Financial Reflections

I’ve had a bit of a revelation lately: I’m not as frugal as I imagined myself to be. Keeping track of my finances has helped me learn that lesson. Now I’m moving on to find better ways to control my spending, so I can grow financially.

Here are five things I’ve come up with (so far) that help me be a frugal shopper, and be happier with the things I do spend money on:

1. Find a frugal friend – The book The Millionaire Next Door mentioned that millionaires often have spouses who are even more frugal than they are. I’m blessed to have a spouse who’s frugal. But even if you are single, or are the more frugal one in your relationship, you can find a support network to help. Let’s face it, if your freinds are always begging you to join them on a shopping trips, you aren’t going to get far financially.
2. Research before you buy – I mentioned this in a post about shopping before, but I think it bears repeating. If I research an item, I’m more likely to not buy the product, or be happy with what I’ve purchased. Research helps me avoid those “impulse buys.”
3. Avoid the plastic – I’ve heard Dave Ramsey mention how people tend to spend more if they pay with plastic, and that includes debit cards. I’ve noticed that in my own life, I’ll spend less if I pay with cash, so I’ve cut back on using my debit card.
4. Plan your spending – Yes, it’s all about the budget. If you plan every penny you spend, nothing (by definition) will be a an impulse buy. I work some money into my budget every month for items I hadn’t planned on, which includes a small impulse purchase here and there. But I spend a lot less than I would have if I didn’t budget.
5. Make a value decision – Scott Adams writes the comic Dilbert, but he also has a degree in economics and an MBA. He recently wrote about how we make comparisons when we decide to spend money – albeit on a dramatically different topic. His point is still well taken. I try to think if the purchase I’m considering is the best value for my money right now. More often than not, my money stays in my pocket.

That’s all I have for now, but it sure has made an impact on how I approach shopping. I’m able to save more and enjoy what I do spend money on. What frugal shopping ideas do you have? Feel free to share in the comments below.