Frugal by Choice
Posted by Gail | Filed under Saving
Do you think people who are more frugal are so because of necessity? Or do they think frugality leads to wealth?
Stories abound about the “millionaire next door” who drives the 20-year-old rust bucket and wears the same pants he bought in 1942. And there are a wealth of anecdotes about people who clip coupons, hunt the deals, shop very carefully to save cents because that’s the only way they can make ends meet. But what about the people in the middle: the folks who have enough to make do and then some. How careful are they about how they spend their money? And what drives them to be frugal if they are?
I got into a conversation at a wedding recently when one of the women I was speaking with said quite perkily, “I don’t need to be careful. We make more than enough money and I like not having to think about it.”
Another woman in the group responded, “Hey, I like the game. I love seeing how much I can save each month. It feels like a win!”
So which camp do you fall into?
a) I don’t even want to think about it,
b) I love the game,
c) I have no choice.
I’m not a rabid bargain shopper. I like a good deal, but no deal is good enough to make me spend money for something I don’t actually need or really, really want. So hearing there’s a sale on at the TV store isn’t going to make me go looking at TVs. In fact, if I’m not looking for something in particular, I don’t even open the flyers when they arrive unbidden at my door.
Ditto dresses and shoes, garden supplies and patio furniture, cars, boats, and motorcycles. And I don’t think it’s ever mattered to me how much I’ve made, I’ve always been careful with my money… except, perhaps, for that brief period when I was about 25 and making really big bucks and thought there would be no end to it. Hmm.
In my book, sensible spending and solid money management are as important as how much moolah you’re bringing in. After all, if you spend every cent of your salary, no matter how enormous it may be you will still wind up in Debt Hell. Witness what happened in Alberta in the last couple of years as people’s incomes skyrocketed and their ability to borrow went right on up too. Albertans have the highest level of debt in the country – so much for those great incomes – and their net worths are falling like a rock.
If you make the effort and take the time to watch your money, you can grow a pretty satisfying nest egg on a relatively small income. That’s where the “blue-collar millionaire” phenomenon was born. Once upon a time blue-collar workers were seen as just making ends meet. Then financial institutions woke up to the reality that lots of people with average-joe salaries had stockpiled quite the basketful of money simply by making saving a priority.
Saving money should simply be a habit. And when you find yourself becoming complacent – when you think you have so much money that you don’t consider cost a factor in your purchase decision – it’s time to pinch yourself. You’ve wondered into dangerous territory.
April 5, 2010 at 7:28 am
I too thought when I was 26 – 28 yrs old my income would just continue to grow and I could afford not to think about saving until “later”. I would be farther ahead today if I had started to save then and not when I was in my early 30’s.
What I didn’t bargain for was that I would be tiring of what I do after 13 yrs and may not be wanting to do it “forever” even though I’m good at it and it pays well. Who would have thought?
So I am in the frugal by choice camp. By making changes in areas that were easy, we have developed a sense of “value” for things. The extra money we save can go towards things or other choices that provide more value elsewhere. It is not necessary for us to spend equality on everything just because we can.
April 5, 2010 at 7:29 am
Anybody got any ideas for me on this? I fall into that group. I’m not wearing 20 year old pants but I am careful and think before I spend. I use Gail’s jar system ’cause I’m one of those people who needs to see it. What really bugs me are people (mostly relatives) who tell me I don’t need to budget because I have enough money (read more than them, they think). Because I don’t have to do it to make ends meet, they refer to it as “play budgeting”, and basically tell me I don’t understand (never said I did) what it’s really like to have to tightly budget because there’s so little money. It’s like a kind of reverse discrimination. I’ve come to the conclusion it’s because they wouldn’t behave like this if they were in my situation. Any ideas on how to deal with this would be appreciated. They always bring it up.
April 5, 2010 at 7:46 am
I would fall in the “frugal by choice” as well. Since after college, I’ve become very conscious of saving money. Learning how to spend wisely and downgrading to less expensive things was (is) a learning process. Watching my net worth grow gives me great satisfaction! I’d like to be financially independent as soon as possible because it’ll give us more flexibility & ability to do what we want.
April 5, 2010 at 7:54 am
Nadine, I’m like you – I need to see it. Money burns a hole in my pocket and if I don’t put the money aside, it’s gone and I have no idea where it went.
