I have a 4-step method for obtaining the life that I want while staying within my budget. This has worked for me for over 30 years, and has allowed my family to have many of the nice things that supposedly can't be had on a single income. The steps guide me from my initial desires to workable solutions that save the maximum amount of money for many of our expenses. The final step reinforces all of my choices to motivate me to continue on this path. Here's how it looks for my life and choices.
step 1
When there is something that I want that costs money, I take a step back and decide what my end goal is, that is what I think I will get from the purchase of XYZ. If it's a gym membership, my end goal would be fitness. This is important to assess, as so often I see something in a store or hear of a friend having something, and I want what others seem to have, without really considering what my purpose would be in owning that thing. So, I move on to step 2.
step 2
After I figure out my end goal, I brainstorm all of the ways that I could possibly achieve that same objective without the big price tag. So, with a gym membership (with an end goal of fitness), I think of all the ways I could get fit for free -- walking, lifting hand weights, and aerobics videos on youtube came to mind recently. Now that I have some alternatives, I move on to step 3.
step 3
I try several of these alternatives and see what sticks. I figure that it's not a failure to try a particular exercise video for 3 weeks, then find I lose interest and don't go back to that one. I've just successfully eliminated one of the options that for whatever reason didn't work for me, and then I moved onto the next option, a 15 minute beginners weight-training video combined with walking with friends. This past summer, I did just this. It has worked so well that I continue with this routine and I no longer dream of a gym membership.
step 4
In step 4, I remind myself of how much money I have saved by choosing a particular alternative and how that money is being redirected. If saving money on a gym membership means I can work fewer hours and spend more time with family or pursuing an enjoyable hobby, I tend to stick with a free workout routine in lieu of an expensive one. When I drive past the brand new LA Fitness building in my area, I remind myself that sweating is just sweating, and I can do that for free on my own.
This little exercise extends to more mundane expenses, too, like laundry detergent. When I see the brilliant orange bottles of Tide detergent, I think how nice it would be to have premium laundry detergent. For a few moments, I'm tempted to buy this brand. So, going through the steps, I decide what my end goal is with the Tide -- clean, stain-free laundry.
Moving on to step 2, how else can I get stain-free laundry? I can buy store-brand detergent, dollar store detergent, or even make my own laundry detergent. I can combine any of these with a trick that was shared in the comments a few weeks ago, and use an Irish Spring bar soap as a stain remover just before throwing items into the wash.
Step 3, I try what is going to work for me. Years ago, I wanted to make powdered laundry detergent for family use. Well, this involved grating bar soap, which I found to be tedious work, and so I wasn't inclined to continue this practice. I tried various discount laundry detergents, finding many that worked just fine for us. Then this past winter, with our substantial income reduction and need to reduce our spending, I resumed one of my quick and easy methods for making laundry detergent. I melt a bar of plain soap in a large pot of water, then I add a big squirt of dollar store liquid dish soap. My husband, who has complained the most about my homemade laundry soaps over the years, has mentioned a couple of times how much he likes this homemade detergent formula. For me, I'm happy that I can make this with about 3 minutes of hands-on time and can make enough at a time to last about 3 weeks.
Moving on to step 4, I analyze my savings. For about 1/5 of the price of Tide, I can make my own detergent and use Irish Spring for stains. Knowing that I save about $8 every other month with less than 5 minutes of actual work motivates me to continue with our homemade laundry detergent.
Here's another area for which I use these steps. When it comes to providing meals for myself and my family, again I consider the end goal. My end goal is delicious food that is nutritionally-balanced and quick and easy. I could pick up some salads and sandwiches from a place like Panera or some takeout from our local Chinese restaurant. Both of those options would be very tasty and I think pretty nutritious. However, I want to think of all of the possibilities to meet that end goal. I could also stop by the deli counter at the grocery store or buy some other convenience item from the center aisles of the store. Both of those would be tasty, nutritious (depending what I choose), and easy.
Okay, going a little further, I could also spend a couple of minutes surveying my pantry, fridge, and freezer, going online to look for frugal recipes using the ingredients that I have on hand, then coming up with a game plan to make a meal from scratch or almost from scratch (either on a weekly basis as part of menu planning, or even the "day of" for the meal). I've been running a household for 32 years, so I've had a lot of experience trying out all of these methods to provide tasty, nutritious, and easy meals. What has stuck with me, time and again, is that home-made, simple meals meet every goal and save wads of cash.
Knowing how much I save in dollars and cents really keeps me motivated. My family will tell you that I am fond of calculating the cost of each meal and making an announcement at the dinner table. (I know, that's probably really bad manners, but it's entertainment for us.) Going beyond just knowing the dollar amount, I remind myself, often, that the money that I have saved by cooking from scratch has paid for a lot of luxuries for my family, such as vacations, home remodeling, and educations.
This all boils down to mindful, frugal living. In many areas of life, mindfulness results in greater satisfaction as we eliminate what is unnecessary and hone in on the relationships, material things, and experiences that matter the most. In frugal living, mindfulness allows us to create the life that we want on any level of income.
I don't think that my little steps are revolutionary. I think that most of us practice a process like this, but may do so less consciously. We do this in our every day actions. I just did a version of my steps a little while ago. I wanted dessert after lunch, but there was nothing readily available. I thought about stopping by a store when on errands. I also thought about baking some cookies. Then I thought I could simply make myself a dessert-like cup of coffee. With instant decaf granules, sugar, vanilla extract, coconut milk, a bit of whipped cream from the freezer, and some nutmeg, I made myself a wonderful spiced-vanilla latte. It took seconds to make and fulfilled my end goal and saved our grocery money so that we can stock up on other foods later.
This is what works for me. Do you follow any pattern or process when making frugal choices for yourself or your family?