tigerlily
20th November 2005, 04:10 PM
The insider's guide to low-cost happiness
20 November 2005
In a nation obsessed with consuming, where the average person spends more than they earn, five Kiwis are exercising their saving power and living well for less. They tell ROB STOCK how.
'Society is conditioning us to think some things are needs when they are actually wants, like the latest fashion clothes and wide-screen TVs, or a car that's less than five years old," says Kara Dawson from Hamilton. Kara is The Warehouse's national bargain-hunting champion, and like the other four finalists of the competition -Moana Kerr from Hokitika, David Graham from Te Awamutu, Leanne Brooks from Christchurch and Diane Davidson from Auckland - she has firm views on why people find it so hard to live within their means.
Kiwis' habit of spending 12% or so more than they earn each year, which has earned a stern rebuke from Reserve Bank governor Alan Bollard, is anathema to the five. All are family people and all have two things in common - they hold true to what can appear to be old-fashioned values on money, and they derive more happiness from their families than from spending like there's no tomorrow.
For Kara and husband Chris, happiness is living the good life on their section in Hamilton where they have planted 50 fruit trees, grow vegetables and raise their children. Kara says: "We belong to the Church of Jesus Christ of Latter-Day Saints and our church has always advocated living within your means and avoiding all consumer and household debt, also having a vegetable garden, teaching children to be wise with money, giving the first tenth of our income, saving, and eating healthy foods."
For Diane, an avid competition entrant, family is also the No1 reason money should not be frittered. A child of a poor single parent who drew a basic wage from the Papakura freezing works, she's not only raised her own kids, she's raising her grandchildren David, eight, and Jacob, four. "It's so much better to be careful with your money because it's so hard to earn it," says the part-time Glen Innes librarian. She also warns against mortgaging the family's future for luxuries bought with consumer debt. "You can see hard times ahead for people. Too many people are just three steps away from calamity," she says.
Leanne says: "As a society, we are very materialistic and expect to start out where our parents finished up." But like all her fellow finalists, Leanne -mum to Hannah - is a firm believer that with a bit of creativity and effort, even families without big incomes can live better for less. Here are the finalists' views on:
Living carefully does not mean total self-denial
Although Diane is an enemy of waste (and expensive, fatty takeaways), she says: "Without a few luxuries life would be so dismally grim." But to manage guilt-free luxuries means sticking to a budget. "Needs must when the Devil drives," Diane says. But for Moana budgeting is no chore. It brings the family together as a unit, she says.
Not giving give up on generosity
"There's a difference between being frugal and being mean," says Leanne. All five finalists are big givers.
Diane is using some of her $5000 to buy a TV for someone who really needs it. Kara tithes 10% of her income to her church. "Some of my biggest bargains, I have given away," she adds.
Replacing costs with something that is free and fun
Moana, her partner Tony, and their young children Ernest and Jacob spent some wonderful days collecting pine cones last year - outings which provided them with enough fuel for the fire for almost the whole winter as well as beautiful picnics between West Coast downpours. "We've only bought one load of firewood since we came to Hokitika, which has saved us hundreds of dollars," she says. Moana also recalls spending a New Year's Eve climbing Ruapehu to wait for the dawn with Tony, with a couple of bottles stashed in the rucksacks. Cheaper than a night out - and much more romantic. Fruit-picking, vegetable-gathering, jam-making and pickling are all part of the Dawson family year. It brings the family together, slashes $15-$20 from the grocery bill each week, makes for a healthier family, and fewer doctor's bills.
Seeking out what's free
Moana says there's a lot for free in the community to enrich family life. Moana and her children borrow free videos from the library, and she saves the $9 cost of many glossy magazines by picking up used ones there. Leanne says there are plenty of free community events, and tests herself to find "five free things a month".
Doing it yourself
Kara watches tradespeople like a hawk to pick up tips because once she's seen a plasterer in action, she knows she's handy enough to save a couple of thousand dollars plastering her own house. If you don't have a particular skill, says Diane, you can barter with friends, swapping a little baby-sitting for hair cuts, for example.
