What does it mean to be frugal?

Do you know what it means to be frugal? Embarking on the frugal life can seem daunting but is easier than you think.

There is some controversy over what it means to be frugal. For some people frugal is a dirty word, something to be scorned. Frugal is often confused with miserly, however the two are very different.

There are also shades of frugalness. Some people are frugal because they have to be. Low incomes, job loss, ill health all mean that a frugal lifestyle is a necessity. For others, the frugal lifestyle is a choice, a way of life and a means to an ends. Being frugal is more than just being good with money, its an attitude that embraces a life beyond consumerism.

Frugal: economical in use or expenditure; prudently saving or sparing; entailing little expense.
Macquarie Dictionary

The frugal person spends less than they earn

Spending less than you earn is the first step to financial freedom. Firstly, it keeps you from being a slave to debt. Most of us are slaves to debt. We work long hours and overtime to pay off the mortgage, the credit cards, the car loan, student loans, personal loans, store loans, interest free loans…. Imagine being able to work less and enjoy life more! In society today, we think of freedom as being able to get whatever we want right now, even if that means we purchase on credit. For the frugal person, freedom is being able to spend our precious time doing the things that are important to us, rather than working overtime to pay off purchases from yesterday. Freedom is not having the worry of debt hanging over our head at night as we sleep. Freedom is being confident that we will not only survive but thrive during economic downturns.

Spending less than you earn means that you are saving money. A frugal person has healthy savings. And what are we going to do with the savings? The sky is the limit. If you are coming out of your spendthrift days, savings will help pay off debt faster. Savings can be used to buy all those things that you wanted to buy on credit, without the debt! People commonly say that frugal people “live within their means” but I think this phrase is limiting, as if it is somehow not our place to enjoy the finer things in life because we have less money than the wealthy. Living within your means does not necessarily mean going without. It means not going into debt (or harming others) to get the things that we want. A frugal person often has a different attitude to what the finer things in life really are. Value is not just measured by how much something costs.

A frugal and thriving person spends less than they earn, increases their financial knowledge and invests their money wisely, making it grow. A frugal and thriving person uses some of their savings to help others in need.

The frugal person is economical

Open a cupboard in a frugal person’s home and you might find 30 rolls of toilet paper because there was a bulk discount and it was on special. And it’s not the three ply, floral patterned, less bang for your buck variety either.
In the home of a frugal person, you will see the toothpaste rolled into a tight wad to squeeze out the last remnants in the tube so they don’t go to waste. A frugal person knows the sweet taste of strawberry jam milkshake made to use up the last scrapings in the jam jar. Everybody loves a bargain. For the frugal person, everything’s a bargain.

Being economical is not the same as being stingy. Even though the frugal person strives for economy, we understand value and are willing to pay for things that are important such as our healthcare and education. However, even in these areas, not everything that is expensive is good. It is important to distinguish what is good value.

The frugal person conserves resources

A frugal person knows how to reuse, recycle, recondition, repurpose just about anything. Nothing is wasted. We know that another person’s trash is our treasure just waiting for a new life.

The frugal person has a different attitude

Economic supremacy is so ingrained in our psyche, that we forget that there are other ways to value things besides in monetary terms. A handmade keepsake from a child may have no economic value, but has great emotional and sentimental value. A handmade gift may seem “stingy” if it cost little in terms of dollars, but in terms of time and love the value cannot be measured. Our attitude to what is valuable is different to what is considered valuable in everyday society. The dollar value is not supreme.

Having said that, a frugal person still loves a bargain. We are proud of our bargains and are not ashamed to tell you of them. “Oh, this? It was such a bargain!”

The frugal person isn’t out to impress. We don’t need big homes and flashy cars and the latest fashions to make statements about who we are. We don’t need to keep up with the Jones’. We might keep up, but we don’t need to.

The frugal person is creative

Being frugal is about finding creative solutions to everyday problems that cost little or no money at all. It’s easy to go out and buy something. It’s a challenge to be met with enthusiasm to make do with what you have and make the most of it. To refashion, repurpose and recycle taps into our creative being.

The frugal person has long term goals

The frugal person is marching the beat of a different drum. Rather than” buying in” to the instant gratification mentality, the frugal person knows that they are investing in the future. That doesn’t mean that the frugal person is sitting on the side lines, counting their pennies, waiting for the day the fun can begin! But their values and wants are adjusted to meet a longer term vision. What does this mean? It means that instead of eating out tonight, we’ll eat at home and put that money aside for the holiday of our dreams(debt free of course) tomorrow. But we’ll cook something special together, light some candles, put on some good music, and make the most of having dinner in. For what is eating out, but fine food and good company and we know that we can get this at home.

What frugal is not

Being frugal is not being miserly. Frugal people are careful with their money, but give generously to charity what they can, when they can. Frugal people may “opt out” of doing more expensive things such as skipping dinner out at expensive restaurants, but when they do go out, they pay their fair share of the bill. Frugal people don’t take advantage of others. Frugal people look for the cheapest option possible, but understand value and don’t scrimp on important things such as health care for their family. Frugal people look for the best deal possible, without ripping people or businesses off.

Frugal is far from being a dirty word. It is a way of life that is becoming more popular due to recent global economic events. If you are new to the frugal life, welcome.