As for your relatives – tell them the truth. You need to see the money and put the money aside. You are doing a budget because you don’t want to end up struggling paycheque to paycheque just to pay down your debt.
April 5, 2010 at 8:01 am
I would say I am frugal by choice. It hasn’t always been this way. I used to spend, spend, spend and now I am paying the price trying to pay it all off.
I am very glad to have changed my ways and learn all this before it was to late.
April 5, 2010 at 8:24 am
@Nadine: Why fight crazy relatives? If they call it “play” because you wouldn’t otherwise starve, let them. That’s their definition. I’d just embrace it since it sounds like you haven’t had much success trying to get them to change their understanding of the word budget.
If you can’t do that, then my advice is to tell your relatives that you are planning for early retirement so you need to save money now. Make it ridiculously early and have some fairly believable reason for doing so. You could also lie about the amount of charitable donations you make.
April 5, 2010 at 8:33 am
I am frugal by choice, with a dash of crazy spender.
I find it very interesting that when I made less money, I saved more money. Which is why I started doing the budget, the biggest problem is when you think “I can afford this and this and this” — money is a finite resource.
I’ve been budgeting really, really well recently. But my sister and neice came to town — no problem! Budget, Budget, Budget. But I was pretty sick (feverish) — no problem, I’ll spend my allowance money on taxis to take us places and I can still be on budget.
Except, my sister bought my neice a $250.00 dress, and then continued to another friend’s place — gave me the shopping stuff to bring home.
I was really, really tired and feverish — left the bag in the taxi.
Bye, bye budget. Or maybe allowances for next 4 months. And here’s the dash of crazy spender — it was from the one of a kind craft show — so we went back the next day — I was still feeling really, really horrible, we had to change our plans etc — so I bought my neice 3 dresses (one the same and two other ones) — I did tell them our story, and got a discount and the two other dresses were orignially $75 each. But I let the crazy spender out to play…. Bad Kat!
@Nadine If it were me, I would ask what their point is? Yes, I can afford the cost of “x” in the now, but probably not the items I will need in the future — so I’m keeping track. If it’s some sort of competition of who needs to budget more -ask them what their problem is? If it is a close sibling or someone similar in age, it will probably *never* go away. My sister was really assistive in regards to my budgeting during her trip, which I really appreciated. But my brothers I can’t talk money with right now… haven’t been able to for the past year or so. Business is down for them, and comments have been made… but I understand where it is coming from. I think maybe understanding the other person’s weaknesses, make it easier to take when they comment.
April 5, 2010 at 8:40 am
I’m frugal by choice – I enjoy trying to find the best bargain for whatever it is I’m buying. I research it – and once I know I’ve found the best deal, then I buy it. My first husband was frugal by choice too – but he took it way too far. He never spent his money – he was always saving it for the future. We never went anywhere or did anything because it was wasteful and we should save for a rainy day. When that was to be – who knew? That wasn’t the reason we split, but it sure didn’t help any. Now, with a loving husband and two daughters we try to balance having what we need and having fun too. I’m in the mindset now that having a healthy, happy family with a roof over our heads and plenty of food is wealth in itself. Doing things together – like biking, hiking, and just playing in the park together is much better than having more than the Jones’ next door.
April 5, 2010 at 8:48 am
I’m definitely a b). Although we make a decent amount of money if we want to travel, maintain/renovate our home, and still save for retirement and emergencies, we have to be frugal! Friends tell us we should buy a bigger house (why? we don’t need any more room) or take vacations on a whim like they do (with a credit card hangover? no thanks!) but I just stay the course and do what we do, jars and all, even though others find it entertaining.
To Nadine-I would just ignore your family and live the life you want. I find people comment either out of jealousy or curiosity. If it’s the former, (which it sounds like from your description) you won’t change their thinking patterns no matter what you say, if its the latter, offer to help them learn and “play” at their own budgets!
April 5, 2010 at 9:13 am
Right now I’d have to say “I have no choice”. I started 2010 with $13K owing on a line of credit. My vow is to get rid of it by the end of 2010, although Gail’s voice in my head that says “a budget without savings doesn’t balance” may mean that I have to accept the first quarter of 2011 for debt retirement.
