Guerrilla Frugality - No More Paycheque to Paycheque
We're going to wrap up our "Best Of" summer series with a discussion we had with Jonathan Chevreau about obtaining your own version of financial independence or "Findependence" as Jonathan calls it.
Jonathan's approach to getting out of debt is to adopt a form of guerrilla frugality in order to get out of debt, stay out of debt and reach your goal of financial freedom. Last week we talked about how people get so deep in debt without evening knowing how they got there. One of the underlying problems is a lack of a balanced budget. To get out of debt, Jonathan suggested taking the concept of balancing your budget one step further, to something he calls 'Guerrilla Frugality'. He suggests we should live below our means, not just for a year or two, but as a life-long habit. Only by doing so can you pay off your debts and build a strong financial foundation that will support you throughout your life.
In many regards that is the lesson learned by most people who file bankruptcy or a consumer proposal. Without access to credit while they are bankrupt, they must learn to live within their means. No credit cards means paying for groceries, the rent and everything else by cash or cheque. This is the ultimate way to ensure you live within your means. In other words, bankruptcy or a consumer proposal can really be a fresh start. But you don't have to believe just me, I'll end our summer series with an email we received from one of our clients who expressed just that:
I am happy to say that I am finally able to put some money into a savings account each month; I am no longer living pay cheque to pay cheque. For this I am forever grateful to Hoyes Michalos and your staff. Thank you from the bottom of my heart.
Resources Mentioned in the Show
- Jonathan Chevreau's blog at Moneysense.ca
- Mr. Chevreau's latest book, Findependence Day
- Jonathan Chevreau's website
- Lee Anne Davies and Agenomics
- Change Rangers
- What Color Is Your Parachute? 2015: A Practical Manual for Job-Hunters and Career-Changers by Richard N. Bolles