Frugal Homemakers are not stingy or mean or miserly. Frugal Homemakers Budget Wisely, so that they can be generous, hospitable and create a fulfilling home for their loved ones. But what does Budgeting Wisely Look Like from a practical Homemaking perspective? Let’s have a look at some secrets of Frugal Homemakers who have wonderful Homes.
A Homemaker Who Budgets Wisely “Cuts her Coat to fit the Cloth.”
The main principle of budgeting is simple: knowing what your income is, and ensuring that what you spend does not exceed that.
But that is easier said than done, right? Sometimes the pull of a certain lifestyle puts us into denial about how much income is actually available.
A Wise Homemaker, however, has a clear picture of what she has to spend, and NEVER spends a dime over that. To a wise Homemaker, this is a non-negotiable.
It is highly essential to be strict with yourself about not spending more than your income. If you have the sort of lifestyle where you dance with the income limit, then Homemaker, you are never going to get ahead.
Sticking to your budget needs to be consistent. It needs to be a habit. There can be no questions or flexibility around this.
So the first secret, dear Homemaker, is to live within your means. Whatever it takes.
A Homemaker Who Budgets Wisely Ensures that there is ALWAYS savings.
The second secret of a Frugal Homemaker who budgets wisely, is to ensure that there is always savings.
In addition to not exceeding your income, Homemaker, you should ensure that you always have funds to put aside.
This is a highly essential component of making ends meet, whatever the season.
Things Happen.
One of the main things I saw in my time as a debt coach, is that things happen. Pipes break, leaks happen, and cars break down.
For the people who had no spare money, when these things happened, it sent their lives into turmoil. They had to use money from somewhere to somehow fix the problem, and this was devastating. It would take them months to catch up again (back pay rent, power, you name it).
The Bible has an excellent example of this principle in motion. Remember the story of Joseph, and the 7 years of feasting, followed by the 7 years of famine? Joseph advised Pharaoh to set aside grain during those feasting years for the inevitable years of famine.
In doing so, Joseph made a great man of Pharaoh, and was eventually able to buy off all of Egypt for him (source).
So homemaker, having a constant supply of savings is as essential as not spending more than your income. It will be what gets you through times of want, and what sets you up to be financially stable.
As a general rule, homemaker, you should try to always have a minimum of $1000 in your bank account as savings.
A Homemaker Who Budgets Wisely Makes Things from Scratch
Homemaker, Budgeting wisely is no mean feat. It takes a fair bit of organisation and effort to ensure that your spending is below your income, and not dipping into your savings.
So what, in a practical sense, does spending within your income look like? Homemaker, a lot of the time, enjoying a nice lifestyle while sticking to a budget, is about making things from scratch.
I know that there are a lot of things we would not be able to enjoy if I did not make them from scratch. We would either have to go without, or compromise our savings balance.
Yoghurt and bread, for example. We do not buy these things, and if we did, we would not be able to stick to a very low budget. Yet, I know that Yoghurt and Sourdough Bread are very healthful and an essential source of micro and macro-nutrients, so we need to have them in our diet. Therefore, I make them myself from cheap ingredients, in order to enjoy these benefits.
Making things from scratch is not limited to food. I also make bedspreads, curtains, and clothes and have saved thousands of dollars in doing so.
A Homemaker Who Budgets Wisely enjoys the Simple Things.
The truth of the matter is, if you are on one income, you cannot enjoy a luxurious lifestyle. And Frugal Homemakers who Budget Wisely are ok with that.
If you are a Homemaker full-time and living on one income, then in order to make ends meet, you need to be ok with living the simple life.
Even if your spouse is earning a substantial sum, it is unlikely that this is going to match the household income where both partners are working.
So, Wise Homemaker on one income, to make ends meet, there are certain things that you just cannot do on a regular basis. Go out for coffee, for example. Or, taking your children to costly extra-curricular activities. Or, buying a new dress every quarter.
Enjoying the simple, low-cost life means we must be creative about fulfilling our needs and wants without spending money. Or, it could mean re-defining our needs and wants.
For example, I am finding a daily walk with my children so enriching. It is a wonderful, simple thing I can do to make life a bit more fulfilling for us all.
Here’s why: going for a walk gives the children something to do. It exercises their little legs. There are often new and interesting things for them to observe and learn. Plus, we all get that incredible vitamin D and fresh air.
And it costs no money!
Or, for some “me” time, I find it an absolute treat to be able to enjoy uninterrupted time of book-reading. The “uninterrupted” part doesn’t always happen, but the book-reading (when it is a page-turner) is something I thoroughly enjoy. I haven’t been to the cinema in years, and I don’t even miss it.
Homemaker, if you are facing the point where you are needing to cut back, be encouraged: there are wonderful and engaging things you can do with your children or by yourself to find fulfillment.
A Homemaker who Budgets Wisely Never Enters into Debt
Debt is NEVER part of any wisely-run budget.
During my time as a Debt Counsellor, I saw and had to deal with so many stressful situations, that I was thoroughly turned off getting into any form of debt.
A Note about Mortgages
We are very blessed to have our own home, but with this comes the responsibility of having to pay a mortgage. The niggly thing about having a mortgage, is that the interest is sky-high.
And friends, I hate having to put money towards something which is not diminishing the debt.
The only reason I am coming to terms with having a mortgage and it’s associated costs is that a house is an appreciating asset, so our equity is growing as well. This property is going to secure our future, so it is highly necessary.
Getting a mortgage is a means to that end, and that is why it is the ONLY situation, where I concede that it is okay to enter into debt.
A little insight into the Debt-Providing Industry
What I learned about the debt industry is that Debt providers are never benefactors, no matter how they portray themselves. Yes, they can solve your problem by giving you money, now.
Ultimately, Debt Providers are businesses that invest. Their investment is the sum of money they gave to you for your need. Their return on that investment is the interest that is charged.
And Homemaker, this interest is a killer.
In my time as a debt coach, I saw situations where people paid double, triple, and even ten times as much as the original sum that was given to them.
But the borrower has no concept of the full amount they are actually paying, because all they see are the small payments of $100/week going out.
That interest is the debt provider’s income. So, it is in their best interest to keep the debt alive, in order to keep earning that interest income. Debt providers get more income the longer the age of the debt.
Debt Providers do not like to be paid back in full, because if that happens, the debt will be closed and that is the end of the consumer relationship.
For a business, it is easier to maintain a relationship than to procure a new one, so as the borrower and their “customer” (in a sense), they are always going to want you to “return” and take out more debt. Once you have shaken hands with a lender, it is very difficult to get out of their grip.
Especially if you are a in a position of financial vulnerability.
For this reason, Homemaker, never dip so much as the tip of your toe into taking out debt.
Homemaker, if you learn how to make do without running to get instant cash, then you will be stronger and more resilient when curveballs come your way.
