mall on a rainy weekend afternoon, leave your wallet at home. It may feel unpleasant initially, but you’ll thank yourself later for not accumulating unnecessary items.
- Host a fun potluck with your friends instead of meeting at a local restaurant. Not only will you have more quality time together, but everyone contributing to the meal will also help save money.
- Instead of going to the movies with your partner, opt for a walk in the park or a hike in the hills. I’ve found that some of the best conversations I’ve had with my partner occur when we are away from home, immersed in nature, feeling relaxed and free from stress.
- Feeling bored? Engage in activities such as playing board games, reading books, or exploring the numerous free streaming services available. Try solving puzzles, play ping pong using the dining table, or take turns asking and answering trivia questions.
- Explore affordable hobbies like watercolor painting, embroidery, or basket weaving. YouTube offers inspiration from people who collect natural fibers and demonstrate their preparation for weaving.
- If you live near a beach, consider investing in a metal detector and enjoy the excitement of searching for hidden treasures.
- Spend a day at your local library, reveling in the quiet solitude that refreshes the mind.
- Set aside regular “beauty days” for self-pampering, including exfoliation, shaving, moisturizing, and nail care. Doing the work yourself not only saves money but also leaves you feeling amazing afterward.
- Rather than going shopping, invest time in repairing things that require attention in your home or car. Polish your shoes, mend your socks, clean your oven, and organize your closet. These tasks provide instant gratification. I often experience a boost of happiness when I see my clean and organized closet.
Investing Wisely: Making Purchases that Bring Long-Term Value
Of course, if you genuinely need something, you’ll likely have to make a purchase. The key is to ensure that your purchases are investments rather than mere band-aids to cover boredom or insecurity. For example, investing in a no-rinse floor cleaner saves you time—an excellent investment. Similarly, investing in a high-quality pair of winter boots is superior to purchasing a cheap pair that will need replacement next season.
Investing your time in reading books or taking classes is also more valuable than spending money on non-essential items. By doing so, you’ll acquire knowledge and skills that make you smarter and better equipped to succeed in your job, hobbies, and interactions with society.
Did you know I have a podcast? You can listen to the soothing sound of my voice as I review frugal living on Spotify.
