Category Archives: Frugal - Page 2

Festival of Frugality #83

Welcome to Moneywalks and the 83rd edition of the Festival of Frugality. If this is your first time here, I encourage you to browse the archives after the festival and if you like what you see you can subscribe to my feed.

This week, there was well over 50 submissions and 37 made it to the festival. I had a great time reading these articles, they were awesome, but in order to keep the festival’s theme consistent, I had to omit articles that had no relevance to frugality. But I want to say that I tried my best to fit each article in this edition. First off, I want to share with you the definition of frugality from wiki:

Frugality (also known as thrift or thriftiness), often confused with cheapness or miserliness, is a traditional value, life style, or belief system, in which individuals practice both restraint in the acquiring of and resourceful use of economic goods and services in order to achieve lasting and more fulfilling goals. In a money-based economy, frugality emphasizes economical use of money in meeting long term personal, familial, and communal desires

I think this is a great definition of frugality. That is why I have chosen this definition as a baseline for this festival and have broken down into 7 strategies for frugality. This way, reader can pick what part of frugality they want to read about. But before we start, I want to thank all the contributors for their submissions, I learned so much from reading all the posts. I hope you can get out as much information out of this festival just as I have. Many great tips and suggestions here, also I made an asterisks(*) on the ones that I particularly enjoyed.

Okay, without further delay…

Welcome to the Festival of Frugality #83
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1.) Changing costly habits and/or suppressing instant gratification

Lower Your Cable and Internet Bill Today

Cutting The Cable Cord

Cut your Spending Today

2.) Reduction of wastes and bartering

House obsession

“Found” Money

Save Money by Using Less than Suggested Amounts

The Cost Of Living With Pampered Pets In Luxury And Some Really Weird Pet Products

3.) Seeking efficiency

7 Habits of Highly Effective Money Managers

Present Simplicity

*Ten Commandments of Frugal Living*

Resourceful West Virginians

*Are Poor People More Frugal Than Rich People?*

4.) Defying expensive social norms

Day 435: Riding the Rails

Clean your whole kitchen with baking soda and vinegar

Comfort and Style on a Cheapskate’s Budget

*Trash to Treasure: My Flower Power Pants*

10 Ways to Pay for College with OPM (Other People’s Money)

Save Money and Eat Healthier: Buy Frozen and Canned Produce

5.) Embracing free options

Libraries Are Not As Bad As You Think

*5-reasons-not-to-drink-bottled-water*

Frugal Fridays: The Library is More Than Books

Why MyPoints Is Worth Joining And What I Have Gotten From Them

Free or Low Cost Entertainment Ideas for Families

6.) Staying well informed about local circumstances

Buy American – Frugality Strategy?

For the Frugal Mind: Cheapest days to shop

Staple Rewards – How to Save Money at Staples

10 Ways to Save on Travel Expenses

7.) Market and Products

The Dollar Store

Don’t fear the warranty

Eco-friendly consumerism is still consumerism

Frugality, Morality & Harry Potter

Free Software Roundup: Not All Freeware is Created Equal

Frugal Way to Save Money on Lipstick

Do My Frugal Ways Harm Workers?

A Great Alternative to Buying Expensive Cameras, Lenses and other Photography Equipment

Clean, Safe, NonToxic Cleaners

Cost Effectiveness of Homemade Laundry Detergent-A Reader’s Question

Well that’s it. I hope you had a great read here, take with you as much as you can. If you see any articles here you enjoyed, please share it with your readers. Also, if you do not see your article here and think that it should be, please email me and let me know. I’ve been known to make mistakes every once and a while. Once again, I want to thank all the authors for their fantastic articles and don’t miss out on the next edition over at The Frugal Law Student.

10 Reasons why I Love to Budget

piggybank.jpgSo whats the big deal with budgeting and why is it so important? Let me tell you why I love to budget, I have ten reasons and maybe you might see for your self the reason for its importance. Here they are:

  1. Big Awareness. Through budgeting, it keeps me aware of how much I spend on the daily basis.
  2. Saves me money. By knowing whats coming ahead and being able to plan, it helps me to spend less and less every month.
  3. Smart planning. Knowing how much money I have allocated, daily budgeting keeps me financially aware of my situation.
  4. Puts me in the right direction. Helps me to reach my financial goals.
  5. Helps me Prioritize. By keeping a nice balanced budget, I don’t have room to always buy things that I want. Instead, I need to make sure that I am able to buy the things that I need first before being able to buy anything else.
  6. It just feels good. The satisfaction of spending within my allocated funds is a great feeling and an accomplishment.
  7. Helps reduce debt. Financial planning and strict budgeting is a great way to help reduce debt.
  8. Keeps me in a positive financial mind set. When I’m consistently around numbers and percentages, I’m always being reminded to keep going.
  9. I love numbers. I love to calculate and to see how I’m improving from month to month.
  10. Organized. Being able to plan my budget has definitely helped me to be more of an organized person.
  11. (Extra)I’m ready for those emergencies. Life is unpredictable and you never know what’s heading your way. Being on a budget prepares me for those emergency times when I need those extra few bucks.

Budgeting is a very nice way to keep track of all your expenses and it also helps you stay organized. The best thing is it only takes about 20 minutes per week. I recomend using this program called pear budget. Its an excel spreadsheet that keeps track of how much you spend on the daily casis. If you want to give it a try, you can download it for free here.

[Photo Credit]

Frugal vs. Cheap

Many people are confused with the difference between frugal and cheap. Being frugal means making smart spending choices or getting the most for your money. Cheap while on the other hand, is looked more upon as selfish and stingy. When I looked up the synonyms for frugal, I got thrifty, chary, provident, careful and economical. Synonyms for cheap resulted in stingy, shoddiness, inferiority, showy imitation, complete unworthiness.

Living well for less money is frugality. Leeching off of people to get by is cheap.

For example, I want to get a book for my brother for his birthday. Say I saw a nice book in new condition at a garage sale and I only spend $1.00 opposed to the $24.99 price at Barnes and Noble. Some people would see this as being cheap, only spending a dollar for a gift, however if this is something that my brother would like, it doesn’t really matter how much I spend. There is no point in spending more for the gift if I could get something the person would like just as much for a lot less. Now this kind of giving is just good money management, it’s not being cheap.

Some more example of frugal vs cheap:

  • Frugal - Going to a buffet and eating enough to get full and satisfied.
  • Cheap - Getting full and satisfied, then filling your pockets and bags before leaving
  • Frugal - In a group, a person with 10 dollars would order at a restaurant taking in consideration of tip and tax.
  • Cheap - In a group, a person with 10 dollars would order 10 dollars worth of food and intentionally leave the tip and tax for others to pay.
  • Frugal - Satisfied with only spending a dollar on a kids meal for your child.
  • Cheap - Ordering an extra kids meal for your self to avoid the regular price.
  • Frugal - Deciding not to go out to eat because you don’t have enough for the food + tips, instead you go to buy something to make at home.
  • Cheap - Intentionally going out to eat when knowing you don’t have enough to tip.

Important note: frugality is not just for those who are on low income. Take Warren Buffet for example. Big Warren, with a net worth of more than 42 billion dollars still live in the house he bought more than 40 years ago at $31,500. He also prefers a burger and a coke over an expensive lunch at his desk.