Blog

Frugal Living vs. Big Wins

By Debt.ca on January 3, 2014 1 Comment

When you’re struggling with debt, it’s hard to ‘think big’. Pinching pennies becomes a way of life and your next bill is the only thing you’re concentrating on. But maybe this isn’t the best approach.

The Immediate Danger

In martial arts, some teachers say that in any conflict you should ‘address the immediate danger’. This means if someone is choking you, your priority is to get their hands off your neck – everything else comes after.

So if your electricity is going to be shut off, then yes, by all means, get that taken care of! But it’s all too easy for life to be a series of ‘immediate dangers’, where you are constantly reacting instead of acting. Living like this will be a constant struggle, completely limiting your ability to look and plan ahead.

What is ‘Thinking Big’?

Big is a relative term. If you’re struggling to pay a $100 utility bill, $1,000 is BIG.

If you’re making $20,000 at your current job, then $40,000 is BIG.

At the same time, many people struggling with debt would barely notice an extra $1,000, and there are people making $40,000 who are in just as much trouble as the person at $20,000.

The truth about thinking big is that you can’t save your way out of debt.

Penny Pinching is not a long-term strategy

Some examples of penny pinching are:

Couponing – do you spend hours watching extreme couponing shows and creating spreadsheets to track your coupons and savings? Is it really helping? Sure you’re getting a ton of stuff for free, but do you need that stuff? Is the food you’re buying what you really want to be eating? Are you using more just because you have it? Saving money on things you would buy anyway is smart, but buying things you don’t need just because they’re cheap will never get you to where you need to be.

Make coffee at home – “Starbucks is so expensive – just make coffee at home”. Of course this is true mathematically, and if you’re used to spending $5 a day for your coffee, that’s a quick $100 a month you could put towards your bills. But it’s not enough. You can’t turn that $100 into more money (unless you switch to tap water exclusively).

Yes, penny pinching will help in the short term, but you have to take a step back. Stop thinking about your next bill and think about your LIFE.

Thinking BIG means thinking creatively

How can you make some extra money? We’ve talked before about some strategies, including earning money on the side, getting a second job, and asking for a raise.

Think about your life the way an entrepreneur thinks about their business. Entrepreneurs see opportunities everywhere. Everything is a chance to network, sell, or find a niche you can profit from.

Rather than feeling stuck in your current job, you have to think bigger. Does it make sense to aim for a promotion? What about working for a competitor? How can you use the knowledge and experience you have to provide more VALUE to someone?

Is there a skill you’ve developed at your job that you could use to freelance with at night or on weekends?

What about taking your expertise and turning it into an online course or eBook you can sell?

Follow the Leader

Don’t assume you have to reinvent the wheel. Whatever you want to do, someone has done it before. Don’t be afraid to ask for help. Find people who have done what you want to do and ask them how they did it.

Frugal living will only get you so far. Getting out of debt doesn’t only have to be financially significant – use this time to completely transform your career and your life.

Debt.ca

Admin


Which Type of Debt Should You Repay First?

By Amanda Reaume on March 23, 2017

Some people feel very anxious when they’re in debt and want to pay it off as soon as possible. But if you have a lot of debt or if you have many different types of debt, then you might be confused as to which debt you should pay off first. The first thing that you…

Having the Money Talk with Your Romantic Partner

By Rubina Ahmed-Haq on March 16, 2017

Money is one of the major reasons couples fight.  A study out of Utah State University found that couples who fight frequently about money are more likely to get divorced. That’s compared to any other issue they might fight about, child rearing, their love life and household chores (as an example.) Before your relationship moves to…

How to Save on Heating Costs, Even as a Renter

By Jordann Brown on March 9, 2017

One of the best ways to free up room in your budget to pay down debt is to trim your expenses. There are plenty of ways to trim your budget, but one often overlooked method is to reduce your utility costs. Home heating makes up 42% of your home’s overall energy use, and drain your…

5 Tax Breaks You May Not Know About

By Alyssa Davies on March 2, 2017

We’re getting closer to the time of year when the Canada Revenue Agency awaits your annual income reports. From there, they will determine whether or not you are income tax receivable or income tax payable. What’s the difference, you ask? Income tax payable means that you must pay the government within one year, and income…

Leave a Comment

Free Savings Estimate

How much do you owe?

$100,000

$5,000
$100,000
Live Chat
Welcome to our Live Chat
Agents are not available at this time. Please leave a message. Thank you.
First Name
Last Name
Phone
Email
Postal Code
Debt Amount
 
PHP Live! powered