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This article popped up in my email this morning, and a lot of the advice reminded me of various HumbleDollar discussions: https://www.thewealthminded.com/lifestyle-and-money/10-frugal-habits-that-secretly-make-you-wealthier?lctg=64810442f2b7387f8e68c961
I didn’t actually resonate with most of them. I do #5 (automate savings) and #7 (cook at home), and I’m working on the “cancel subscriptions” (#8) thing. The rest of it, not so much.
OK, a couple of caveats. If we were in a financial spot where money was extremely tight and we had to watch every penny, I’d probably do some combination of #1 (track spending) and #2 (make a budget). After all, I do track calories to keep myself accountable, and I have calorie goals (a “budget,” if you will)—slightly different between weekdays and weekends, but I calculate success by my weekly averages. But once our financial situation loosened up a bit—I’d say in our 40s; we were pretty strapped in our 20s and 30s—I figured that if bills were paid, debt was limited, and savings goals were met, I didn’t have to fuss over extra toppings on our Friday night pizza, and so forth.
#4 on the list is “buy used,” and we did that for decades with our cars—bought late-model used Toyotas, drove them until the wheels were about to fall off, and then bought another—but our current version of that is to buy new to get the latest technology, reliability, and safety features and then drive them for a really long time. I guess we “bought used” for our first two houses; our current home, a condo, was new construction, but that wasn’t especially a “new vs used” decision but rather a home that was a good fit for our stage of life.
#3, DIY? Well, other than the aforementioned cooking, nope, not me, not gonna happen. My husband is less inept than I am, but honestly not by much.
What do you think about this list?
Thanks for the article. While I always enjoy reviewing such lists, I agree that very few resonate. Tracking every expense or making a “budget” is something to which I’ve never adhered nor understood the point of doing. Instead, I periodically check-in on the big picture to ensure that finances are optimized and in alignment with values and priorities and make adjustments as needed (which may sometimes include actions like eliminating or tweaking subscriptions). With the exception of cooking, which I find enjoyable and relaxing, I have also come to terms with the reality that DIY is not my inclination.
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I’ve practiced all of them.
#3 DIY I took to an extreme, including home construction. This began in high school (1962-3). I worked with a plasterer and then did some of the house wiring and plumbing. I acquired and used skills in carpentry and concrete (walls, decks, structures, walks, foundations, roofs, etc.). I’ve only hired a home/house painter twice in my life. Some years after the home construction project I moved to a HOA and replaced a kitchen in its entirety. G hated the original layout when she saw it and I said “I can fix this” and I did. Then two bathrooms. One down to the sub-flooring. I’ve installed tile & grout, etc. I do minor auto repairs including body work. I’m proficient in tech, so I’ve always done my own IT chores and electronic repairs. It began with vacuum tube testing/replacement and TV flyback transformer replacement. As Red Green would say “If the women don’t find you handsome they should at least find you handy.”
At one time I was an unofficial IT “go to” guy for some of the residents in a HOA. Mostly minor repairs, installing software updates and drivers, running backups, dealing with malware, purchase recommendations, etc. Then I moved on to RV repairs of all kinds, lithium battery and solar installations, added golf cart maintenance, etc. These were all “hobbies”. I admit I enjoy learning new skills and applying them. I leave things in better condition than when I found them. Note that I adhere to all codes and that means professional architects, plumbers, electricians and permits where required.
One of the reasons certain costs in retirement are higher today than they once were is because health issues have required that things I would have done only three years ago I now relegate to contractors, landscapers and handymen. However, yesterday I did perform a kitchen plumbing repair.
#4 Buy used or refurbished. I tend to avoid refurbished electronics, although I recently replaced an Android phone under warranty; the replacement was refurbished. I once purchased a used 35mm camera, and a used professional electronic flash system. For PCs I saved quite a bit over the years in my business by purchasing close-outs or via surplus. Even today, vendors run sales periodically to clear out older electronics.
#7 Learn to Cook. My mother was an excellent cook for a family of 8 and for extended family, too. Grandmother was an excellent baker. By the age of 12 I was the short order cook for Sunday morning breakfasts of pancakes, bacon, eggs and toast. My father put me in charge of the BBQ a couple of years later. I became proficient at all kinds of grilling, rotisserie chicken, baked potatoes, corn on the cob, etc. My sisters helped with the cleanup. G and I have our strengths and she is excellent with Italian. We, both being the eldest children in our families, were taught all of these and other parenting skills. I taught my children how to cook and bake, etc.
The article missed a big one.
The single best frugality measure I have ever taken has been remaining childless. Money certainly wasn’t the biggest reason for my decision — I simply had no desire to be a parent — but financial security has been a wonderful bonus to my non-reproductive life.
Each to their own, but you may come to have second thoughts when you are in your 60s, 70s or 80s. It’s quite possible to have financial security and children.
