The Mindset of Frugality
Frugality has been a key to my financial freedom. It has helped me create a comfortable, debt free lifestyle that provides me with peace of mind. It is a core attitude about money management and creation of wealth. You can learn how it can help provide you with similar benefits. First, let’s explore some core concepts. These will take you a long way toward understanding and establishing frugality as a way of life. Think of these concepts as a rudder on a ship. If you lose sight of the concepts, you won't be able to stay on course and you’ll fail to reach your destination. You’ll drift around, and you'll live like you’re drifting. Stay on concept, and you will be strong and in control. Here are 6 general areas of frugal living and some of the core concepts necessary to get yourself prepared for a life of frugality. These basics must become a central part of your life if you are to create wealth, save money, and provide yourself with a comfortable lifestyle for the long haul. Each heading is a link to a page with more information on that concept. I’ll share examples of how I put the concepts to work for me, and I'll also share how I went wrong by not following the concepts, so you don’t have to repeat my mistakes. - Understanding Obstacles to Financial Freedom
- You are the biggest obstacle that you will ever encounter on your path to financial freedom.
- Happiness is something that money cannot buy.
- Some people won’t change stubborn habits until they get mad enough to do so.
- Act like it and you will become it – have a “can do” spirit.
- Financial Advice from Others
- People afford what they choose to afford.
- Never let anyone tell you how to spend your money.
- Hang around smart people – they make you smarter. The opposite is also true.
- Money Management – Making and Retaining Wealth
- It is never too late to start on your road to financial independence.
- Have a money management plan with a strategy.
- Savings should be as regular as your paycheck.
- Understand when a purchase is really an investment.
- Savings has to be coupled with higher earnings – wealth accumulates much faster when you combine saving more with earning more.
- Personal Finance – Paying for You and Your Lifestyle
- Know the difference between needs and wants.
- Meet your basic needs first and foremost.
- Commit to living within your means – well within your means.
- Reduce expenses where you spend the most.
- Know the difference between cost and value – the return on investment.
- Getting out of Debt – and staying out
- You get what you deserve.
- If you don’t plan it, you won’t make it happen.
- Credit cards are only a convenience.
- Invest in you, your business and your future.
- Declare bankruptcy if you must.
- Ideas for Frugal Living
- Delay gratification.
- Debt free living.
- Live off the waste of others.
- Get help and build a team.
- Simple living is better.
- Equate nearly everything to money.
- Trade, dicker and share.
- It is okay to be different.
I will often refer to the core concepts discussed in these 6 general areas. Keep these in mind and they will help you stay on course to wealth and security. Let's take a look at our “training grounds”, where we either learned about wise money management, or we were taught bad habits.
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