But, regardless of the date, it will be gone. Once that happens, I hope I will change my answer to “I have A choice”. Sure, I could spend willy nilly on things I don’t need, but why? What I really want is comfort from those financial storms that will come, and to have a shelter of some savings, and enough money to have a bit of fun once in a while – planned fun!
Nadine – I use the jars too. I budget painstakingly using Excel as well. I make a good living, but I also have debt and a big fat mortgage and two kids as a single mom. My other single mom friends earn much less and spend far more. You do what you know is right for you to be comfortable, and to have choices in the future. Sometimes people are critical because it helps them feel better about their own situation, which they have accepted as the right way too.
Thanks Gail for a great post.
April 5, 2010 at 9:26 am
I Am becoming a frugal by choice. I used to spend everything i earned without looking but now that i have a baby on the way i am getting into saving for the futur. I find it hard to budget because i have the feeling i don’t have fun money left, and i’m a bit Easy to sidetrack, but i Will have to make it happen and make it a habit and a priority. But it’s quite hard for now since i am only starting.
@nadine : how about telling them that budgeting makes you feel good and that you budget because you have priorities you want to save for and that they should at least respect your choice wether they like it or not. I suppose once in your life you did spend all you had since you know you need to see your money with the jar system. And if they still want to talk about it, tell them you are done and that you don’t want to talk about it with them anymore.
April 5, 2010 at 9:29 am
I spend money and I save money. I really don’t like ‘things’ but I do like ’services’ that save me time. We have a cleaning lady and this week I’m hiring a gardener. Partly because my wife and I work a lot and don’t have time to do all the upkeep, and partly because I just don’t want to. I’m not a believer in being a ’spender’ or a ’saver’. I believe in balance, and try to do so. So while I do have a gardener, I don’t have a tv that can be wallmounted (very unusual for a 35 year old in my circle of friends) or a blu ray player or a playstation 3 or whatever. So life is I think about trade-offs.
April 5, 2010 at 9:32 am
I guess I fall into b) now….Once I got my debt paid off, I began putting aside what I spent on debt repayment into emergency fund, home repairs fund, and vacation savings. I always did put aside money for retirement but not a lot each month. I guess I’ll bump that up once I get my emergency fund up to where I think it needs to be. And I do my very best to save for the things I want now, instead of impulse buying…although sometimes I fall back into old habits. That’s why tracking the spending has become a very important part of my routine – so that I don’t get all nutty again and rack up debt.
April 5, 2010 at 10:21 am
The people around me would say that I am definitely frugal, and must save a lot of money — of course, most of the people around me at work have much higher incomes (fact, not guess), and see that I don’t spend as much as them…
However, I am think that I am frugal about the day to day living things — clothing, groceries, bargaining for better deals on cells, insurance, etc — so that I can splurge on the things that really matter to me — quality time with my family (ie: at home with air hockey table, Wii games, trampoline; on vacation to Disney, out east, train trips, shopping to US), and health (camping so that they can go for bike rides, walks, swimming) and to make my home exactly the retreat we want…
I don’t run up our credit cards (except for the laundry pair we just bought because ours died last week, but I don’t plan on paying any interest), and we don’t do the LOC, but we do have 2 car loans (we transport our kids, and we drive a lot of miles on each of our vehicles, not much of a choice), and we’ve kept our smaller 1100 square foot home to be able to make it what we want it to be, and it helps avoid the clutter.
We have only just really begun to add to our savings — hubbie is of the mind that money is to spend, we both have pension plans, why live like we’re broke, when we have little debt… but he’s coming around… he knows that the kids will need to go to university, and he’s starting to understand that a little money in the bank brings comfort.
It’s a balance between living like a pauper and treating ourselves to the things that mean something…
And today, I have to buy my daughter ANOTHER pair of shoes… To vent: she needs indoor shoes for school, indoor shoes for daycare, outdoor shoes for play, cleats for soccer, ballet shoes for dance…. really, it’s a bit much — and I am of the belief that dance and soccer are important for her — she’s not getting enough exercise, despite our efforts, she has a completely different body type, so organized sports are important… but 5 pairs?
