One of my favorite comedians, Mitch Fatel, tells a joke about his sister having cases of ketchup stockpiled in her basement. Mr. Fatel points out how foolish that is because if times get tough, her money is tied up in ketchup. And that the wiser solution would be to stop eating foods that require ketchup.
So with that in mind, I reflect on some key frugal principles I've learned so far on my journey to frugality, the first of which is a take-off of Mr. Fatel's observation.
- Stash your cash in liquid assets (ketchup doesn't count). Lose the Costco mentality and buy what you need, when you need it. Only buy in bulk for those items that you use a lot of and can go through in two weeks, at most. The cash you're saving should go into a savings account.
- For a larger purchase, buy the best quality you can afford and then take care of what you buy and treat it as if you will never buy another one again.
- Every little bit counts. Don't set yourself up for failure by adopting an all or nothing mentality.
- Organize. The better organized your home is, the easier it is to know what you do or don't have. Plus, you're less likely to lose things that you'd then have to go out and replace. Countless times I have purchased something (everything from a bottle of cinnamon to a sheet set), only to later discover I already had that item stashed in a cupboard or buried in the back of a closet.
- Plan. Planning is a huge money saver because convenience costs. Whether that means purchasing prepared foods as a last minute dinner, or buying a last minute gift or school supplies that you could've purchased on sale or with a coupon with a bit of planning.
- Limit trips to the store or mall or, in this age, online stores. The less time you spend there, the less you're likely to spend.
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