This week a short missive on the benefits of frugality.

What is it, why is it a good thing, when can it go too far and why it varies for

all of us.

My definition of frugality is this: using your resources in the most efficient way

possible to maximise your personal benefit.  If you go too far in this, you will veer

into the mistake of being a tight-wad.  If you don’t do enough of it, you could

end up without the money you need for the things you really want to do.

What are the characteristics of a frugal person?  Some personal examples serve

to show them.  The photo above shows Glenys cutting my hair.  She does a great

job, and it is free!  A win all round.  However, despite offering, Glenys won’t

let me do her hair (no trust there).  So I guess there are limits for us.

In South Australia, if I pick up an empty container, I can claim 10 cents on it.

So if I see one in our neighbourhood, I often do.  The world is a little cleaner

(I hate rubbish) and we are a little bit better off.  Glenys won’t pick them up.

but she will sometimes spot them for me.  I draw the line though at going through

a bin.

About 30 years ago I purchased a general purpose pair of cutting shears.  Whenever

I get to the end of a bottle of say, sunblock, I will cut it open and use what is left in

the bottom – often it can be quite a few more uses – it is like giving yourself a 5%

discount.

Frugal people worry about their everyday bills – they challenge their electricity and gas

suppliers for discounts, ring their lender for a better deal on their home loan, and shop

for value.  This allows them to spend more money on the things that matter to them –

that could be their home loan, their children’s education, retirement or a holiday.

So be frugal but don’t be tight.  The benefits can add up over time!

What are your frugal habits?  Where do you draw the line?  Let us know and share

the frugality around.  Cheers Steve