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Originally Posted by soma
My tip is to be super miserly. I picked this up from my parents and am glad I did. It seems that a lot of financially savvy people are quite miserly as well.
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Originally Posted by DJ Happy
"Take care of the cents and the dollars will take care of themselves." So, SO true. Look at how much you spend on little incidentals, things that you don't think will make any difference - that coffee at Starbucks every morning on the way to work, the chocolate bar or pack of gum as you do your shopping. I'm not saying never treat yourself, but don't fall into the trap of saying something "only" costs something to justify continued and extensive treating - it costs something, and that's that. At the end of the month, you may find yourself $100 better off for it.
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This is so true. Many wealthy people are actually very careful with their money and hunt down bargains ruthlessly. That is part of how they got to be so wealthy. In the media we all hear about the celebrities and sports-stars buying 1 million dollar rings or tricked out cars, but the truth is that most of the people who worked to amass their wealth are very careful and protective of that wealth.
I too had a very frugal family upbringing. The tools that my mother gave me have served me so well in putting me on the path toward financial independence. Part of having good finances is knowing how to save money on your expenses so you can save more for the future.
I had thought of starting a parallel thread to this one on the best tips on how to save money or be frugal. I think that this is an essential part of a sound financial plan. Most of us don't have much direct control each month over what we get paid. So it makes sense (and cents) to address the other side of the equation, how much you spend each month. Sure some expenses are fixed, but others are not. A good budget, as several others in this thread have suggested, can be very insightful in helping you reduce your expenses. Once you realize that you are spending $500 a year on your cell phone and $12 a week on Starbuck's, it is much easier to make adjustments and find more money to save.
If anyone has suggestions on tips for being frugal, feel free to add them here. Or start your own thread! I have a ton of tips on living well and living below your means. It is a lifestyle for me. I'll share some of them a bit later.