I was raised by a single mother who was careful about money. She saved meticulously, clipped coupons, and treasured furniture and clothing that would look right out of an 80s movie.
After landing my first job, which earned me a decent salary as a software engineer, I realized that I had inherited my mother’s scarcity mindset. I always felt anxious and guilty about money. Most of that money went toward basic living expenses and paying off my wife’s student loans.
2019 changed the way I think about money. That’s when my wife and I started seriously talking about what kind of future we wanted for our two young children. We wanted to build wealth so they could have more opportunities in the future.
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We educated ourselves and developed a plan with the help of a financial advisor. I started investing in real estate and acquired three rental properties. And in 2020, we launched a personal finance website, Parent Portfolio, to help other families like ours.
At age 37, my net worth had reached $1 million. Even though I’ve reached this financial milestone, there are some frugal habits I’ll never break.
1. I’m a regular at my local library.
Our local library is a great place to spend an afternoon. We offer so many great free resources that many people may not be aware of.
In addition to borrowing books, my family used the Omaha Library’s 3D printer and checked out board games and podcast equipment.
We’ve taken advantage of some great community activities, including baking classes, art tutorials, and basic self-defense training.
No matter how much money I make, I always make sure I have a library card.
2. Make your own coffee
Like many people, I drink a cup of coffee every morning. However, buying them every day can quickly become an expensive habit, so I still prefer to make them at home.
I grab a $16 bag of coffee grounds from the grocery store (they keep for at least two months), set up my coffee machine the night before, and make coffee the next day. This routine will save you money and time getting ready in the morning.
Just to be clear, I’m not against buying coffee. My wife and I budget for that every month in case we want to randomly sit down at a coffee shop while we’re out.
But what my house has set up is definitely not going anywhere.
3. I still do DIY repairs.
If something breaks at home, I personally try to fix it first. To me, frugality isn’t just about saving money, it’s about taking care of the things you already own.
For example, when my wife and I got married 13 years ago, we bought a dresser for our bedroom. Several times, the drawer guide rails would come loose from the plastic that holds the dresser in place.
On several occasions, this habit has led me to drill screws into places where the plastic no longer supports them, rather than replacing them.
For less than a few dollars, we were able to extend the life of our dresser even more and end up saving more money overall.
4. I am careful with my credit cards.
It’s less stressful knowing I can afford to buy things my family wants and needs, but I don’t want to depend on future paychecks to make purchases now.
Because of that mindset, I’m still very cautious about using credit cards.
No matter how much money I make, I always make sure I have a library card.
I always pay off my credit card balance every month to avoid paying additional interest. I only borrow money from credit cards when I have already budgeted for the expense and am sure I have the cash readily available in the bank.
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5. I only buy used cars
My wife and I have never really liked cars, so we try to keep them for as long as possible. I have a 2005 Saturn Vue and a 2013 SUV. Both have over 100,000 miles on them.
We invest in regular vehicle maintenance and give proper attention to any signs of wear and tear. For example, when one of our cars needed a new transmission, we found it was actually more cost-effective to replace the entire car.
So after researching online and weighing various factors such as mileage, year, past accidents, and overall customer ratings, I found a used SUV that already had 80,000 miles on it. Three years later, I still have that car.
Why these habits are so important to me
As I reflect on my upbringing, I am reminded of the words of the late computer science professor, Dr. Randy Pausch: “Engineering is not about perfect solutions. It’s about doing the best you can with limited resources.”
Growing up, I didn’t have much, but I learned how to be creative with what was at my disposal. I think that influences many of the decisions I make about money today.
I had no interest in keeping up with the latest fashion or owning the latest technological gadgets. What I want to do is be able to spend money on valuable experiences, whether it’s learning a new skill or getting on a plane to visit relatives.
After all, these frugal habits help us focus our resources on what matters most to us.
Jonathan Sanchez is the co-founder of Parent Portfolio, which helps readers take control of their financial future and build wealth for the next generation. He became a millionaire in his 30s by growing up with frugal habits and practicing wise money decisions. Follow him on Instagram and join his newsletter on Parent Portfolio.
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