April 5, 2010 at 10:27 am
I often fall into category A. However I need to get my butt in gear and start looking for better deals .. I really should try to make it a game.
regards,
Jason
April 5, 2010 at 10:41 am
I spent many a year in the ‘I don’t want to think about it” category. Far, far too long. The stress that would eat at me during money need moments was horrid. Even then I did not stop and TRY to do something about the money I had flowing through my fingers like water. crazy woman.
Now I am in the ‘aware’ and ‘careful’ group with my money. I know where all my dollars go. I am beginning to understand how I can make money work to my advantage on loans/interests. I WANT money leftover each month. There is a let down if there is not. I have goals and plans for the money..to save…to eliminate debt.
There are times though when I get frantic. The to do list of what I should have been doing all along grows exponentially. RESPs, RRSPs, Saving for a new auto, Saving for house repairs. Savings for new appliances. Emergency Savings. Mortgage. loans. Lions, tigers and bears, OH MY.
Those moments cause me stress and I have to step back and know that right now, I am doing the best that I can. I cannot change the past 39 years of my life. I just can’t. I can guilt myself and regret myself to death but it won’t change those years. I am working on finding contentment with what I know now, and what I continue to learn, thank in no small part, to the catalytic impacst of Gail in my life.
April 5, 2010 at 10:45 am
We are now frugal by necessity but were frugal by choice before. We were spenders before that. Since we were never in the habit of spending wildly it wasn’t too hard to tighten our budget when we had to.
Nadine- I think your assessment of your relatives attitude is accurate, they are jealous of your self-discipline and know they wouldn’t be able to do it if they had to. Soon they will come to you for advice.
April 5, 2010 at 10:55 am
I am frugal by choice.
While I love using coupons and finding deals (it is a bit of a game for me), I also have cut back on “wants”. I think both aspects are important parts of frugal life.
The best part about frugal living is that I am finding that the less I “need”, the more time I have to spend with those I love.
I spend less time shopping, and more time just enjoying the moment.
April 5, 2010 at 11:02 am
My husband and I have everything taken care of – no consumer debt (even the relatively new vehicle is paid off), automatic savings towards retirement/emergency/bills & groceries/house repair/short-term savings/vacation accounts, living in a home cheaper than one we can “technically” afford and paying it off at a pretty good rate, so the leftover in my account every two weeks is pretty much mine to spend, beyond bus passes and the occasional haircut.
So… even though athletic shorts are $10 at Zellars, if I want to buy the sleek $50 pair from thatpricyyogastore that make my bum look great, I’m gonna do it, because it’s definitely within my budget and I’m going to enjoy yoga that much more.
April 5, 2010 at 11:04 am
WOW well I would say im on the path from being an A to now being a B ive changed my car loan from 9% to 7% doenst sound like much but every little bit helps I have started saving for emergencies I have 3 months saved now of all my utiltiles but then ka ka hit the fan again now im hopping a plane to ontario for my grandma’s funeral. So I will see how much of my budget I can FLEX I have no problem not spending especially right now b/c I am training to do 200k bike in june so that does take up much of my time but I know what Gail is saying about all us albertians.. I wasn’t affected by the recession but I know that a lot of people were all dumfounded when their 100k plus jobs dissapeared and now they have to settle for work at the local mechanics shop for 10 bucks an hour… what a life style change. Poor sobs but I know as soon as things pick up again they will be back at their lives of consuming
April 5, 2010 at 11:13 am
I don’t have a choice right now. Saving for my trip(Israel) leaves me with no money at all, although I know I wont be in this situation for very long, since my trip is next month. It still drives me nuts that I am living paycheck to pay check. I don’t have very much debt but I also don’t have an emergency fund. Can’t wait for this trip to be over which sucks to be even thinking like this, over money.
April 5, 2010 at 11:37 am
So which camp do you fall into?
a) I don’t even want to think about it,
b) I love the game,
c) I have no choice.
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My husband and I have been in all 3 camps at different stages of our lives. For far too long, we were in the “a” camp…not even wanting to think about finding the best deals, just impulse buying for that instant gratification fix. The more money we made, the more we spent. That’s been our history for the 13 years, which is why we’re now having to pay down about $11,000 in credit card debt. We’re changing that mentality, slowly.
