The Ultimate Cheapskate’s Road Map to True Riches

It seems that there's a "community" if you will of compiled personal finance blogs (do a search for "pf blogs" and it'll come up. Anyway, I came across one websites review of The Ultimate Cheapskate’s Road Map to True Riches by Jeff Yeager.

Apparently the author has 6 rules for "ruling your gold":
1. Live within your means at thirty, and stay there.
Well I'm 30 and I think I'm living within my means. But I have massive debt (the house, the cars) but then again, other things get paid in full (credit card bill, property taxes, etc). The blog that I found this from mentioned living the way you did at 25...well at 25 my rent was $1710/month for a 700sq.ft. apartment...no wait that was when I was 23. At 25 my rent was $1400 for a two bedroom two bathroom apartment (hmmm but split with two people, that's only $700 each). If you split what Kraig and I pay, it's around $1400 each...but that's for interest-only which I guess is the same as renting...anyway, forget how you lived at 25. At 25 I didn't have life insurance, disability insurance, homeowner's insurance (renter's insurance is wayyy cheaper)...but true, there's no reason to exceed the lifestyle we have now.

2. Never underestimate the power of not spending.
Oh trust me, I don't underestimate that at all...there's times I'll be at target with a full basket of crap only to later walk out with just a bottle of conditioner. I can talk myself out of any purchase, and I actually get a sense of pride when I do that.

3. Discretion is the better part of shopping.
Once again, this isn't that hard to do. It's pretty easy to look at an item and assess if you NEED it vs. if you WANT it, and where you can find it cheaper. Heck, I have never bought Holiday cards full price, I buy all my holiday crap on December 26th. So doing good so far.

4. Do for yourself what you could have others do for you.
This is a huge deal for me, because I know so many people who hire people to do stuff. I can't justify hiring a maid as much as I'd love to...because we don't even have kids and we're not here during the day to mess up the house, I can't justify paying someone for a skill (cleaning) that I already own. Which is also why I tried my hand at plumbing, and why I still have outdoor motion-detector lights sitting in my office (I know Kraig and I could install them ourselves but since it's electrical, I figure it would help to read ALOT on it first). Every time I've caved and hired someone it's been a huge feeling of defeat, but then again it's also been a necessity (and every single time, at least we tried!)

5. Anyone can negotiate anything.
Now this is where I have problems. If it's something that I used to do (say, banking or retail), then negotiating is not a problem. Other than that however, I'm pretty useless. I tend to take a "oh well, I tried" attitude the minute I get shot down. I remember going garage-saling in the bay area and I had to get Marlene to negotiate a price for me, 'cause I was just too chicken to do it. WTF, too chicken to offend a garage sale woman over something for a buck?!! Definitely need to improve on this tactic.

6. Pinch the dollars, and the pennies will pinch themselves. This is the message that Elizabeth Warren preaches: limit your spending on the big things (like your mortgage), and you won’t have to worry so much about saving money on groceries.
Hmmm well this isn't so easy. The mortgage and cars have already been purchased, and there really was no way we could get around the house situation (we were being pushed out and naturally we didn't know we would single handedly stop the housing market). Plus with my car, I knew that I would have it for at least 15 years so certain factors were important (getting the limited edition so that we could get the dual temperatures...VERY important on long drives to the bay area!). I guess other than having to buy those items (2 cars, 1 house) we've done okay. Heck, I don't even visit my own family because of the cost of airfare. We recently stayed at a super ultra posh Hyatt Regency for only $60 because of Priceline (that would have cost us alot more if I had done something like hotels.com or even gone straight to Hyatt's website). So...I think in the grand scheme it's not too hard to watch yer dough with the big purchases, and if you make them odds are it's out of necessity.
Or maybe just 'cause I'm a chick...i can't imagine buying a house or a car on a whim.


There’s a lot more to The Ultimate Cheapskate’s Road Map to True Riches. Yeager covers topics like:

* Eating well for cheap. (Yeager tries to buy food that costs less than a dollar per pound.)
* Buying a sensible home and then repaying the mortgage as soon as possible.
* Commuting without a car.
* Cheap entertainment. Yeager encourages readers to make the most of their hobbies.

Ultimately, the message of this book is that stuff will not make you happy. Happiness comes from knowing when you have enough. In his final chapter, Yeager stresses the importance of amassing a quality of life over a quantity of stuff. “Many choices you must make [involve] the trade-off between money and time,” he writes. “By being cheap…you’re valuing time and the things you can do with it more than money and the things you can buy with it.”

Well I'd say I eat cheap, considering my lunch is usually just canned soup and I try to make Kraig a lunch as often as possible...and if we eat out it's courtesy of the Entertainment Book. As for buying a sensible home...yeah well this is southern california. Paying it off will never happen in anyone's lifetime. Commuting without a car is also impossible in southern california, unless I want to take the bus at 5am for a 12 mile commute and most likely get assaulted along the way. Cheap entertainment...lots of tv and Netflix, yeah!