The Rewards of Frugality and Thrift (or, Why We Scrimp and Save)
Published on - June 29th, 2010 (by J.D. Roth) Over the past couple of weeks, more than a few GRS readers have complained about the site’s tone. These folks are afraid that Get Rich Slowly is turning into a column that’s only about frugality and self-denial, one that is neglecting the “rich” part of the blog’s title. These concerns came to the fore in last week’s article about remembering to appreciate what I already have.
In that discussion, ObjectiveGeek wrote:
I want the best possible life for myself and my family. Maybe that means a dream house, or maybe that means the freedom to travel any and everywhere, but maybe that means both. I’d be proud of my dream home if I had earned the means to own it. I don’t think contentment is much of a virtue — it’s more of a guise for mediocrity.
Alex offered a similar sentiment:
I sometimes cringe when I see these kinds of articles. What is so wrong with wanting 5 bedrooms you may never use? What is sooooo bad about wanting a bigger house? If you have diligently saved, and planned, and you can truly afford those nice-ities in life, why not reach for them? Why not buy them?
Here’s the thing: I agree with both ObjectiveGeek and Alex. If Get Rich Slowly has been frugality-minded lately, that’s simply an accident of scheduling. While I believe that frugality is an important part of personal finance, GRS remains dedicated to the Big Picture, to all aspects of getting rich slowly.
There’s nothing wrong with wanting more, and there’s nothing wrong with reaching for nicer things in life if you’ve diligently planned and saved. I certainly don’t mean to imply that it’s bad to choose to buy things that will make you happier. But it’s important to find the proper balance between what you want and what you can afford.
How I Spent My Money in the Past
It used to be that I bought a lot of little Stuff:
- I spent hundreds of dollars a month on books and magazines.
- I had a lot of recurring expenses, such as my monthly cable bill and magazine subscriptions.
- I bought a lot of limited-use tech gadgets, like voice recorders and expensive digital cameras.
- I bought too many clothes. When Kris and I went through my closet recently, I was saddened to see so many items still with their tags on!
There was plenty more, of course. Basically, I bought what I wanted without thinking. If a friend had a new gazingus pin or thneed, I’d be inclined to buy a new gazingus pin or thneed, too. And when my income went up, my spending always went up. This is how I succumbed to the tyranny of Stuff.
It’s this kind of spending that I encourage you to question. I’m not saying, “Stop! Don’t spend on the things that make you happy.” I’m saying, “Hold on a second. Take some time to think about the money you’re spending — make sure it aligns with your priorities and goals. Don’t just buy a bunch of Stuff.” Buy based on your goals and values, not out of habit.
How I Spend My Money Today
What do I mean by this? Let’s take a look at how I’ve spent my money over the past couple of years. Each of the things I list below were purchased consciously, with money I already had, because I knew they’d make me happy.
Here’s a gallery of my recent major purchases:
My Mini Cooper, which I coveted for years before I was able to save enough to buy it with cash. I bought a five-year-old used car, and have been very happy with it. Meanwhile, I’m slowly saving for an eventual replacement Mini.
My nice furniture, for which Kris and I saved until we could combine a coupon (yes, really) with a colossal sale. We got this stuff at 50% off regular pricing. That has to be the best coupon I’ve ever used.
My comic books. I have a monthly budget for purchasing comic books (and comic strips) in collected editions. Before I dug out of debt, my comic spending was part of the problem; now, it’s part of the solution — it’s part of what makes all these smart choices seem worth it.
My bicycle. It was a tough decision whether I could afford (and justify) $900 on a new bike last summer, but I’m glad I did. I’ve been riding this thing constantly since I returned from Alaska, and it’s helping me drop the weight. Also helping me drop weight is…
My gym. I spend a lot of money to be a part of the local Crossfit gym. But I also derive a lot of value. Since joining in April, I’ve lost fifteen pounds. By the end of the summer, I’ll be fitter (and stronger!) than I’ve been in my adult life. To me, that’s money well spent.
