My journey to ending up being the very first self-made millionaire in my household– through passive earnings from realty investing and my individual financing service– originated from a desire to invest more time with household.
Building passive earnings streams has actually permitted me to work less and be more present with my better half and our 2 kids. Being prudent and protecting our cost savings has actually assisted, too.
But living frugally isn’t practically investing less or purchasing low-cost things; it has to do with being more deliberate and not inefficient. Here are 5 things I decline to invest my cash and time on:
1. I never ever purchase brand name brand-new vehicles.
Insurance premiums for new cars are typically more expensive than used ones, too. So I prefer buying a used car that is a couple of years old and has less than 100,000 miles.
2. I never buy fast fashion items.
I don’t overthink my outfits. I keep a small closet of simple, timeless clothes. If I’m going casual, I’ll pair blue jeans with a T-shirt or polo. If I’m attending a formal event, I’ll wear a suit and tie.
I only buy new items when I need to replace clothes with unforgiving holes from normal wear and tear. One of the most important things I teach my kids is how to care for their belongings and make them last.
3. I never buy more food than I need.
I’m very intentional about my grocery shopping list, and we always plan our meals around what we already have at home.
I also dislike throwing away food that can be saved for the next day. If I’m at a restaurant and can’t finish everything in one sitting, I’ll take the rest home. I consider it a deal if I can get two meals for the price of one.
Being frugal doesn’t mean buying whatever is the cheapest. It’s not worth sacrificing quality to save just a few dollars.
If I’m looking to buy an investment item, such as a mattress, sofa or refrigerator, I’ll do research and read all the product reviews. I’d rather own things that can survive multiple uses than constantly replace them because they were poorly made.
One of my favorite pastimes when I owned my first home was mowing the lawn. I took pride in taking care of it. But it was exhausting and time-consuming.
Now I have a landscaping company come mow my lawn once a week. I’m able to use the extra time saved with my family. I’ll teach my kids how to code, play guitar with them, or take them to the zoo.
The lesson here is simple: Delegating and paying people to do things (even if they’re simple tasks) is often worth the money. It gives you back time to do more meaningful things.
Jonathan Sanchez is the co-founder of Parent Portfolio, a website that helps families learn to grow wealth and raise financially responsible kids. Follow him on Twitter @TheParentPort
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