Here’s a good joke I recently heard:
One day, a kindergarten teacher said that the word for the day was “frugal.” She explained “frugal” had to do with saving, and a frugal person is one who saves. She then asked the class to come up with a sentence for the word.
The class was stumped. They sat in silence for a few seconds until one little girl raised her hand. Instead of just a sentence, she came up with a little story:
“There once was a princess who was stuck in a tall tower. There was a spell on all of the doors, so she couldn’t get out. One day, she heard a young prince who was walking by and singing. The princess called out of the tower, ‘Frugal me! Frugal me!’ So, the prince frugaled her and they lived happily ever after.”
As Benjamin Franklin said, “Beware of little expenses. A small leak will sink a great ship.”
When it comes to savings, frugality wins the day. Which is another way to look at Action Step #3: Saving.
And although everyone has their weaknesses, impulse buying is one of the worst enemies of a savings plan.
It’s tough to stay strong, too… with a constant bombardment of special offers and deals flooding your inbox and hitting you from all sides on the Internet.
Why not place a mandatory “wait period” before making a purchase from your wish list? Wait at least 24 hours before clicking that “buy” button. Meanwhile, ask yourself some questions.
- Do you really need this item?
- Do you need it now or can it wait?
- Can you find it elsewhere for less money?
Sometimes deliberately waiting is the best defense for your savings account. You may still want to make the purchase but after the initial sense of urgency passes, you may realize it’s not the best use for your hard-earned money.
This same principle applies to your finances. Saying “no” to something now means saying “yes” to the way you want to live your life in the future.
Speaking of savings, can your current portfolio get you there? We like frugality but we also want to help you live a rich, fulfilling life with finances that make the grade. Give us a call at 513-563-PLAN (7526) or book online and we’ll show you how.
Dan Cuprill, CFP®