My travel. Most of all, I’ve been spending on travel. Kris and I hope to be able to make one big trip every two years. (Maybe every year, if we’re diligent.) This year is an exception. I used part of my book advance to go to Belize in February, and later in 2010 we’ll travel to France and Italy.
Make no mistake: I live a rich life, for which I am tremendously grateful. But this rich life is largely a result of the choices I’ve made. I worked hard to dig out of debt and get where I am today. I’m fortunate to have found work that I love and am good at, and I’m lucky to be a winner in the “lottery of birth” — and I make sacrifices on the things that don’t matter to me so that I can indulge in the things that do.
I write about thrift and frugality a lot, but it’s only because I recognize their value in helping me obtain my goals.
Conscious Spending
“I should write a post for Get Rich Slowly,” my wife told me the other day. “I could tell your readers all about how you’re not frugal.” She meant that unlike what some of you think, I’m not into self-denial. I do buy nice things for myself.
But here’s the difference between my current spending and my former profligate ways: I can afford everything I’m buying, and when I do buy, it’s a conscious decision. I’m not financing my lifestyle on debt, and I’m not buying things just to “keep up with the Joneses” or out of habit. My spending now reflects my priorities, my goals, my values.
Because I’m spending consciously and living within my means, I’m much happier than I was before. I can’t have everything I want — no $2.3 million home for me, for example — but I can have a few of the things that seem most important.
In a follow-up comment to my post last week, objectiveGeek wrote:
Of course having money for money’s sake is nearly pointless, but having money for what it represents (value, effort, innovation, hard work, success) and for what it provides (freedom, time, safety, opportunity — essentially life!) is the noblest of goals.
I think that’s correct. We’re all striving to get rich — quickly or slowly — because of what we believe money can bring to our lives. I just think it’s important to maintain balance, to remember that money and happiness aren’t always connected, and to acknowledge that the best way to achieve your financial goals is to make active, conscious choices about where and when you spend your money.
Maybe it’s time to officially add a fifteenth tenet to the Get Rich Slowly philosophy. Namely, you can have anything you want, but you can’t have everything you want.
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“I don’t think contentment is much of a virtue — it’s more of a guise for mediocrity.”
This quote from ObjectiveGeek in your article really made bugged me. What’s the sense in obtaining anything if you’re never content with it? Wouldn’t it all just be hollow consumption?
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As someone with a high household income, I use frugality to keep our ‘ongoing expenses’ low, so that we are agile if our circumstances change. That includes a house/mortgage that’s affordable (nice and big enough, but only 1X our income), healthy but not luxurious groceries, occasional dinners out but not at the extravagant places. Our everyday lifestyle comes in pretty reasonable when compared to our colleagues, and we save a good amount for retirement/kid’s college/emergencies. We still spend some of the excess income, but we do it on infrequent big purchases (furniture, travel, gifts) instead of ongoing costs because – in my head – these are less likely to make us feel trapped by our income sources. We like our jobs today, but if that jerkhead colleague is promoted to be boss, or if we decide we want to shift to a non-profit or start a business, I want to feel like that is possible. My mental accounting codes most of our monthly expenses as ‘needs’ and infrequent purchases as ‘wants’, so for me, cutting the infrequent items is a lower mental hurdle for making a career change.
I get the importance on increasing income, but I think solely focusing on that ignores the reality for many: that income isn’t going to go up every year until retirement. As GRS stresses, balance is important, and I think that is true at any income level pre-billionaire. Just ask Nic Cage…
Jenn
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@Mary #50,
I’d accept that criticism. My comment was more contextual. Often people say that we should just be content with what we have — implying that striving for something more or better isn’t worth it, or even that it is somehow wrong.
Ultimately, I think you are right. I think being content with the track our lives are on is important.
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I am rich.
I am rich because all of my needs are met. I have food that is both nutritious and flavorful. I have a home that gives me shelter from the elements and from harm, that nurtures my spirit, and that provides me with a place to welcome my family and friends. I have clothing that is comfortable, protects me from the cold (in the winter) and the sun, and fits well. I have a car that is dependable and safe and comfortable, that I can use to go where I need to go, and to transport my friends and family.
I am able to give to my church, to pay my own way on occasional evenings out, to save a (very) small amount for emergencies, and to (slowly) pay down my debt, which I incurred when I did not realize that i was already rich. Even though my income is lower than it has ever been, I am spending my money more intentionally (some would say “frugally”) than I did when I made more money.
Things are a lot different, mostly because I am older, and my perspective on what is important has changed. I am happier and more at peace now than at any prior time in my life.
This is a relatively new way to live for me, just in the past couple of years, and it is a work in progress. Every so often the old thinking rears its head, not unlike a recovering alcoholic who occasionally wants to take a drink, despite all evidence that the sober life is more “happy, joyous and free” than the drinking life.
Get Rich Slowly helps me stay focused–like going to an AA meeting helps me stay sober! Both remind me of my goals, my current happiness, and refocus me on the many good things about my changed life, instead of my focusing on one or two things about the old way that I think were more fun.
I think that frugality is more about attitude than anything else. The word has a bad rap. Maybe “intentionality” would be a better way to think about it.
Thanks to all who post here! And especially to Mr. GRS himself.
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Man, we have 5 bedrooms we never use (actually 4 bedrooms and a study/nursery). It was an accident… we thought we would use them, that we each needed our own office and we’d have kids to fill the rest. Turns out we can’t bear to be apart for long, so only one study gets used at a time. But selling and buying something smaller seems like a huge hassle and expense (especially since we don’t know how long we’ll be staying at our jobs), and we do love lots of parts of the house. (Though we do not love the HOA.)
I guess this is a confession. Forgive me web community, for I have sinned. I thought we needed all of the house we could afford but we did not. If we move and buy again we will stick to 3-4 bedrooms and <2200 sq ft.
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@Mary #50 – I agree and 2nd Mary’s comment. Buying things because one is not content is like chasing the wind.
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This blog is full of ideas and insights. Some may be right for you, some may not. If some of the articles are about frugality, and you’re so rich that you don’t want to be frugal, ignore those articles. There are some ideas here that I will never use, but I’m not going to send a comment complaining about it. Take what you like, and leave the rest alone. Sheesh.
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I was sorting through my photos on Flickr yesterday, and deleting a bunch of old stuff that no longer seems important to me. I found I had a *lot* of pictures of just “stuff” — things I’d purchased years ago that I was proud of at the time. Like J.D., I had photos of cars, bicycles, bookshelves, and furniture. Also electronics. I found, going back through these pictures, that I don’t actually own almost any of these things anymore — they’ve long since lost their importance in my life, to be replaced with newer versions of themselves, or simply forgotten and left behind.
I found myself thinking, “is this a picture I’ll ever want to show anyone? Am I going to want to use it to illustrate a story? Am I going to want to say to someone ‘oh, this is that iBook I used to own.’?” I found myself thinking that no, I won’t want to share these things with anyone, because they have no important memories associated with them. They’re just things. Further, since Flickr keeps a count of how many views each photo gets, I could see that these things had been online for often over five years, with not but one or two (or sometimes not even one) people ever looking at them.
I deleted nearly all of these photos. I kept a lot of photos of people and vacations — photos with stories attached to them, not photos of things I owned. That might be an interesting criteria to use when making a purchase: If I buy this, five years from now will I have any good stories to tell about it? Will I want to show photos of it to people? If not, is it really worth the money?
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Very interesting post, it is much more rewarding to save up ones money for one or two big purchase items (i.e. vacation, car, house, etc.), rather than thoughtlessly spending on “habit” purchases that add up over time. Not only will you enjoy your purchases more, you will know that you can afford them.
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As a non-objective Geek, I must say I agree with the objective one – I want to be rich for a reason. I’m pretty competitive and I like nice things. I’m probably an awful person, but being able to afford having slightly nicer things than the neighbors without working… ahhhhh so nice.
. For now I’ll have to be competitively frugal while finding ways to enjoy myself.
