Comments on: Is frugality about saving money or making you feel less guilty?

By: Personal Finance Adivce: 73 Must Read Personal Finance Posts of 2009

Personal Finance Adivce: 73 Must Read Personal Finance Posts of 2009 — Wed, 16 Dec 2009 13:29:47 +0000

[...] Is Frugality About Saving Money or Making You Fell Less Guilty? [...]

By: Sofort Kredit

Sofort Kredit — Mon, 13 Jul 2009 20:07:32 +0000

I go through buyer’s remorse sometimes, but I don’t really feel guilty about most things I buy. I try my best to be frugal with my purchases, but if I know I have the money to pay for it, then I don’t really feel that guilty at all.

By: Foraging for Mushrooms in the Woods: More on Frugality, Time, and Money

Foraging for Mushrooms in the Woods: More on Frugality, Time, and Money — Fri, 10 Jul 2009 16:32:52 +0000

[...] (in which he contends a gentlemanly race to see whose readers can save money the quickest) or his post from June in which he implies that frugality, in practice, is often derived from [...]

By: Personal Finance Hour: Episode 16 – Trent From The Simple Dollar Joins JD and Jim to Discuss Frugality and Blogging | Personal Finance Hour

Wed, 08 Jul 2009 16:30:15 +0000

[...] frugal and sacrificing their quality of life. JD shifted the topic slightly to discuss a post by Ramit Sethi and how people act frugal out of guilt. While the hosts and Trent don’t agree that they act frugal out of guilt, Trent did say that he [...]

By: Willie

Willie — Mon, 06 Jul 2009 21:53:12 +0000

I have always said, it is not how much you make, it is how much you save that will make you a rich person. I believe in the end, everyone wants to be rich, just like everyone wants to have the perfect body with a nice six pack. The process is as equally simple for both cases becoming rich and having the perfect body. The problem lies that the “prize” always seems unattainable and people will settle for the quick comforts of the quick buys and fattening desserts. The concept of being frugal is a concept of personal control and determination to become wealthy, I do not believe it has anything to do with guilt…..that is unless you feel guilty about knowing you will be poor forever.

p.s. anything more than $0.50 for a cup of coffee is a waste of your money, don’t give it away.

By: FlyingAfrican

FlyingAfrican — Wed, 01 Jul 2009 01:53:57 +0000

I disagree.

I come from a modest background, and have always been frugal. I’ve never believed in the spend now worry later philosophy. I believe in sustainability in all its forms, be it financial or environmental.

Frugality is NOT about ‘guilt’ to me. I’ve always tried to save and be green, not just buy buying ‘green’ products but by turning the lights off, unplugging cellphone chargers, switching my computer off at the wall socket, recycling everything that i can, reusing plastic bags etc.

I agree with your premise that change should not be initiated based off guilt but I disagree with you surmising that everyone is being frugal or green to save their ‘guilt’. I do it with the ‘bigger picture’ in mind… although economists will always tell you about the fundamental theorem of rational self interest. On an individual basis, ‘rational’ self-interest can become self-defeating and irrational as the current financial crises has proven.

By: Ken

Ken — Wed, 01 Jul 2009 00:32:05 +0000

Wow…so much misinformation!

1. Little changes DO make an impact. Not buying that $5 latte daily saves upwards of $150/month (7 days a week). $150 a month invested at 10% yields nearly $950,000 in 40 years. Be conservative and half that and you still gain a tremendous amount over time.

2. Being frugal on small things isn’t about getting a physchological boost…it’s about learning and following steps to ensure what you make is more than what you spend. The same habits you learn by limiting latte purchases are the same skills you use to buy a smaller home than you need, drive a less expensive car, etc.

3. The comparrison to environmentalism is equally confusing. The same principal applies…small steps over time (or over many, many people) create HUGE change/impact. There are numerous sources to calculcate personal carbon footprints…now multiply that by millions and you can see that personal change applied many times equals great results. The same holds true for building wealth…see number 2!

If this nonsense is consistent with the rest of his work, I think I may be Ramit’s worst nightmare on this blog.

By: Anthony

Anthony — Tue, 30 Jun 2009 03:43:17 +0000

I agree with a lot of the comments about finding ways to live with your current life style, however I do feel that there is a small part frugality has to play.

I can think of many people who could benefit by being a little “frugal” or maybe a better word would be “analytical” and look at things like their monthly expenses and seeing where costs can be cut. For example do you often rent movies, if so is NetFlix a cost savings. Another example is individuals who have ridiculously fast internet plans, are you really using the speed or is it more being able to claim the speed.

By: Shaun Worldwide

Shaun Worldwide — Fri, 26 Jun 2009 15:01:02 +0000

Most of my friends are paid on a 1099MISC, are a number of years behind on their Taxes, earn between $100K to $200K per year. They go with out lattes and little luxuries to then blow it all on the engagement ring “upgrade”, the latest large screen plasma or lcd tv. then they do nothing but complain about how their “situation” is the fault of the company that they work for, because their taxes are not withheld at source. Having of course made no extra payments that month!!!! Out of approximately 25 co-workers in similar work to myself, I can think of only one who has more than a months wages in reserve. I am a little different, I live very simply, put away around 50% of what I earn, the remainder goes 25% on bills and living, including a little for my mother, the other 25% I blow on traveling. BUT, it has taken me years of learning to get to this. (I am 40 years old). And yes if I want that latte or bottle of wine, I will have it

By: David

David — Fri, 26 Jun 2009 06:58:52 +0000

People who don’t get spending money on coffee must never have been to a really great coffee place. Sure, I could spend several hundred dollars on a decent espresso machine and burr grinder, then a great deal of time learning to pull a shot. Then I could buy beans at the local roaster, grind them, and make my own lattes, toddies, mochas, etc. Or, I could spend the $2.00-$3.50 to have someone make it for me. I also doubt that many people literally buy a $3 coffee every single day. I love coffee from the local shop, but even I don’t go more than 3 days a week. Figure about $3 average, that’s about $470 per year. Not even enough to buy an espresso machine and burr grinder, and then you have to add in the cost of the beans, which is ongoing, plus things like the fact that you’d be using more milk than normal. Beyond that, there’s the fact I’m not a skilled barista.

The point here (other than that I love coffee) is exactly what Ramit always says: that it’s okay to spend money on things I really love. It’s difficult to reproduce great coffee at home, so it’s worth it to me to spend money on. On the other hand, I don’t really need to eat lunch at the same 15 places around the office for $10-20 every day, so I almost always bring my lunch. I’m surprised by the inability of the commenter’s here to understand this point.