Is Your Frugality Invoked to Stretch Dollars or to Stockpile the Savings?

Posted on | May 16, 2012 | 2 Comments

There are two possible outcomes of frugality. One is to stretch your dollar so that you get a lot more in purchases. The other is to stockpile cash from all of the scrimping and saving. Let me give you an example. I have $50 to spend on gifts and scour the web /ads for deals and coupons. Through my frugal efforts, I am can either A): purchase a stellar gift for $25, a gift for another person for $15, and spend the remaining “saved” $10 on toiletries I need, thus stretching that original $50 that was earmarked for one gift or B): purchase a stellar gift for $25 and deposit the extra $25 into my savings account.

                It makes sense to invoke ‘A’ in certain situations. Around the holidays, stretching your dollar opens up the opportunity to purchase more gifts for your money, which is a higher priority because of the sheer number of people to buy for (at least in my family). If you do not make enough income to meet your needs and basic wants, then stretching your dollars may be the only option there is in order to make it in-between paychecks.

But don’t make the mistake that stretching your dollars alone means you will accumulate savings in a bank account. Whatever the reason is for stretching your dollars rather than banking them, your frugal efforts will never stockpile into an account if you keep purchasing more with your money rather than banking your frugal efforts. For all the scrimping, clipping, and strategizing you do, your bank account will be stunted. For me personally, I know that cash is liquid. Other than inflation whittling away at its value, I can count on cash being there. Cash can be used for anything; however, an extra lamp or a room full of books is more difficult to liquefy when you need money. And aside from this, stockpiling cash and investing it has the potential of growing passive income in the form of interest, dividends, and capital gains. You won’t ever squeeze a penny out of that new set of sheets.  

Frugal Sinks

I enjoy stockpiling cash from my frugal efforts so much that I refer to some objects around our home as “frugal sinks”. While looking at them, I calculate the amount of frugal “savings” that went into these objects. It seems particularly painful to me when I remember the frugal efforts leading up to these particular purchases, like the time when I saved $20 on new pillows at Marshall’s that we needed for guests coming into town and then I immediately fell in love with a half-off, gorgeous dress. Heck, it even happens at the grocery store. I retrieve a $5 off $50 HEB coupon from Recyclebank and end up taking those “savings” and purchasing a tub of Blue Bell ice-cream (chocolate chip cookie dough, of course).  

There is a frugal gremlin out there that likes to eat up the cash surplus from our frugal efforts: our self. If we aren’t careful, we could be the little old lady who lives in her clearance-marked-down-from-half-price shoes. We can stockpile things, or we can stockpile cash. If we’re lucky, we’ll find a happy medium and meet both our needs and our wants at the same time.

 

Do You have a Future as the Woman Who Lived in Her Shoes, or the Man Who Lived with His Tools?

Posted on | May 14, 2012 | 6 Comments

Thirty-Five year old Carrie Bradshaw had a stunning financial realization during an episode of Sex and the City. Let me set up the context here: Carrie and Aidan’s engagement fizzled after Aidan had bought Carrie’s and the adjoining apartment in order to knock down the wall and live in wedded bliss. The breakup included a [...]

Frugal Confessions Friday – Frugal Living

Posted on | May 11, 2012 | 8 Comments

Hello Frugal Confessions Readers! Here is my frugal confession of the week: Last Saturday night we had a hot date: poker night with the family! For a little bit of gas and some wine coolers we got out of the house, spent time with each other, caught up with family, and just had fun. Big shout out [...]

Dealing with Contradicting Objectives

Posted on | May 9, 2012 | 6 Comments

Last week I had an appointment with my doctor. I was no longer feeling sick, but have had this dry cough for a month and a half now. He took an x-ray and determined that my chest is completely clear (great news!). His theory on the cough is that I have a lot of inflammation [...]

‘Why Me’ Thinking is Toxic in Finances and in Life

Posted on | May 7, 2012 | 26 Comments

I am having a trying year. It is the beginning of May, and I have managed to get sick (like can’t-get-off-the-couch-with-this-fever, throat-killing, glands-swollen, cough-scarring-my-insides sick) four times thus far. My sick leave has plunged to a dangerously sub-10 hour level after a distinct pattern of slipping into illness, being ill, regaining energy, feeling good for [...]

Frugal Confessions Friday – Frugal Living

Posted on | May 4, 2012 | 7 Comments

Happy Friday everyone! Here is my frugal confession of the week: I have this burlap tote bag I picked up for free years ago from an organic food convention. About two years ago I finally figured out its purpose in life–to hold my knitting and knitting supplies. Unfortunately, my cat Lyla LOVES to get into [...]

Frugal Mother’s Day Ideas

Posted on | May 2, 2012 | 10 Comments

Sometimes what we want to give loved ones cannot come close to what we can actually afford to give them. Because there is pressure from the media, retailers, and other people to try and express all of this emotion towards others in a financial way, we may purchase a gift that is over our budget [...]

How to Save Energy and Money with a Green Mortgage

Posted on | May 1, 2012 | No Comments

More than one fifth of all greenhouse gases emitted in the United States are derived from residential dwellings. This fact alone is enough to make most homeowners interested in finding out how they can become a part of the energy efficiency movement. However, reducing the amount of electricity and gas that you use has another, [...]

DIY Decorating Projects in Our Home

Posted on | April 30, 2012 | 14 Comments

I have taken the time to link to some great personal finance blogs that have caught my eye. But I have yet to share some of the wonderful DIY/home bloggers who bring such joy to my day and to our home through their wonderful and (oftentimes) frugal decorating ideas. My “favorites” tab is filled with [...]

Frugal Confessions Friday – Frugal Living

Posted on | April 27, 2012 | 14 Comments

Hello Frugal Confessions Readers! Here is my frugal confession of the week: There is a drink that I adore at Starbucks: the Iced Soy Chai. However, it costs a small fortune on top of the fact that my stomach does not always like the soymilk. So, this past week I purchased a carton of Chai [...]

keep looking »