Mastering Frugality

Mastering Frugality: A Brief Quiz

If you're truly mastering the concept of living a frugal lifestyle, you'll probably be able to answer yes to the following questions:

• Do you understand the difference between needs and wants? As human beings, our needs are actually quite simple: food, shelter, and clothing. Everything else is technically a "want" – new laptop computer, cell phone, iPod, European vacation, etc. Frugal people understand that needs must be attended to before it's acceptable to spend money on other items.
• Do you pride yourself on your resourcefulness? During the Depression Era, families lived by the motto "Use it up, wear it out, make it do or do without.” Creativity and ingenuity are great traits for any person interested in a frugal lifestyle.
• Do you live within your means? Every month, your budget is balanced when you make frugal living a priority. You only spend as much as you earn and you don't rely on credit cards, payday loans, or money from friends and family to make up the difference.
• Do you appreciate the simple things in life? If you're truly frugal, you understand that you don't necessarily need a bunch of money to have a good time. You can enjoy reading a good book, talking a walk on the beach, baking cookies with your kids, or simply visiting with a friend.
• Can you see the bigger picture? For many people, frugality can be thought of as a way to achieve their long term goals. By cutting costs now, you'll be better able to save for retirement, find the funds to open your own business, or help your children with their college education. Short-term sacrifices equal long-term gains in the world of frugal living.

Avoiding Cheapskate Behavior

It's worth pointing out that people who are committed to mastering frugality aren't to be confused with cheapskates. According to yourDictionary, a cheapskate is "a person unwilling to give or spend money; stingy person." In comparison, someone who is frugal is simply trying to make the most of his or her resources. He or she is thrifty and economical.

To illustrate the difference between being frugal and being a cheapskate, consider the dilemma of shopping for Christmas presents. While the frugal shopper would spend months looking for sales and coupons to find affordable presents his or her loved ones would enjoy, or save money by creating a few thoughtful homemade gifts, the cheapskate would simply choose the lowest priced item without regards to what would make the recipient happy.

Another important difference between being frugal and being just plain cheap is knowing when to splurge. Mastering frugality does not mean you must deprive yourself of all luxuries in life. The key is to simply balance your budget to make sure it's an accurate reflection of your priorities. For example, if you don't care about your clothes, but you're passionate about horror movies, it's fine to shop for your wardrobe at the Salvation Army so you can splurge on a deluxe DVD box set for your movie collection.

Additional Information

If you're not quite to the level of mastering frugality just yet, don't get discouraged. LoveToKnow Save recommends visiting the following Web sites for ideas and inspiration on the topic of frugal living:

• The Dollar Stretcher
• The Simple Dollar
• Frugal Hacks

You may also find these reference books to be helpful in your search for ways to save money:

• The Complete Tightwad Gazette by Amy Dacyczyn
• America's Cheapest Family Gets You Right on the Money: Your Guide to Living Better, Spending Less, and Cashing in on Your Dreams by Steve and Annette Economides
• Frugal Living for Dummies by Deborah Taylor-Hough