Frugal Living
Being frugal is knowing how to pinch your pennies without giving up the good things in life.
Frugal Living does not mean deprivation or discomfort! It means taking the steps to reduce debt, save money, and control (not stop) spending money.
Frugal living also means that you learn to get creative. Instead of buying a gift for someone, you make a photo scrapbook or a cake for them.
We live in a culture of conspicuous excess, where we are encouraged to spend, spend, spend in order to keep up with the neighbors and keep the wheels of the economy turning ever faster and faster. Yet, for many of us, the concept of "living the dream" in a fast-paced, product-driven society has become more of a nightmare of credit-card debt and "consolidation".
We should resist the pressure by becoming more frugal. This means shopping around for the best deals and not spending all of our raises or bonuses.
Resolve to Live Below Your Means - One of the seven habits most millionaires have according to the research done by Stanley and Danko, the authors of The Millionaire Next Door, is that of being frugal. Being frugal is just another word for Living Below Your Means. Living below your means is not the same thing as being cheap, it means choosing not to spend all your income.
Start by puting away a set amount each week into a Piggy Bank. Maybe it is $5 or $10, but just do it.
Perhaps best is to do it automatically - using an automatic transfer from your bank account. Put the funds aside into an account that's hard to get to so you won't be tempted to take money from it.
Fuel your mind with the latest information and tactics for investing, budgeting, building a business and investing in real estate.
When living a frugal lifestyle you are seldom bored because there is always something you can be doing to save money.
Do not buy anything without
a) knowing you can afford it
b) thinking it through first.
You should see frugality as a creative challenge, not a dismal period of deprivation. YOu can do it and you will be better off doing it.
Being frugal is the cornerstone of wealth-building.
By Thomas Stanley and William Danko, "The Millionaire Next Door"
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