“Despite rally, stocks end worst week ever” is an MSN Money lead. Last week I said, another bad day and the market would be under 9,000. Now, it’s just above 8,000. A few days ago someone (I can’t find the link) suggested a market at 7,000 would be the balance point. That’s half where it was in October 2007. HALF!
For many, the stock market is only paper money. It will be years before their portfolio’s value matters. But, for others, those living on investment income, it matters now. Comfort has moved to crisis in just over a week. And, crisis usually challenges our decision making. It brings panic. Panic sets us up for even more dire consequences. Tempers get short, depression sets in, confusion reigns.
Those already accustomed to frugal living are better prepared for what lies ahead. Those experiencing financial strife for the first time, or the first time in awhile, aren’t. Today’s blog is for you.
Those who live frugality most successfully understand a basic life lesson: We have needs and we have wants.
We need air. It’s still free, although, granted, the quality certainly varies across the country.
We need water. We want bottled water, or soda or coffee or sports drinks.
We need food. We want Micky D’s or 5 star dining or pizza delivered.
We need shelter. We want a two-story, six bedroom…. (fill in your blank.)
We need clothing. We wantdesigner, brand new, hip, sheik & trendy duds.
We need transportation. We wanta new car with a DVD, GPS, 6 CD changer…
We need health. We want 6 pack abs, size zero, aren’t-I-hot bodies.
Financial issues rank #4 among top marriage killers; #7 here. Money is the #2 cause of stress. State of the world and intimate relationships are #7 and #9 respectively. Personal health is #3. Stress leads to heart attacks, clogged arteries, substance abuse, infidelity – mostly nothing positive. All of which leads to the #1 thing people must do to adjust: Change your expectations.
If you want that 6 bedroom house, rent a room in someone else’s. Or, if you’ve got that six-bedroom, which you probably can’t sell right now, have the kids share a room and rent out one or two bedrooms. My two sisters and I survived childhood sharing a 10 x 10 room. No lasting scars (ok, maybe a couple…)
If you want that new car, forget it. There’s no financing right now, even for the 800 FICO club. This is good for you. You have transportation. Extend its’ life (and reduce your gas costs) by riding the bus, carpooling, biking, walking. For some people, these are the only forms of transportation they know.
If you want to eat out, arrange neighborhood potlucks or one of those have-a-different-dish-at-each-house parties. If you want bottled water, skip the tap, buy that .50 a gallon purified water from those machines at the store & refill your bottles. (That saves the landfills, too!) If you want soda or sports drinks, look for coupons, find it on sale, and stock up. Make it a treat, something to look forward to. Have a glass, not the whole bottle. Add that flavored creamer to your coffee for a not-quite-a-latte, but better than coffee fix.
You can A) continue to want what you can’t have (right now) and be miserable. Or, you can B) take action to get it, which will give you a lift while you’re striving. But, if you can’t achieve it, you’re back to miserable. OR, you can C) look at things differently. You can’t have that new car, but since that saves you a $500 monthly payment you can have dinner out occasionally, buy the kids a new outfit, take a class to improve your career, and still put a few hundred in savings each month. Less stress is sitting right there, between your ears. What’s that worth?
For a feel-good story from someone who’s already learned this lesson, check out this article:
