I don’t have alot to say today but I wanted to write a bit about the frugal mindset. Many people associate being frugal with being poor, or, on another hand, being stingy or cheap.
To be clear and honest being frugal is none of that. Yes, of course, if you are poor you may be frugal out of necessity. If you are cheap you always go with the cheapest price regardless of quality and will deny yourself things even though you can afford them. When I talk about being frugal what I mean is making wise financial choices and getting the best value for your money.
Regardless of how much money you make it is always smart to be frugal. If you have alot of money you get to hold on to more of it and if you don’t have much money you can manage it in a way that allows you to have everything you need and maybe even have some left over to save.
So what are some of the things a frugal person considers before letting go of their hard-earned cash?
- First and foremost is determining needs vs wants. A frugal person will make sure their needs are covered before ‘wasting’ money on things they would like to have.
- Then there is getting value for your money. It is not always smart or economical to buy the cheapest version of an item. Check out the quality first. If it’s going to break after a few uses and you need to buy another that isn’t frugal. Buying the best quality you can afford is a smarter choice.
- Another thing a frugal person thinks about is whether spending money on something is ‘worth it’. This is similar to needs vs wants but sometimes different. Maybe you want to buy camping gear. It’s not a necessity of life but think of the fun your family would have, the memories you’d make and how much your children could see and learn. This could make this ‘want’ a worthy expense because it adds value to your life and that of your whole family. In comparison, a motorcycle for dad would not qualify as it is expensive, requires fuel and maintenance and only benefits one person in the family.
- A frugal person will also try to consume less. I don’t mean food. Being frugal doesn’t mean depriving yourself or your family of things you need. However, a frugal family will try to use less electricity, conserve fuel, and follow the four R’s – reuse, reduce, recycle and repair
- When a decision is made to purchase something, particularly a big ticket item like an appliance or a car, the frugal person shops around. They will often do alot of research online into different makes and models, look at reviews and compare prices. Impulse buying is not a frugal choice.
- Last but certainly not the least important is creating a budget. A frugal person knows exactly where their money comes from and where it needs to go.
These are just some of the basic concepts that combine to make a frugal-minded person. It’s about getting value for your money, separating needs from wants, knowing where your money is going and consuming less. We do all this so we can save some money for a nest egg, emergencies, vacations or any of our ‘worthy’ wants.
I hope this helps some of you understand what being frugal is really about. If you have some other ideas or input please share in the comments. I love getting comments and reply to every one.
Have a happy frugal day,
Roze
RazzWorks 
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