Frugal is as frugal does
So, between buying suits and four pairs of running shoes and workout clothes and a big-ass winter coat (at full price! The horror!), I suspect my frugal street cred has dropped for some people. I think many people (most people?) think of frugality and simple living as just pinching pennies until they scream. Personally, I think there's much more to it than that. In no particular order, here are some characteristics that describe what frugal living means to me:
1. Living within one's means
That's an easy one: it simply means that for frugal people, the income inflow is greater than the outflow. No surprises there.
2. Planning
Frugal people are more future-oriented than present-oriented, and that's reflected in their spending and savings choices. They also tend to be organized: frugal people don't like wasting money on the Stupid Tax, so they track what money is coming in against what's going out to make sure that they don't run up interest-bearing debt or punitive fees for account transgressions like bouncing checks.
3. Spending mindfully
Frugal people think through through purchases carefully and make sure that they're in line with their values as well as their budget. Frugal people see to it that every purchase brings satisfaction, not guilt.
4. Considering opportunity cost
Most of us live in a world of choices dictated by scarcity: we can't possibly afford everything we might want. Before frugal people spend, they consider not only the cost of the purchase but also what else could have been done with the money, aiming to get the most bang for the buck in terms of upping their satisfaction quotient.
5. Balance
Frugal people are not stingy. Stiffing hard-working wait staff or shorting the group check in a restaurant isn't being frugal; it's being selfish, cheap, and obnoxious. On the contrary, frugal people work to balance the feeling of having enough (but not too much) today against preparation for the future, all the while without forgetting to give according to their values and ability.
6. Imperfection
Despite their best intentions, frugal people fall off the wagon sometimes. They don't spend a lot of time agonizing over it; they just pick themselves up and move on.
That's how I look at frugality and simple living. How is your perspective similar or different?
6 retorts. What say you?
I would consider myself a super frugal person (at times to a fault), but that doesn't stop me from dropping a big chunck of change on some good quality items. We have an expensive espresso machine we LOVE and use 2x a day, I buy $90 sandals that last 10 years, I always invest in a good winter coat every 10 years or so and new running shoes each year.
Frugal doesn't always mean not spending money, it means spending your money wisely.
Agreed. Besides, who said there is anything wrong with spending your money on something you want if you are living within your means and are not robbing your future self to pay for stuff you want right now.
I agree. And, I say, frugal is not a synonym for cheap -at least not how I define it. :) Glad to hear your NY Mom is doing better too.
Susy - The espresso machine sounds wonderful! I have thought about getting one but space is a constraint in my kitchen. I'm glad you enjoy it so much.
Shadox - Folks on the far, far end of the frugal spectrum would think the coat purchase was wasteful since I didn't thoroughly explore other alternatives (thrift store, extreme layering, etc). I still think I made the right decision for me and my current set of circumstances.
empressk - I think there can certainly be areas of overlap between frugal and cheap, but synonymous, no. Thank you for the kind thoughts about my New York mom. I'm stopping by the hospital again later on today.
I would only add that frugal folks tend to try to make sure that their spending thoughtfully reflects their values. Like not wasting resources and making do - it isn't just about money; it is also about respecting the fact that "stuff" isn't in endless supply...
MtnMama - Good addition; thanks very much.
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