Being smart with financial services
Moana sings the praises of petrol station charge cards, which save her 10% on fuel, equating to a free tankful every few months. Moana's also smart with her credit card. "We really only use it to book cheaper flights online." But she loads the card with cash beforehand, collecting interest instead of paying it. She also much prefers to pay with cash when possible, to save on Eftpos charges.
Kara is a bank's worst nightmare. She refuses to pay one cent more than necessary in charges, and believes more than $2 a month is excessive. A fan of Hamilton's Moneywise, a not-for-profit organisation promoting financial literacy and living free of debt, she also can't believe people carry over credit card debt and don't do everything they can to get free of their mortgage, let alone drawing on equity to buy luxuries. "If you are not careful, your expenses increase with your income. When you get an increase we try to increase our mortgage payments," she says.
Shop-watching
Leanne keeps an annual diary of sales, which tend to come up at the same time each year in different stores, and plans her shopping around them. "I have already finished my Christmas shopping," she says. "I buy presents in the sales."
But the best presents aren't necessarily the ones you find in shops, she says, and she is also a fan of making gifts. A favourite gift from last year was making advent calendars for friends, with 24 little treats inside for the 24 days of Christmas. There are dozens of websites with similarly lovely ideas which parents can work on with their children, she says. She's also a fan of Cappuccino Moments for Mothers, a book with ideas, many free, for mother-children activities. Second-hand shops can produce wonderful bargains, too, says Leanne. An old doll's house bought for $4 needed only a little DIY and restoration to turn it into a des-res for her daughter's dolls.
Self-defence against destructive habits
Kara has a three-day rule. If she sees something she wants to buy, she forces herself to wait three days. If she still wants it after that, she goes ahead, though Leanne's rule is "Wait a week". But to really know the real cost of an item, Kara advises: "When making a major purchase, work out how many hours you would have to work to pay for it (after tax). Then ask yourself if it is worth that much to you." She also has a tip for breaking the shopping habit. Have a shop-free day each week, she suggests. "Ours is Sunday, our family day".
Never pay top dollar
David recommends shopping around for electricity, phone and internet services. It can save you hundreds of dollars
20 November 2005
In a nation obsessed with consuming, where the average person spends more than they earn, five Kiwis are exercising their saving power and living well for less. They tell ROB STOCK how.
'Society is conditioning us to think some things are needs when they are actually wants, like the latest fashion clothes and wide-screen TVs, or a car that's less than five years old," says Kara Dawson from Hamilton. Kara is The Warehouse's national bargain-hunting champion, and like the other four finalists of the competition -Moana Kerr from Hokitika, David Graham from Te Awamutu, Leanne Brooks from Christchurch and Diane Davidson from Auckland - she has firm views on why people find it so hard to live within their means.
Kiwis' habit of spending 12% or so more than they earn each year, which has earned a stern rebuke from Reserve Bank governor Alan Bollard, is anathema to the five. All are family people and all have two things in common - they hold true to what can appear to be old-fashioned values on money, and they derive more happiness from their families than from spending like there's no tomorrow.
For Kara and husband Chris, happiness is living the good life on their section in Hamilton where they have planted 50 fruit trees, grow vegetables and raise their children. Kara says: "We belong to the Church of Jesus Christ of Latter-Day Saints and our church has always advocated living within your means and avoiding all consumer and household debt, also having a vegetable garden, teaching children to be wise with money, giving the first tenth of our income, saving, and eating healthy foods."
For Diane, an avid competition entrant, family is also the No1 reason money should not be frittered. A child of a poor single parent who drew a basic wage from the Papakura freezing works, she's not only raised her own kids, she's raising her grandchildren David, eight, and Jacob, four. "It's so much better to be careful with your money because it's so hard to earn it," says the part-time Glen Innes librarian. She also warns against mortgaging the family's future for luxuries bought with consumer debt. "You can see hard times ahead for people. Too many people are just three steps away from calamity," she says.
Leanne says: "As a society, we are very materialistic and expect to start out where our parents finished up." But like all her fellow finalists, Leanne -mum to Hannah - is a firm believer that with a bit of creativity and effort, even families without big incomes can live better for less. Here are the finalists' views on:
Living carefully does not mean total self-denial
Although Diane is an enemy of waste (and expensive, fatty takeaways), she says: "Without a few luxuries life would be so dismally grim." But to manage guilt-free luxuries means sticking to a budget. "Needs must when the Devil drives," Diane says. But for Moana budgeting is no chore. It brings the family together as a unit, she says.
Not giving give up on generosity
"There's a difference between being frugal and being mean," says Leanne. All five finalists are big givers.
Diane is using some of her $5000 to buy a TV for someone who really needs it. Kara tithes 10% of her income to her church. "Some of my biggest bargains, I have given away," she adds.
Replacing costs with something that is free and fun
Moana, her partner Tony, and their young children Ernest and Jacob spent some wonderful days collecting pine cones last year - outings which provided them with enough fuel for the fire for almost the whole winter as well as beautiful picnics between West Coast downpours. "We've only bought one load of firewood since we came to Hokitika, which has saved us hundreds of dollars," she says. Moana also recalls spending a New Year's Eve climbing Ruapehu to wait for the dawn with Tony, with a couple of bottles stashed in the rucksacks. Cheaper than a night out - and much more romantic. Fruit-picking, vegetable-gathering, jam-making and pickling are all part of the Dawson family year. It brings the family together, slashes $15-$20 from the grocery bill each week, makes for a healthier family, and fewer doctor's bills.
Seeking out what's free
Moana says there's a lot for free in the community to enrich family life. Moana and her children borrow free videos from the library, and she saves the $9 cost of many glossy magazines by picking up used ones there. Leanne says there are plenty of free community events, and tests herself to find "five free things a month".
Doing it yourself
Kara watches tradespeople like a hawk to pick up tips because once she's seen a plasterer in action, she knows she's handy enough to save a couple of thousand dollars plastering her own house. If you don't have a particular skill, says Diane, you can barter with friends, swapping a little baby-sitting for hair cuts, for example.
Being smart with financial services
Moana sings the praises of petrol station charge cards, which save her 10% on fuel, equating to a free tankful every few months. Moana's also smart with her credit card. "We really only use it to book cheaper flights online." But she loads the card with cash beforehand, collecting interest instead of paying it. She also much prefers to pay with cash when possible, to save on Eftpos charges.
Kara is a bank's worst nightmare. She refuses to pay one cent more than necessary in charges, and believes more than $2 a month is excessive. A fan of Hamilton's Moneywise, a not-for-profit organisation promoting financial literacy and living free of debt, she also can't believe people carry over credit card debt and don't do everything they can to get free of their mortgage, let alone drawing on equity to buy luxuries. "If you are not careful, your expenses increase with your income. When you get an increase we try to increase our mortgage payments," she says.
Shop-watching
Leanne keeps an annual diary of sales, which tend to come up at the same time each year in different stores, and plans her shopping around them. "I have already finished my Christmas shopping," she says. "I buy presents in the sales."
But the best presents aren't necessarily the ones you find in shops, she says, and she is also a fan of making gifts. A favourite gift from last year was making advent calendars for friends, with 24 little treats inside for the 24 days of Christmas. There are dozens of websites with similarly lovely ideas which parents can work on with their children, she says. She's also a fan of Cappuccino Moments for Mothers, a book with ideas, many free, for mother-children activities. Second-hand shops can produce wonderful bargains, too, says Leanne. An old doll's house bought for $4 needed only a little DIY and restoration to turn it into a des-res for her daughter's dolls.
Self-defence against destructive habits
Kara has a three-day rule. If she sees something she wants to buy, she forces herself to wait three days. If she still wants it after that, she goes ahead, though Leanne's rule is "Wait a week". But to really know the real cost of an item, Kara advises: "When making a major purchase, work out how many hours you would have to work to pay for it (after tax). Then ask yourself if it is worth that much to you." She also has a tip for breaking the shopping habit. Have a shop-free day each week, she suggests. "Ours is Sunday, our family day".
Never pay top dollar
David recommends shopping around for electricity, phone and internet services. It can save you hundreds of dollars