Frugality

How to be frugal without feeling deprived

I just logged on to facebook and happened upon a discussion in one of the groups I belong to. Members were sharing tips on frugality, and that made me think of the 1990’s and the “voluntary simplicity” movement. Every once in a while Americans realize they spend too much and have too much stuff. Perhaps now, in this pandemic, we realize what is really important to us.

Two representatives of that movement then were Jim and Amy Dacyczyn. I subscribed to Amy’s “Tightwad Gazette” until publication ceased in 1996. Amy and Jim (who raised six children on one income) gave tips on frugal living in every issue. I actually found the 1997 Money Magazine article about them in Money Magazine. Just like Vicki Robin, Amy is finding herself the focus of attention right now, and there is even a Tightwad Gazette facebook group (fan club).

This whole FIRE movement (financial independence, retire early) is making people from decades ago current celebrities again. Amy gives interviews sometimes but is now retired. FIRE appeals to teachers like me as well. After all, teachers can retire fairly early if they’d like to. The average retirement age for teachers is 58. Regardless of someone’s occupation, it is probably not possible to retire early without a certain degree of frugality.

I cover Ben Franklin’s 13 virtues in English 11 every year, and students have to pick their favorite. Even though many appeal to me (especially silence, order, industry, sincerity, and justice), the 5th virtue (frugality) appeals to me the most. What are my frugality tips?

Transportation

Buy a reliable car and drive it forever. I currently drive a 2004 Toyota, a reliable work horse that gets me where I need to go. Cars depreciate rapidly, and it is difficult to build wealth if you buy a new car every few years. I seem to be in good company. “On average, 1 in 4 cars and trucks you pass are at least 16 years old.” In his CNBC article, Phil LeBeau points out that cars are just more reliable and age better now. There is really no reason to update cars frequently. Even safety is not such an issue. My 16-year-old Toyota has anti-lock breaks and stability control.

According to financial guru Dave Ramsey, one should not spend more than 50% of one’s annual income on things “with motors and wheels.” I think this percentage is much too high. I would feel more comfortable with 30%. My current car is worth less than 1.5% of my income.

Groceries and Eating Out

Eat (mostly) vegetarian foods and avoid processed foods. Vegetables, rice, potatoes, etc. are all cheaper than meat, dairy products , and processed foods. Eating more vegetables is also good for one’s health. Obesity is a real health issue in the U.S. and other countries.

According to the CDC, “From 1999–2000 through 2017–2018, the prevalence of obesity increased from 30.5% to 42.4%, and the prevalence of severe obesity increased from 4.7% to 9.2%.” An adult obesity rate of over 40% in adults is bad enough, but nowadays there is a higher obesity rate even for children. Almost 14 million children and adolescents are obese. Vegetables have a much lower calorie density. There are many tasty vegetarian dishes. One of my favorites is almond rice with various vegetables — delicious.

Eat out less. Eating out costs more and also affects one’s health. “Because restaurants routinely serve food with more calories than people need, dining out represents a risk factor for overweight, obesity, and other diet-related chronic diseases.” Cooking food from scratch at home allows us to control the ingredients and calories. The pandemic seems to have affected eating out since many restaurants were forced to close, but does that mean Americans cook more at home?

On one hand, Americans still eat a lot of fast food as we can tell by all the apps that allow people to order in. However, according to Beth Kowitt and Lance Lambert, consumer spending on eating out has decreased by 20 billion dollars. Based on a survey, they also found that “70% of respondents expect to cook more at home and about 80% expect to eat the same or more at home post-COVID as they did during COVID-19.”

Make your coffee at home in the morning and bring your lunch. I do this every school day. I could buy the school lunch, but teachers have to pay $3.50. Let’s just say that the food is not tempting enough to spend $70 a month on it.

Eat leftovers. I just made enough noodles and vegetables for at least three more meals. Eating left-overs also reduces stress. After a long day at work, I don’t have to cook. Many people find cooking relaxing; I don’t.

Consumer Items

Don’t buy stuff you don’t need, even if it is on sale. You do not really save money that way. I only buy new clothes when something needs to be replaced. I even considered joining a “buynothing group, a movement that started with two people and is now a global movement. While I practice many of their principles, I really didn’t want to wait a year to buy new socks. (There was a fierce debate on whether socks were essential items that could be bought in the year of “buying nothing”).

I did join a friend’s challenge, however. Wear 30 for 30 (30 items of clothing in 30 days). That was actually fun. We had to be very creative as to combining clothes to wear the same 30 clothes for a month — and we did exempt underwear from that. This was a great activity. According to Marjory van Elven, studies show that Americans only wear about 18% of their wardrobe. “82 percent of their items never saw the light of day last year.”

This did not really apply to me, but I definitely had clothes that I never wore and decided to donate them. My friend did the same.

Control your spending on gifts. Many families have strategies to keep spending down. My friends and family now follow a rule. The only gifts allowed are those you can or, drink, or read. Flowers and plants are also acceptable since they eventually whither and do not add to the clutter at home, or you can plant them in the garden and enjoy them for a long time.

If you must use credit cards, pay them off every month. I do use a credit card for convenience and miles, but pay the balance the same day it posts to my account.

Home Buying and Maintenance

I really agree with Dave Ramsey about buying an affordable home and paying it off quickly. I paid off my home in 7.5 years, which has really increased my cash flow in the last 20 years without a mortgage.

Do your own minor home maintenance. Most people can replace a washer in a leaky faucet and handle interior painting and other tasks.

Frugality And Generosity

Don’t forget to be generous. To be frugal does not mean to be stingy. Frugality refers to the wise use of resources, and sometimes that means being really generous, and it definitely does not preclude having fun in life and enjoying a multitude of experiences.

I have never denied myself or my family anything I/they really wanted, certainly not something valuable such as music lessons, sports, activities, and travel. It was/is our frugal lifestyle that has allowed to save have enough money for what we truly wanted and for anything that enriched our lives. It has also allowed us to be generous to others, which is probably the best feature of a frugal lifestyle.