Monday, March 23, 2015

Why I do the frugal I do and the Rich I want to Be ...an Essay

Okay, so I promised a "real" post so here it is! Today, I would like to talk about the different types of rich ..and the kind I am working very hard to be. Not there yet! That is why it's Katyladys Journey...not my completed. I am always looking for help along the way, so feel free to add comments etc. I really do value your insight! 
So, the different kind of rich. Of course, there is old money-those who made a fortune, invested well and passed it on. That's not most of us so lets gloss over that. Then there is new money. This can be some one who strapped on their boot straps, worked hard, saved hard in order to get rich. Or at least live well below their means and by living their lifestyle so no one knows how much they do-or don't have. They aren't scrooge-like but rather dedicated givers and life enrichers.  More on that in a bit. That's my goal.
Then there is the "nouveau riche. Dictionary.com defines these type of people as :"person who has acquired wealth recently and is regarded as vulgarly ostentatious or lacking in social graces" 

The English translation is "new rich." Those people are pretty hard to be around. They are boastful, rude and demanding. It's like if some one wins the lotto and becomes someone that's high on the hog and hog wild. This is "new rich." Don't be this way! If I ever win the lotto (haha) I am going to continue the same basic lifestyle. Yah a few splurges...but use the opportunity to be free to do things I have been wanting to do, such as volunteer more.

OK so how to become rich, maybe not a millionaire but some one that lives an above average lifestyle? For us regular Joe type? Those who are able to do things that they want such as travel? Retire on time or early? Have enough to live when they want to retire and not have to work the rest of their lives? 

Be frugal! Don't toss your money to the wind like I did for to many years and ten years later still have bad credit from a bankruptcy like me-learn from that and don't do it! I can learn a lot of lessons from my parents. I am glad to be able to share these with you.

Until I was in junior high, my dad was always upper level management.  He had retirement savings, we had a great house etc. My parents have always made sure to have not only good credit but PRISTINE credit. Always have been wise with their money.

Then the terrible happened-he lost his job to corporate downsizing. He was at an age and a level of expertise that no one would hire him. So my parents put his brain (civil engineer) and my moms' brain and creativity to start a retail business. They also designed and sold tools for the stained glass business. 

Never did I realize at the time how much they sacrificed to keep my life as normal as possible. 
I never had to do without nice clothes- the joke in our family is that if you need anything my mom will find it on sale and have a coupon. Everyone insisted they would lose their home, that I couldn't still be in private school. Due to sheer determination, little or no sleep, a lot of doing without(a lot of it) and more than a little bit of "cahoonas" they not only able to PAY OFF the house and sell it for almost double what they purchased it for. When we moved to Pennsylvania, the cost of living is less so they were able to pay for their home in cash-and still  have a large amount left. Instead of going hog wild though, they are still very frugal and unless (hope not! ) a major catastrophe happens they will be able to live out their years in comfort. 

All this is to say...if you learn how to manage your money well, live BELOW your means,save money in order to do so and earn a bit more on the side you will be quite impressed at how much you can accomplish! If you would like to earn a bit more, check out my referral links-they are vetted ones that I use. There are TONS of free resources online  to teach you everything that I have suggested. Although I am still learning I would be happy to answer any questions that you may have. 

have a good Day and God bless!