While my husband was unemployed for nearly 6 months, we were in the “c” camp…we were frugal because we had no choice. We had less money coming in than we had going out so we were forced to cut as many corners as we could.
Now that my husband is employed again (as am I), we are in the “b” camp where we love the game of being frugal by choice. Okay, perhaps that’s not entirely honest. I love the game, my husband is still adjusting to being frugal by choice and we’re both trying to reach a balance between being extremely frugal to get ourselves out of debt, save for a 6 month emergency fund, and build wealth and giving ourselves a bit of breathing room to live just a little.
Just this weekend we agreed to increase our personal allowance to $25 per month each…that’s up from $10 per month each when my husband wasn’t working. Eventually we’ll start saving for a used car and a vacation.
I’m pleased though that our credit cards have been cut up and we’re determined to pay only with cash (or debit card) here on out. That’s a huge step in the right direction for us!
April 5, 2010 at 11:58 am
I have no choice but to be frugal but I also choose to be so and to save even if I make not very much.
April 5, 2010 at 11:58 am
I would say that we are both frugal by choice and by necessity. About 2 years ago, after the birth of out son, we had to make some decisions about life. How we wanted to live and how we wanted to raise our son. We were in some debt that we wanted to get rid of, but we also wanted to live on mostly (because I was still going to work part time)one income. So we made a choice, and then being frugal became a necessity.
I started using coupons, shopping sales, cutting back on the frivolous things in life. If was a though road at first, but I soon found out that I enjoyed hunting for deals and now, I think even if I won the lotto, I would still be coupon using bargain hunter! It would just pain me, to pay full price for things I know you can get for free or cheap. As for our debt, we are almost out of it! Just one last credit card to finish off! And to think, when we had 2 incomes, we were racking up the debt!
April 5, 2010 at 12:01 pm
I fall somewhere between b and c. Mostly c. I enjoy the thrill of buying what I need at the lowest price possible but, at the same time, we make enough money to not have to really worry about it. However, I already lived the ‘rich bitch’ life and it got me nowhere because I spent everything. Now, I have made the choice to be frugal.
April 5, 2010 at 12:10 pm
@Nadine — I think they are either jealous or ignorant. So either way, you should only inform them of youor motivation for budgetting as far as YOU are comfortable disclosing the info, and then let them live their own lives as you follow the path that’s best for you. I am related to crazy mindless spenders that are always suffering shopping hangovers, but they still pressure me to “relax” with my spending. I have explained that I have too much stuff already or the object that they are pressuring me to replace is good enough for now, or that I just don’t feel like spending the money on it no matter how great the “deal” is…. my reasoning often falls on deaf ears. It’s friustrating, but it’s just a financial lifestyle difference, not the end of the world!
As for Gail’s question…. we lived so long in C that B is very comfortable and even fun now. I love having a cushion called the emergency savings, that feeling of security kicks butt on any new toy high that I have ever had! Not to say we don’t spoil ourselves occassionally. We have our hobbies that we can drop the minute we don’t feel our enjoyment return on investment is being met. We lived in A for only a tiny timeframe when I got an enheritance. And it wasn’t that we didn’t want to think about it…. I just splurged on some REAL perfume and new towels and stuff that I only wanted but did not need…oh and a trip to Italy with my friends (a frugal trip, but still something I never would have otherwise budgeted for) the rest paid down our debt and got tucked away in savings. We haven’t been in debt since except what’s left of the mortgage.
April 5, 2010 at 12:49 pm
It all comes down to time for me, how do I want to spend my time? If I decide to purchse something… ie patio furniture I’ll go to a store that I know sells it, i.e Canadian Tire and if I see something that I like for a price that I feel is fair I’ll buy it. If I don’t I’ll go to the next store. I don’t go to the next store simply to see if there is another patio set that I liek at a better price. To me that is a simple waste of time.
I would rather be enjoying my patio set than take oodles of time trying to find the best one at the best price. So I would say I’m like neither of the women that you describe I’m somewhere in the middle.
April 5, 2010 at 2:09 pm
“Frugal”, for me, can mean many different things. I can be the person who chooses to buy used, the person who chooses to repair, to clip cupons, the person who doesn’t spend etc.
