Budgeting

Guest Blog: Michelle McKinney Hammond

Posted by Jean

When I heard about Michelle McKinney Hammond’s new book, Divanomics:  How to Still be Fabulous When You’re Broke, I knew I had to invite her to share some of her tips for the blog – and luckily, she agreed!

It is definitely true that necessity is the mother of invention. Nothing will force you to new heights of creativity like lack. If most of us are honest we spend money the way we do because we have it and we can. But what happens when you don’t have it? When your “cans” don’t stretch far enough to cover your “wants?” That’s when the power of relationships comes into play big time.

There’s more than one way to stretch a dollar. First, get focused about separating your “wants” from your “needs,” your  “musts” from your “lusts.” Make your list and check it twice.

Next, surround yourself with a supporting cast of shoppers. Those that will keep you accountable as well as those who will split the tab. I’ve saved a lot of money shopping with one friend in particular who has mastered the art of arching her eyebrow  and pursing her lips. That’s it. That expression says it all, “girlfriend you do not need that.” As I grudgingly put it back, I’m grateful for the accountability. Sometimes we need someone to save us from ourselves.

Shopping in bulk at discount warehouses and splitting the bounty along with the bill with friends  can add up to big savings. Instead of hoarding ten cans of tuna, split the case and the cost. I have a friend (we’re both single) who goes with me to Costco to collect meals for the week.  We select our salad goods, and dishes, then split them up into Glad containers for a delicious variety of meals all week long at a fraction of the cost of shopping alone, eating out, or cooking at home.

When eating out, select restaurants known for healthy portions and order appetizers or a main entree that you can split with a friend or partner. Truly it’s all about being disciplined without feeling denied. Relationships come in handy even when you are just associates.  Everything doesn’t have to cost you money. How about swapping services, support and resources? Recently for the launching of my new book, Divanomics: How to Still Be Fabulous When You’re Broke, I vowed not to spend any money on my book signing party.  What seemed like a flash of insanity quickly turned into a stroke of genius. At the end of the day I got not only a top notch venue, but all the food, drink and even the live jazz band for free! Yes free!  Two hundred people later everyone was happy with the press and exposure they received, along with additional profitable bookings. In another instance, I swapped writing services for some work I needed done.

When you can’t get around the cost perhaps you can decrease the price. Quiet as it’s kept you never have to pay what is being asked. There is always room for bartering. The mark-up on most things averages anywhere from 100-500%. So ahead ask the question. “It that your best price? What can you do for me? Is there any way I can get a discount?” Most of the time you’ll get a price reduction. Remember you have not, because you ask not.

Want a new outfit? Perhaps your new clothes are in your closet or the closet of a friend. I have a fashion savvy friend who visits me regularly, goes through my closet and shows me variations on combinations that never occurred to me! By the time she’s finished mixing and matching I feel as if I discovered a whole new wardrobe right in my own space. Sometimes it doesn’t take new things to give you a lift it just takes a new set of eyes to see what’s right in front of you. Why not have a swap and drop party among friends/ Invite everyone to bring their cast offs-over and exchange them among yourselves. It’s a fun way to give your wardrobe a make-over without losing your shirt.

When you think about it plenty seems to make us not only independent but selfish. Perhaps this time of economic setback is more about rediscovering community than sacrificing indulgences. In the midst of it all there is a new generosity to be discovered that costs nothing at all except our time, our service and ourselves.  And that my friend is a worthy investment that will always pay high dividends with interest. With interest, get it? At the end of the day your hidden wealth isn’t buried in a vault, it’s in the heart of your relationships.

Michelle McKinney Hammond is an in-demand speaker and the bestselling author of more than thirty five books, including: The DIVA Principle, 101 Ways to Get & Keep His Attention, and Sassy, Single and Satisfied. Former co-host of the Emmy Award-winning television show Aspiring Women, Michelle has been a featured guest on national news and entertainment programs including ABC, NBC, BET and Bill Maher’s Politically Incorrect. Her official web site is www.michellehammond.com.