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Wanna Save A Ton Of Money? Act Like The Amish!

By lgentile - July 02, 2019
Credits: moneyversed.com

What do you know about the Amish community? Maybe they are a complete mystery to you, and rightfully so. They are a reclusive community of people living right next door to modern civilization.  Maybe you only know that the women wear bonnets and the men work on farms. You might know that they don’t use technology and that they believe that having a large family is a blessing from god. They don’t watch TV and they don’t drive cars and they live a more primitive lifestyle than the cultures surrounding them.

But did you know that they are also extremely good with money? You wouldn’t know that by looking at them because you can’t see their wealth. They don’t show off their money by wearing designer outfits and they don’t drive fancy cars. But despite their modest lifestyles, the Amish have a few financial tricks up their sleeves that could seriously benefit your bank account.

Finding A Fair Price

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While most people in the United States are able to save 6% of their income on average, most Amish people set aside 20%.

You’ll hear stories of Amish families that managed to save $400,000 over 20 years despite running an entire farm and raising 14 kids.

But how do they do it? It is partly because they don’t rely on technology and they don’t have advertisements flashing in their faces all day. Because of this, they are able to go into a store and make a decision based on a fair price and the price only.

Relying On Second-Hand Stores

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In order to keep costs low for a big family, the Amish rely on second-hand goods, clothing and household items.

They often shop at garage sales and thrift stores to find great deals for the whole family. Pro tip: a thrift store is a great way to find awesome clothes for a fraction of the price!

Especially since Marie Kondo and her book, The Life-Changing Magic of Tidying Up and then her Netflix special, people are letting go of all of their belongings that don’t spark joy in their lives!

No Waste

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Also, you won’t typically see an Amish person let anything go to waste. For example, any clothes that are too worn down to be worn will be turned into quilts or rags.

And while they typically buy in bulk, they also make sure that they never buy too much of anything perishable.

And if they do overstock, they will use the food to feed the animals on their farms or give to others in their community.

Buying In Bulk

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And since the average Amish household has six to eight children to feed, buying in bulk is the only way to go.

And while you may not have eight children of your own, buying in bulk will still be cheaper and help you save money if you have room for it.

Most Amish stores carry 50-pound bags of oats, 400-pound bags of flour, and 200-pound bags of sugar. But also, a trip to Costco will do you just fine.

Being Their Own Boss

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While many of the Amish run a farm for a living, some go into skilled trades like construction, building furniture and manufacturing metal parts.

While some of these products may not even be permitted in an Amish home, they are sold to other outsiders for a hefty profit.

Most Amish small businesses see a whopping 95% survival rate, while the five-year survival rate of all U.S. small businesses is only about 50%.

Giving Back In Their Community

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And those in the community that do have money make sure they “pay it forward” to others around them who are less fortunate.

Because the price of land for farms is increasing, people are always down to lend a helping hand to their fellow neighbors.

There are even low-interest loans available to help young adults buy their own land which consists of money donated by wealthier families.

A Life Without Toys

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And when you think about having eight kids, you can’t help but think about all the toys and all the stuff that kids feel like they can’t live without.

Well, the Amish as different because they live modestly.  if you ever see an Amish family with young children, you will notice that they don’t have a lot of toys.

They tend to play with homemade dolls and hand-me-down toys and they are perfectly content with what they have.

No Student Loan Debt

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And if you aren’t convinced just yet to live like the Amish, what if we told you that there is no such thing as student loan debt?

Yup. That’s right. Amish people don’t need student loans for higher education because they typically just pick a trade and run with it.

Young men will choose a trade to go into or help out on farms and the young women usually cook or sew, therefore they see no need for an education past the 8th-grade level.

When They Want To Splurge

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And what do the Amish do when they can’t afford something, but they really want it and have to have it?

Well, we already discussed their lack of debt, so we all know that they wouldn’t put it on a credit card. They wouldn’t dare do that!

Instead, they get an extra job and work until they can afford the expense. If only we all did the same thing. Life would be so much easier, wouldn’t it!?

When Buying Gifts

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And you know when you have a wedding to go to or a birthday party to attend and you feel like you need to splurge on gifts for your loved ones?

The Amish don’t splurge. They get creative instead. They usually make their own gifts.

They will bake delicious goodies and construct decorations and that is 100% acceptable and seen as a perfect gift.

Living In Debt

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Most Americans live in debt. Some Americans will have up to five credits cards that are all maxed out and are paying interest every month because of their spending habits.

The Amish don’t play the debt game and loathe being in debt and try to avoid credit cards if they can.

The fact that they don’t owe anyone any money gives them peace of mind, and they don’t have to deal with interests on loans. What a concept!

Taking Out A Loan

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And when the Amish do need to take out a loan or have any kind of debt, they take it very seriously.

They don’t sit on it and they see it as a moral obligation to pay it back as soon as they possibly can.

They will do anything they can to avoid racking up any interest and to carry on their typically simple and worry-free life.

Banks Are Behind Them

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And because they are so good with money and have a reputation of having a very fast payback rate, the banks are always happy to lend money to the Amish community.

And because the Amish as driven by community, the banks also look back to see how their family has handled their money in the past. 

They will happily lend money depending on their family history.

Living A Simpler Life

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There is certainly something intriguing about leading a more primitive lifestyle, especially when it comes to money habits and being about to live debt free.

It’s clear that the Amish live in a community where they take care of one another and they love to pay it forward.

They live a simpler lifestyle, but it doesn’t mean that doesn’t necessarily mean that they don’t know how to have fun.

Live A Little!

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While they don’t splurge according to our standards, they do spend money when they want to live a little.

Many enjoy going on hunting trips and they will spend money on books and games and other items for their amusement when they really want to.

And while they do let themselves spend on entertainment, they do see these as luxury items and they aren’t high on the list of priorities when it comes to spending. But, maybe we should keep that in mind next time we buy those shoes that we “need” to have. They are going to wind up in the back of our closets anyway!