Are finances more complicated than ever? It can certainly feel that way when your phone is clogged with apps and your feed is full of money-saving tips. We’re here to tell you that some of the best hacks are not only hiding in plain sight, but our grandparents have been using them for years. Here are six examples of ways older generations made sure every dollar counted.
The Envelope System
Before credit cards were the norm, people managed their budgets with cold, hard cash. This led to a powerful, psychological money hack: the cash envelope system. This system involves a series of envelopes you label for different things, like groceries and rent.
You put whatever money you need in that envelope, and that’s it — that’s all you get for the month. It’s visual budgeting that still works just as well, and even forces you to be more deliberate and mindful with your purchases.
Using What You Have
“Waste not, want not” was the motto of our grandparents. And they had a good reason: we’re too quick to waste things because it’s too convenient to replace them, even if it’s more expensive. They didn’t have the luxury of buying new things whenever they wanted, and to be honest, most of us don’t either. So apply this mindset to everything and get creative with what you have before you worry about what you don’t.
Fix It, Don’t Replace It
This is similar to the hack above, and is a symptom of our throwaway culture. Why bother fixing a coffee maker when I can just have another one delivered the next day? Because it’s cheaper — much cheaper — to fix it yourself. There’s not much “hack” or “secret” here; just don’t treat fixable things as disposable.
Make Things from Scratch
There was a day when food had to be made from scratch. And sure, it’s nice to have modern conveniences, like getting sushi in forty minutes. But this is arguably one of the most common ways people waste money: they don’t cook at home enough (or at all, in some cases). Cooking from scratch is almost always cheaper, and it’s a valuable life skill that you can always lean on to improve your diet and your finances.
Shopping Secondhand
Thrift stores aren’t a new concept, even if the younger generations have just started to embrace them over the past few years. Our grandparents often shopped here first. They knew that a gently used (or even pretty used) item had just as much value as a brand-new one, just at a fraction of the cost.
Save Before You Buy
Credit wasn’t always a thing. Back in the day, our grandparents had to actually save money if they wanted something. The simple habit of saving before you buy ensures you can afford it outright and prevents you from taking on high-interest debt. It also teaches you patience, which is something many of us could use a little extra of when it comes to our saving and spending habits.
