Do you want a second child but worry that you cannot afford another baby? Do you hate your job but cannot quit because you rely too heavily on the money that it brings in? These are very real questions that dog many people today.
Amy Dacyczyn (pronounced ‘decision’) began compiling The Tightwad Gazette (Villard, 1998) in 1990, as a response to just these sort of worries. Originally a graphic designer, she and her husband wanted the financial freedom to raise six children in her own pre-1900 New England farmhouse. They achieved their dream, with Amy giving up work and the family relying on his annual wage and her sporadic freelance income: a modest annual income of $30,000.
Reduce Your Household Budget
The book is a compendium of a newsletter of the same name that Amy edited throughout the nineties. As well as reader’s tips, it mainly consists of clear, concise and often witty articles (written by Dacyczyn) giving practical guidance on slashing your household budget. What sort of advice does she give?
Save On Grocery Bills
The author suggests you begin your quest for financial freedom by making up a 'price book'. This is a loose-leaf ring binder, each page being headed with an item you buy, for example toothpaste. Every time you purchase this item, you make a note of the supplier and the price you paid. Over time, you build up a picture of the cheapest place to buy toothpaste – and everything else.
$1000 An Hour?
The price book is a good example of the author’s’s whole philosophy – never underestimate the huge impact that small savings can make on your finances over time. On the surface the price book seems like a lot of work for little return. However, she claims that five years after setting up this system, the initial few hours you invested could yield you an hourly ‘wage’ of $1,000 in money saved.
Unusual Money-Saving Ideas
Other strategies include how to plan major purchases, bulk buying and a plethora of tips such as washing aluminium foil, money saving recipes and how to re-use wrapping paper.
Debt As Deprivation
The Tightwad Gazette is stuffed full of novel and inspiring ideas. The ‘Frugal Zealot’ - as she dubs herself - is the first to admit that this way of life (for it is no less than that) takes time, effort and the ability to think outside the box. She underlines the importance of having the right attitude. ‘Instead of being a matter of… wearing used clothes, maybe deprivation is having to work a second job you hate, or stress from a massive debt’ Dacyczyn points out.
This book, although pre-dating the Internet and a decade old, does not have the outdated feel that many older ‘how to’ guides suffer from. This is because its main strength is in its unique philosophy that will always apply as long as people need to manage their money.
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