When Bargain Babe asked me to jot down a few words about Frugality I was impressed. This girl really understands how to save money. Get other people to write your blog while you are off on vacation…what a babe!
So, here are a few ideas from an old lifetime Frugalitarian.
1. Record every cent you spend. Yes, I know it’s a PIA, but it is also a Zen-like exercise in consciousness about money. It’s easy to forget what we spent three days ago, but with a written record we can keep an actual budgetary record of every cent spent. Read your check book (credit card statement) and it will tell you what your priorities are. Like many good habits, this one gets easier with time. And, you can do it on your iPhone.
2. Read The Millionaire Next Door. You will learn that your money life is not about earning and spending. It is about accumulating assets. The only proven way to do this is to save and invest a little bit over a long period of time at reasonable rates of return.
3. Think about your financial life in terms of one hundred years or more. That’s right, think beyond your own life time. This will help you get a big picture idea about what happens if you save and invest $10 now and then calculate how it compounds at 7% over an 100 year lifetime. The result is $8,677.00 That’s just one ten dollar bill.
The power of compounding is amazing. My bet is that once you get the idea of how much wealth you can accumulate you may want to try living a bit more frugally. One iPhone invested under the same terms is worth $346,218.00. You too can become a Frugalitarian and accumulate millions.