How to Spend Like a Frugal Millionaire
May 28th, 2009Becky and I have this down. I guess we’re Frugal Thousandaires. *snort*
I wonder, though, if being frugal can become somewhat… unhealthy? We spend freely on high quality food supplies and condiments, and high quality wooden toys for Owen. There’s no other choice but to use an expensive satellite Internet connection, and I flashblock and adblock browsing sessions to keep the bandwidth use to a minimum. But when it comes to other things, it’s almost ridiculous how little Becky and I buy. We’re the type of people who need to be punished for saving money.
Becky finds clothes at a free pile at one of our local co-cop owned shop. She makes skirts for herself. I wore my last pair of shoes for close to a year after they started leaking and letting in dirt and rocks through ruptures that had developed in the sides. Buying quality shoes in New Zealand can take your breath away when you look at the prices. Deals on good shoes are FAR more rare here than in the U.S. (I found a pair of these Vasque light hiking boots for NZ$150 at a clearance shop that’s nowhere near where we live. A once in a lifetime find at that price. I would have bought two pairs, but the shop didn’t have two pairs in my size. They’re outstanding; so comfortable. Made in China, though, of course.)
When I needed to buy a new computer, I sort of lived in denial of that situation for several months. I eventually pulled the trigger on a new machine because A) our income relies on me being able to use a computer and my old laptop was dying and B) Dell ran a sale on a very nice machine.
But what has happened when buying things like new shoes or a computer become Big Deal considerations? I wonder about the mental health aspects of frugality in part because I feel a little guilty for spending the money. I never felt that way before we decided to stop playing the game by the commonly used rule book. Maybe buying things eased the pain of having to show up to the grindhouse five days per week. But now that I don’t have the office pressure cooker to contend with, man, the calculus is very different. I think: Am I jeopardizing my family’s financial security by buying this ice cream bar? Probably not. Ok. I’ll buy it.
Or: Do I really, really need this? Maybe I should give this money away to someone else who is doing good work. I had some fun on Moon Meadow’s Amazon wishlist recently. š
Or: Maybe I should wait and buy this on sale. And then, once the thing is on sale, I talk myself out of buying it.
Anyway, what a weird ramble I’ve posted here… This topic always gets be going, though.
Via: U.S. News and World Report:
Itās the millionaires that you donāt see that you can learn from in times like these. I call them the frugal millionaires and interviewed 70 of them to uncover ways we can all be smarter with money.
Nearly 70 percent of the economy is based on consumer spending. To keep the economy going we need to keep spending but not waste money in the process. This is where the frugal millionaires come in. Theyāve been smart with their money all along and havenāt lost it all and had to remake it. These are the kind of people you want to learn from when it comes to spending your money.
Spending philosophy.
Frugal millionaires are unique thinkers when it comes to spending money: 1) they can easily delay their need for gratification when purchasing; 2) they are resourceful in getting what they want by carefully timing their consumer purchases; 3) they make living below their means painless; 4) they donāt like wasting anything (especially money); 5) their sense of āself-entitlementā is highly minimized: and 6) spending is OK with themā¦depending on what they are buying (think: appreciating vs. depreciating assets).
Research Credit: ltcolonelnemo
Kevin, what you are talking about is interesting and worth reflecting on.
my mother was born in 1927 and grew up on a dairy farm in Northland (much closer to Auckland than you). All through her life, spending money was something she took great care over, and was never ashamed to go the “cheap” way. second-hand or “seconds” (stuff with some factory flaw in it) clothes, staying in the youth hostel or salvation army hotel if she travelled overseas, etc. but she didn’t buy junk that would just break and need to be replaced. she bought good quality tools and appliances. i don’t think she ever felt guilty when she did spend money, because she was not wasteful or extravagent. and instant gratification was just not in her system. i think it is possible to get obsessed with frugality and it is not likely to make you a nicer person. i think having a clear set of priorities and personal values is what is important. your family seems to have that sorted out. so chill out, and milk that cow!
Haha.
Im still feeling not frugal enough – Ive bought two (tiny and cheap) laptops within a year. Thou at the same time Ive also recycled my old computers and sold them on the cheap to good use. Otherwise, the largest part by far of our income goes to food and free time (eating out, going swimming, to a public sauna, a gig at a club etc), and not material goods.
(Yearly income was around 10 000 last year, for 2 people)
Finding durable, fixable equipment is also a pain in the ass. Im far more comfortable paying 130 euros for military/hiking boots made here, than 60 euros for chinese hiking boots. Its just getting harder to find those quality products – many have gone out of business in the competition or outsourced their production to cheaper places.
I get a guilty feeling spending money on any stuff nowadays…Unless its local, used or fixed stuff.
My grandfolks used to have a saying that “a poor person cant afford to buy cheap” – meaning you cant go for poor quality if you are poor. The other side of this was that one should be able to fix most stuff oneself.
I think its better to feel guilty about buying stuff than to feel good about it.
I feel guilty about everything I buy now (which admittedly is increasingly not that much). Even food expenditure is niggling me.
I was in Scotland a few weekends ago and heard an interview on the radio with a lady who had lived on one pound per day for a year so that she could save up money to buy a wedding present for her brother. It was horrendous for her and she lost a lot of weight, but eventually she got used to eating oats and the most boring (but cheap) food on earth, as well as taking advantage of every dinner invitation she could get. Although she’s no longer on that regime, she still lives a much less indulgent but contented lifestyle now as I recall.