What is Frugal?

We try to balance dollars with sense.

Some financial decisions are simple.
It doesn't make sense to use coupons when they actually cost more... Buy 2 - get 1 Free doesn't help if you can only carry 1.

Maximum value of a savings

If your maximum savings potential is less than $5, then it's not worth spending much time searching for a better price. Recurring purchases or subscriptions can increase the impact of small changes, but if it's a one off thing, don't sweat the small stuff.

It's nice to have a quick estimate, but it's easy to jump to conclusions. Value may be tied to Volume.

Example: The hunt for Cheaper Gas...

Do you drive 5 miles away for gas that is 10 cents less?... If so, why? How far did you think it through?
Using the national avg fuel economy and gas prices your fuel cost might be around 12 cents per mile...

Hasty math says: 12 cents cost is greater than 10 cents savings... so... you don't do it.
...But that's not really how it works.
You're not driving 1 mile for 1 gallon of gas... you're driving 10 miles roundtrip and buying more gas. It's really a Break Even question... So the key variable is really, how much must you buy to break even? 10 miles is $1.20... so you need to buy more than 12 gallons to break even. If you're stocking up, filling cans, or have a huge tank, you might save a few bucks even after the extra drive.

Frugality requires diligent rational thinking about the actual cost or savings.

But money isn't the only factor...

Time: Do you drive farther or stand in line longer to get a better price on something? Now it's personal... what are the tradeoffs or opportunities in that time? Who is with you while you wait?

Timing: Not every hour or day is equal. If you're up early on a Saturday, it might be a pleasant drive, but not when you're late for that meeting or you're on the edge of rush hour traffic. Some options are seasonal, and some deals also only happen when the seller is in a hurry.

Relationship: I've gone out of my way to do business with people I like or trust, or when I'm nurturing a relationship. I've also paid more to avoid repeating bad experiences with a cheaper vendor.

Wear & Tear: We know miles add "wear & tear" on a vehicle leading to oil changes, tires and more. Some things are taxing or draining for people as well. It's important to consider what "saving money" takes out of you. (e.g. sitting through a 3 hour sales pitch to get free stuff)

Personal Capacity: We all have our limits, strengths, weaknesses, and loves. It's important to gage what drains or energizes you. Frugality includes be honest and resourceful in finding ways to leverage our strengths, honor and acknowledge our core values and loves, and accommodate and support our weaknesses and limits. (read... "Don't let your deal-hunting keep your introverted wife waiting hangry in a crowd... it's not worth it.")

Effort to Value: Don't sweat the small stuff. Generally, you don't find financial freedom 50 cents at a time. So don't waste an hour shopping for a better price on a $5 purchase. I hope my thought time is worth at least minimum wage. I want to focus on options that will save me way more than $15 dollars. So I'll focus my deal hunting and strategizing on things that are high cost, high volume, or frequently recurring needs. Then I hope to have enough time to find solutions that unlock access to other options or resources that might even be free, or cash positive.

Time Value of Money: Investors know that you have to consider the return on any investment in light of what you could otherwise be doing with that money in the same period of time. And money in the future is not equal to the same money today. The "savings" on a deal you find for something you won't need until next year have to be compared to the potential gain of having invested that same money during that time.

Money Value of Time: Time is the only fixed resource. One of the highest and best uses of money is to free up time. If you want to be free, be sensible about the amount of time it takes you to earn and save money. Especially when you're on a quick vacation, with loved ones, or have other costs connected to time, it makes sense to make decisions faster or spend more for faster options.

Something Borrowed: Do you need to own the thing or can you borrow it? If you need something once, or for a short time, and don't expect to need it frequently, you might be able to borrow it. The flip side of this is sharing or loaning things to others. I've borrowed tools, clothing, vehicles and even heavy equipment from neighbors and friends, and have also loaned a variety of things to others.

Yours, Mine and Ours: Own/Rent/Hire/Join: Houses, cars, boats, equipment and even clothes... Many things people assume you must or should own might be smarter to rent. Sometimes the root need can be solved with a service or membership to shared resources. It's important to consider the availability, cost per use, frequency or urgency of use, need for customization, risks, maintenance costs or ongoing expenses, and even taxes and accounting factors. You don't need a lawn mower if you can hire a lawn service.

To Buy or Not to Buy: Frugal people are comfortable choosing not to buy some things... actually, a lot of things. It's kind of easy to save money when you don't spend it.

Don't freak out... It's just money. It's been said "If you can make a problem go away by throwing money at it, it's not a very interesting problem." Money can't make you happy, but it can open options for solving problems. Ultimately, the purpose of frugality is not to squirrel away bits of money so that you can become a slightly less poor miser, but rather that your savvy financial choices lead to greater ability to erase the problems that money can solve so that you can focus your life and heart on solving the problems money can't fix, creating and enjoying the kind of blessing and freedom money can't buy.