If we didn’t have four children and 11 grandchild we would have a lot more money, but for what purpose?
I turn 70 next year, which means my decision is now 50 years old. Never a single regret. The price I paid was marrying much later in life than most, because it took a long time to find a like-minded woman, but my wife and I still look at each other quite regularly and smile at how fortunate we are to be childless.
We have simply found other purposes for our lives.
I guess it works for some.
I guess I do or have done most of them to some degree, but I can’t take much credit. Most are just my family culture.
#1 & 2: When I was single–until age 37–I always knew the answer, and it was in my head. But once I married, I needed to see the household finances on paper. With two people writing checks and swiping cards, I felt uneasy until I learned our habits and goals were aligned.
#3: For years, my first thought was how to fix it myself or call in favors from a friend who could. I’m weaning myself off the habit, however. Some of my skills are rusty, and my eyesight isn’t up to par for close work. I still find plenty to do, though, and have lots more planned.
#4: Nearly-new cars are the norm for us. And, yes, drive them until they’re ugly. For other things, when we had debt, and before significant savings, we just didn’t buy.
#5: Foundational habit.
#6: Retirement was always the big one. But we also set savings goals for a car fund, furniture and other.
#7: Always. It’s better at home.
#8: Never been my habit.
#7 My wife always says that when we eat out the food better be significantly better than what she can prepare (a high bar), otherwise why pay more for sustenance?
Seven is a no-brainer. I love cooking, and it keeps the kitchen tidy. Suzie, on the other hand, so much as makes a piece of toast, and somehow every kitchen utensil we own is pressed into service.
I buy one-year-old used cars, but that’s my limit for used vehicles.
Five? Yes, I’m also a work in progress when it comes to subscriptions.
I love a bit of DIY. I even installed a whole bathroom suite during COVID because I couldn’t get a tradesman, and it was annoying me storing it in the garage.
A budget? What’s a budget?
I shop with a list and after I buy from the list, I buy the stuff I want as well.
My current car was technically used. It was a dealer loaner six months old with 6,000 miles. Otherwise I won’t buy a used car.
This one drives me nuts.😡 “Creating a budget is essential for financial success. A budget outlines your income and categorizes your expenses, allowing you to see how much money you have available for savings and investments.”
No a budget is not essential. Acting responsibly with your own finances is essential. To see how much you have available to save and invest?
That’s crazy. A budget could be set with nothing left to save. That isn’t helpful.
You save first and then determine what is left to spend and if you are not saving enough, you look at spending to determine what needs to be reduced.
You start with at least 15% being saved and adjust as actually needed which may be higher or perhaps lower based on income and essential spending which you don’t need a budget to determine.
During my accumulation phase, in addition to tax withholdings, a certain percentage of the gross from each check was invested into a taxable brokerage account and salary deferrals into my 401K plan were automatic. I used a budget to guide my spending of the REMAINDER.
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It’s not a bad list, at different times in my life I have probably used 8 out of 10 suggestions.
I never tracked daily spending with a notebook, as that seems like a sure way to drain the fun from my life.
I haven’t learned how to cook. Oh, I can keep myself alive making pasta with store bought sauce, grilling steaks and chicken, and scrambling eggs. I enjoy working in the kitchen with Chrissy, though I liken my job to that of the carpenter’s helper, who only gets to hold the dumb end of the tape measurer. Perhaps I’ll attempt opening up a cookbook when the weather changes. I’ll let you know how that turns out.
I’m the cook in our family. I keep wishing and hoping that maybe hubby will join me sometimes to make something more elaborate—he’s more of a foodie than I am, so if he wants a more involved recipe, I think he should have some skin in the game—but since I’m retired and he’s not yet, I don’t see that changing anytime soon.
Honestly, since he does the dishes, he probably wishes I’d cook less and get more takeout, but that leads to more calories than I want on the regular.
We do #9 – always shop from a list. Otherwise, lots of unwanted foods creep into our cart.
Also … maybe call it #9.A … never go food shopping on an empty stomach.
9a is a real thing.
Oh, I do grocery shop from a list, but that’s less about being frugal and more about not wanting to forget something. And I completely agree with not shopping while hungry!
I thought that was a good article, Dana. One thing I wanted to speak about was the tracking of expenses. I had never really done this for us, I did more of a guardrail type thing. I am one of those people who get frustrated if I can’t balance the checkbook to the penny, so I had taken a “good enough” approach. When Spouse retired, they wanted to track expenses on a spreadsheet. We have been doing this for 18 mos or so now and it was a good exercise, but I am thinking we don’t need to do anymore? It was interesting to see what we spend money on, but we spend within our means, so I am not seeing the point now. Chris
I think that can be a great exercise right when you retire or even the year leading up to retirement, but I agree that if you’ve done it and are now satisfied with where your money’s going, there’s no particular point in continuing. I suppose if something changes and you need to recalculate, it could be good to have that as a strategy.