Why be frugal???

[ericmedem]

Originally Posted by pearlieq

BTW, I hope I'm wrong, but did anyone else's spam flag go up when reading parts of this?

Yes I simply came here and typed all of this so that I could simply get you all into my multilevel marketing plan, and soon you will all be my affiliates and then, and only then I will take over the world.

Eric Medemar

[ericmedem]

I guess I am understanding a bit more about the frugal lifestyle and perhaps there are some things to be learned from it.

I had never been to this forum before and it uttlerly blew me away at the odd things people do to save money rather than just making a bit more.

Dont get me wrong I think everyones main goal in life should be happiness, if being frugal makes you happy then stay frugal. Thats awesome if you enjoy it.

Here is my way of thinking, I am sure most of you will disagree, but it is my way. I always ask my myself "self, are you willing to pay $90/hr to sit on the couch and watch judge judy", since my work time is worth $90/hr and I am either working or relaxing, taking away from one to put in the other. Putting a price on my time helps keep me doing high value activities when I do work, and when I dont then I try to do things that I would be willing to pay $90/hr for. If you could be making $15/hr working then time spent not working you are essentially paying $15/hr for. If you work at a job making $9/hr and you could be making $20 with a little effort. Then you are essentially paying $6/hr to stay where your at rather than taking another job.

I dont want to be place holder in life, a good enuffer. A person who doesnt have it bad enough to want to change, but not good enough to be really satisfied with their lives. I'm not talking just money either. Im talking more about life satisfaction. Looking back on life and saying you know, I did my absolute best and have very few regrets. I enjoyed everything God had in his world. Now if no regret living and you highest level of satisfaction in life can be gained through the frugal lifestyle then awesome. My idea of life satisfaction is time with my family being in the moment, being able to be there for all of my kids activities as he progresses through life (along with my wife), seeing the world through travel, donating money to solid organizations (the more money you make the more you can donate), driving a very comfortable and fun car because I spend 2-3 hours a day in it, the list gos on and on.

I think these are the questions that you need to ask yourself to see if you are doing all that it is to be happy. If you can be happy with your answers then you are living a no regret and happy lifestyle.

If I could be anything in the world with no possibilty of failure what that be?If your not what your answer is, and your not working towards getting to what your answer is then what are you doing?

If I could pick any spouse in the entire world, who would I pick the same one over again? Now give your own spouse a bit of slack, but on a basic level would you pick them all over again if given the chance. If you answer differently than your own then, get to work.

This is just how I think, I could be wrong but I think everybody has the abiltiy to live the life of their dreams eventually, as long as you are building towards that life, even if you never get their then awesome. If frugality is part of living your lifes dream then by all means stick with it.

Eric Medemar

[tinapbeana]

eric, i think a lot of folks here use the 'time is money' view you have spelled out, but perhaps a little bit differently than you do.

for instance, i calculate what i make per hour after taxes, insurance, etc. when i'm looking at a purchase, i ask myself if i'm willing to work X hours for that item: is it worth that much of my time? for instance, am i willing to work 3 hours for an expensive dinner? maybe not by myself, but if it involves hours of good coversation with friends and family, perhaps. what about a new pair of shoes? do i want to work 6 hours for a pair of shoes i'm going to wear for one event? no, but i'm more than happy to work 6 hours for a pair of hiking boots i'll use every weekend 9 months out of the year.

we do this with service around the house and repairs, too. DH and i can replace a leaky pipe for $25 in materials and a hour of each of our time. adding in parts and 2 hours of labor (1 for each of us), it'll still cost half of what a plumber would cost so we do the work ourselves. for yard work, chances are we can get a neighborhood kid who'll do the work for a smaller hourly rate than either of ours, so we might consider hiring that out. if it's something we actually enjoy doing, like washing a car, chances are we'll do it ourselves no matter how much 'time money' we might save having someone else do it.

[Broken Arrow]

Eric, I think you'll eventually find that you and I are alot alike.

The only thing I want to say is that, contrary to the common cliche, fortune does not favor the bold. It favors the savvy. A high risk tolerance can be just as bad as a low risk tolerance, but more importantly, human intelligence is the true correlate to success, regardless of risk tolerance.

In that, I imply nothing about you or what you are doing. I think Kenny Roger said it best when he sang:

You got to know when to hold 'em, know when to fold 'em,
Know when to walk away and know when to run.
You never count your money when you're sittin' at the table.
There'll be time enough for countin' when the dealin's done.

