I will compare being frugal to getting in shape, there is simply no quick fix, no getting ripped for spring break or getting rich by summer, it is a complete life style change and a whole new way of thinking. Just like someone that works out who has cheat days where they will eat snacks, a frugal person will have cheat days where they spend money foolishly. The key once again is moderation, days on end where you spend tons of money and then save for the next week do not count. Of course there are times when many of us will get desperate and save as much money as we can in the shortest period of time. In doing so we usually deprive ourselves of the basics that make life enjoyable. The key is to have a slow and steady build up of finances for the future without compromising the quality of life we have today. I have already covered the art of frugality, so below I provide the building blocks of frugality, which pretty much are general tips on how to think like a frugal person.
1. Always think twice before make you any purchase. You do not have to think about anything in specific but just pause for a minute. Take a minute or so to realize what you are about purchase. Chances are the rational side of your mind will come into play and you will start thinking about why you are even about to purchase this product.
2. Look into alternatives. There will always be alternatives in life, whether it is getting an insurance quote or buying a car used as opposed to brand new, you will always have options. Do not just look into one other alternative, look into all of the possible alternatives, and there is a good chance you will find a better deal. There is nothing wrong with consuming a cup of coffee in the morning, but there is no reason that you need to purchase a fancy latte from Starbucks or God forbid a $5 energy drink.
3. Find a discount. If for some odd reason you do not find an alternative or a substitute for the product that you absolutely need than just find a discount.You can find a discount through coupons, websites (www.redflagdeals.com), or even just by asking sometimes. Remember retailers need you more than you need them
4. Can you live without this purchase? Sometimes you are going to have to take a step back and ask yourself if you could live without this purchase. Chances are the answer will be yes, aside from nutrition, insurance, property, water, and other basic necessities of life. Before you buy those $400 sunglasses think about, is the sun so bad outside that you need to buy $400 sunglasses to protect yourself?
5. Make a shopping list. I know most people think it is lame to walk around a store with a shopping list, so you could put it on your Blackberry or iphone and walk around the store playing with your cell phone just like everyone else these days. The point of a shopping list is so that you do not walk into a store without knowing what you exactly need. If you walk into a store knowing that you want something in general, chances are you will make a couple extra purchases that you would have never imagined prior to entering the store.
6. Set a budget. This goes without saying, everyone should always have a budget in place. It does not have to account for every penny but it should be what you live by for a specified period of time. You should not go over this budget unless you absolutely need to. Helping a family member in need is a good reason, buying the newest shoes is not.
{ 2 comments… read them below or add one }
I second, the “make a shopping list” tab. A person that goes into a store without a shopping list spends something like 30% more than a person who has one handy. I don’t know about you, but I’d rather keep that 30% in my wallet. I’m an extremist. I have a shopping list down pretty much for the whole month.
Caleb
http://www.mefinanciallyfree.blogspot.com
I think the most important thing to do is know what are buying when you go into any store. If you go with no list or anything, you will end up buying something you do not need at all.