When you are dealing with a money shortage, getting a grip on your outgo helps you feel less panicky and more in control. This is important for situations that are unexpected such as the loss of income through sickness or unemployment, or a financial blow – the car stops working or you have a major expense you weren't counting on. In the long term, of course you will work on increasing earnings, but in the short term, do your best to get control of the outgo. It's surprisingly effective, and actually a little satisfying.

Conserver principles are well worth learning and practicing. They will serve you well over and over again. As you become a skilled conserver, fear decreases. A sense of personal power increases. You can feel like you're standing on solid ground even when the earth is shaking.

Creativity

What does typical problem solving look like in our consumer world? "Throw money at it." Living this way has made us weak and anemic because we haven't built up our conserver muscles. Instead of facing the problem with confidence and curiosity, we are fearful.

What can you do if there isn't any money to throw?

The common, most obvious, solution is probably the most expensive as well. Step back, look at the problem from different points of view, like an artist would look at a painting they're working on. Think about the bigger picture. Review and apply the questions in the previous post, Questioning Needs.

Creative problem solving brings out the inventor in you. You may be amazed at the alternatives that come to you. Don't rush it. "Sleep on it" is excellent advice. I can't tell you how many times an answer has come to me in the early hours of the morning when I wasn't even thinking about the problem. You can make this a deliberate process. Before you go to bed, remind your brain of what you're trying to solve. Don't worry over it, just frame it and then leave it alone. Trust. Go to sleep. See what the next day brings.

You will probably find that you enjoy this as an intellectual challenge once you start seeing it that way. And when you do find the answer, you'll have a deep satisfaction that you would not have gotten from just throwing the money.

Flexibility

Our expectations can be inflexible. If we don't stretch past the obvious solution, we'll never discover the wonderful answers that were just out of reach. Flexibility grows our the ability to solve problems in what are often unconventional ways.

When I was teaching my workshop, I used the following examples to demonstrate how thinking differently about a situation can save a lot of money. As we flex our ability to think of alternative solutions, we'll find more and more ways to slow or stop the cash outgo.

I considered updating these examples and dollar amounts, because what seemed like a significant amount on a shoestring budget in pre-2000 doesn't sound so daunting now. But I decided to leave them as they were. I'll let you take the thirty to forty year difference into account.

..........................................

Once when we were living in grad housing, the temperatures dropped drastically to levels unheard of in that region. The freezing weather caused a three-day power outage. A neighbour told us he lost all the food in his freezer. "Why didn't you put it in a cardboard carton on your balcony?" He looked at us like we were the ones who couldn't think properly. He had a freezer for keeping his food frozen. If his freezer didn’t work, he lost his frozen food – even though it was as cold outside as any freezer. The rigidity of his inflexible thinking cost him money.

..........................................

High school photos were a big deal, and a big expense. Packages started at $39 or $12 per sheet. That was a pressure we could have done without. We phoned the school and discovered that buying the photos was not obligatory. The picture would go on the student card regardless. Meanwhile, Walmart's photo studio offered a package for $4.95 with no sitting fee and a coupon for an extra 8x10. What's more, because it was computerized, the photographer kept shooting until we got a shot we really liked.

..........................................

I was shopping for a gift for my brother’s girlfriend and happened upon a flower shop's After Christmas sale. I found a lovely mixed arrangement and was delighted to find out that because it included a poinsettia, it was half price. Brilliant. As well, all single poinsettias were on clearance at $1 each. I saw two beautiful poinsettias I didn't need, but the pots they were in were exactly what I did need for my front entry summer planting. Empty, these tubs would have cost me $10 each. I knew that because I had priced them earlier in the year when, as much as I wanted them, I applied patience instead. Now I could buy two beautiful house plants, and when they were finished, be left with two very desirable planters for $1 each. That alertness, procrastination, and flexibility of thinking resulted in the equivalent of a 90% discount.

Patience

We live in a society of instant gratification. We want it all and we want it now. Fast food, easy credit, advertising that tells us we need it, we deserve it, we should have it. Buy it, buy it, buy it!

"Patience is a virtue." Does anyone say that anymore? Patience is a virtue and also an important skill that you can develop. Being able to stay calm and not get frustrated when you have to wait is a worthwhile quality to cultivate. Patience helps keep your emotions balanced and makes for better decision making in general. And, it certainly helps nip impulse buying in the bud.

Many times the intense desire to spend money on something doesn't last long. A need that felt so essential in the moment often will fade into the background if you give it a little time. Wait long enough and it may disappear altogether. Patience is a valuable assistant when you are tightening the belt.

Time to Think It Over

Is there any truth to the above statement? In terms of money spent on a purchase, you must earn enough to cover the price plus the sales taxes. But before you get the money you intend to use, you already will have paid income tax, employment insurance, and government pension plan contributions plus any deductions for private health or retirement plans. Then, if you don't have the money yet but make the purchase anyway on a credit card, you have to add the hefty cost of that interest as well.

Take a few minutes to examine the real cost of spending money. Calculate the amount you must actually earn to get the money you want to spend. It is a sobering exercise!