Right now I’m a little of b & c – sometimes A over takes me! My frugalness is about trying to spend within my means, use what I already have, not buy what I don’t need (unless it’s something I REALLY want) and not spending for the sake of spending. I have a ton of friends & family taking trips to Cuba etc this year. It’s not in my budget and I refuse to let them make me feel guilty about not wanting to spend money I don’t have to go get sunburned!
Geoff, I’m like you. Soon to be 35 – no flat screen, no Wii, no DS or BlueRay – I’m fine with it too. I’ll likely buy a flat screen in the next 2-3yrs but no hurry for it. Lot’s of my friends have those things, but they don’t own a 2nd property outright like DH & I.
Hubby & I are frugal in that we like to do things ourselves when we can. We buy used when possible or borrow as needed. The more time we spend at our camp or just outside enjoying nature, the less I want to spend. I don’t need to buy more “stuff”. I have a lovely home with nice things and I’m content.
April 5, 2010 at 2:13 pm
I dislike bargain shopping, because I like to take my own sweet time to make decisions on what to buy, how much of it, when, and where. Allowing myself to be hurried into a decision has never turned out well, neither has making decisions based on “opportunities”. I bought a bicyle at half-price at a clearance some years ago, only to find that it was not the kind of bicycle I wanted. So I gave it away and then spent months to find just the right bicycle. It cost four times as much, but I love it to bits and ride it every day (unless there’s ice on the ground).
I don’t feel that I’m frugal — actually, I am not careful, and I love never having to consider if I can afford something I want. But I have that luxury because my wants and needs suit a person with about 70% of my income. I’m still keeping a budget because I experienced a bad case of “just this once, we can afford it” creep when I started working. (And to remind me to spend money on clothes and replace broken stuff.)
April 5, 2010 at 2:24 pm
I was in A for a very long time. We have always paid our bills on time, but, did incur debt in renos etc. Now I am in B. Hubby has always ’stalked’ whatever item it is he is after. For months sometimes. He checks all over for the best possible price, finds out if the item will be going on sale in future, etc. etc. The old me always just bought right away. Now, I am frugal as it is a game and also because I have no choice. No choice because I’m working very hard to pay off our $13,500. LOC. Not one penny in other debt.
I think there is an age old personality flaw in some people Nadine. Make themselves feel good by putting down others. Hard to grin and bear it at times, but, we’ve all been there. So just grin and bear it. You know what you want and need to do. Nothing you ever say to explain yourself will satisfy your relatives. Some day the light will go on and they will wish they had followed your example.
April 5, 2010 at 3:19 pm
I used to be in Camp A. When I first finished university all I’d do is spend spend spend. I was living at home, no debt (paid my way through from co-op work terms). Bought tons of clothes, went out to eat almost every other day.
Then I got married, became a homeowner and a mom in the last 2 years. Quit my job after mat leave and now am trying to bring in a bit of money by working from home.
Now I’m in Camp B and C. It is a fun came looking through the flyers only when I need something (usually it’s groceries – I throw all other flyers for clothes, furniture etc into the recycling bin as soon as I get them).
My husband and I have more savings now than we did when I was working. That can already tell you how fast our money was leaving our wallets!
I clip coupons, use an Excel spreadsheet and the jar system every week. It’s a new way of life for me and I find myself alot happier. I’m no longer a slave to designer labels nor do I care to impress anyone – I used to do both.
I’m just living my life for me. I’m not sure if this new attitude is because I’m getting more mature (HAHAHAH!) or if I am forced to live this way because of leaving the corporate world for a few years to raise my daughter. Could be a bit of both.
Thanks so much for all your advice (and tv shows) Gail. I owe alot of my new found happiness to you and the other frugal personal finance bloggers!
April 5, 2010 at 5:04 pm
Life changes. Stuff happens. You grow up. I started out as an “a” but have navigated to “c” since having children, deciding I wanted to go back to university, going back to work earlier than expected because of a change in my spouse’s work situation, thinking I would like to travel more, becoming concerned about the values I was projecting with my spending behaviour, becoming concerned about the environment, having grandchildren, wanting to work less … and generally experiencing the many proverbial “rainy days” (planned and unplanned), my parents told me I should always be mindful of. Being frugal, not wasteful, I think is a responsibility that we, as adults, must own-up to eventually. It simply is not right in this current socio-economic environment to be any other way! When I have more than I need, I share it with those who don’t have enough. But, I also slip into old habits during days of plenty — rewarding myself with “stuff”. It’s never as satisfying as I thought it would be. So, I have to work at being responsible and being a “c”. It doesn’t necessarily nor always come naturally.