But I’ve enjoyed the frugality posts – they make me feel like I’m missing out on less. This latest post makes me want to buy a tire pump for my poor old bicycle and a new car
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It reminds me of the “I can have it all!” line for women in the 70s. Nowadays, it’s “I can have it all, just not all at the same time.”
Balance, choices, tradeoffs, priorities, etc. Making choices is hard and it’s not fun to not get everything you want. Just ask my kids!
My dreams, goals, hobbies, and interests are unlikely to be the same as yours, so no judgment here! It’s the thoughtfulness of the spending that counts, not the actual items purchased.
I am uncomfortable with the comment JD quoted from ObjectiveGeek:
“Of course having money for money’s sake is nearly pointless, but having money for what it represents (value, effort, innovation, hard work, success) and for what it provides (freedom, time, safety, opportunity — essentially life!) is the noblest of goals.”
I believe that the most noble kinds of hard work provide little in the way of money while many ways of making money have little nobility to them*. Also, most displays of money are also not particularly noble. I’m not sure making one’s self free and safe is particularly noble either, although it is practical and empowering.
* I was going to put examples in there about more- and less- noble professions, but didn’t want to get into a debate about the nobility of various professions. “But I’m a GOOD derivatives trader! But I know some really evil social workers!”
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I think a lot of perspective of a post can be skewed by the comments. As others have pointed out many conversations turn into races to the extreme: be they frugality, green living, or (my personal favorite) an accounting of exactly how many items you own. I think those are just a reflection of how competitive people can be. It’s human nature.
I think there are two valid arguments, one about being happy with what you have and the other about always wanting more. The two items aren’t mutually exclusive. For example you can be at peace with your debt load and still do what you can to reduce it. I’ll be happier when all I have is a primary mortgage and I’ll be even happier when that is paid off. But I am also happy where I am financially NOW. There is wanting more, and then there is wanting more to the point of making today look bad by comparison.
Regarding when enough is enough, I might not agree with other people’s choices, but I believe in individual liberty. And that means letting others make their own decisions. If Jay Leno wants a hundred cars I might think it’s stupid, but Jay Leno’s job isn’t to support me and when I start making judgments on how he spends his money he can start making judgments about how I spend mine. And I’m not okay with that. So live and let live and let others have their priorities and dreams as long as it doesn’t take away from mine.
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Looks like you’re gonna have to start spending money on clothes again now that you’re dropping the weight! Great job JD
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Its a matter of making choices in life. We are bound to think in personal interests while making these decisions. As somebody pointed out that, we look for long term gain for short term gain.
But there is always something beyond gaining -Its about losing…
Sometimes… losing is also a kind of gaining. Materialistic loss can give us metal gain, many a time.
Then it all depends upon how we rate our priorities. How much is the how much?- is the real question! Frugality can’t have limits by its own-that’s why it is known as frugality!
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I definitely get what you have been saying and have no disagreement at all! I read your articles daily and guess what? They have helped me change my thinking painlessly. In today’s economy it is brilliant advice and can help people stay away from the brink of financial catastrophic failure. I have witnessed thousands of mortgage closigns in the last ten years and have winced at many of them as I watch people fritter away their financial future by purchasing items they absolutely cannot afford! Save and buy later when you have the money has been the way our parents raised us but that thinking has evaporated and we now have the backwards economy of today….thank you for a really terrific service.
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THANK YOU! I needed this post.
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This is way off today’s topic but since I’m on the path of ‘paying off the mortgage within 10 months’–the biggest reason for my frugality, and the biggest financial freedom as a reward, I’d like to know if anyone out there still think that in today’s economy it is stupid to prepay–I have a 15 year loan @5%.
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Back from this morning’s expensive (but valuable) Crossfit workout. I rode ten miles to the gym and ten miles home. At the gym, I rowed 750 meters, did 150 sit-ups, jumped rope 225 times, and then did 25 burpees. (I was supposed to do 75, but couldn’t.) Sometimes it seems crazy to pay for something I could do at home, but to be able to do this in a community with proper instruction really keeps me motivated. And the results are worth it. Again, this is a conscious choice.
