5 Ways to Achieve a Frugal State of Mind

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My friends have noticed my recent cut backs on my random spending and of course they’re asking what prompted this new “way of thinking“, you know as if pigs are flying. I responded that this is a lifestyle change. After looking at October, November and December’s spending I realized that I had way too many regrets. Too many things purchased that I didn’t need, too many things purchased because I needed a lil “pick me up”,or as we like to call it “retail therapy”.

So what exactly is the Frugal State of Mind and how do we get there?

1. Maintaining Your Perspective

In my previous post I discussed this at length because it is imperative that one maintain their perspective when in pursuit of a goal. This means that if purchasing that new dress because you had a bad day at work doesn’t fit in with your goals then its a no go. What happens after we get home? We begin to ask ourselves whether or not we truly needed that new dress. Especially when we have 5 other ones just like it in our closet.

2. Understanding the difference between needs and wants

Think about it. What are your basic needs? What do you need to get by every day? I understand that it is different for everyone so I won’t get on my soapbox and preach about it but be introspective in this area. Think about all the things you’ve purchased or spent money on over the last week. Do they fit in with your goals for saving money? If not, its time to make some adjustments to your spending habits. Ask yourself, do I need this? If you’re unsure then take a couple weeks to make the decision and then revisit the purchase.

3. Curb Wasteful Spending Habits

Check yourself in this area. So many of us think that we are entitled to something when indeed we aren’t. If you can’t pay for it in cash then don’t bother, you aren’t entitled to it if you have mounting consumer debt. Debt is being a slave to someone else (credit card companies). They are constantly winning the bet that they will have you by the neck for the next 10 years. So check the sense of entitlement that would lead you to spend money you don’t have.

4. Just Do It!

Being frugal is about taking action and control over your finances. Not the other way around. Sometimes we sit there and look at our debt and we get paralyzed. It happens. We complain constantly about having emergencies pop up every month and not being able to do anything about it. Well, yes you can!

• Establish an emergency fund. A mini emergency fund for starters that covers the typical emergencies you experience. Get a second or third job to get to this goal. Nothing is impossible, even in the worst of circumstances it takes hard work and determination to get where you need to be. And sitting back and letting your finances control you isn’t taking action
• Cut up your credit cards. I didn’t say close them but cut them up. ‘Nuff said.
• Create and examine your monthly budget. Are there things you look back upon and think you should have never purchased? Great! That’s where you begin to save money. Understand that the answers lie within, and not in some book. Sure we learn from each other but if you’re truly looking for a way to get up from out under debt then the answers lie with you. Examine every category and see where you can cut back or stop spending unnecessarily.

• Get on the road to financial freedom. Intend and declare it. You’ll find that when you change your perspective, you gain more control of your situation.

5. Attitudinal Shift/Change

What are your attitudes towards money? Does it control you? Or do you control it? Last night while reading “How to Think Like a Millionaire“, I came across this passage:

…[money]….is an excellent servant but a cunning and powerful master. It can be seductive, drawing all one’s energy and time into it’s acquisition. Create a positive view of money. Money can be a powerful agent of good in the world.”

Have you mastered this area of your life or has it mastered you? Why? Appearances? Entitlement? What does money really mean to you? If you don’t know at the very least it should be a way to achieve ad maintain financial security. At the very least. If you’re in a state of financial turmoil then it is controlling you and perhaps it is time to examine your priorities.

Change your attitude, change your life.

Let it marinate. I had to and am going through this process myself. Money is a great and wonderful thing but only when you take control of it and understand what it means to you. Being frugal is a means to an end for me in that I am going to be a millionaire and I don’t want to wait until the ripe ole age of 65 to be one. But these are the steps I must take in order to get there. I have learned a great deal in my journey thus far and the best lesson learned is learning how to be frugal. Why? Ive learned about my spending habits, attitudes towards money, established concrete goals and made significant changes in how I handle money. All of which will help me on my way to my goal of being a millionaire. So you see, being frugal isn’t about being cheap and miserly, it is about a mindset and a lifestyle change that results in financial security. That is my ultimate goal.

What are your goals and how will you get there?

photo credit: vnysia