First off, I'd like to thank everyone for the wonderful comments on my post about "acting poor." Now, for some background on that phrase. I encountered this phrase from an article from BNET about advice to new graduates this 2010. The author said that to become a millionaire, you have to act poor.
Although I have no dreams of being wealthy, I'd like to have enough so we can send both kids to college (or medical school or law school or whatever they want to do with their lives), make sure they are independent by the time they graduate, and live our old age independently. Now that I think of it, I should be wealthy to do these things.
When I became aware of my finances, I got really good at writing down my expenses, but I am not satisfied with the way I'm allocating our income. Too much expenses with minimal savings. I've traced my difficulty in saving more because I am unable to draw the line between need and want. I also took with me a very bad habit from my previous lifestyle when I had more than enough; I didn't care about price.
The answer to my dilemma came in the form of that phrase "act poor" which resulted to my reflecting on why I didn't want to "act poor." Now, I think that it's the answer to my financial problems. I have to act poor so I can save on what really matters and for now, this means preparing for my kids' education and our retirement.
This means examining our current expenses and weeding out what is unnecessary. This means stopping to buy books and other reading materials because I have access to an online library and blogs that are great reads. This means having to finish all the cosmetics and toiletries I have hoarded instead of buying more out of curiosity.
I have to shake off this mindset that to be frugal, you are depriving yourself from any happiness because there are ways to be happy without spending. Besides, this is a practice of mindful living where you channel all your resources and energies into something that's important to you. To me, retiring without having to be a burden to my kids and being able to give them opportunities to become independent are the most important. With this in mind, I can put off not having a weekly manicure or a monthly massage.
7 comments:
These are very helpful tips. I just realized I should get my finances in order, I'm 24 for godssakes XD
Thank you for sharing these thoughts. I think it's really important to "act poor" and not "look poor". Sad but true, society is unfair, and to look poor means getting less respect & unequal treatment. So I'd say yes to act poor, by spending less than I can & saving instead, but still have fewer, more quality pieces than hoard like there's no tomorrow. I'll keep this thought as I go to BKK for a vacay tom, to fight the urge to overspend in a shopping mecca. =)
@Krissy, I wish I started when I was younger. Goodness! If I'd known these things earlier, I would have saved myself a lot of trouble. Good luck!!
@Neurochiq, enjoy your trip! More and more I'm leaning on buying quality pieces instead of buying cheap stuff.
I used to be embarrassed about being poor - not expensive clothes and keeping up with my peers.
But now that I can afford these things, I still continue to "act poor". Because I know that these things don't make me happy (except maybe for a brief moment).
Being able to have financial freedom, and to be happy, I think that is the richest of them all.
@aspiring minimalist, you're right that things only make us happy for a brief moment. Then we have to buy some more after that happy moment is gone. Seems to me a wasteful way to spend your time.
hi, ang ganda naman po ng blog nyo ang dmi ko pong natutunan na tips tnx for sharing
Thank you, Aira. Please feel free to come back although I haven't posted for a long time. =)
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