Time to read through all of your comments now…
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@ts (#67)
Patience! Friday’s “ask the readers” question is on this very subject.
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I have personally loved the frugality posts lately. I think more young people are starting to think about their financial futures, especially in the midst of this recession. Many of us young 20-somethings don’t have enough experience to have big salaries quite yet, which can be a deterrent to people to even bother with saving at all. But this blog has shown me that I don’t have to wait for a bigger salary to save money and work towards future goals. Thanks to GRS for not letting me make excuses and for helping me move forward in my pursuit for a better life.
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Personally for me it comes down to
I know I can’t have everything I want, so I will have things I want the most that also has some value and provides something for me in life.
(1) buying things that make me happy instead of just having the next cool thing.
(2) understand what I actually want
(3) delayed gratification, saving for it before I buy. I will save money to spend (including giving money away) on things that make me happy .
For some people the delayed gratification means I am making myself miserable, when I actually buy something with my saved money, some might think I am spending a lot. So it is just a matter of perspective.
I have the ability and clear mind to evaluate what is important to me in life, prioritize and use money as a tool to accomplish that. To me that is far more worth that having boatload of money and “looking” for happiness. I am rich!
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I love Dink (#2)‘s comment about being “rich in time”. This has been a huge motivating factor for me lately. I’ve been able to create monetary wealth for myself, but at the expense of time, and because of this, in some ways I feel poorer. The past few months have been all about me learning to reclaim my time again. I’m looking for balance.
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Great post! Once again, it is about *mindful* spending.
Thought for future upgrade of GRS… it would be awesome if you had a “recommend” or “like” feature for comments, and could sort comments by # of recommendations. It would make it easier to go through the comments section.
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Having 5 extra bedrooms just because you can afford them (and not because you’re planning to have kids, starting a business, etc.) is the same as having a closet full of clothes you’ve never worn. Its like hoarding, but manifested in terms of wasted space instead of stuff.
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I didn’t take your post about the house as meaning “you shouldn’t want things you don’t need” at all. It resonated with me because I can still think of occasions when I thought I wanted something really really bad, but when I got it it only made me feel stupid and less happy.
Being able to tell the difference between genuinely wanting something, and merely being jealous, envious or annoyed that you don’t have the biggest, fastest, strongest or newest thing, that’s a big part of being happy, and a big part of personal finance.
When you can tell the difference, then yes, you can spend on things you genuinely want, even though they’re far from being needs. That’s what you’re saving for!
It’s just a matter of realise that gettings things you don’t actually want won’t make you happier, quite the opposite. You’ll get all the stress and responsabilities linked to them without the enjoyment, and on top of that you’ll feel like a fool for not using the money on something you would have actually liked.
So, being satisfied with what you have is important, and having dreams and goals is important too. It’s all about learning to know yourself, really.
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Great Financial Balance!!!
Balance is definitely the key, and being in debt is being out of balance!
Being to frugal so that you can become rich is out of balance too. Afterall I certain don’t want to be one of the many people you read about that live in self-denial then leave millions to their local city or their pets!
Once I get closer to the financial point you are at now, I’m looking forwards to traveling too!
Great post as usually!!!
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Great post. I think the point of being frugal and saving is to celebrate when you make the big purchases because you BOUGHT them. You didn’t finance them, you didn’t lease them, they are YOURS.
A lot of my articles are on saving so I’ve liked what you’ve been writing. Keep it up!
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I think the biggest problem with any type of lifestyle blog, which this is, is that so many aspects of lifestyles are completely subjective.
You just can’t win. To many people your comic book collection is seen about as wasteful as a gas guzzling SUV or a 5 bedroom house. At the end of the day though, and I really truly believe this is a core of your site, it doesn’t matter what OTHER people think.
Your site is here to show most people do not get rich overnight or by accident. Becoming financially rich is a conscious decision enforced by daily habits. Those daily habits are numerous and varied which make it even more possible for anyone to subscribe to their own system and succeed. The only true tenet that applies universally is spend less than you earn and put the difference away towards “richdom”. What you spend on, though, doesn’t matter in the overall picture as long as you’re abiding by that simple rule.
