No other way to say this: I'm a very FRUGAL person. I cut corners where I can, skimp, look for deals, avoid paying money, and (usually) end up paying less each month than I have to. Although, for those who aspire to by friend (I know, big dreams) I actually pick up my share of the tab and stuff when it comes to common endeavors with other people like dining, so no need to worry about me cheaping out. But here's how to live frugally, Robert Yan style:
1. Make less trips: If I need to go to the bank to make a deposit, I wait until I need to go to the store too: I don't make 2 trips. Saves gas, saves beatings the car takes, saves time. Time = money.
2. Pay in cash: I fell into a pattern of just writing checks, swiping cards without worrying about the dent in my wallet. Not until you're handing over large $20 bills to someone over the counter do you realize how much money you're giving up. Good habit to get into.
3. Find cheaper alternatives: The first deal you see is usually not the best deal. Ex: Parking in the USC parking structure. $400/semester = exorbitant.
Ex: Health insurance at USC = exorbitant. Waiving health insurance = free. $400 in my pocket. Every year.
4. Find better times to drive on the highway. Sitting on the highway is not only bad for your health but bad for your car and your gas mileage: Rolling down the 405 at 60MPH at 11:00PM = definitely more mpg's.
5. Skimp on the candy, miscellaneous foods. Anything that isn't healthy or doesn't help my appetite is X'ed out ( I cave once in a while, but at my parents' or someone else's expense.) Most efficient food = bananas. $1.00 for like 4 of them, you can go a LONG time with just bananas.
6. Pack your own lunch. Stop me when this is becoming "I've heard all of this before!!!"
7. Have great parents who you can milk free stuff off of. (OK, this is all based on luck). But making your own luck is also being nice to your parents, helping them around the house, earning their trust...if you're in the lucky position already, like me.
8. Don't buy books, go to the library. Seriously, the library has most books your Barnes and Noble has (sorry, B&N, but it's true)
9. Don't go to the bar that often.....those places are cash magnets. Other ways to have fun are available.
10. See if you can share resources with your friends. Extreme Example: there is open space in my friends' apartment. I didn't have apartment near school this year. Solution: I live at my friends' apartment a few times per week. I pay them some money. Everybody's happy (Don't tell my friends' landlord).
Generally, just discipline: master your desires and wants, and you'll master your pocketbook. And be on the lookout for ways you can cut corners. Money is a precious resource: When you have lots of it, you don't think much about it, but when you don't have a lot of it, parting with it is PAINFUL.
Btw, speaking of money, here are DaMan's thoughts about stocks:
1. Nike is down to $78 after being around the $90 range for a while, due to some bad earnings reports. Not to worry, I think the company's fine and nothing catastrophic has happened, it'll get back to $90 in no time, at which point I don't know but by then you'll have raked in around a 20% profit. Go for it.
2. CMG: Sigh. I recommended this stock to y'all and then let go too early. Enjoy the ride while it lasts. I say it's gradually going to 300 (or close to it) and then plateaus.
3. WWE: Many are down, saying they might cut dividend. That may be so, but I know the demographic watching WWE (I used to be one of them) and they will be ECSTATIC about the Rock coming back. Thumbs up.
4. JPM: Cramer says it's due for a large rise up. I'll see it when I believe it. In Fall 2009 when I started investing I bought it at $44; it's now at $46......"slow as molasses" comes to mind.
5. PTR: My parents lovin' this stock. I know nothing about it except it's about oil. And China. 2 of the best combos to have right now. Pull the trigger.
O, and as always, when in doubt, buy AAPL. I don't think a single person has ever gotten killed buying Apple. It's trustier than the cash vault you have installed at home: Safer than safe. Except better than a vault you might actually find more money in there a few months later.
Fantasize on,
Robert Yan
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