Frugal Living

What is it and where do I start?

By Alison Proteau

The most frequently asked question about frugal living for me has been "What is that?". My explanation is usually that frugal living is a conscious choice to spend less, save more, and basically live within one's means. Then I get asked "What does that mean?". So here we go.......

To live within ones means is essentially to exist without racking up debt. If you need credit for it then it's not within your means. That's the hard-line explanation, but since we live in a society where credit is the norm rather than the exception then this theory needs to be tamed to fit an individuals reality. The truth about frugality is that we usually make this conscious choice to spend less and save more and live within our means because we have done precisely the opposite and gotten our selves in a pit of debt, or because we have had the rug pulled out from under us by loss of income. So a life style change is made with us kicking and screaming the whole way. Another way this lifestyle is "forced" upon us is by making other lifestyle choices such as to become single income families. I use the term forced very loosely in this respect. Does it have to be this painful sounding? My resounding answer is "No!". Gather around kiddies and I'll tell you all a little tale.........

Once upon a time in the 1990's there was a respectable 2 income, no children, family that yearned for a house a car and kids eventually. Plus some cool stuff would be a bonus. So they spent with their credit cards and got car loans and a house mortgage and scraped by. Then one day the stick turned blue and they were thrown into a tailspin. The decision had been made that when children came along (bless their little hearts) that someone would stay home and raise them and create a stable home environment worthy of Martha Stewart and the Madams Brady and Cunningham. What bliss that would be. Ha! The reality of the situation is that the one that peed on the stick had just finished a term position and was getting ready for a job hunt. The house had only been bought two months earlier and the debt load was very high for our adorable couple. What on earth would they do? I'll tell you what they did. They sweated and worried and worked and yet still spent not too wisely so that no matter what they tried the debt would not come down. How foolish ! you say? You are right. But it gets better. Little over a year later, the stick turned blue again! Here were our youngish lovers with a soon to be toddler, piles of debt, and another mouth to feed on the way, and only one middle class income. The youngish mother, after many a sleepless and anxiety attack filled night, decided to take a deep breath and make some changes. And it was the best thing she ever did for her family.

Step one in her crusade to keep her little family's head above water was to make a budget for each months expenses. As long as they came out in the black she was satisfied. To ensure that they did come out on top at the end of the month she decided that tracking where their money went would be the best route for her family (step two). So, for a solid month or more she meticulously recorded every expenditure and income. Doing this made her think twice about spending even the smallest amount of money . Not only did the little family actually come out on top for a change, but they actually were more successful than the budget had foreseen. Money at the end of a month was a such a refreshing change to this person that she decided to see how far she could take her newfound talent. Her third step in taming her family's debt problem was to try to make as many cuts as she could without ruining the quality of her family's home life. It was easier than she thought it would be and at the end of the second month at her "new" lifestyle there was some extra money to put on a credit card balance. She grew dizzy with power! She, a mere stay at home mom and no financial wizard, was conquering a problem that had plagued her and her little family for far too long. The results were better than she had hoped for and light began to show at the end of a long dark debt ridden road. By taking the fork to frugality, she was on a less bumpy path..Fewer butterflies in her tummy when the bills arrived and the occasional surprise expense were less of a crisis.

Now, this story had a happy ending and is meant merely as an example at how turning your life toward frugality can be rewarding, empowering and successful for many people. No one method is perfect for everyone and we all have to find our own way. I left out the parts where they occasionally lapsed and didn't do so good at the spending freeze because I think the most important lesson we have learned from this tale is that there is hope, however slim , if you take right steps. I mention that our couple did lapse occasionally to show that to err is human...and you can always try to do better next month.