In the end, every single “thing” we own in our lives is wasteful. The only thing that comes with us when we hit the dirt or fire is an outfit. Some of it is just more justifiable to our personal set of values than others. Notice though, it’s a “personal” set of values.
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“My spending now reflects my priorities, my goals, my values.”
Love this. So much.
It sums our lifestyle up so perfectly – we I own a $1,500 camera ‘for fun’ and yet we drive older cars. Why the hubs and I both have iphones yet we don’t have a home line or any sort of tv connection.
We spent money where it’s important to us and don’t spend it where it isn’t important.
Love this post J.D. – and I am so excited for you for your traveling!
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@JD – Another very interesting read. Funny story about a mini-cooper. A former co-worker of mine, who is about 6’7″ tall drove a mini and looked completely ridiculous in it. “Do you find something humorous about my appearance when I am driving my automobile?” – Simpsons
@Trina #23;
I agree that is an interesting concept to explore. I’m not religious, but I always found this quote very thought provoking.
“I tell you the truth, it is hard for a rich man to enter the kingdom of heaven. Again I tell you, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God.” – Jesus
I dont think its neccesarily evil for a person to be rich while millions live in poverty, but having millions of dollars makes it all that much harder to stay humble and make a positive impact in the world.
I’ve told people that if I ever won the lottery, I would give most of the money away. This results in skeptical looks, and they have a right to be skeptical, but its the truth. I wouldnt want that much money because I wouldnt want that much responsibility.
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Another good book to read, Your Money or Your Life.
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Great post! Please do not stop the frugality posts..Love them! My definition of “rich” is about having options and the ability to pursue what matters most to me. I scrimp on a lot of things that don’t matter so I can do this. I am happier having removed myself from the game of excessive consumption and advertising telling me what I want. The choices I make may not be the most convenient all the time, but I feel happier as a less wasteful/consumptive person. @ Geek #60 – you may want to stop comparing yourself to neighbors, friends, etc. and look at what makes YOU happy. It is quite freeing!
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I quit my full-time job a few years back to be at home with my kids. This has meant a lot of frugal living for us since then. It’s also been about making choices.
The other thing: I do coupon (and teach others to do so as well!). I’d rather save in areas that are less important to me so I can spend in areas that are more meaningful. I’ve been able to effectively cut our grocery spending in half. I’ve also negotiated down our other services and we’ve been able to pay off debt, freeing up more money.
Bottom line: sometimes it’s about living frugally in one respect so you can live richly in others.
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“I don’t think contentment is much of a virtue — it’s more of a guise for mediocrity.”
I couldn’t disagree more. When, exactly, are you allowed to be content? When you have the $2.3 million house? But to the person with the $10 million house, you shouldn’t be content – that’s just a guise for mediocrity. Strive for the $10 million house!!
I refuse to drink that Kool Aid.
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Another one of those darned posts of yours that makes me mumble to myself, “Wish I’d written that!!!” Nice piece.
Agreed that one lives within one’s means and saves so that one can live comfortably and securely, and have the things one truly wants without getting into a bind.
I can’t agree with Alex, though, when he says, “What is so wrong with wanting 5 bedrooms you may never use? What is sooooo bad about wanting a bigger house?”
Nothing’s wrong with wanting a bigger house if you have the family to fill it up. But building a house with five bedrooms that you’ll never use is just plain wasteful. Our world can’t tolerate a lot more waste…it’s time for us as human beings to quit destroying everything in sight just to indulge ourselves.
And while I do agree with ObjectiveGeek when he remarks, “I’d be proud of my dream home if I had earned the means to own it,” (assuming his dream home is like mine: one that fits, not a wasteful vastness of sticks, Styrofoam, and plaster), he’s all wet when he says, “I don’t think contentment is much of a virtue — it’s more of a guise for mediocrity.”
That’s tanatamount to saying good mental health is a guise for mediocrity. If excellence means I have to be stressed and crazy, give me mediocrity any day!
