How To Say No When You Are On A Budget!

Photo source

For some say the word budget and they turn their head the other way. It’s almost taboo to be on a budget for some. They think budgets are for poor people, I don’t need to budget. Ya right, time to get a grip! I’ve never had a problem telling anyone “No” but sometimes it can get frustrating when people just don’t understand.

Have you ever met someone who tells you what they do for a living  and you automatically assume they have lots of cash? Likely, we all do it but is it the correct way to be thinking?- No

Why is that not the correct way to think?

It’s simply not always the case and we don’t know what happens in everyone’s budget and life. How do you know they have a healthy bank account? Can you read minds?  (if so please click here and contact me…. I could use your ability) There are lots of people earning 6 figure incomes but are in debt because they spend more than they earn or have massive student loans to pay back etc. Education is not cheap and most pay for it for years.

Another example is when you say oh look at Johnny up the road, he’s just bought a new F-150 Truck and now he’s taking his family on a Cruise to Spain. He must be rolling in the $$$ right? Not exactly. It may be true sure, but remember one of the most important pieces of advice I say…

“Credit can buy you anything” problem is you have to pay it back and sometimes that could take ages and for some the credit card bill will outlive their very existence.

Here’s a quick scenario… tell me if you choose Scenario 1 or Scenario 2 answer.

Friend: Hey do you want to go camping for March Break it will be great… looking for something exciting to do, lots of sun, drinks, bbq’s,boating… ah the life!

You: Sure, where and how much is it? (you know you are in debt up to your eye balls and can’t afford it)

Friend: Wasaga Beach, the cabin is only $1200 a week.. and it’s right across from the beach… how cool is that? So it’s only $600 a week  plus food, drink and whatever else you need for each of us.

Scenario 1 Answer~You: (You know you can’t afford $600 and you really want to go but not build more debt on your line of credit... What do you say? Sure mate, when you thinking of booking it? (Wrong Answer unless you love debt)

Scenario 2 Answer~You: Sorry Mate, I simply have too much debt I need to clear up and don’t have the cash to fund an outing this year, maybe next time. Thanks for asking. (Better Answer)

Is that scenario reminiscent of  you when it comes to your friends/family wanting to do something with you. It doesn’t have to be a vacation it could be a simple trip to the mall or the spa, restaurant,pub or the movies etc.

How do these situations make you feel?

Photo source

Most people who are in debt and don’t want others to know will continue to build the debt for fear others will not accept them.They do what we call emotional spend on items they don’t need or think they need to impress others or themselves.

Are they really your mates then?

Probably not, so let it go and move on. If they understand then you should have no problem using scenario 2 above and telling them no. There truly are people in this world that are frugalminded and simply put on a show for everyone else to conform to perceived standards of living.                                                              

They believe that is what is expected of them but inside they are die-hard savers… they want to live simply and enjoy what the frugal life has to offer. We enjoy it and life is much easier without the stress of money worries. There are always cheap summer  family outings that don’t  have to cost an arm or a leg like above.

• Don’t be afraid to be who you are.
• Don’t be afraid to be the person you are at work or around your friends and relatives.

One of the hardest parts for some are to tell their family. My wife’s family understands our frugal ways now but at first her sister would make fun of her.Her sister makes almost 6 figures per year and is in her early 30’s.

Have a gander at this Scenario………..

Sister- Oh nice sweater its American Eagle where did you get it at Value Village haha..you’re so cheap why do you shop there when you clearly have money.

Wife- Yes in fact I did and it only cost me $4 and it’s hardly been worn. You know buying second-hand clothing isn’t that bad and allows us to save for other things.

Sister- Ewee no way.. I’ll stick to the mall thanks

Moving Forward to the following year her sister now has a baby… (this is hilarious)

Sister- Hey do you think you can keep an eye out on kijiji for some deals on baby clothes and furniture. It’s so expensive now I see why you shop second-hand. Having a baby has truly opened my eyes.  (ha.. that’s me saying ha!)

Wife– Sure no problem anything to help out and I’m glad you see how watching you money can add up.

Sister- Yes I was wrong, now I am amazed how much you can save and when I watch others at the cash register I just want to give them coupons to help them. I want to tell them everything you have taught me. I’d rather keep my money for things that are important to me. I’ve hardly spent any money on myself since the baby was born and understand the meaning of a dollar now. Thanks Big Sis!blah blah blah.. it went something similar to this remember I’m a guy and am supposed to be watching the game beer in hand minding my own business)

The Lesson

The point of this scenario is before she had the baby she would freely spend her money at the mall on expensive clothes without a care in the world. She thought why is my older sister who has no consumer debt buying her clothes at Value Village. Although we still don’t have any kids she realizes how budgeting, couponing and saving money has helped our bank account grow and allowed us to almost be mortgage free.  She is now an avid couponer and rings the wife to go to garage sales in the summer! Success- You bet….

Photo Source

Most people want their family to be proud and happy they are doing well whether it’s the parents or siblings. I hear it all the time, How can I possibly tell them I’m in debt? It can be stressful so here’s some advice I think might help.

1- Invite them over for dinner- While they are over for dinner set the mood and calmly explain to them that you and your (spouse/partner) have gotten into some debt and are struggling to make ends meet. You wanted to let them know so that they would have patience with you when it came to family dinners, outings, birthdays etc as you simply don’t have the money. Then pour them another glass of wine and enjoy the dinner. It doesn’t have to get into a full-blown conversation, simply tell them what you want and move on or add a bit of tip 2.

2- Show them how you plan to get out of debt– Sometimes having a plan in motion will help them to understand that you are serious. In my wife’s case she would show them her coupon binder, her coupon stockpile and how much she paid for the items. They were amazed at how much money you could save simply being mindful of prices, budgeting and using coupons.  There will always be the people who don’t believe, don’t care and think you are crazy but remember, “it’s your life”.  Family should be the first people you can count on when you need to tell them anything. They should never judge you, yet motivate you to meet your goals.  Showing them that you have a plan will only reiterate how serious you are to become debt-free.

Sometimes just being you and not keeping up with the fast paced corporate life or city living is easier than waking up pulling your hair out or having to say no to people. Start a budget, keep on track and before you know it you will be debt free with a healthy Emergency Savings Fund and can enjoy all life has to offer and have the money to do it!

You can find Canadian Budget Binder on Twitter HERE and Facebook HERE! We are waiting to chat to you! Cheers Mr.CBB

Related articles

• Money Management: Tips to reduce debt (canadianbudgetbinder.com)
• Is The Tax Free Savings Account For Me? (canadianbudgetbinder.com)
• Five Ways To Cut Your Budget To Save Money $ (canadianbudgetbinder.com)
• Financial Mistakes Newlyweds Make (lexingtonlaw.com)
• How to Do a Spending Fast in 16 (Easy!) Steps (wisebread.com)

Doc Photo Courtesy of: Copyright (c) <a href=’http://www.123rf.com’>123RF Stock Photos</a>

Share to...