About Me

Friday, September 11, 2009

Frugal Choices and One's Values

A lot of people think frugality is deprivation. It sure is not "hip" or "cool" to be frugal in today's consumer world. I have a different opion on the matter. Frugality allows me to spend money on things that are important for me. I like to make budgets and stick with them. I like to save money for rainy and stormy days. I also like to take nice vacations which can be quiet pricey.

Not replacing an old but working TV with a cool new LCD or plasma, buying a used car instead of a new one, replacing old bulbs with CFLs and cooking from scratch are frugal choices. I do not care to impress anyone with my possessions. For me important things in life are family, quality time spent and experiences gained by travel and socializing. For you it may be driving the best car you can afford to buy or giving your time and money to charity.

We may be different when it comes to our values and I do not think it is logical to argue on them. The problem is wanting to have everything. If you want to have the best car and the biggest house and the luxury clothing and that Rolex watch and to travel the world, then this is a problem. Economics 101 usually starts by stating the obvious: There is a "Scarcity of Resources". It is no wonder why many people have huge credit card debts. They just want to have everything NOW and they use the money which seems to be available right away without considering the consequences.

Do not get me wrong, I am not against credit cards. I use two cards for everything which allows me to track my spending. I have never ever paid a penny of interest or late fees on them. For me credit cards are a simple method of payment not a money source.

If you know your values, then you know how to spend your money. Frugality makes that only easier.

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