The Art of Frugality

I've been reading The Millionaire Next Door (another great book that I would highly recommend if you haven't read it yet).  I'm not even that far into it and I have been surprised by the facts I've learned thus far about the average millionaire in this country.  The typical portrayal of millionaires by the media is rich and lavish lifestyles with fancy houses, cars, and clothes- the best of everything.  When in reality 80% of millionaires are 1st generation rich.  Meaning they started with from nothing, learned how to work and more importantly SAVE.  How do you think they got that way in the first place?  I know this sounds really basic, but then most things I talk about are.  Think about it, if you spend everything you bring in, it is impossible to build wealth.  I have a word of warning to those who grew up in affluence.  You are in danger of not accumulating as much wealth as your parents, simply because of you have gotten used to a certain standard of living.  Take care to learn the lessons of work and frugality and you will probably surpass your parents.


So how can you become more frugal?  There are a lot of little things that you can do that make a huge difference.  Let's take utilities for a moment.  Did you know that by raising or lowering your thermostat by just 1 degree can save 4% on your heat or ac bills?  Using fans are much cheaper than running the ac.  Another great investment is to have a programmable thermostat. You can get a good one very inexpensively.  I know in Utah you can get an energy audit from Questar Gas and they will give you a bunch of energy efficient stuff for free and credit the fee back to your account.  You're not only saving energy, you're saving money.


Now let's talk about grocery bills- planning pays.  I have several friends who save big bucks simply by planning their menus around the sales of the week.  Some use coupons on top of that and save even more.  The time is definitely worth the investment.  With clothing, I try to buy things at the end of the season on clearance or at consignment/thrift stores.  I once bought a coat in the spring that would fit my older daughter the following winter for $7!  These are just a few ideas but there are many more things that you can implement to ave extra money.  Of course saving that money is just part of the picture.  You need to have a plan for that money.  Paying down debt, saving or investing are all good options.  Remember it's the little things that add up over a lifetime.  There really is an art and style to frugality.