[tinapbeana]

Originally Posted by Broken Arrow

A high risk tolerance can be just as bad as a low risk tolerance, but more importantly, human intelligence is the true correlate to success, regardless of risk tolerance.

i would say "i wish this were true!", but i suppose this depends on your definition of success. one could argue that it takes intelligence (or at least a slightly different view point) to define success in terms other than who has the highest bank balance.

[Broken Arrow]

Originally Posted by tinapbeana

i would say "i wish this were true!", but i suppose this depends on your definition of success. one could argue that it takes intelligence (or at least a slightly different view point) to define success in terms other than who has the highest bank balance.

That assumes one beats the risk though. Beat the risk, and reap the high gains. Don't beat the risk, and you reap the high loss. However, minimizing the risk is where intelligence comes in.

Oh, and I should add that I didn't mean to imply having a high risk tolerance is a bad thing. I have a high risk tolerance as well... hence the reference about my likeness with eric. Just have to know when that will be an asset, and when that will be a liability. Hence the Kenny Roger reference.

[Broken Arrow]

Originally Posted by tinapbeana

i would say "i wish this were true!", but i suppose this depends on your definition of success. one could argue that it takes intelligence (or at least a slightly different view point) to define success in terms other than who has the highest bank balance.

Oops, I originally misread you, but if you mean that money isn't everything, I can agree with that.

[PrincessPerky]

back to the balance idea.....that friend with one leg short, she does walk, not 'right' but she does just fine...and asking her to grow her own leg would be as silly as asking me to quit being a SAHM to get a job......

[LuxLiving]

My balanced strategy:

offense=income & defense=budget/frugality

[jodi]

Very interesting post - thanks for starting this topic, Eric. I think we are all working toward the same goal here - being able to spend our time as we wish in financial comfort - but taking different avenues to get there. Eric has some valid points that obviously work well for him, but may not for other people.
I have a foot in both worlds. With a degree in Sociology/Human Services, my opportunities for financial advancement are quite limited. It is generally a poor paying field that I will not be able to rise above a certain income level in. I think a lot people are in jobs like this and feel they do not have the training, education, or guts to make a change. However, if they are happy in what they are doing, then why change anyway? Stretching the money that they have is a way to get ahead.
I also have a real estate license - strictly small potatoes, though I only do a few transactions a year, mostly for friends and family. I treat the money as a bonus to pay off student loans, primarily. Part of me wants to be like Eric - making money hand over fist in a field with unlimited potential! However, I also have two toddlers at home, and I will never get this time back with them. I know how much time I put into this business to get started, and I am not willing to do that again at this time. Maybe in the future...who knows. But even though I have the means to make more money, I chose rather to conserve what I have at this point in my life in order to spend more time at home.
Of course, there are the enviromental, "simple life" reasons for living as many of us fruggies do too...just a few more thoughts on the conversation.

[disneysteve]

Originally Posted by rob62521

Years ago we were frugal because we had to be to make ends meet. Things have gotten better. Now we are frugal so we can save up to do other things. I save a few cents here and there on groceries so I can then buy better meat or groceries. I save money and put it in a Christmas Club so we can buy a few nice things instead of a bunch of junky things. I think our priorities have changed and we appreciate what we have.

This describes us pretty well, too. We choose to be frugal, though we could afford not to be. I don't think earning more money is the answer. If you doubled my income right now, we would still maintain our frugal habits. True happiness is being satisfied with what you have, not always wanting more.

[disneysteve]

Originally Posted by ericmedem

Here is my way of thinking, I am sure most of you will disagree, but it is my way. I always ask my myself "self, are you willing to pay $90/hr to sit on the couch and watch judge judy", since my work time is worth $90/hr and I am either working or relaxing, taking away from one to put in the other. Putting a price on my time helps keep me doing high value activities when I do work, and when I dont then I try to do things that I would be willing to pay $90/hr for. If you could be making $15/hr working then time spent not working you are essentially paying $15/hr for.

The author uses a similar approach in "The Tightwad Gazette", a book I think most here have read. When doing a frugal activity, she calculates the hourly rate of savings that activity generates. If it isn't a certain level, it isn't worth doing. For example, if baking your own bread takes 2 hours but only saves you $4, is it worth it to give up that 2 hours of your time? Probably not, though everyone's answer will be different.

