Sunday, July 15

Frugal- What Is?

fru·gal [froo-guhl]
1. economical in use or expenditure; prudently saving or sparing; not wasteful: a frugal manager.

2. entailing little expense; requiring few resources; meager; scanty: a frugal meal.

Webster's Dictionary Frugal defined. That's what we'll strive for when it comes to money and credit. Expending money economically, making sure that we're getting the most bang for the buck!

Prudently saving so that we're not doing more than what we can afford while working towards our savings goals.

Not wasteful or expending money needlessly or wastefully.

A frugal manager knows how not to be wasteful, how to get the most bang for the buck, and how to pursue savings goals without impeding cash flow.

It doesn't make cents, but there are some who save more than what they should. How could this be? They put money aside while paying minimum credit card payments. The build up of the savings accounts sure looks good, but it is costing more than what it is saving. Its not a frugal manager who puts money away in savings earning 4 or 5 percent interest while paying 15-20 percent interest on credit card balances. The frugal manager would forgo the savings until the high rate credit cards where paid, perhaps making a minimum payment into their savings and a maximum payment on the credit card.

I especially like Websters definition #2. By 'being' this definition, you can become definition #1. It becomes almost easy
to be a frugal manager if you entail little expense and require few resources. With little expense and little resource requirement, your savings goals will be easily realized and obtained.

If you've read "The Millionaire Next Door", then you know that living below your means is really the answer and ultimate definition of Frugal.