I grew up with my single mother, who was very cautious with finances. She meticulously saved money.
clipped coupons
And clung to pieces of furniture and clothing that seemed like they were from an 1980s film.
Once I landed my initial job, I received a reasonable income working as a software engineer; however, I discovered that I had acquired my mother’s attitude towards limited resources. This led me to constantly feel anxious or remorseful concerning finances—much of which was being spent on essential living costs and settling my spouse’s educational debts.
debt
.
In 2019, my perspective on finances shifted after my spouse and I began having earnest discussions regarding the type of future we aspired to create for our two small children. We aimed to
build wealth
So that they might have access to greater possibilities down the line.
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We educated ourselves and created a strategy with assistance from a financial advisor. We began
investing in real estate
In 2019, we acquired three rental properties. Then, in 2020, we debuted a personal finance website.
Parent Portfolio
, to assist other families similar to ours.
By the age of 37, I had accumulated a net worth that had reached
a million dollars
Even though I reached this financial benchmark, there are certain aspects that still concern me.
frugal habits
that I’ll always keep going:
1. I frequently visit my neighborhood library.
Our local library is a wonderful place to spend an afternoon. It offers so many fantastic free resources that many people may not be aware of.
Aside from loaning books, my household has also utilized our local Omaha library’s 3D printer and borrowed board games along with podcast gear.
We have benefited from several excellent communal events such as cooking lessons, art instruction sessions, and fundamental self-defense workshops.
Regardless of my income level, I’ll ensure that I maintain a library card.
2. I make my own coffee.
Similar to many individuals, I enjoy a cup of coffee each morning. However, purchasing it daily can swiftly turn into a costly routine; hence, I prefer making it at home whenever possible.
I’ll purchase a $16 bag of coffee grounds from the supermarket, enough to last around two months, and prepare my coffee maker the evening prior to make coffee the next day. Following this routine helps me save both money and time during my morning preparations.
To clarify, I have nothing against purchasing coffee. If my spouse and I decide we want to unexpectedly stop by a café when we’re out, we make sure to include it in our monthly budget.
But my setup at home certainly won’t be moving.
3. I continue to handle my own DIY repairs.
If something at home gets broken, I try to fix it myself initially. For me,
frugality
It’s not merely about saving money; it’s also about maintaining the possessions we already have.
When my spouse and I tied the knot 13 years back, we purchased a dresser for our bedroom. Over time, there were several instances where the drawer slides came loose from the plastic pieces designed to keep the dresser assembled.
Rather than replace it because of this quirk, there have been several times where I’ve just drilled in screws wherever the plastic stopped holding up.
For just a couple of bucks, I managed to extend the dresser’s lifespan for several more years, which will help me save even more money in the long run.
4. I handle my credit card cautiously.
Although I feel more relaxed now regarding financial ability to cover what my family desires and requires, I remain unwilling to rely on an upcoming salary for transactions I make today.
Because of that attitude, I remain quite wary regarding my actions.
credit card usage
.
I always settle the balance
credit card balance
Each month, I ensure I pay off my credit card balance to avoid extra charges. I only use my credit card when I’ve planned for the cost and am sure I can cover it with funds in my bank account immediately.
I closely observe what
credit card points
We can use these benefits in various ways, such as trading them for complimentary flights and a rented vehicle, or utilizing them to obtain gift cards that enabled me to upgrade from a ten-year-old 20-inch TV to a brand-new 4K model.
5. I purchase only pre-owned vehicles.
Neither my spouse nor I are particularly passionate about automobiles, so we aim to hold onto our vehicles for as many years as feasible. Currently, we own a 2005 Saturn Vue along with a 2013 sport utility vehicle. Each of these has accumulated more than 100,000 miles.
We consistently maintain our vehicles and take necessary actions as soon as we notice signs of wear and tear. For instance, after discovering that a car required an entire new transmission, we found out it would be more economical to simply buy a new vehicle instead.
After conducting research online and considering various aspects such as mileage, year, past accidents, and general consumer reviews, I discovered a pre-owned SUV with 80,000 miles on it. To this day, we’ve kept that vehicle for three years now.
Why are these habits crucial for me?
Reflecting on my childhood, I often recall a statement made by the renowned former computer science professor.
Dr. Randy Pausch
Engineering is not about finding flawless answers; it’s about making do with what you have and performing as well as possible under those constraints.
As a child, I had limited resources, which taught me to be inventive with whatever was available. This has greatly influenced my current financial decision-making.
I’ve never been one for following the latest fashion trends or acquiring the most recent technology gadgets. What matters to me is using our resources to enjoy meaningful experiences, such as picking up a new hobby or traveling to see our broader family.
In the end, these thrifty practices enable us to direct our resources toward what matters most to us.
Jonathan Sanchez
is the co-founder of
Parent Portfolio
, where he assists readers in taking charge of their financial destiny and accumulating wealth for forthcoming generations. Raised with thrifty practices, and through making prudent monetary choices, he achieved million-dollar status in his thirties. Keep up with him on
Instagram
and subscribe to his mailing list at
Parent Portfolio
.
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