I have suffered a dramatic change. I have had to move from “spending” to “not spending”. I built my personal financial system carefully over years and years of spending money, sometimes cautiously, sometimes rashly and sometimes wildly. At all times I planned, saved and budgeted, always keeping spending directly linked to earning. Now I’m in a “hold spending” period. I saved hundreds of dollars in 2011 by getting some good deals on financial products. You can do it too.

 

Years ago I fell into the habit of accompanying my wife on her trips to the supermarket. These outings ranged from ‘totally boring’ to ‘mildly interesting’ until I discovered that there’s a man’s world in the supermarket. I discovered the 10 varieties of olives, the 20 varieties of pickles and the carousel of fiery hot spices. I found the exotic cheese counter and the cheap tee-shirt rack. I bought what I fancied. My job was great, the salary package was generous and I always had money in the bank.

 

At about 9am one morning I received a phone call from the owner of the company I was managing: “We are closing down. Not enough work, blah, blah, blah… the faltering hi-tech industry, yak, yak, yak… Our shopping trips changed. I still accompany my wife. We go to the supermarket – with a list. We buy the items on the list and come home. Money saved: Considerable.

 

In the good old days when I had a problem with money, my first port of call would be the bank and my friendly bank manager who would always lean over backwards to help me. That’s gone. These days when I have a problem with money I put as much distance as I can between me and the bank. I’m just another customer and I’ve never met the manager. I changed banks recently, mainly because the bank on Pine Street offered better deals than the bank on Elm Street. If the bank can treat me a casual customer, then I can treat the bank as a casual service.  

 

I had sudden urge to make sure my “papers” were in order in case I got hit by a bus. The results were surprising. Other than stuff like life insurance, pension and savings which I regard as a ‘do not open’ box unless the agent is present, I looked at such fascinating items as household and auto insurance. It’s been years since I received these policies. If you work on the basis of ‘no claims, no look’ as I do, the years slip away. I took them out and called a couple of new acquaintances in the insurance business. Surprise! The trusty old agents I had used all these years were no longer looking after my interests. They were renewing my policies every year without looking at the premiums. I replaced these policies with a new agent and saved huge amounts of money for the same coverage. I also told the new agent that I would be shopping around for new quotations at every renewal date. If the old agents didn’t look after me do I still have to look after them?

Ever since that recession started back in 2008 causing the values of securities tied to U.S. real estate pricing to crash, damaging financial institutions globally and sinking my little portfolio into the mud, I have been living frugally, rather like Old Scrooge. First I stopped spending on things I didn’t need and than I stopped spending on things I did need. 4 years later I am still scrimping and saving like mad, not spending a penny if I can help it. I mean I even walk the mile to work and back every day to save the train fare! Yes, in winter too!

 

But good luck was with me all the way. Firstly I never had a single emergency in all that time that would have forced me to break open my savings. Secondly and most importantly, my income remained stable so with all my holding back on cash, my savings flourished. Now, 4 years later, I have built up a nice pile of money and I have decided that 2012 will be “The Year of the Big Spender”.

 

I am going to spend on my hobbies. I am a jogger and a marathon runner. This year I will start by buying myself a new running outfit, maybe even two. They will include the latest expensive running shoes. After that shorts, vests, headbands, towels and all the other paraphernalia that I have done without for the past 5 years. I will also enter for the London, New York and Paris marathons, something I never did before because of the cost of getting to these cities. And while I am in them, I will stay an extra 2 or 3 weeks and enjoy the sights.

 

I painted in Italy years ago, in the good old days. I am going back to paint there again. Maybe even twice, once in Venice and again in Tuscany. I may make a third trip to France and paint in the footsteps of Monet, my impressionist hero. I will start in Paris at the museums where his art hangs and then go down to Giverny where he lived and worked. I will also buy Monet prints.  

 

I want to spice up my life in 2012 by attending a couple of cooking courses in Italy. I am busy researching the subject at the moment and deciding which ‘tastes’ I think I will enjoy the most. Italian food varies dramatically from the south to the north.

 

I have been to many operas. I love the sights and the sounds of a well performed opera. I have also seen opera in most of the world great opera houses, La Scala,

Covent Garden, Paris, the Metropolitan in New York and many others. It’s time to see the Sydney Opera House. So that’s my destination for my first flight. My ticket is booked for the January 15. And on January 21st I will see Mozart’s Magic Flute!

 

Maybe I should work for another couple of years to boost my savings? Nah, I’m spending it!

Here are the ways I know to make a quick life-changing fortune:

"Who wants to be a millionaire?" the famous TV game show asks. And the answer is, plenty of people. However, getting rich quick isn’t as easy, and many financial schemes that promise high returns may not be as attractive when you read the small print.

 

While living like a millionaire may sound glamorous, having a stable financial future is more important than the thrill associated with a glitzy lifestyle. Adopting careful financial practices can increase your net worth, which may be even more important than joining the millionaires’ club. In the financial world, time may be your best friend and discipline your best ally.

 

There are no guarantees of quick fortunes, but sensible financial habits may be your best bet in achieving the financial future of your choice.

 

When you get a raise or bonus or come into some inherited wealth, don’t spend the "extra" money. While you could allow yourself a small luxury here and there, look to save some of this money. If you are not sure how, then consult a financial advisor. And remember that many wealthy people actually live quite simply. That’s why they are wealthy.

 

If you and your spouse are both working, see if you can trim your expenses and live off one income while saving as much of the other as you can. This way, you have some emergency money for situations of need, and if all goes well, you’ll have a retirement nest-egg when the time comes.

 

Keep reevaluating your expenses and watching your bills. Is your car costing you more in repair bills than it would to buy a new one? Depending on your traveling habits, perhaps a combination of public transportation and taxis may be cheaper than owning a vehicle.

 

Review your investments and pension plans. Consult your financial advisor on a regular basis to review your portfolio’s diversification. Take into account your changing needs as you and your family grow older, and be flexible enough to change streams if needed.

 

Spending money is so easy and so exciting. New clothes, new car, new furniture, and new this and new that. We all like new things and we grow tired of old things and old clothes. I live next to a mall and the short cut to the bank, post office and bus stop is through the mall. I see the new shirts and new jeans on show in the storefronts as I pass by almost every day and I have to stop myself from walking into a store and spending. I do that too, almost every day.  

 

If you follow these relatively simple guidelines, you may find yourself closer to the retirement lifestyle that you always imagined.