Challenging economic times inspire people universally to make wise financial decisions. One culture that has always lived an austere, yet meaningful existence is the Amish. Increasingly, people are inspired by their lifestyle; and seek ways to simplify their own lives.
Lorilee Craker is the author of the new book, “Money Secrets Of The Amish-Finding True Abundance in Simplicity, Sharing and Saving.” She examines their practices, extravagant in peace, family and community closeness. For them, thrift is a muscle that is exercised regularly.
Craker interviewed Amish folk in Indiana, Michigan and Pennsylvania, including an Amish banker whose clientele is 95 percent Amish. During the Great Recession in 2008, his bank had its best year ever. Amish experts and Englishers’ (Amish reference to anyone non-Amish), financial perspectives accentuate the book too. Here, two money-saving habits of the Amish are highlighted: delayed gratification and de-spoiling kids.
Delayed Gratification. Delayed gratification is an admirable quality of the Amish, as they’re major long-term thinkers. They’re taught to work, save and pay for the things they want.
Delayed gratification is challenging because the brain struggles with accepting the trade-off of instant delight (i.e. eating or spending) for abstract, distant goals, such as saving money for a rainy day.
To curve your impulse buying, define your goals. Clarity of purpose can help you say no to all kinds of things.
What is worth scrimping to you-a spring vacation? A new car? Once defined, you can aim at having it one day by saying no to yourself regularly in the everyday.
Experts say our ability to practice delayed gratification begins when we’re young, and parents establish rituals that force us to delay gratification on a daily basis.
Here’s a simple formula to calculate the true value of an item or experience before purchasing it:
- Imagine a $100.00 item.
- Record your pretax income-example-$40,000.
- Subtract 25 percent for taxes ($10,000).
- Divide the remainder ($30,000) by 2,000 (the hours you work in a year).
- At $15.00 an hour, you’d need to work 7 hours for the item.
- Is it still worth it?
Small indulgence. “No need to quit spending cold-turkey- just cool turkey,” says Craker. Track spending and say no often to frivolous purchases. Buying an occasional, delightful little something can help sustain you for the long haul.
Amish Money Makeover. Examine your bank statement and see how much money you fritter away on impulse purchases.
De-Spoiling kids. Kids can be money pits. The Amish hand down their financial wisdom, including self-control, delayed gratification and money sense from generation to generation. Englishers’ (anyone non-Amish to the Amish) children are raised in an individualistic society, which promotes materialism and consumerism.
Amish parents have the community to support them when they say no-you don’t.
Building contentment. The Amish teach their children to be content with what they have. Children do perpetually want things, but they can be redirected. Amish children are not subjected to marketing messages on television since they don’t watch TV.
The Amish teach their children to be careful with their belongings and to pay attention to how they treat their things.
“Generation X parents don’t want to cause their children a moment’s discomfort,” says Craker. “And saying no to what they want is uncomfortable.”
Say no. Sometimes no is just no. A parent doesn’t need to explain why he or she is saying no. The Amish believe that a gift given too easily robs children of the joy of earning it themselves.
Keep kids busy. They won’t have idle time to think about all the things they want. Work is formative for kids.
Craker shares her six point “De-spoiling” plan for her children:
- Teach them to be content with what they already have.
- Show them how to discover savings and freebies.
- Help them distinguish between wants and needs.
- Say no with some regularity.
- Encourage delayed gratification.
- Teach them that hard work won’t kill them, and it’s beneficial.
Practice delayed gratification like the Amish, and find yourself making wiser financial decisions. Teach your children to appreciate what they already have instead of longing for more possessions. Simple acts like these will enhance your family’s life and help you thrive regardless of current economic conditions.
For more information about the Amish, visit .
Money Secrets Of The Amish by Lorilee Craker - Delayed Gratification and De-Spoiling Kids Review
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