I never used to know what to think about poor people who spend themselves deeper into poverty. How can you complain about having no money if you eat out, go to the movies, rent DVDs, and take vacations? But I've realized that most people do not have the same inherent restraint and caution against spending money that I always have, and they don't know how to develop it. People who sell financial advice are actually selling a way of life:
Being penny-wise can reap huge rewards. Just ask Amy Dacyczyn, who lives with her husband and six children in a "to-die-for" house on a seven-acre parcel in a bucolic rural area.So much wisdom; will people actually learn to follow this advice?The family could afford their dream home primarily because they were able to maximize savings and limit buying to necessities. These concepts may seem old-fashioned, but they are just as valid now as ever.
"It's important to put your money into things with permanent value -- such as a wonderful home or a fine antique chest -- not into fancy clothes, restaurant meals or DVDs that mean little in the long run," says Dacyczyn, author of "The Complete Tightwad Gazette," a compendium of money-saving tips.
Formerly the publisher of a popular newsletter on frugal living, Dacyczyn insists that your quality of life needn't suffer simply because you've decided to reduce your living costs to buy a first home or a move-up property.
"The price of many things is falling. But people go into a big store like Wal-Mart for a few simple items and they're faced with a multitude of other alluring products," she says.
Still, Dacyczyn insists that consumers must take responsibility for their own actions and not blame retailers or advertisers for letting their spending get out of control.
Posted by Kevin on February, 5 2005 at 11:27 AM
