Finance Globe

U.S. financial and economic topics from several finance writers.
2 minutes reading time (375 words)

Being Frugal Takes the Right Mental Approach

Frugal sign - Do more with less

Being frugal is easier said than done. Even though you may be interested in saving money, no matter what it takes, if you don’t have the right mental approach you will find yourself coming up short.

Once you change your approach, it will not be long before you are realizing the benefits of living a frugal lifestyle. In fact, you may soon find that this is easier than you ever believed possible.

Getting in the right frame of mind means doing all of the following:

1. Having the strength to say no. Do you have the willpower to hold off from spending money when you know it is a bad idea?

At first, it will be a struggle to pull yourself away when you know you shouldn’t be spending money. However, the more times you do this the easier it becomes.

Tip: it may be hard to make the decision to walk away, but when you look back you will feel good about doing so.

2. Ability to differentiate necessary from unnecessary purchases. There is a big difference between “want” and “need.” You need to purchase groceries for your family. You need to pay your utility bills. You want to purchase a new big screen television. You want to go on an expensive vacation to Hawaii.

Once you are able to pinpoint the difference between “want” and “need,” it becomes easier to decide when and how to spend your money.

3. Being patient. If you are unsure of whether or not you should make a purchase, there is one thing that can help you make the right decision: patience. Don’t feel pressured to make a purchase on the spot, even if you think the item may be gone by the time you come back.

Give yourself a few hours (or longer), to think about the purchase. After you compare all the pros and cons of buying, you will then be in the right frame of mind to make an informed and confident decision.

As you can see, there is more to being frugal than saying you are not going to spend recklessly. You must get into the right frame of mind to truly achieve a high degree of success in this area of your finances.

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Tuesday, 15 June 2021

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