April 5, 2010 at 6:32 pm
I was always a spender, until I finally got a clue-by-four and figured out I could have a nicer, less stressful life by not spending every cent I earned. I miss being able to buy things sometimes, but not too much. I would put myself in the b/c category at this point of my life.
April 5, 2010 at 7:57 pm
Hmmm, well I have just taken on a second mortgage to buy another property. So I have gone from frugal by choice to frugal by no choice!
I have always lived quite frugally though and have no playstation or Wii or blu ray or plasma. ALL of my furniture is second hand and most of it was free.
But that, and some help from my lovely parents, is how I was able to buy my second property by 38.
Once I find my new house (well let’s be honest, my new small apartment) my one indulgence is paying my friend $500- to buy all those little lovely touches that make a house look lovely. I have no design skills and pretty much just go with neat and tidy as a design option. My friend LOVES to do interior design and is happy to do this for me, which I am very grateful for.
My family think I am a scrooge, but when I start paying the second mortgage my housing costs will be over 50% of my salary, however, due to my long ingrained habit of frugality I won’t have any issues with this. Before anyone comments, I know housing should only be 30%, but one of the mortgages will be paid off soon.
S
April 5, 2010 at 9:45 pm
I do a and b. Day to day I live frugally. I budget, I watch for sales when something needs to be replaced. I have retirement savings, I over-pay on my school loans, I have no credit card debt, I put a few hundred dollars a month into savings/emergency funds and I live more cheaply than I have to. I’m lucky enough to be employed in a fairly secure field and
Part of my budgeting is putting aside a little play money each month. I take it out in cash, keep it in a separate part of my wallet. I am allowed to spend it on a whim, on anything no matter how silly or over-priced or extraneous, but when it’s gone, it’s gone and that’s it.
April 5, 2010 at 11:02 pm
We always paid off our mortgages. bought cars when we could pay for them, paid for his parents to fly here here or us to fly there twice ayear, saved for our kids’ unversity fees.(they pay all the other expenses so they appreciate it more.) We did and do have fun too, but within limits. We accumulated savings for a good retirement.
Good thing, because hubby has serious medical problems, and had to take medical CPP ($1000 month) before the age of 50. I work as much as possible. We have our faith in amighty God and good friends.Hate to think where we would be if we had debt, and no savings. Life is still good, but —- happens. Gayle cautions about this–so keep it in mind!
April 5, 2010 at 11:36 pm
I was one of the ones who made enough so I did not like to worry about it. Then my step-son went to college and I began to see how much debt we were in. Now I am trying to play the game. I think I like it. I love it when I save alot.
April 6, 2010 at 12:23 am
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April 6, 2010 at 3:24 am
Life goes on, we started as a’s, became c’s, and I am becoming more and more a b. My SO is still a b,and sometimes I slip into b-mode as well, resenting the need to budget a bit. Then I look over our records at my earliest information, and I see how far we have come. We get a little bit of mad money each week, so that’s where my inner a takes over, but the damage is limited.
April 6, 2010 at 6:40 am
Thanks everybody for the great ideas. Got a sister’s birthday coming up and I intend to try your new strategies and see how they work.
April 6, 2010 at 10:44 am
We are frugal by birth and frugal by choice. We live very simple lives, because we know how fragile the state of social security is, but recognise that we have to put our children through school and save for retirement.
We could easily blow what we have on lavish living, but we relish being content. We don’t feel that we’re entitled to anything, but that we are simply stewarding what we’ve been blessed with and what God has given us.
This frugal attitude helps us sleep at night, knowing that payments aren’t ticking away somewhere waiting to explode if interest rates rise. Living frugally also lets you understand where your priorities in life are – not in handbags, gadgets, nice things, and alike.
