The Budget Smart Girl’s Guide to the Universe
Saving Money While Living the Good Life
It’s Never Too Late To Improve Your Financial Future February 18, 2010
Posted by budgetsmartgirl in Budget Smart Girl's Guide.Tags: BJ Gallagher, It's Never too Late to be what you might have been, tips on saving for retirement, tips on saving money, Viva Editions
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It’s Never Too Late To Be What You Might Have Been. Not only a saying by one of my favorite authors, George Eliot, but the title of a book that came to be attention while I was putting together last year’s BSG Holiday Gift Guide. Think about all the things you’ve ruled out doing because you think it’s impossible to achieve or you’re too old to develop new habits. Things like budgeting, saving for retirement, starting that business you’ve always dreamed about doing…one day. The title and book’s premise had me intrigued so I thought I’d interview its author, BJ Gallagher and ask her to share some tips with us. And she has some great ones! BJ is also the author of the international bestseller, A Peacock in the Land of Penguins. She’s been featured on such shows as The CBS Evening News and The Today Show and quoted in publications like O, The Oprah Magazine and The Wall Street Journal. You can find out more about BJ at www.womenneed2know.com andwww.vivaeditions.com
Budget Smart Girl (BSG)-Tell me why you decided to write this book?
BJ Gallagher (BJG)-My 60th birthday was approaching and I was feeling like “it’s too late for some of the things I’d like to have in my life …. a mate, big financial success, etc.” Then I came across George Eliot’s quote, “It’s never too late to be what you might have been” and it struck me right between the eyes. Right then and there I made it my new mantra. So I decided to write the book to reinforce my own new motto for living.
BSG-Many of my readers visit the Budget Smart Girl site looking for ways to save money, whether it’s sticking to a budget or putting money aside for a rainy day. But many of us struggle with attaining our goals. Do you have any tips you can offer for getting started with something and sticking with it?
BJG-There are some great tips in the chapter on “It’s never too late to gather wealth.” Here are some of my favorites:
1. You don’t have to pay cash for everything – you can barter. For instance, during my first year in Florida, I lived with two very busy people in their lovely home. I cooked dinner for them every night and walked their dog, in exchange for free rent and board. I had no money coming in at that time, but I also had no money going out – and I was living very well.
2. I learned about all the things that have no value after a certain point in time – like hotel rooms and theater tickets. If I arrive at a hotel late in the evening, I can often get a room at half-price because they know that no one else is coming so late, and the room has no value to them if it sits empty. It’s the same with theater tickets: After the curtain goes up, any unsold tickets are worthless. So I go to the theater half an hour before curtain time and see if I can get tickets at a reduced price. Often I can. (If not, then I have a Plan B in place, and I go walk on the beach instead. So I never feel deprived or disappointed.)
3. I learned how to ASK and to NEGOTIATE. For instance, if I knew a sale was coming up soon, I might go to the store and pick out what I wanted, then ask if I could have the sale price early. Often, that answer was “yes” because the clerk knew a sale price today is better than the chance that I won’t come back later during the actual sale.
4. I developed internal flexibility. For example, I can go to my favorite restaurant and have a wonderful meal at 5pm that will cost twice as much two hours later. I can go to the movies in the afternoon and see the same movie that will cost double a few hours later. I usually get what I want if I’m not attached to when I get it.
5. I learned the difference between wants and needs. Wants are preferences (what movie to go to, where to eat, etc); needs essential for survival (like oxygen, water, and food). For instance, I might want my own house, but I didn’t really need a whole house all to myself – I just needed my own space, some privacy and quiet. When I recognized the difference between wants and needs, I teamed up with two other women and together we bought a five-bedroom home in La Jolla. We ended up sharing that home for the next fourteen years, and for $650 a month, I lived in a gorgeous place with stunning ocean views. I had one bedroom to sleep in and another bedroom for my office – my housemates went to work each day so I had the place to myself. We all had a better lifestyle together than any of us could have had alone.
“In short, I always kept my priorities in mind – I wanted freedom more than I wanted things – so I acted accordingly. “Freedom” became as concrete to me as a new car might be to someone else. I learned to be creative and resourceful, and got a kick out of saving. I never felt deprived. I was buying what mattered most to me.”
BSG-I’m sure many of my readers have lost jobs or maybe they’re not happy in their current career. What’s your advice for people wanting to take a new direction in their life?
BJG-Several tips: (1) Don’t look for security – it’s an illusion. Your only security is your ability to secure work. (2) Give up the notion of “job.” This is a jobless recovery. Jobs are scarcer than hen’s teeth. Instead of “job” look for “work” and “earning opportunities.” There is still plenty of work to be done; it just isn’t in the form of a 9 to 5 hob. (3) Figure out what skills, talents, and abilities you have to offer; then brainstorm about people and organizations who might want to buy what you have to offer; then approach them and see if you can create some opportunities for yourself.
BSG-How about starting your own business, it’s a giant step for most of us, any advice?
BJG-Self-employment is not for everyone. Make sure you have the emotional skills: the ability to focus despite distractions, the ability to create your own structure, the ability to cope with working alone much of the time, and more. It’s a good idea to go interview people who are already doing what you think you’d like to do. Ask them how they got started; ask them what they like and don’t like about what they’re doing; ask for their advice.
Also, keep your overhead low. Do not go out and rent expensive office space, or spend money on fancy logos and stationary, or feel you need to incorporate. Start small and build; work from home; keep overhead and expenses to a minimum; don’t spend unnecessary money on lawyers, accountants, marketing consultants, and incorporation fees.
BSG-What if you fail at something, is it an automatic set back and how can you get back on track?
BJG-Of course, you WILL fail at some things! It’s inevitable. If you never fail, you’re never trying new things. I like what Thomas Edison, the inventor of the light bulb, said: “I have not failed; I’ve simply found 10,000 ways that didn’t work.” Take calculated risks and understand that some of them will fail. Some will succeed. That’s life. That’s business.
BSG-These days it seems no matter who I talk to, everyone’s cutting out some of the luxuries they once enjoyed, maybe it’s saying goodbye to cable TV, not going out to eat so often. How can we continue to enjoy life without feeling deprived?
BJG-Make three budgets for yourself: a low budget, a medium budget, and a high budget. Then figure out how you can live a nice life, even if you’re on low budget. Instead of going out to the movies, you rent a movie, pop some popcorn, and cuddle up at home. Instead of going on a cruise, you make a picnic lunch, drive to the beach or the lake, and spend the day enjoying the sun, swimming, biking, talking, laughing, and playing games. There are lots of ways to have a wonderful life without spending a lot of money.
BSG-Any sites or other books besides your own, you recommend we check out?
BJG-Yes… In terms of money issues, I highly recommend Chellie Campbell’s book, The Wealthy Spirit. It’s a daily, 365-page, one page a day book and one of my faves. Also, a terrific new book called Wealth and Well-Being by Suzanne Lorenz and Sam Beasley. If you’re starting your own business, by all means, buy Christy Strauch’s new book, Passion, Plan and Profit. All three books are terrific!
BSG-Any other tips you’d like to share with us?
BJG-You don’t want your tombstone to read: “Died with her potential intact.” Don’t waste this precious life ….. roll up your sleeves, dig deep into life, and say “Yes” when opportunities come your way. Don’t just seize the day … seize the rest of your life!
