by Debra Herring

Created on: January 28, 2008

Frugality is defined in the dictionary as the practice of economy as in the expenditure of money or the use of material resources. In these modern times of outdoing the neighbors with more costly homes and more luxurious automobiles, it can better be defined as living within one's means.

Thrift is actually a viable alternative lifestyle implemented and practiced by many families worldwide. It challenges us to simplify our lifestyles and to balance our finances. Spending less than you earn means that you can spend the difference to pay off debt, save, or invest.

This simplified lifestyle makes us ask why is it that we find ourselves compelled to fill any new space we acquire with things and any unfilled time we find with activities. It makes us consider the both the direct and indirect effects of each purchase.

Undoubtedly, this subject has attracted your attention because you desire to change your financial situation, whether voluntarily, or by necessity. There are only two ways to improve your finances, increasing income or decreasing spending - at least one of these circumstances will need to occur before change can take place.

It will be necessary to spend some time reading and researching to determine what changes you wish to make in your household. Some of these changes will be relative pain-free, others will come with some sacrifice. Remember that even small modifications save pennies, and pennies add up to dollars!

There are a number of simple changes you can start with - turn off the lights when you're not in a room and wash clothes in cold water to save energy, group your errands into one trip to save gas, pay your bills online to save stamps, carpool with coworkers instead of taking separate cars, and/or take your lunch to work instead of eating out.

It is very important that you discuss your goals regarding your finances with your family and come to an agreement as to just how much frugality you are comfortable implementing in your household. Couples should agree on a dollar amount that can be spent without conferring with each other - for example, anything over $100 must be discussed before the purchase is made.

For some households, money spent to eat out constitutes a large part of the budget. This is an ideal place to cut expenses. Eat a home more, cook from "scratch" instead of using convenience foods. Buy store or generic brands when grocery shopping, and use coupons for items that can be purchased for less with a coupon than by buying a store brand.

• 1
• 2
• Next Page >>