CNN profiled Holly Ordway, creator of SpendingWisely.com. Basically, she saves as much money as possible without a strict budget. She and her husband manage to live on only $30,000 of their six-figure household income.
It’s easy for people with a high income to tell others how simple it is to save money and spend wisely. What’s harder is trying to save money while taking in significantly less income. The article doesn’t say where she lives but I’m willing to bet it’s not the New York Metropolitan area.
I like one of her ideas: Diligent saving allows you to splurge on some times you really want. For her and her husband it’s the home theater and 200-plus DVDs. (She opted for a rewards credit card rather than cash back.)
She says, “Being frugal is all about making good choices with your money.” The problem with that is that there are so many people who can’t save money from paycheck to paycheck with just the basic expenses to take care of. What’s the advice for them?
The answer must be, “Find a better-paying job.” Good luck with that.
Updated July 14, 2010 and originally published February 16, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.