Yesterday I was training with my personal trainer. Great lad!
We got talking. I told him that my strength to weight ratio has gone completely the wrong way because of my writing.
You see, the more I write, the less I move; the less I move the heavier and less strong I get.
‘What are you writing?’ – my trainer asked.
So I told him about The Money Principle.
I told him that The Money Principle stands for:
- Paying off debt fast;
- Being a frugal artist; and
- Making sure that your budget is as tight as the red dress Julia Roberts wore in Pretty Woman by using the ERR strategy for money management.
He was quiet for a while and then said:
‘I just paid £800 for my car to pass MOT.’
I dropped the dumbbell on my toe.
‘You just wasted £800? For this and the money you could get for your old car you could get a new one.’
You see, I didn’t use to think like that. Five years ago, I would have paid £800 without further ado.
Then I discovered how to be a frugal artist.
Do you know what the main marks of a frugal artist are?
A frugal artist breaks out of the immediate situation
Five years ago, if told that my car needs work for £800 done on it to pass its MOT, I would have thought about whether I have the money.
Or I would have asked myself where to get the money.
But I wouldn’t have thought about whether or not having the work on my car done worth it.
In other words, I would have asked myself:
‘How can I do this?’
…rather than
‘Is this the right thing to do?’
See the difference?
One question keeps you within the situation and the other questions the situation itself.
A frugal artist looks for alternative solutions
My trainer accepted that the only solution to having a working car is to pay £800 for its repair. This is what I may have done five years ago.
Now, I automatically look for different solutions.
Could I make do without a car for some time? Can I sell my car? What can I get for slightly over £1,000? Who can help me find a reliable car for this price? Shall I use some of my investments to buy a slightly newer car?
A frugal artist looks into the future
A frugal artist knows that a car that needs £800 spent on it to pass its MOT is likely on its last legs.
So, I’d ask myself: how long before I need to spend even more to keep this car on the road. How much I’d waste in the long run (including high petrol consumption, high road tax etc.)? How much time I’ll spent dealing with these matters?
Finally…
You see, it makes sense!
Being a frugal artist can save you money and improve your life. You just have to remember to break out of situations and think (and act) creatively.
Great stuff!! We can save so much money just by taking a few minutes to think things through and look for alternative solutions. So many times though we just accept what is in front of us and as a result waste money.
@Jon: Quite right. Most of us do this one – stay within a situation – in most area of our lives. As a result, we don’t formulate the ‘right’ problems. In my example, most people would have made finding £800 to pay for the maintenance of this pile of poo into a problem. When the real problem is how to find £800 more and (bring the whole thing up to £1600) and buy a new car.
I love the following line, “a frugal artist asks themselves is this the right thing to do?” That’s a totally different question. It forces the person to hit “pause” and then go through a process of analyzing whatever situation they are in and empowers them to make a better choice.
@Michelle: Welcome on The Money Principle, friend. Yep, you got it! ‘Is this the right thing to do?’ is the single quetion that has the potential to make the world so much better place (and our lives much more satisfying and enjoyable).
800 pounds?! Yikes that hurts the team. What does disposal cost for vehicles?
Not a lot of personal trainers have an income that can afford to take 800 quid on the chin, either.
@Anne: Yes; as I said, paying off all this money to keep this car on the road sounds mental. And I don’t think it would have been a disposal job – he could have sold it for scrap (there are people who buy cars that are not goo for driving but have still good parts).
I’m always looking for cheaper and better alternative uses for my money. I guess I have to say I was brought up that way. My Dad was always fixing things and taking care of most things around the house and I still enjoy doing things myself!
@Paul: This is great if you enjoy it and if you can do these jobs well. You see, I’m not very good at ironing (and dislike it to boot) so have always paid for it to be done. Makes sense, I think.