By definition, frugality is the quality of being prudent in saving. In class we have spoken about what it means to be frugal. To better grasp the understanding of frugality, examples of celebrities that both practice and do not practice frugality were presented to us. To explore both sides of the spectrum we were presented with the cases of Tyra Banks and MC Hammer. Tyra exemplifies the definition of frugality. She is a multi millionaire but her spending habits remain humble. To this day she still collects the lotions and shampoos that are provided in hotels to minimize her expenditures. Her current net worth is about $90 million. On the contrary, however, we have MC Hammer. Known for his hit record “U can’t Touch this” but more so for his journey from a net worth of about $33 million to a debt accumulation of approximately $13 million.
The link above illustrates the differences between being frugal and being cheap, which are two concepts that are often misconstrued. Frugality is a spending habit that involves planning, research and adopting a long-term approach to spending.
Something very crucial that ties into the concept of frugality is a budget. A budget is an essential when it comes to being frugal. Having a budget allows one to take a look at their sources of income and allocate their money appropriately.
People that are frugal understand and differentiate between the things that they enjoy and the things that they do not care for that much. That coupled with their priorities are what dictates their spending. As long as it is realistic, there is nothing wrong with spending generously on a watch if it falls in line with the things one enjoys.
All in all, the above is simply to give light to expound upon the concept of frugality. In one of the first classes we took a look at a website that provides deals on new and used products. Take sometime to look at it again; that Christmas or birthday gift that you have been looking for might be there with a more affordable price tag:
Managing money is one of the most difficult things to do as a student. I feel that we should have access in class to learn different ways to invest and save our money to better set ourselves up financially once we graduate and are working members of society.
ReplyDeleteI think that frugality is the way to living today. You always think about some things that you purchased and you wished you would've save the money. In the economy today, People are just realizing the importance of saving every dollar and cutting back from buying things that aren't necessary. However, you still have a lot of people who spend their money without paying attention to their bank accounts and look crazy when they have no money at the end of the month.
ReplyDeleteI definitely agree with Jamal. Simply speaking for myself I know that saving money becomes a chore even with the budgeting exercises we practiced in this class. I find that so many little unexpected things happen that I have to cover with my already minuscule pay check, I barely get to save 10%. Frugality is a major help however. I barely shop for clothing, I use food stamps to cover my groceries and try to buy less pricey brands whenever possible. Of course I splurge every now and again because frugality with out reward is pointless.
ReplyDeleteIn total agreement with all of you brothers. Saving money can prove to be challenging and frugality is definitely an option in combating this. There are undoubtedly a lot of circumstances that occur that cause you to have to cut your saving habit. So to counteract this you must find alternative options to cover your expenses.
ReplyDeletePeople find themselves in a lot of trouble when it comes to managing their money. If you are not able to manage your own money then what make you think that you can manage the finances in a top corporation. You must plan ahead and take care of the priorities first and build your savings account in the process, also keep some funds for emergencies.
ReplyDeleteFrugality is the key to success. I personally practice frugality now. I do a great majority of my shopping online. Ebay has a lot of stuff at discounted prices and for good quality. It allows me to continue to update my items while saving my money.
ReplyDeleteI agree with all of you. It is a big task to manage one’s budget because one has to regularly reassess it, as well as their spending habits; nevertheless, it is must in obtaining financial success and independence. On a lighter note, this article has caused me to reflect on my immediate family and their inferred definitions of cheap and frugal. In retrospect, we are all frugal; it’s just that we value things differently. One particular family member tends to say that the others are not frugal because other members’ valuations of things are not alike his own. I will definitely be taking this knowledge back home to share!
ReplyDeleteFrugality is extremely different then cheapness. I thoroughly enjoyed this blogpost. It elaborated on the point Professor Sistrunk made in class. Frugal is the mastery of spending money in the most efficient manner. Wealth isn't built by making money, but by saving and spending accordingly.
ReplyDeleteSaving money has become a must for all individuals to take part in. This class along with this post has provided me with tips for managing my financial security. Not having money stored away limits a entrepreneur from taking advantage of any emerging opportunity that may surface unexpectedly.
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