April 6, 2010 at 11:45 am
I was extravagant by choice but then when the ca-ca hit the fan for the umpteenth time ( this time the big one with no way out but to grow up and change) I became frugal out of necessity. The years that it took us to get financially straight created a person who is now frugal by choice. I was always a bargain hunter – liked to get the most for my money only it turned out it wasn’t my money at all but the banks – and now I am a super-bargain hunter. But I won’t buy junk because it is cheap. I like to get value for my money. So if I have to pay $175 for winter boots that will last more than one season then I save for them. Where I live canned peaches cost $3.69 for a small can during the winter months but are only $1.98 for the large can in the summer so I make sure that my monthly budget includes a grocery stock-up column so that by the time summer rolls around I have enough cash to buy peaches etc. for winter but at summer prices.
April 6, 2010 at 6:16 pm
I have been following Gail’s advice for three months now. What a big change in our financial picture. To me it is an exciting challenge to live on a set amount each week. Being closer to 60 than 50 I just wonder what took me so long to accept the budget process. I too still use the jars and will continue for some time. I like the visual aspect of it. The other thing I did was to open” companion accounts”
at my bank. One is “vacation” one is “home Renos” etc. I view them as big jars or baskets to accumulate the money for the specific purpose. We plan our house projects in stages, price out the materials and when the account has enough money we do that project. No more overdraft to buy baseboards!
April 6, 2010 at 6:42 pm
Your words about the crazy money & credit Albertans got used to rings so true. In our AB household, I’m the saver and I knew deep in my gut that this was all going to come crashing down around us …and it did. We spent conservatively, paid our debts down aggressively, saved liberally and when the job loss hit us early 2009, we were sitting in as good as position as we could have ever wished for.
Life went on at 65% less income but 100% less job related stress and health issues. It would have been so hard to walk away from that insane money so the recession was a blessing in disguise and for that we are forever grateful.
Great post Gail!
April 7, 2010 at 4:32 am
I would say i’m b and c, i’m frugal by nature but I also have to be frugal in order to provide what I would like for my son and myself.
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I love to read the articals everyday and my favourite part is reading the readers comments, everyone has such helpful hints it’s great
April 7, 2010 at 9:50 am
Like others I wasn’t born frugal, but made my way there over time. We spent more than we should have in our 20s, started to wise up in our thirties when we had to find the money for daycare and the expenses of a young family.
The real transformation only started in our 40s when my DH was laid off 3 years ago. He got a great severance package but we rolled it all directly into his RRSP to avoid the taxes. I was still making a good salary, the kids were long out of day care, but we quickly realized we had a lot of fat we could cut from our daily budget. He was back at work in a couple of months, but those few short months started us down the path of frugal living and once we saw how much waste there was we just couldn’t go back to our old ways.
Now as we move toward our 50s we are firmily in super-frugal mode as we attempt to retire a little early dispite our early spending years. We might have move away from consumerism with age anyway but the layoff probably accelerated that transition by many years. His job loss turned out to be a great thing for us. Now we live massively below our means and save/invest like maniacs. The only splurge we allow is a great family trip every other year. Now I value travel and experiences way more than stuff. We live in a lovely home, and have everything we need but nothing is extravagant. We don’t feel like we’re doing without because we have a clear vision of what our frugal choices now will mean when we retire in a few years.
April 9, 2010 at 11:54 pm
Finally, you’ve explained why all those big, expensive houses keep getting built. I’ve been pining for a new big house, as the this house, that we bought before kids, isn’t cutting it anymore. I’ve been watching big homes go up all around me and I keep wondering why I don’t have one. I guess it’s because my hubby and I can’t figure out how/why to pay a humongous mortgage.
So do we move into a mid-size house for now, or suck it up in our tiny duplex and wait to see if all those other debt ridden Albertans can keep it up?
April 10, 2010 at 4:39 pm
Frugal by necessity(too much spending in 2008). When it’s no longer necessity, it will be frugal by choice. Lesson learned.
Frugal however, doesn’t mean you give up your taste in style. It’s amazing how many ways there are to save on everyday items once you research the web.
Plus, the money we earn is exactly that. WE earned it. So how much nicer it is to see a fat savings account that is ours from our hard earning. Not a fat debt. Not fun giving it away to a lender or retailer just because you didn’t have your wits about you once upon a time. They don’t work hard to earn those dollars. We do. So I think it’s all about being sensible.