The era of instant gratification and digital transactions is in full swing. But it didn’t always be so easy to get what you want when you want it. And because of that, the generation living through the Great Depression and World War II (The Great Generation), had budgeting strategies that a lot of us could learn from if we used them in today’s consumerist society.
These eight tried-and-true budgeting tricks can remain incredibly powerful resources if you’re in the business of managing your financials better.
Live Below Your Means
Living below your means is the bedrock upon which any good budget lies. The Greatest Generation was all about needs over wants. Unnecessary expenditure was avoided, and essentials were focused on to save money. The idea here is timeless; it promotes financial discipline and creates a buffer for sudden expenses.
Save for a Rainy Day
Older generations would often have something called a “rainy day” fund, which could be for anything from unexpected costs to vacation spending. But either way, it’s a good example of how they knew that life could be unpredictable, and having a financial cushion could be the difference between stability and crisis. Try to save at least 3-6 months of living costs in case something unexpected happens to avoid a financial crisis.
Embrace Frugality
The Greatest Generation lived a life of frugality — and they often enjoyed themselves just fine. Others found happiness in maximizing their resources, be it through DIY projects, meals made from scratch, or repurposing items. Learning to be frugal couples with creativity and resourcefulness as a way to save money.
Use Cash Whenever Possible
Cash was king for older generations. People realized the psychological aspect of taking out money physically and thus became more aware of their spending. Use cash for discretionary purchases to help manage your budget and avoid overspending.
Do the Best With What You Have
One of the most classic budgeting secrets? Work with the resources you already have. Older generations fixed things instead of replacing them, repurposed leftovers creatively, and often simply went without, realizing there were alternatives right in front of them. This attitude promotes sustainability and can save you thousands of dollars over time.
Invest in Quality
The Greatest Generation chose to spend money on things that lasted, thinking past the knee-jerk reaction of just buying the cheaper option. That principle hasn’t changed; spending a little extra on durable goods can save you money over time as you don’t have to buy them often.
Shop Smart
The Greatest Generation loved thrift stores, garage sales, and discount outlets. They realized that being savvy about shopping could help them save a ton. These days, sales, coupons, and online discounts can stretch your budget.
Stay Disciplined
Say what you will about past generations, but they had one thing down above all else: discipline. They adhered to their plans and did not let peer pressure or passing whims sway them. Without discipline in your financial habits, long-term financial success is going to feel like you’re constantly going one step forward, two steps back.
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