What is Frugal?

My own thoughts and opinions on what constitutes frugality.

Being frugal is NOT:

*Being cheap or stingy. Please don't complain about the costs to attend your grandson's wedding. That's just plain stingy to me.

*Hoarding. Don't hold on to things "just in case." If you can't use it and don't love it, donate it or give it to someone who can use it. Although the verdict is still not out on whether or not we will have more children, I have given away all my baby clothes long ago. Holding on to them for years is not a good use of resources when others can benefit from their usability right now. To me, hoarding is the fear that you won't be able to provide for yourself in the future. Let go of the fear and have faith that you will have the necessary resources when the time comes.

*Being cheap at someone else's expense, or by being dishonest. Cheating on your taxes to save a few bucks is not ok. Taking food home from a buffet is not ok. I have a memory from my early teenage years when we were driving to a family reunion and stopped at a motel for the night. There are 7 in our family and were supposed to have 2 motel rooms but my mom didn't want to pay for that so we parked in the back where the office couldn't see us. Then in the morning we all left the room a couple people at a time so no one would get suspicious. I laugh about it now, but it also makes me think about what I am teaching my children by my example. I have to admit I can work on this one.

*Paying the lowest price on everything. I think the difference between being cheap and being frugal is that cheap people care about the cost of things, and frugal people care about the value.

Being Frugal IS:

*Being creative with your resources. If I am in need of something, I don't always run out to buy what I need, I ask myself what do I have that I can make do with? Lately, I've had to get creative with gifts because there never seems to be money in the budget for that.

*Valuing people and money before "things." I know there are a lot of opinions about Suze Orman, but my favorite quote of her's is "People first, then money, then things." It's a good rule to live by. Many times I feel like people place more value on their material possessions than on their money. I am surprised to hear friends admit that they have significant credit card debt or no savings but I notice they have a beautifully decorated home or expensive car.

*Taking care of the possessions you own. Some things may cost a little upfront cash and time, but in the long run it will help you take care of your purchases. Spending money on the upkeep of our vehicle helps us put off the purchase of a new one. Building a shed to keep our tools out of the elements helps keep our "investments" rust-free and usable for many years. Buying a filing cabinet at a yard sale helps by having a place to store receipts and file coupons.

*Being generous to those in need. Being miserly with your money once again comes back to fear. Fearing that you won't have enough yourself if you help others is not frugal, in my book. Being frugal is about being a responsible person. And being responsible involves recognizing that we are all in need of something, accepting the responsibility to help those who are less fortunate than us, and knowing that what goes around comes around. And in my own opinion, giving only as much as is comfortable to you, is not acceptable. Does it hurt a little when I pay my fast offerings, or am I comfortable with the amount? In my opinion, it should hurt. But again, that's my own opinion and a subject for another day.

*Planning ahead. This can take many forms, from preparing for emergencies and saving for retirement to saving up for a purchase so you're not putting it on a credit card.

*Having adequate insurance. Seems to be self-explanatory.

*Determining your personal "opportunity cost" on purchases and activities. For me, I enjoy scrimping on basic necessities so we can afford luxuries such as cruises. Others may prefer putting out the money for their favorite brand name groceries or eating out often but then spend their vacation time enjoying their own backyard. Both are frugal.

Well, that's it! What are your thoughts on frugality? What would you add to the list?