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Seems to me that on a site like this, there’s always going to be that sort of tension. Some folks, who really are struggling to pay off debt or who just don’t make that much money, are here for the frugality tips.
IMO, there is something wrong with having 5 extra bedrooms that you never use. So many in this world suffer needlessly, so a few can use so much more? But that’s just me.
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Man o man . . .
I love this site.
I love it’s readers and their comments.
I really do.
Thanks, JD. And thanks to the readers too! S
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“We spent money where it’s important to us and don’t spend it where it isn’t important.”
I think we all always do this. Some people just think an iPad or a gazingus pin or 24″ chrome wheels for their cars are important. Some people haven’t really thought about what’s important to them, others think they have, but their values are shaped primarily by marketing and peer pressure.
Give anyone $1000 though, and tell them they have to spend it, they’ll spend it on whatever they think is most important, even if it’s tech gadgets and clothes instead of cars and bicycles. The prioritization is entirely arbitrary.
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What I like especially about your site and the content of articles is the down to earth and basic concept of thrift and value.
I have regular discussions about affordability, I don’t believe you can ‘afford’ something just because it is financed and you can make the payments each month.
To be able to afford something means you have the resources, ability and ready cash on hand to pay for it either immediately or in the very near future. Calculating the true cost and understanding the depth of debt is too easily ignored.
Kudos to you for clarifying the distinction between ‘affording’ and ‘making payments’.
There is a big difference. Freedom of mind has huge value.
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This is a great post, though personally I don’t subscribe to “is the noblest of goals.” At least not if you’re defining noble as “having high moral qualities” or “having or showing or indicative of high or elevated character.”
When I think of someone having noble goals, I think Greg Mortensen of Three Cups of Tea (http://www.threecupsoftea.com/), not having money for what it represents and provides.
That said, I have no problem with others choosing how to spend money differently from me. I am disinterested in fashion and makeup, it’s hardly a stretch for me to avoid spending money there — but I have a friend who loves fashion and looking just so, and for her I think that’s a reasonable place for her to spend her money.
So let’s modify that last tenet, JD — you can have anything you want, but you can’t have everything you want.
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Another great post, I really like your financial advise much more than some other famous financial advisors.
I try to be savvy with my money but there are some things I refuse to do like shop at thrift stores or go to the library. Some stuff is just too frugal. I went to goodwill once and didn’t like what I saw, I just really like shopping at department stores but I know my limits. I also like to buy e-books which are more affordable.
Anyway I save in other ways, I realized a couple of weeks ago that eating out was my money pit. BF and I were spending $400-500 on just eating out. Ridiculous.
Now we’re eating in more and saving our money. We do eat out on the weekends though. So we have the best of both worlds. I still don’t have an ipod, my bf gave me an old mp3 player but I barely use it. Its the type of thing that I would only use on vacation or on a road trip.
I think its knowing your habits and what’s important to you which you wrote in your article. Some people care to spend in some areas more than others, for me, I bought my plates from walmart for $25, but I know people who love to entertain and who like having fine china, and that’s fine.
I think its all knowing where you care to spend your money and where you don’t. I definitely don’t care about what type of dishes I have, they’re just dishes, but I don’t judge people who constantly entertain and want the really nice ones.
Anyway, great article I love it! =)
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Can we pick another example to slam on besides the 5 bedroom house?
I think we’ve probably all got ways that we hurt the environment, from not turning lights off, to having a swimming pool, using paper towels instead of cloth, buying Stuff, eating fruit that isn’t locally grown, living in what would be a desert without irrigation, or giving birth to children and on and on. I don’t think we should all have to live in a tiny empty high-rise apartment someplace with a temperate climate, lots of water, and good soil unless that level of environmentalism is what we value over anything else. Sure, my inexpensive 5 bedroom house in the middle of nowhere (in which there are about 4 rooms we rarely use and 2 that aren’t really furnished) is wasteful, but we try very hard to eliminate waste in many other aspects of our lives.
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“I don’t think contentment is much of a virtue — it’s more of a guise for mediocrity.”
