Finance Refresher Lessons From the Book “Money Secrets of the Amish”

The Amish are admirable being called a recession-proof group. They live in abundance and true happiness without any feeling of deprivation. Are their money practices superior to us?

If you deeply probe their money secrets, those are not secrets after all. They are the classic financial advice that we have read through the years.

But for us, those classic pieces of advice are easier said than done. For the Amish, it is their way of life. No wonder they save much and be happy at the same time.

Author Lorilee Craker was able to explore the secrets of the Amish and shared them in her book “Money Secrets of the Amish: Finding True Abundance in Simplicity, Sharing, and Saving.”

The book was a light read with light lessons, too. However, it has a certain charm that will lure you into rethinking your spending. You will surely envision yourself behaving and be happy like that of the Amish.

There were 14 lessons in the book, but I have easily grouped them into 3, as explained below.

Amish Money Lessons on Savings and Debt

The Amish pay themselves first, and they pay their bills or debts on time. They honor their debts. They believe that to pay someone on time is an extension of the basic commandment “Do not steal.”

An Amish statement in the book says, “If it’s due on the tenth, and you pay it on the fifteenth, you are stealing that man’s money for five days.”

It’s very basic, and we all know this. To pay ourselves at least 10% of our income. It’s also very basic that we pay our bills and loans on time to avoid penalties. What’s in it then for me to have to continue reading the book?

I had one nice and unforgettable takeaway. But this is the first time that I was able to read this money quote:

“If you have money saved in the bank, you will end up richer every morning” — P. T. Barnum

Some financial gurus may challenge this into a debate because money doesn’t actually grow with the bank. But the point of this is the simple analysis of having your money earn interest with the bank no matter how small, as opposed to having it in your hands and be tempted to spend it anytime.

For the Amish who wake up to tend their farm and animals, the light of the day is a sign that they’ve grown wealthier compared to yesterday.

Amish Money Lessons on Shopping

The Amish also shop. They are even better shoppers than us because they make sure to get the best deals while not paying the full price.

Their no. 1 rule:

“Use it up, wear it out, make do, or do without”

They shop their own homes, closets, and cupboards. They fix things and use them until they wear out completely. They recycle and waste nothing.

They have simple gift-giving traditions.

They are guided by need-based gifts, so they give useful items. Most gifts are also handmade, like baked goods and craft items. They shop in secondhand stores for gifts.

The best that they give are the gifts of “time,” which translates into what they call “investment in relationships.” These are gifts that enrich family bonds like babysitting or landscaping for relatives.

They love garage sales.

“You don't have to buy something new to buy something good ” — Ella Yoder

The Amish are very good at hunting good deals in garage sales. Here are some good notes on this practice:

• Don’t buy anything you don’t really need just because it’s cheap.

• Used clothing is only gross when you don’t have a washing machine. Think of this: how many people have tried the new pants that you intend to buy in the mall? According to the book, what’s really gross are the “retail prices.”

• Institute a “one in, one out policy.” To make sure you wouldn't accumulate unnecessary things when you buy an item, think of an item in your possession that you will let go of.

• Define your “upper limit” or the maximum price that you are willing to pay for an item.

• Think: Is it worth it? Can I use it? Can I live without it?

They practice bartering.

Through bartering, the Amish can get what they need even when times are tough, and there’s not plenty of cash going around. It’s a win-win situation for them.

We can actually implement this. We just have to think of what skill we can offer to others and ask them for their unique expertise in return.

I do this all the time with my siblings. I draft any legal papers for them, and in return, they give me advice on technical aspects of my house or other property as they work in that field.

Amish Lessons on Real Happiness

The Amish are foodies. They eat hearty and healthy with their meals consisting of plenty of veggies and fruits that they grow on their own. They cook big batches and share them.

“The truth that transcends plain and fancy: Chasing after money and things is meaningless because the best things in life are free”

That is another wonderful quote from the book.

The Amish have regular game nights (e.g., trivia games) that come with lots of food and juices being served by the host. Sharing and rejoicing with their neighbors is incorporated into their way of life.

For the Amish, money can’t buy happiness.

Final Thoughts:

This year, I promised not to have financial goals and simply enjoy life. Along with that, I told myself not to scrimp to maintain the vibes of living in abundance. Anyway, I worked hard for my money over the years.

But after reading this Amish way of life, I’m yearning to preserve my frugal personality. As shown by the Amish, frugality doesn’t mean living in scarcity. We can live in abundance and utmost happiness without spending too much money.

And I remember, I started appreciating thrifted clothing. That can be my next topic. See you soon with my very own pictures of my thrifted clothing collection.

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Originally published by the author on Medium.com.

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Reference:

Craker (2011). Money Secrets of the Amish: Finding True Abundance in Simplicity, Sharing, and Saving. Tenessee: Thomas Nelson

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If you enjoyed this article, you may want to read why I didn't set any goals this year: