Ways to define frugality

photo by Shyald

What is frugality? According to dictionary.com, it’s being economical in use or expenditure; prudently saving or sparing; not wasteful. But it means something different to each person. For years, it has been synonymous with being a cheapskate or miserly or a temporary wagon to jump onto because of a setback or the economy. I like to think of it as choosing the best balance of time and money and creating the least amount of waste based on each person’s priorities. It’s living your life in an efficient way. In other words, it’s about making the best financial and least wasteful choices based on your own situation as consistently as possible. Being cheap means always looking for the least cost of items, and miserly is someone who is stingy. It’s only natural that some view frugal people in a negative light. So how do you define frugality?
Here are a few common ways to understand frugality.

DIFFERENCE BETWEEN WANTS AND NEEDS: You learn to make positive choices and to enjoy freedom not everyone enjoys. You’re aware of the value of your time and money and aren’t concerned with appearances. You don’t need the approval of others. You’re baffled that anyone would pay more for an item that is available for less. You delay your spending when possible. One reader, Donna in Louisiana, shares: “Frugality is making conscious choices about how I spend my money. It does not mean I can’t have anything. It means I can’t have everything, so when I am frugal, I choose wisely among the many options of both needs and wants. It is my responsibility to determine what is important enough to fund and what is not, and what is possible to fund. Frugality is to manage my money with awareness, not simply react to impulses.”

JOY: You find contentment in knowing you have enough and then some. You are happy with simple pleasures. You don’t need to follow the crowd or keep up with your neighbors. It isn’t that you don’t enjoy modern conveniences. It’s the fact that you value the impact some choices have on your wallet, health and the environment. You enjoy being creative.

KNOWLEDGE: When you’re frugal, you make informed decisions. For example, you research products, compare prices, and consider your options. You don’t purchase stuff just because it’s on sale or inexpensive. Ask yourself the following questions prior to purchasing: Do you need it? Will you use it? Is there room for it? Can you borrow this? How long will it last? Can you do without it? Can you find a better price? Are there negative consequences? You learn to do more tasks yourself, make things last, and repair items when possible.

BUDGETING: You know exactly how much money you have, what you owe and what you spend and save. You have goals for your hard-earned money.

GENEROSITY: Cheap people aren’t generous. Frugal people will be generous and can afford to be because they’re saving in other areas.

PLANNING: You plan and organize to make the best use of your time and money. Frugal people will invest in an item that will help them save money. Rather than buy the cheapest shoes, furnishings or tools, they would rather save and buy higher-quality items that will last longer. They save in some areas so they don’t have to in other areas. It’s not about all the tasks, solutions and strategies. It’s about who and what you’re doing it for.

Posted by Sara Noel on January 1 2010. Filed under Frugal & simple living.
Sara Noel owns Frugal Village, LLC and is a nationally syndicated columnist with Universal Uclick. Bio, Follow me on Twitter, Join us on Facebook