Frugality

Frugality is Not “Not”!

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Many who have a negative opinion of frugality see it as “not” having a big house, “not” driving a big car, “not” going out to eat, etc. Viewed that way it is no wonder that they have a negative opinion of frugality. Frugality, like many things, can be defined by what it is not but that isn’t the best way to define it.

One way to define frugality is that it is about making choices. For example driving a small, fuel-efficient car rather than a big SUV so that you will have more money for retirement. Or living in a small house rather than a large house so you can put more in your children’s college fund. That is a better definition but still not ideal because it is making your choices look like sacrifices.

The best way of viewing frugality is realizing that the frugal choice can be the preferable choice. For example, your small car saves you money on gas, contributes less pollution to the environment, and is easier to park. The small home is easier to maintain,easier to clean, and cozy. Cooking at home can provide you with better tasting and more nutritious food. Plus when you do eat out it is a treat not just a boring routine.

Less is more. Frugal is better.

Stuff I Didn’t Spend Much Money on This Year

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Off the top of my head here are a few things I didn’t spend much money on this year that most people spend a lot of money on.

  • Haircuts – I didn’t spend any money on haircuts this year.  I use clippers to cut my own hair and am quite happy with the results.
  • Clothing – I bought two pairs of hiking shorts at $1.15 each.  That was my only clothing expenditure for the year.  This number will go up a little in 2010 since I’ll need to replace my underwear and socks but I don’t plan to spend any other money on clothing.
  • Cable – I haven’t had it and don’t plan to.  I spend too much time watching TV with just the over-the-air channels.
  • Landline Phone –  I have a cell phone that costs me $30 a month and includes unlimited texts and data.  That is a much better value than a home phone.
  • Personal Hygiene – Ok, this one sounds bad but it isn’t.  I get most of my personal hygiene items for almost free from CVS or Walgreens by playing the drugstore game.  The fact that a 99 cent bottle of shampoo will last me all year helps also.

That is just a few of the items I don’t spend much money on. I’m sure I’ll think of a few more things later.  What items do you spend little or no money on?

'Tis the Season for Giving… to Yourself

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This time of year many businesses are offering bonuses when you buy their gift card.  For instance AMC Theatres is offering a $10 concession card when you purchase a $50 gift card.  Since I easily spent over $50 there last year and will do so again next year this is a good deal for me.  If you know you are going to be spending money at a business anyway you might as well take advantage of these bonus offers.  It is an easy way to save a little money.

This thread at Slick Deals has a list of bonus gift card deals.

Deciding Where to Live

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It is getting colder as winter approaches and I find myself wishing I lived somewhere warmer.  Now that I’m finished with school and no longer with my GF there really is nothing keeping me here in KC other than the fact that I’m already here.*  In deciding where to live I would like somewhere warm but it also needs to have a reasonable cost of living. That rules out Southern California. I have lived in Las Vegas and Austin in the past and think both of those cities would meet my criteria.   The drawback to Vegas is that I like to gamble and that could certainly raise my cost of living.  Austin has the advantage of being within a long day’s drive of my family.

It would also be interesting to move somewhere I haven’t lived before.  I know Florida and many other parts of the South and Southwest would also meet my criteria.  If you live somewhere warm I’d like to hear your opinion of where you live and what the cost of living is like.  Then I can compare the pluses and minuses of various places to live.

Another option would be to act like a snowbird and go south for the winter and return in the spring.   That would mean moving twice a year but it might be worth it.

*I think a lot of people are living where they live by default.  When I moved to Texas people would always ask,  “Do you have family here?’ , “Were you offered a job here?”.  When I replied that I moved there just because I wanted to live there the answer seemed to confuse them.

Scroogenomics: Why You Shouldn’t Buy Present for the Holidays

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Personal Finance bloggers, including myself, have pointed out in the past the wastefulness of buying Christmas presents. Economist Joel Waldfogel has written an entire book on the subject. He points out that you wouldn’t buy a $50 item for yourself unless it was worth $50 to you. It is entirely likely though that you will receive gifts that are of little to no value to you despite the fact that the giver spent considerable money on the gift. If you eliminate gift giving you eliminate this waste. I haven’t read the book but apparently he does offer some solutions other than just stop giving gifts. I don’t plan on buying the book but it is nice to see an economist shares my view on the wastefulness of Christmas gift giving. As a frugal person I abhor waste.

Despite my views I will probably be buying at least a couple of Christmas gifts. Some people don’t believe me when I say I don’t want anything and then I need to reciprocate.