Personally, I earn $70/hour on the job. However, I value my free time too, so I disagre with your point that it's costing me $70 to watch tv for an hour. I don't WANT to be working during that time. I want to be relaxing with my family watching tv. Could I be working more and earning more? Sure, but that wouldn't make me nearly as happy as what I'm already doing.

[vsjhoc]

Originally Posted by disneysteve

We choose to be frugal, though we could afford not to be. I don't think earning more money is the answer. If you doubled my income right now, we would still maintain our frugal habits. True happiness is being satisfied with what you have, not always wanting more.

No matter how disciplined you are, there still is a tendency to spend up to an increased income. I think you commented in another thread or blog that when your wife went back to work, some of your frugal habits fell a bit by the wayside. Nothing at all wrong with that. It's nice to have a bit more breathing room, a bit more of the good things.

I personally am getting pretty weary of being frugal and am looking for a new job. I traded a job I hated that paid extremely well, for a job I love that pays 75% less. The tradeoff has been too extreme because my quality of life has suffered. I'm just trying to find the happy medium. You know, that balance thing.

[PrincessPerky]

Originally Posted by disneysteve

........ True happiness is being satisfied with what you have, not always wanting more.

Nice quote

[Ima saver]

Yes, I agree, that is a nice quote.

[genmed]

Why be frugal?

Well I can say I don't do it to "just get by." There are a lot of people in that situation that don't have a choice -- it's be frugal or not make it. I hope everyone gets a choice. Keeping from "going broke" Because I have a choice giving up every possible "luxury" doesn't work for me.

I can also say we don't have a huge income a year. Working every possible minute of the day to get an extra $xx/he doesn't work for me either.

My reasoning is to just enjoy life. There are things I want, and I pretty much try try to keep those to things I need. For me a need is what's really going to make me happy, not glad not please but really HAPPY. A need for me is a nice hot cup of tea in the morning. Just drinking water doesn't cut it and having Starbucks Chai Latte sorry don't see the point. Maybe your need falls somewhere else along that continuum.

Another one of my needs is to have a house that I can walk out of to a beautiful view every day... that might be a state park, water or whatever. I don't want a mansion -- not worth the hassle of cleaning and even if I had a million dollars not worth losing my privacy to hire someone to come clean it. So a house like I have now in a bit different location is my dream. I'm not there yet. I'm not wiling to give up all my time to get it.

What I am willing to do is compromise between being frugal and working extra. My answer to "earning more money" was to by back to school for both a doubling in my hourly salary and doing something I love. DH works extra on occasion to make xx/hr. We invest a little. So maybe I am just doing a little bit of the is it worth xx/hr to do it. On the other hand -- yeah I am also frugal to a certain extent. I do it for time/money/stress/and environmental reasons. When it's all said and done.. yeah DH spends an hour or two a couple of days a week extra making more money and investments bring in a little extra money (increasing income) and I spend a couple of hours a week doing things to save us money (house maintenance, shopping comparison) etc.

I think everyone has a different level of what will make them happy -- maybe it is that BMW for you and maybe for your neighbor it's time being home with the kids. I also don't think "being frugal" -- minimizing expenses and "increasing income" -- investing, etc are mutually exclusive. A different combination of those approaches just work for different people.

[cschin4]

I think the OP makes a good point. Being frugal is alot more than just saving a nickel here and there. It is a whole lifestyle which involves earning more, spending less, using your money wisely, etc. I think there are many people that could look at ways to earn more rather than just thinking of spending less.

[disneysteve]

Originally Posted by cschin4

It is a whole lifestyle which involves earning more, spending less

I don't necessarily agree about earning more. For example, many couples are frugal so that mom can stay at home and not have to be out earning. There are lifestyle issues that are not just financial. Having one parent stay home isn't the best choice as far as earning money is concerned, but if it is a priority for you, you do what you need to do to make it work.

[PRICEPLUS]

Warren Buffet is and he seems to know something about money. You can look for ways to MAKE money while finding ways to SAVE it. In terms of being successful and frugal he is my idol!

[Thrif-t]

More money doesn't always make you happier. My DH and I don't make a lot of money but we are extremely happy and proud of all we have. I have been approached many times to move up in my career but I only work PT and that is all I want to work now with 3 little ones. My Dh has also been approached but our family life is very important to us and as long as we have all we need and can live comfortably that is what is important to us. And if being frugal helps us save more and have more time with our family we are all for that too.