Some people ask how to be frugal and others never ask but simply are.
After years of observing frugal people (friends, family, and mentors), I’ve discovered that they all have certain characteristics in common. Frugal minded people seem to be more organized, more patient, and more happy than those I’ve observed who aren’t frugal.
Frugality has little to do with income. Poor and rich alike can be frugal. And, poor and rich alike can also be wasteful and consistently short on cash!
Frugality is virtue that seems, in my opinion, to be deeply rooted in a person’s mindset. One’s lifestyle is only a reflection of his or her mindset.
One of my favorite quotes about frugality is from the famous financier S.W. Straus. He said, “Frugality is not a matter of the pocket, but an affair of character”. Straus was exceedingly wealthy, yet a frugal person.
This quote also expresses an important quality of frugality. There is a difference between being frugal and being cheap. If you are frugal minded, you’re not simply looking for the cheapest product you can buy. You are concerned with quality: “How long will a product or service last,” and “Will it serve me well?” Price is only one aspect of the products you evalutate.
If you are cheap minded, price is your only concern. A cheaper-is-better mindset can cost more money (and relationships) in the long run. Understanding how to be frugal is especially important if you’re overcoming a cheaper-is-better-mindset.
How do you adopt a frugal mentality? Some of my very favorite people have inspired these tips on how to be frugal.
1. The Frugal Minded Person is Patient.
Have you ever jumped into a purchase only to have buyer’s remorse later? You paid too much? You didn’t get exactly what you wanted? Did you have to modify what you purchased to suit your needs?
This happens all the time. From small purchases like clothing to large ones like homes!
A truly frugal minded person knows what he wants to purchase and waits for it to come along (or negotiates it) at the right price. Because he has already made a plan for the purchase, he is prepared to make a quick decision when the opportunity arrises. This can give him an edge when exercising a deal.
2. The Frugal Minded Person Asks The Right Questions
My husband has a wonderful mental tool to assist in maintaining a frugal mentality. It’s called the “Point of Use” Question. Or, POU, for short.
Assuming that you’ve created a budget and that you have discretionary income, the POU can help you manage that discretionary income in a frugal way.
For each purchase you consider, ask yourself, “What is this item’s point of use”. How will I use it? How often will I use it? Will it be used enough to justify the cost?
My husband used the POU method to purchase a pair of shoes as a gift for me. I thought they were too expensive. He justified the gift by saying I would wear them every day. He was right. I found that I wore them practically every day because they were the most comfortable pair of shoes I’d owned. The POU was very high and justified the price.
I called the store, got on their email list, and waited for the shoes to go on clearance at the end of the season. I bought a second pair the day they had their end of season sale.
3. The Frugal Minded Person is Organized
My friend Sonya keeps a list of items she’d like to own. The items on the list are not all necessities. They’re things that would be nice to have if she found them at an extremely great price.
When she’s at a tag sale or thrift store, she consults the list. She steers clear of items not on the list (regardless of price) as these would only clutter her life.
Whether it’s a well organized shopping list, a family budget, a kitchen pantry, financial records, or a closet…being organized saves money!
4. The Frugal Minded Person is a Happy Person
Frugal people seem to be happier. While this statement may not be scientifically proven, it deserves consideration. People who spend beyond their means or make unwise purchases often feel overwhelmed with money worries.
Frugal people seem to me to be more in control of their finances. They’re measured in their purchases and not overwhelmed by unexpected bills (because they’re prepared for them).
Good news! You’re asking yourself, “how to be frugal” and that’s definitely the right question. Start with a frugal mindset, and saving more money will be the results.
