Penny pinching road to riches

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Paul Squires admits he might be Australia's tightest man - and his might be Australia's most frugal family.

He is a multi-millionaire who has weekly 'blackout' nights with his wife Krystina and children Aiden and Laura, playing cards by candlelight to save on the power bill.

You might have heard the saying 'never pay retail'. Well, Paul says to go one better in the saving game: avoid shopping, buy new stuff only when old stuff wears out. And never take the kids.

"We've found no need to have to come out and bring them out and there's less temptation and inclination to buy extra or things they'll see" says Paul.

To indulge us, Aiden and Laura came along, but Mum and Dad always do the choosing: two $50 t-shirts, already marked down to just $9.99. Good buy? Not to Paul. He asks for a further discount. Two $50 tshirts for $9 apiece - that's 82 per cent off.

Paul says if you don't ask, you don't get. And he's not too embarrassed to ask on even the smallest item, like a pair of $5.50 socks Laura likes. Paul asks and gets 15 per cent off: 82 cents is still 82 cents.

Thrift is something the whole family practices: $27 for kids' track pants? No way.

"I can get tracky pants for the kids from other stores, for about $8 to $9, that look just as good," says Paul. "And they have all the stitching and they have the pockets and they have all the tie bits, so for $27 I can get three pairs."

How about $50 for a brand name t-shirt for Aiden? No way. Aiden himself is already well on his own road to riches: "I'm already 10 years old, going on 11, and I've already saved about $11,000," Aiden said.

He thinks he'll use it to buy shares when he's older, which is probably just as well because he and Laura know when it comes to money, Mum and Dad will practice some tough love.

"We're not going to buy them a property, we're not going to buy them stuff and don't wait for us to drop dead either," Krystina said.

Back to shopping: this time, the supermarket. Every item, price checked.

At home, two Mercedes in the driveway prove Paul's point: every cent not spent is a cent you can save. He says they could afford to drive something even better, but choose not to.

Most of the time, they eat in. They host hot dog nights to entertain mates. And Laura's seventh birthday will be a pizza shared in a park: no lolly bags, few presents.

"Slow down, set some plans up, cut back, be frugal," says Paul.

Paul reckons 'keeping up with the Joneses' is costing Australians financial fitness.

"I tell you now, fit is having that sensational feeling inside when you know you've paid with cash and it's not been banged onto your credit card that comes to visit you at the end of the month, when you feel sick inside your stomach over the statement," says Paul.

He says prosperity has meant too many Aussies are used to having too much.

"It concerns me and annoys me that debt is so easy and so many people are getting hooked into it too early."

His saving tips: ask for a discount, avoid impulse buys by sleeping on it (if you still love the item the next day, then buy it).

Have days where you don't spend a cent, forget about keeping up and practice 'blackout days' - good for your bank balance and probably your blood pressure.

"Penny pinching doesn't mean you've got to be a scrooge," Paul said. "No, penny pinching's just being sensible."

Further details

For more information go to Paul Squires' website: www.wealthierthanyouthink.com