I think it’s ok to strive for more than you have…but you need to understand WHY you are wanting more. If you live in poverty and want adequate, safe shelter, access to healthy food, access to good education, access to health care, I think that is completely healthy.
If you live in a 10 bedroom house and want an extra pool, or want to upgrade from the Beamer to a Jag…that is excess. That type of wanting for more will never be satisfied.
I’ve become a big fan of minimalism, because you learn how little you actually need to live a full and satisfying life. Once you learn what you need, it makes the material wants all the more superflous.
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Tyler K., loved your first comment. That’s what I’m trying to do, get down to keeping only the things that have stories attached.
On cars: I’ve driven both the modern Mini Cooper and a Prius, and neither one was as much fun as my 1986 Honda CRX. The Prius *was* more spacious – and infinitely quieter.
Re: trends on the blog: I didn’t notice any either. This is one of my first stops every day and on the rare occasions I’m not interested in the content, ya know what? I just click away.
Finally, agreed that having money is not a noble goal. It’s what you plan to do with it that counts.
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“I don’t think contentment is much of a virtue — it’s more of a guise for mediocrity.”
“…having money for what it represents (value, effort, innovation, hard work, success) and for what it provides (freedom, time, safety, opportunity — essentially life!) is the noblest of goals.”
To me, these very disturbing statements quite nicely demonstrate why Americans continue to exploit people around the world for our own gain, and why we continue to use significantly more than our share of the world’s resources. I am deeply saddened to see these attitudes put forth so blatantly in writing.
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I like that this post makes the distinction between being able to have anything, and being able to have everything. The purpose of having money is to use it for something you either care about or find useful, but that’s exactly the point: you have to save to spend. Unless you limit yourself from the things you don’t need, or even really want, then you won’t have the money to buy the things you do care about. In which case, you’re either left without them or financing your life on debt, which are both undesirable options.
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@ts You are smart to pay off the mortgage. No one should ever carry any debt if they have a choice. I don’t know how young you are, but I hope you’re balancing that with saving for retirement. The younger you are the more important it is to allocate toward long term investments. Surely once the mortgage is paid off, you’ll have plenty to put away for the future.
This hasn’t come up in the conversation, but how much of what we want (or think we need) is influenced by advertising, the media and other people? Do we buy something simply because we can, or do we try to tune into our own value system to determine what’s important for us? Frankly, my friends all drive luxury cars and live in big homes, but they are envious of us because we go to the Caribbean once a year. It’s all what you value.
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WONDERFUL ARTICLE, Since I was young my parents taught me to save…Since I began working full-time at 21, I saved the majority of my money and spent money on things that mattered to me. Yes, owning the new ultralight i5 laptop, iPad, and yes the iPhone. Fast forward 14 years later, I’m married my wife and I now drive very nice cars, but yes we make sacrifices we eat peanut butter and jelly sandwiches for lunch. I carry a flask when we go out to fancy dinners. I have so much fun with it…. I too am a big Dave Ramsey advocate. To me debt is depressing and we have made it our goal to be completely out of debt; My wife and I are 4 payments away from paying off our house, and that’s after already paying off our vacation home………Its wonderful comparing notes with people on this blog. Keep up the great work.
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Holly (comment #95),
I agree with you completely. A lot of these comments are disheartening. I found this blog a couple weeks ago and check in from time to time. I guess what I’m noticing the most is that people want to get rich simply for themselves. We’ve been a frugal family since we’ve been married. We’ve set goals and reached them way ahead of schedule. Another comment asked, “How much is enough?” Good question! Giving has been one of the most amazing benefits of being frugal. There really is no greater joy in my opinion. We are frugal and live below our means so we can help others. Contentment is a wonderful word!
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It’s tough because there has to be a balance. I don’t think that our frugal lifestyle should turn into removing all pleasure. However, too many times we want to reward ourselves for doing what should be normal (living within our means).
I think that we should first find contentment in God, family, friends and ourselves, and then once our finances are in order, try to enjoy other things (if we need to).
I just think that we place too much of a premium on perishable things!
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