Frugality's about value, not about being cheapFor both practical and personal reasons, on some items, go ahead: SplurgeBy Gary Foreman
Dear New Frugal You,
We've been trying to seriously reduce our expenses for the last year or so. I've looked at just about every bill to see how we could make it smaller. But, it occurs to me that sometimes spending less might not be such a good idea. So my question is: Where should I be looking for savings? And where should I be a little freer with my money? Where do you look to spend less? -- Looking for Savings
Dear Looking,
You're absolutely right. It's pretty hard to cut spending on
every single purchase. In fact, it might even be bad to reduce expenses in
some areas. So let's look at some areas where I really try to save and some where I'm a little more willing to part with a buck.
I admit that there are some areas where I'm downright cheap. There are things I really hate to spend money on.
Disposables are an excellent example. With rare exceptions,
quality isn't an issue. You're going to use it once or twice and then throw it
away. So my theory is, don't dispose of any more money than necessary.
Some food items also fall into that category. There's very
little or no quality difference in instant oatmeal or various canned veggies.
So why not buy the generic and save a few cents?
Clothing for hanging around the house is also unimportant to
me. I'm not going to impress myself with designer shorts. Any old pair of
cotton gym shorts will do -- the cheaper the better. If they get torn or
stained, I don't mind replacing them.
I hate spending money on utility bills. Don't get me wrong.
I'm grateful for water, electricity and trash pickup. But it bugs me to see
lights burning in an empty room. I get no value from the extra wattage used
(and paid for).
Designer stuff is another pet peeve. Yes, sometimes a brand
name will denote good quality, but only rarely do designer clothing prices have
anything to do with quality. Typically, they're higher because the designer is
famous. The designer may be a household name, but I'd prefer to not help them
get rich. Plus, I don't want anyone to think more of me because of the clothes
I'm wearing.
On the other hand, there are some areas where I'm willing to
part with a few more dollars -- places where I think that spending a little
more makes frugal sense.
I admit to being a car guy ever since I was a little boy. I
just love them. That doesn't mean that I have to buy or lease a new car every
three years. But, it does mean that I'm willing to buy a new car, even though a
gently used car is a slightly better value. I figure I'll drive it eight years
or longer, so the extra expense isn't that great. Plus, I know exactly how the
car was driven and maintained.
Education seems like a good expense to me, whether it's college
or continuing education, formal or informal learning. Yes, you can spend too
much, but in many cases, education pays for itself. One thing that I am very
cautious about is borrowing money for education. I prefer to pay for it out of
earnings or savings.
I'm willing to spend a little more on dress or work clothing.
I don't have to wear a suit or jacket often. But good quality and tailoring
doesn't go out of style quickly (the opposite of designer clothing). So
spending a little more now is a good investment.
For most of us, work clothes are a necessity, whether that
means suits, uniforms or jeans. I'm willing to spend more to buy quality
clothes that will last longer. It saves me money in the long run.
It's the same thing for tools, especially those that I use
at work or often at home. Poor quality tools are hard to work with and tend to
break at the worst possible times. Now, that's not to say that you need to buy
top-end tools if you're a weekend DIYer. You probably don't want to buy the
cheapest tool available, but you don't need top-of-the-line, either.
And, don't think of tools in the narrowest sense. For some
of you a cell phone or computer could be essential to your work. That makes it
a tool.
One other area that that tends to open my wallet is
memories. Underneath this frugal exterior, I'm a little sentimental. Things that
remind me of good times have a special value to me, so they're worth spending a
few dollars.
Your list will be different. Just remember that ultimately
being frugal isn't about being cheap. It's about getting good value for your
money.
See related: Living a thrifty lifestyle, Tips for finding fun while staying frugal
For more than 35 years, Gary Foreman has worked to help people get the most for their money. Prior to founding The Dollar Stretcher.com, he was a financial planner and purchasing manager. Gary began The Dollar Stretcher website and newsletters in April 1996. Today the website features more than 6,000 articles on different ways to live better for less. Gary has been interviewed by The Wall Street Journal, The Nightly Business Report, USA Today, Reader's Digest and other newspapers and magazines. Gary answers a question about a budgeting or saving issue from a CreditCards.com reader each week.
Send your question to The New Frugal You.
Published: July 14, 2011
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