Money matters, so think before you next splash out

Interest rates and unemployment are on the rise so it is no surprise to us that more than ever people are turning to a living off the smell of an oily rag lifestyle. If there is any silver lining to hard economic times, it is to remind us about the virtues of thrift and hard work.
Some people say that money is not important, but then some people say all sorts of silly things. Money is very important, especially if you don't have much. And the way to having more money is to make it, save, and store it away in a safe place (like a bank, not under the bed or in a Hanover type finance company.). This is where living off the smell of an oily rag comes in.
Here are a few down-to-earth oily rag money tips.
Look out for ways to make a few extra dollars, even if it means taking on additional work or a paid hobby and watching less TV while you work a few hours at night.
Repay debt as quickly as possible.
Don't buy consumer goods (like cars, electronic goods, furniture, holidays) on credit. In a few years what you have bought will be worthless so you would have not only lost the money but also lost what you could have bought with the interest. If you can't pay cash, you can't afford it.
A reader offers some advice when making big-ticket spending decisions: One method is to question yourself as husband and wife before buying anything. Do we both agree that we really need this? Can we borrow it? Hire it? Get it on special? Is there an alternative?
Give it the 10-day waiting test - if the need remains go ahead, get it and enjoy it. Weneeded more furniture but it's amazing what has turned up from family members in the meantime.
If you are finding it impossible to keep your head above the debt there are really only two things you can do: sell assets to repay the debt, or spend less. Selling assets or downsizing the home will be a hard decision to make, but it's what you may need to do. Those in a less desperate situation will simply need to be more creative about how they save money. If all else fails and your spending falls into the addiction instead of bad habit category, then seek professional help and spend some time on a budget adviser's couch until your financial situation is in balance and under control.
Don't guarantee other people's debts. Being a guarantor means the lender can claim repayment of the debt from you, which may be really unfair, but that's what you are signing up to.
Beware of "buy now pay later" deals. You may be better off negotiating a cash discount and forgetting about all of the paperwork and extra charges involved in buy now pay later schemes.
If you have some favourite money-saving or money-making tips, share them with others by visiting the oily rag website (www.oilyrag.co.nz) or write to Living off the Smell of an Oily Rag, PO Box 984, Whangarei.

Frank and Muriel Newman are the authors of Living Off the Smell of an Oily Rag in NZ.
Readers can submit their oily rag tips online at www.oilyrag.co.nz.